Solon seeks profit sharing of companies

after S&P credit rating upgrade of country

Following the higher credit rating the country got from Standard and Poors, a
lawmaker proposed that all business establishments should institutionalize profit sharing
so the economic improvement will trickle down to daily wage earners.
Rep. ose !"ito# $tienza %Party&list, 'uhay( said his proposed profit&sharing
program would be derived from the net profit made by all companies, rather than
increasing the minimum daily wage which may not be feasible at this time.
!)he proposal seeks to help our countrymen benefit from the economic
improvement by making sure it trickles down to our daily wage earners. *t might have
more far&reaching effects on laborers and workers, and would encourage them to work
harder for the successful operation of their companies,# said $tienza.
+e said while the S,P credit rating upgrade is a welcome development as far the
countrys overall economic growth is concerned, poverty still prevails among a ma-ority
of Filipinos who have yet to feel the effects of this improvement in their everyday lives.
"ast .ay, the country received its highest credit rating in history in recognition of
the reforms undertaken by the administration. S,P gave the country a fresh rating upgrade
for its long&term peso and dollar bonds. S,P raised the countrys former rating of !'''&#
to !''',# one notch above minimum investment grade.
*n +ouse 'ill ///0 or the proposed !)he Profit Sharing $ct of 123/,# $tienza
proposed that all business establishments that made a profit for a fiscal year shall annually
distribute 32 percent of their net income to all their employees, both regular and
contractual.
)he shared profit shall not affect the salary, 34
th
month pay and other benefits
presently being en-oyed by the employees according to the bill now pending at the +ouse
committee on labor and employment chaired by Rep. 5arlo $le6ei 7ograles %3
st
8istrict,
8avao 9ity(.
.oreso, the total amount given by the company through profit sharing shall be )a6
9reditable to the employees *ncome )a6 Return %*)R(.
)he bill defines profit sharing as various incentive plans introduced by business that
provide direct payments to employees which depend on the companys profitability, in
addition to salaries and bonuses. %42( rbb
NR # 3525
JULY 12, 2014