Bill seeking to boost enterprise productivity gets House nod

FILE: Mall customers check the prices of handmade bags displayed on the lower ground floor of SM Dasmarinas in Cavite. (PNA photo by Gil Calinga)

MANILA – The House of Representatives on Monday approved on second reading a bill seeking to encourage higher levels of productivity in all industries to enable enterprises to compete globally.

Approved by a simple viva voce vote, House Bill No. 6683, or the “Enterprise Productivity Act” also seeks to promote gainful employment, improve working conditions, maintain industrial peace and harmony and promote the principle of partnership and shared responsibility between labor and management by recognizing the right of labor to its just share in the fruits of production and the right of business enterprises to reasonable returns on investments and for growth and expansion.

Baguio City Representative Mark Go, one of the principal authors of the measure, said the proposal seeks to affirm and further fortify the intentions of Republic Act No. 6971, otherwise known as the “Productivity Incentives Act of 1990”, by promoting inclusive and sustainable work productivity programs.

“As a policy of the State, the preservation of balance in the workplace is necessary to recognize both the rights of the workers and their employers: the former, to their right to a fair and just share of labor; and the latter, to their right to reasonable returns of investment vital for growth and expansion,” he said.

“This proposed measure seeks to reinforce labor productivity by providing incentives to both labor and management for undertaking productivity improvement programs and fairly sharing the gains therefrom,” he added.

The other main authors of the measure are Albay 2nd District Rep. Joey Salceda and 1-Pacman Partylist Rep. Michael Romero.

If enacted into law, HB 6683 mandates the establishment of a Productivity Incentives Committee (PIC) and the adoption of the Productivity Incentive Program in business enterprises.

Under the bill, the Productivity Incentives Committee shall be established in a business enterprise that employs 10 or more workers which shall be composed of representatives from both management and labor, whether or not such labor representatives belong to a legitimate labor organization or association, to formulate and implement productivity incentives programs and to settle issues arising from the interpretation or implementation of the program.

Meanwhile, the Productivity Incentives Program shall be based on the implemented productivity improvement program, and without prejudice to any company policy, program, contract, or collective bargaining agreement which provides higher productivity incentives.

Tax incentives shall be granted to business enterprises that adopt the Productivity Incentives Program with a special deduction from gross income equivalent to 50 percent of the total productivity incentives given to employees under the program, and to business enterprises that provide training and special studies to employees pursuant to the program prepared by the committee.

The measure, likewise, mandates that issues and grievances that may arise from the interpretation or implementation of the Productivity Incentives Program be resolved within 15 days from the receipt of a formal complaint.