By Catherine N. Pillas and Jovee Marie N. dela Cruz
A proposed law requiring companies to hire persons with disabilities (PWDs) looms as a debilitating problem for certain industries, especially business-process outsourcing (BPO) and manufacturing, according to the Employers Confederation of the Philippines (Ecop).
House Bills (HBs) 1916, 2396, 4865 and 5058, now in the House Committee on Social Services, require that a particular percentage of a firm’s work force be filled by PWDs, with stiff penalties awaiting those that will violate.
HBs 1916 and 2396 direct specific government agencies and private corporations engaged in social development to reserve 5 percent of their casual, emergency and contractual work force to the disabled.
HB 4865 requires at least 2 percent of all positions in a private corporation and government office be dedicated to PWDs if the company employs more than 1,000 workers. If the employee count is more than 100 but less than 1,000, the company is required to reserve just 1 percent to PWDs.
Incentives in terms of gross-income deduction (equivalent to a particular per-centage of wages given to PWDs) are offered to employers. In HB 5058, if private companies employ more than 100 workers, at least 1 percent of all positions must be reserved for disabled people. If the total work force is less than 100, the requirement is at least one handicapped employee must be hired. All bills, save for HB 5058, indicate stiff penalties for noncompliance, which include fines of up to P200,000, or two to six years of imprisonment. While recognizing the aim of these bills, Ecop Acting President Sergio R. Ortiz-Luis Jr. detailed the challenges the proposed law would pose on businesses.
“There are specific sectors of industry and services where such requirements would be difficult, if not impossible, to implement, which includes: BPOs, manufacturing and construction,” the businessman said in a position paper sent to PDP-Laban Rep. Jose Antonio Sy-Alvarado of Bulacan.
“While the requirement will not have direct and immediate impact on existing corporations whose positions are filled up, the brunt will be on newly established corporations and those intending to expand their business,” he added.
Ortiz-Luis Jr. reasoned that, in the case of BPOs with employees at more than 30,000, the companies would be hard-pressed to find 300 to 600 qualified PWDs.
Physical dexterity and mobility in the construction and manufacturing sectors are, likewise, considerable barriers to complying with the requirements. “We believe that imposing the requirements would not only make doing business in the Philippines more difficult but also be a disincentive to investment and business expansion,” Ortiz-Luis Jr. noted
Citing macroeconomic data, the business-man further said that, with the low formal sector labor-absorption rate, the competition with able-bodied persons for these posts is just too tough. In lieu of these reforms, the employers’ association prefers an incentive scheme to be offered to enterprises hiring PWDs on a voluntary basis. “We believe that the better approach would be to encourage private firms that employ qualified disabled persons with appropriate tax and other incentives similar to those provided under HB 4865 without the requirement of compulsory employment,” the Ecop acting head said.
Sy-Alvarado, author of HB 2396 amending the Magna Carta for Disabled Persons, said it is a policy of the state to protect and advance the right of every Filipino citizen regardless of age, race and ability, and this shall include providing sufficient means of employment.
“The Philippines is also one of the countries committed to the United Nations Convention on the Rights of Persons with Disabilities. Thus, the recognition that PWDs are an important part our society,” he said. “RA 7277 of the Magna Carta for the Disabled Persons provides for qualified disabled persons to be accepted in various departments, allocating 5 percent of the total number of employees for the persons with this disabilities. But this rather limited to public agencies.”
“It is hoped that the passage of the bill into law will provide more opportunities for PWDs Filipinos, thus providing for a better future for the and their families,” Sy-Alvarado added.
ACT Teachers Rep. Antonio Tinio said the government should address the problem of lack of employment opportunities for PWDs. “The lack of employment opportunities for PWDs in our society is a real issue. Proposed legislation to address it through affirmative action will initiate discussion and should be welcomed.”
House Committee on Labor and Employment Chairman and National Unity Party Rep. Randolph Ting of Cagayan vowed to carefully study the proposal.
“As far as the [labor] committee is concerned we have not yet received any referral [from social services committee of the lower chamber]. We will study it once we receive the proposal,” he said in a text message.