Solon seeks enactment of Workers Protection Act

A neophyte lawmaker is seeking the enactment of a Workers Protection Act that will
ensure the rights of workers are protected and their rightful benefits are afforded them in cases of
company closures or cessation of operations of establishments.
Rep. Gus . !ambunting "#
nd
$istrict% Para&a'ue (ity) said his proposal embodied in
*ouse +ill ,--. aims to protect the rights and promote the welfare of workers who ser/e as
partners in the production of wealth and income of companies.
*e said as incidence of po/erty increases in the country% so does the problem of ine'uality.
!hus% he said workers in times of economic depression should be protected.
(ompany closures and cessation of business acti/ities are ine/itable. 0arious factors
affect the business cycle and business producti/ity% hence% workers in most inopportune times of
economic recession are caught in the web of unemployment. !he loss of business is tantamount
to loss of employment% said !ambunting.
(iting data from the $epartment of 1abor and 2mployments +ureau of 1abor and
2mployment tatistics "$3124+12)% !ambunting said in #566 a total of #%#66 companies
shutdown% displacing -7%7#8 workers nationwide. 9n #56#% 6%:#7 companies closed shop%
displacing -6%;;. workers.
!hen in #56-% the lawmaker said a total of 6%:#7 commercial establishments filed <otice
of (losures affecting 6;%6,, workers.
2mployers cited downsi=ing as main reason for the retrenchment and closures while
financial losses and lack of market are factors that caused the establishments to lay off or close
shop which led to underemployment of nearly 6-%555 workers% said !ambunting.
!ambunting% a /ice chairman of the committee on trade and industry% said *+ ,--- or the
proposed Workers Protection Act of #56, aims to protect workers and their families and is an
affirmation of the tate policy of labor as a primary social economic force.
!he bill now pending at the committee on labor and employment chaired by Rep. >arlo
Ale?ei <ograles "6st $istrict% $a/ao (ity) pro/ides it is the declared policy of the tate to protect
workers from economic insecurity due to in/oluntary unemployment and promote the workers
rights in such e/entuality.
!he bill pro/ides that an employer shall not order a plant closure% mass layoff or any form
of cessation of operations until the end of a :54day period after the employer ser/es a written
notice of such closure. $uring the :54day notice period% an employer shall allow the affected
employees to use a specific amount of paid work time to seek alternati/e employment.
NR # 3535
JULY 22, 2014
9t also pro/ides that during the notice period% the affected employees or their collecti/e
bargaining representati/e may petition the 1abor Protection +oard to in/estigate possible
anomalies arising from the intended closure or cessation of operations by their employer.
Any employer who orders a closure or mass layoff or shutdown shall be liable to each
aggrie/ed employee% who faces employment loss as a result of such closure or any form of
cessation of operations% for the following@ back pay for each day of /iolation at a rate of
compensation not less than the regular rate recei/ed by such employee% including benefits and
contributionsA and mandatory se/erance pay.
!he bill pro/ides for the creation of an independent agency% the Workers Protection +oard
"WP+) to be headed by a (hairman who shall be appointed by the President of the Philippines.
!he +oard shall among others in/estigate companies and establishments that would undergo
closure or retrenchment due to dissolution% insol/ency% bankruptcy% labor4sa/ing or cost4sa/ing%
ensure payment of salaries and benefits of workers of companies under in/estigation% and
conduct 'uarterly inspection of the book of accounts and financial records of companies
registered with the ecurities and 2?change (ommission "2() to monitor their operations. "-5)
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