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Wednesday, March 16, 2005
Traders favor inclusion of microbusinesses in wage law
By Clara Mae Hortelano
THE Metro Bacolod Chamber of Commerce and Industry favored the inclusion of the barangay microbusiness enterprises (BMBEs) to the coverage of the minimum wage order.
Roberto Montelibano, MBCCI president, said the inclusion will benefit the labor sector as originally, workers categorized under the BMBEs received the minimum wage for its employees and workers, until Republic Act No. 9170 or the Barangay Micro Business Enterprises Act of 2002, was passed.
Representative Roseller Barinaga of Zamboanga del Norte, chairman of the House committee on labor and employment, filed House Bill 351 amending Section 8 of RA 9170, placing BMBEs under the Minimum Wage Law coverage.
The BMBEs Act exempts the barangay microbusiness enterprises from the daily minimum wage rates for workers.
A BMBE is defined as any business or enterprise engaged in the production, processing or manufacturing of products or commodities, whose total assets, including those arising from loans but excluding the land where the business is situated, is not more than P3 million.
A BMBE is employing between one and nine people.
Montelibano said before the passage of the BMBE Law two years ago, Kalakalan 20, an organization of microbusiness enterprises, complied with the minimum wage law.
With Barinaga's proposal, the rights of those in the labor sector will be protected and any possible harm against the labor force will be avoided.
Legitimate businessmen, said Montelibano, are willing to pay the minimum wage to their workers.
The National Statistics Office said microenterprises comprise 92 percent of the total establishments in the formal sector.
Small enterprises that employ between 10 and 99 people, comprise 7.3 percent.
Under the BMBE Law, barangay microbusiness enterprises registered with a city or municipality are exempted from income tax and local taxes, fees and charges.
They are also exempted from coverage of the minimum wage law; enjoy a special credit window from the Land Bank of the Philippines, Small Business Guarantee and Finance Corp. and People's Credit and Finance Corp.; and may avail themselves of technology transfer, production and management training and marketing assistance from different government agencies.
The rationale for these incentives and benefits is to support the growth of BMBEs and to integrate them into the formal sector.
Aside from the business sector, the National Wages and Productivity Commission and the Department of Labor and Employment are also supporting the amendment to the BMBE Law.
(March 16, 2005 issue)
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