- ECOP rejected the proposed mandatory profit-sharing with employees
- The employers group called the bill oppressive and confiscatory
- The proposed measure, House Bill 2625, was filed by Buhay Rep. Lito Atienza
A measure filed in the House of Representatives calling for mandatory profit-sharing with employees was opposed by the employers.
The Employers Confederation of the Philippines (ECOP) called House Bill 2625 filed by Buhay Partylist Representative Lito Atienza oppressive and confiscatory. The bill seeks to mandate all business establishments to distribute ten percent of their net profit to all their employees, regular or contractual, on an annual basis.
The bill also said that shared profit shall not affect the salary, 13th month pay and other benefits being enjoyed by the employees, as per the Manila Bulletin.
“It would sharply impair capital formation by reducing the ability of enterprises to reinvest retained earnings or net profits for expansion, growth and ultimately, the creation of jobs,” ECOP chair emeritus Donald Dee said in a position paper submitted to the House of Representatives.
The proposed bill, according to Dee, will also impair the viability of micro and small enterprises to stay in business if they are required to share their hard-earned profits to their workers.