The year 2009 was not a good start for us particularly to me because I might be loosing my job. I am working in a third-party agency or the workers service contractors.

Last January 5, I have heard that my client will be transferring to another one. For almost a decade of relationship with our company, they will be transferring to a new one. What happen? Is our service not enough for them? However, we have already established a good working relationship for them and performance wise they have nothing against us. These are some questions that are on my mind. Later this morning, the official announcement of disengagement was made and it is finally over.

I knew that disengagement is made because our client found a new one. That offers an EVAT EXEMPTION. Can you imagine how much the government will be loosing if this Company will be exempted to their TAX obligation. Who are the people who will give to those multi-national company an EVAT exemption and invading the industry of third party –contractor? They called themselves as “LABOR COOPERATIVE” under the Cooperative Development Administration. The operation and concept of these workers cooperative is very similar to the usual labor service company who deployed qualified applicant to their client except for the terminologies used. The employee hired will be called a member or in other term  you are a self employed that’s why when you have argument or disputes on labor relationship you can not  go to DOLE to seek assistance.

What I am pointing here is that they are killing our industry and loosing revenues to our government. Granted that they are Cooperatives but their clients are NOT. While the CLIENTS are exempted to EVAT as well as themselves but their members are not. Now, is it fair?

We are not talking of handful members here but this cooperative has already 31,000 members. Moreover, how many Companies are not paying EVAT and other charges due to the government? Now who is responsible to this?

I delete the letter for some reason.



Do we expect wage hike?

Employers expressed willingness to increase wages. But not the proposal for a legislated wage hike. The employers group insisted that a legislated wage hike would likely do more harm than good to the majority of low income workers. It is also said that a legislated wage hike would only hamper operations particularly the small one who cannot absorb the new wage hike. If this will be legislated businesses will have no choice bug to trim their work force.

A suggestion to our legislator instead off riding on the wage issue is to focus on setting up a safety net or tax exemption. This proposal is to reduce the taxable income of fixed income workers. By increasing the level of his or her personal exemption would mean increase in Buying Power of millions of Filipino Families. If this will be mandated a large number of workers will enjoy the benefits. This will all employees, while at the same time sparing those receiving minimum pay income tax.

If this tax exemption would be implemented, thus this means a loss to our government?

The question now, do we have a Wage Hike this Labor Day?