Business closures down to 8% as quarantine eased
The number of businesses that stopped operations has declined to eight percent as the government eased quarantine restrictions, the Department of Trade and Industry said......»»
Biden jumps into auto strike bandwagon
The US auto workers union extended its strike against two of Detroit’s “Big Three” on Friday, and President Joe Biden signaled his intention to join the picket line in support of the workers or, some say, in aid of his reelection. At noon on Friday, 5,600 United Auto Workers union members joined the spectacular worker walkout from the previous week by leaving 38 US parts and distribution centers owned by General Motors and Stellantis. Although the UAW has portrayed its campaign as an effort to level the playing field economically for the working class, Friday’s events also highlighted the high political stakes, as Biden’s visit occurred only one day before a tour by Republican candidate Donald Trump was scheduled. UAW President Shawn Fain stated that the next action would affect 20 states and target Stellantis and General Motors facilities, with whom negotiations had broken down. In a conference, Fain stated, “We’re not going to wait around forever for fair contracts at the Big Three.” Fain said that because of advancements in the company’s negotiations, Ford will escape the most recent strike escalation. Biden was invited by Fain to join the picket line, telling him that the best way he could help was by strengthening their movement and demonstrating to the corporations that the public supports them. By dusk, the president had revealed his scheme on X, formerly known as Twitter. Tuesday, Biden said, “I’ll travel to Michigan to join the picket line and show my support for the UAW’s men and women as they struggle for a fair share of the value they helped create.” “It’s time for a win-win deal that keeps UAW jobs paying well and American auto manufacturing thriving.” Trump, too The trip will be the US president’s most recent to the heart of the car industry in America. Alongside GM CEO Mary Barra, Ford CEO Jim Farley, and other leaders, he has attended the 2022 Detroit Auto Show and significant project unveilings. In an effort to win over working-class voters, former president Trump had planned to visit Michigan the day before Biden’s trip. Fain claimed that by bringing back a cost-of-living factor that had been discontinued in 2009, Ford had enhanced earlier ideas. Additionally, the corporation provided a better profit-sharing program, the immediate promotion of temporary workers to full-time status, and the union’s right to go on strike in protest of plant closures. Fain asserted, “We’re not done at Ford,” adding that the business was “serious about reaching a deal.” With AFP The post Biden jumps into auto strike bandwagon appeared first on Daily Tribune......»»
Largesse
It is a French word for extreme generosity. Generosity is a Christian virtue of being liberal in giving. It is a virtue from within a person that leads him to GIVE to another person SOMETHING HE HAS OR OWNS as an act of free will, without obligation, duress, or imposition from without. But Senate Bill 2002 raising wages across the board in all regions for all workers is perceived by a great number of citizens as a contrived largesse or false generosity by legislators who will be GIVING SOMETHING NOT THEIR OWN. This prevailing sentiment may be unfair but difficult to deny due to the author’s dogmatic defense of SB 2002. Employers tirelessly tried to reach out to the author and his partisans to warn them that this kind of “gift” will trigger widespread business closures and disincentivize new investments resulting in massive job losses and economic decline. Such a legislated wage adjustment undermines established processes and standards in determining the equitable determination of wage levels for each region, a tripartism function of the regional wage boards as created by law. Another persistent perception is that these legislators are misinformed, misguided, or simply don’t care a fig. Repeatedly, the employers who directly contribute to the attainment of that elusive dream of growth and total development have been trying with might and main — and a whole lot of good intentions — to convince legislators of the need to look at the bigger picture, the greater common good, and not to miss the forest for a few trees. Probably, the Comelec’s strict rule on election overspending and the difficulty of raising political contributions may have driven the reelection or promotion-seeking legislators to resort to electoral clientelism and patronage politics by filing populist bills that cost them nothing with the hope that the voters will be impressed and remember to shade their names on the ballots during election day. Unfortunately, there is unintended damage to millions of workers, namely, workers in the informal sector, fisherfolk, farmers, street vendors, market vendors, public transport drivers, and countless nameless part-time workers, who never benefit from any mandated wage increase. They will fall victim to the ensuing inflation caused by the wage adjustment. Interestingly, they far exceed the number of beneficiaries of the legislated minimum wage by a ratio of 10 to 1. All of these victims are franchised voters. The ruinous impact of this wage bill will make economic recovery a hopelessly futile exercise. The sad part is that despite the frantic effort of economic managers and businesses to compete globally after the pandemic, a legislated wage hike across the board nationwide is like hanging a dead albatross around our necks. And sadder still is the fact that even if we hope to survive the folly of this self-destructive wage adjustment, it will merely bring the country back to the bottom rank of the world economy as all of our global competitors are unhampered by a similar investment-killing legislative audacity. The ruinous impact of this wage bill will make economic recovery a hopelessly futile exercise. Maybe our honorable lawmakers could be persuaded to recognize the crippling impact of this wage bill that will irreparably harm the present and future generations of employed and new entrants to the labor market. Hopefully, employers, labor and legislators could agree to see the bigger picture, gloss over each one’s selfish and vested self-interest, and champion the common good that serves the best interests of all in the long run, especially for the country’s financial health and economic development. The voluntary withdrawal of SB 2002 by its author will be a real largesse and a most generous gift to the nation and all its workers, and we can move forward towards inclusive economic prosperity where everyone will be lifted out of poverty. The post Largesse appeared first on Daily Tribune......»»
‘Era of mass closures’: the Japan businesses without successors
Kiyoshi Hashimoto's machinery factory outside Tokyo should be buzzing with industry. Instead, it's so quiet you can hear him practicing the recorder. The 82-year-old entrepreneur founded his company nearly 40 years ago, but well past retirement age he has neither a successor nor a buyer for a business that retains loyal clients. It is a problem that Japan's government warns could affect up to a third of all small businesses in the country by 2025, as the country's population shrinks and ages. "All of this would go to waste if I were to close now," said Hashimoto, whose factory in Yachimata, east of Tokyo, is filled with workbenches, drill tables and parts cabinets. He once employed dozens of people, but now gets by with just two part-time workers after scaling back operations. The problem is so vast that Japan faces an "era of mass closures", said Shigenobu Abe of bankruptcy research firm Teikoku Databank. A 2019 government report estimated that about 1.27 million small business owners would be 70 or older by 2025 and have no successors. The trend could kill up to 6.5 million jobs and reduce the size of the Japanese economy by 22 trillion yen ($166 billion), the study warned. By 2029, the situation will worsen still, as baby boomers hit 81, the average life expectancy for Japanese men, who account for most of the presidents of these firms, according to Teikoku Databank. "We know for sure that many workers will lose their livelihoods because of this," Abe told AFP. 'A serious blow' As elsewhere, small businesses in Japan are often passed down to family or trusted employees. But the country's prolonged economic stagnation has made small businesses unattractive to young people. Firms in rural areas struggle further because of a preference for city life and a growing trend of rural depopulation. Compounding the problem is a feeling among some older Japanese that selling a family business to outsiders is shameful. Some liquidate their firms rather than seeking buyers. Japan's government has offered generous incentives to encourage sales, and the private sector has also jumped in to match investors with businesses for sale. Company BATONZ now makes more than 1,000 matches a year, up from just 80 when it opened in 2018. Still, it reaches a fraction of the people who need it, said BATONZ president Yuichi Kamise. Waves of closures will mean the loss of specialized craftsmanship, unique services and original restaurant recipes that make up Japan's social and cultural fabric, he said. "Over time, what makes Japan unique could disappear due to a lack of successors," he said. "I think it will deal a serious blow to Japanese culture and Japan's attractiveness as a tourism destination." Some feel though that the trend offers a chance to fix inefficiencies and consolidate small businesses that are barely scraping by or survive on subsidies. Hiroshi Miyaji, 50, owns Yashio Group, a logistics giant started by his grandfather, and has snapped up various businesses. "There will always be buyers for firms, with or without successors, that have unique strengths, special know-how and human resources," said Miyaji, a third-generation president. Helped by BATONZ, he recently purchased a small trucking company from 61-year-old Ayako Suzuki. 'Waiting for someone' Suzuki gave up her corporate career to help her father with the business he had started in 1975. None of the firm's three drivers wanted to take over and she was asked to join and help her father, then in his late eighties. But problems quickly piled up: the coronavirus pandemic hit, a driver left, trucks needed maintenance, and before long she was dipping into savings to stay afloat. "I wanted to keep the business going, at least while my father was alive," she told AFP. BATONZ connected her with Miyaji, who pledged to keep the firm's employees, clients and trucks. "I'm more relieved than sad," she said. "I didn't think our company had any value." The glut of affordable small businesses can be a boon for young people looking to break into a sector. Among them is 28-year-old chef Rikuo Morimoto. When the pandemic prevented him from studying in Italy, he used his savings to buy a four-decade-old diner in Tokyo and start a restaurant at a fraction of the normal cost. He kept the decor, furniture and many longstanding customers of "Andante", a beloved neighborhood restaurant in the Suginami district, while offering his own menu. "I thought I could only afford to have a food truck or a small bar," he said. Not everyone is so fortunate, and the future of Hashimoto's machinery factory remains uncertain, despite his attempts to groom three successors. "I'm just waiting for someone to come along and make use of this," he said. The post ‘Era of mass closures’: the Japan businesses without successors appeared first on Daily Tribune......»»
TUCP: Employers’ stance against wage hike ‘overkill’
The Trade Union Congress of the Philippines, whose representative in the Lower House has filed a bill proposing a P150 wage increase for workers, blasted the statement made by eight business groups last week against the wage hike, calling it an "overkill on the poor workers." “It is unfortunate that both employers and economic managers are now ganging up in an 'overkill' on the poor workers' calls to bring up measly real wages to at least be within the poverty threshold. These employers and economic managers are now fearmongering widespread closure of MSMEs and scenarios of spiking inflation should a wage increase be granted,” TUCP vice president Luis Corral said. The statement in question was signed by the Philippine Chamber of Commerce and Industry, the Employers Confederation of the Philippines, Philippine Exporters Confederation Inc., Federation of Filipino-Chinese Chambers of Commerce and Industry, IT & Business Process Association of the Philippines, Philippine Hotel Owners Association, Foreign Buyers Association of the Philippines and the United Portusers Confederation of the Philippines, Inc. They insisted that only 16 percent of the labor workforce will benefit from a wage hike, while the remaining number of Filipino workers -- all in informal labor -- will demand more "ayuda" or government’ aid, and that it will also affect many businesses, especially micro, small and medium enterprises. Corral called such statements a "scare-mongering" tactic, and urged them to join in providing the needed help for workers amid challenging economic conditions. “The call for wage increase months ago should have been a wake-up call to the economic managers to save the rapidly deteriorating situation of a majority of the working poor,” Corral said. “Contrary to the argument of resultant MSME closures, the Barangay Micro Business Enterprises and certain retail enterprises are exempt from the minimum wage law. The truth is this 'massive closure' argument is actually camouflage to benefit big employers as there is enough support available for MSMEs, including the increase in consumption that comes with wage increase,” he added. The TUCP has already filed House Bill No. 7871 or the Wage Recovery Act of 2023, which seeks a wage hike that would recover from what it said was the more than three decades of no significant wage increase since the passage of Republic Act Number 6727 or the "Wage Rationalization Act." A Senate counterpart of the measure is Senate Bill Number 2002, filed by Senate President Juan Miguel Zubiri, which TUCP backed. The group also reiterated its other proposals such as having more Kadiwa outlets that would lessen food inflation, reducing the weighted average cost of capital in electricity sources by eight percent, and returning to the original return-on-rate-base in electricity value. The TUCP also proposed a P5,000 one-time government financial aid to minimum wage workers and the instatement of the emergency cost-of-living allowance. The post TUCP: Employers’ stance against wage hike ‘overkill’ appeared first on Daily Tribune......»»
DoLE flagged over CAMP distribution
The Department of Labor and Employment has been tagged by the Commission on Audit over the distribution of their one-time financial support program dubbed as the “Covid-19 Adjustment Measures Program” or CAMP. CAMP, which was first launched during the height of the Covid-19 pandemic in March 2020, was intended to provide one-time P5,000 cash assistance to workers in the private sector displaced by business closures brought on by the health crisis. The audit agency, however, said more than P70 million funds in CAMP-Bayanihan 2 went to 14,052 beneficiaries who were reported to have also received other forms of financial assistance which, as per guidelines, should have been excluded from the list of beneficiaries. The program was funded with a P10.89-budget allocation divided into CAMP-Bayanihan 1 and CAMP-Bayanihan 2, with the latter intended as an expansion of the first distribution period. CoA, in its performance audit report of the program, reported a 100-percent progress toward its target to distribute cash aid to 2.17 million workers, and a 100-percent and 99.87-percent in its disbursement of cash assistance in CAMP-Bayanihan 1 and Bayanihan 2, respectively. The audit agency, however, said more than P70 million funds in CAMP-Bayanihan 2 went to 14,052 beneficiaries who were reported to have also received other forms of financial assistance which, as per guidelines, should have been excluded from the list of beneficiaries. These include 6,181 who have also received a Small Business Wage Subsidy or SBWS, and 33 who received both SBWS and the Social Amelioration Program or SAP. Another batch of 7,838 beneficiaries was tagged by COA as “probable ineligible beneficiaries,” with 5,260 people who have received both CAMP-Bayanihan 2 and SAP, and 2,578 people whose salaries are above P40,000. “Based on the interview, DoLE only relied on applicants’ self-declaration since there was no available and complete centralized database that would serve as a basis for determining whether an applicant already received financial assistance from other programs,” CoA said in the report. “Only the DoLE, Department of Finance, and the Social Security System were able to have a data sharing agreement on their beneficiaries,” it added. It said the existence of ineligible beneficiaries, among other things, was because of manual cross-checking of SBWS recipients and lack of awareness among some DoLE regional offices over the SBWS program. “The evaluators of the said (regional offices) only relied on the attestation of the applicant,” CoA said. Of at least 147 CAMP beneficiaries, for instance, more than 120 said they have also received aid through SAP by the Department of Labor and Employment, while 10 are reportedly part of the Pantawid Pamilyang Pilipino Program or 4Ps. The rest were beneficiaries of other programs, such as the Department of Social Welfare and Development’s Assistance to Individuals in Crisis Situation or AICS and the DoLE-AKAP for Overseas Filipino Workers, as well as the Department of Agriculture’s own SAP program and the Barangay Financial Assistance. Daily Tribune sought DoLE’s comment regarding the CoA observations but has not yet responded as of writing. The post DoLE flagged over CAMP distribution appeared first on Daily Tribune......»»
Senate to pass bill on P150 wage hike
Despite warnings from employers about business closures and consequent job losses, the Senate aims to pass in June a bill granting an across-the-board daily minimum wage hike of P150, claiming it would improve worker productivity, reduce crime and provide long-term economic benefits......»»
Estrada: Wage increase must balance needs of workers, employers
Estrada said that he is worried that legislating a P150 wage hike, as proposed by Senate President Juan Miguel Zubiri, may lead to business closures and even economic collapse......»»
BIR suspends tax rate hike on private schools
The Bureau of Internal Revenue has put on hold a tax rate hike on private schools following warnings it could lead to more business closures and loss of jobs in the education sector amid the pandemic. .....»»
Business closures down to 8% as quarantine eased
The number of businesses that stopped operations has declined to eight percent as the government eased quarantine restrictions, the Department of Trade and Industry said......»»
New restrictions: border closures extended in Argentina – economic, financial and business news
National government Stretches This saturday Borders close until 11 Next June And renewal of the temporary residence of foreigners for a period of 30 daysAt.....»»
NEDA urges Rody to put whole PH under MGCQ
The National Economic Development Authority has proposed placing the entire country under the least stringent modified general community quarantine (MGCQ) starting March 1 after the economy suffered P1.04 trillion in losses in 2020 owing to business closures and job losses triggered by COVID-19......»»
Experts, advocates push for higher health budget, econ spending
"If we don't spend enough, ordinary citizens would continue to suffer...If we don't reverse the business closures, how could we generate jobs? The government would then have to provide aid, which is obviously not sustainable." -- Marikina 2nd District Rep. Stella Quimbo The post Experts, advocates push for higher health budget, econ spending appeared first on Bulatlat......»»
Businesses told: Adapt new business models, processes
Entrepreneurs are advised to innovate proactively by adapting new business and operating models and processes attuned to the coronavirus situation, as productivity improvement training programs are available for them. In a webinar, Employers Confederation of the Philippines (ECOP) president Sergio Ortiz-Luis Jr. said revenue loss, permanent and temporary business closures and employee layoffs are among […] The post Businesses told: Adapt new business models, processes appeared first on Daily Tribune......»»
Dealing with business closures or a job loss
COVID-19 has inflicted a heavy blow on the economy......»»
High expectations of nat’l recovery
AMID so much news of business closures, job losses, and many nations seeing their Gross Domestic Product (GDP) fall to unprecedented levels, it is good to hear positive reports in some sectors, reports of expectations of recovery from the depth to which the COVID-19 pandemic has bought the entire world. The Philippines’ GDP contracted to 0.2 percent in the first […].....»»
Jollibee invests $28 million in beverage tech firm
Filipino-owned Asian food conglomerate Jollibee Foods Corp. is investing $28 million for a 10 percent stake in beverage technology company Botrista Inc. to support the growth of its coffee and tea business......»»
Unlock business success at Franchise Asia Philippines Expo
The Franchise Asia Philippines Expo 2024 is set to hold a series of dynamic seminars designed to empower entrepreneurs, investors and business enthusiasts with the knowledge and tools needed to thrive in the ever-evolving world of franchising. Slated from April 12 to 14 at the SMX Convention Center Manila, these seminars offer invaluable insights into key aspects of franchising and business growth......»»
Catch-up Fridays eased for teachers
JENIELITO "Dodong" Atillo, spokesperson of the Department of Education (DepEd-Davao), clarified during the AFP-PNP press conference held on Wednesday morning, March 27, 2024, at the Royal Mandaya Hotel, that the implementation of “Catch-up Fridays” has been streamlined to alleviate any perceived burden on teachers......»»
EDITORIAL - Finally, plastic license cards
It says a lot about the quality of governance and ease of doing business in this country that it takes forever just to obtain a plastic driver’s license card......»»
Reflecting on Your Business Setbacks
Challenges are an inevitable part of any endeavor, especially a business one. From unforeseen economic shifts to internal operational hurdles, every business owner will inevitably face obstacles that test their resolve. As we live in a fast-paced world, we sometimes forget about looking back, and what better time to do it than the Holy Week? […].....»»