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Business stable, remain unprofitable to workforce

BAGUIO CITY (July 14) — “The volume of business in Baguio City and Benguet went up, contrary to speculations that there was a slump, but not necessarily increasing the take-home pay of the work-force.” This was the claim of a business group at a press conference today at the elegant Hotel.

Business tycoon Dennis Sy, a member of the Baguio-Benguet Chinese Chamber of Commerce from the retail trade sector, observed that business depends a lot on the purchasing power of the public. He further said that if the US dollar is low, it is good for business here because they (business) could get more imported goods and services.

However, Sy also said that the fluctuation of the peso-dollar exchange has its pros and cons, citing the many overseas Filipino workers (OFWs) whose families benefit from the high peso exchange rate to the dollar.

According to Johnny dela Cruz, treasurer of the Chamber, the volume of commodities sold last year increased as compared to the previous year.

“It is not true that the opening of the SM Pines adversely affected business in the city,” dela Cruz said. “Based on order and stacking, the volume of goods went up indicating that business is stable,” dela Cruz said.

Dela Cruz cited that the transport sector has been raking some P90 million a month in this past six months. Saying that, “this is enough to keep the local economy moving. He said this redounds to other related businesses and ultimately to the local economy.

However, according to dela Cruz, this does not necessarily mean that drivers are making money. “They make at least P1,000 daily but their take-home pay is getting thinner and thinner because they still pay “boundary” to the operators., if they do not own the unit,” he said. He also added that drivers generate the economy but it does not mean that it is profitable for them.

Safety nets vs globalization

The flooding of imported goods in the local market certainly hurts local manufacturers, but according to dela Cruz, local business only have to ask the government to employ decisive safety nets to neutralize the effects of unfair competition.

He said some business establishments in Session Road have closed shop not because of poor business but because of unfair or bad competition. Some are just transferring to better locations, but not due to economic hardships or high cost of doing business, he said.

“Since we are at it already, there must take urgent action to compete with global produce, otherwise we would end up buying their products and lose in the competition,” dela Cruz told the media.

Not for legislated wages

Like taxi and jeepney drivers, other employees and workers in other sectors may not expect an increase in wages here with the Chamber of Commerce, opposing the proposed legislated wages.

“The Philippine Chamber of Commerce is against legislated wage increases because if the costs are high, business is not competitive. Why hire expensive labor just to produce goods that could be imported?” Sy, posed the question on global competitiveness. He said business people always have the option to just go for imported goods, make a mark-up and sell rather than produce at much higher costs.

The local chamber, however, clarified that it is not against wage increases. A member said, legislated wages takes away the power to evaluate workers before they are promoted or given wage hikes from the employers.

“Management should have the say in determining who deserves an increase in wages,” Sy said.

The Kilusang Mayo Uno (KMU) has been asking for a P125 across the board legislated wage increase. The Trade Union Congress of the Philippines (TUCP) wants a lower P75. Congress has recently legislated a P35 increase.

Tax exemption pushed

To help workers, the business group supports the clamor for tax exemptions among minimum-wage earners. Dela Cruz clarified that his group pushes for an exemption not only in the monthly withholding tax, but also in the payment of the annual income tax.

“Exempting the low-income group from the monthly collection of withholding tax but not from the annual income tax is only delaying their agony,” dela Cruz reiterates. “They must be exempted from the income taxes or get an additional personal exemption,” he said. # Lyn V. Ramo for NORDIS

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