Labor group fears tax law may result to retrenchments

THE General Alliance of Workers Association (Gawa) expressed fear that the Tax Reform for Acceleration and Inclusion (Train) Law may result to retrenchment of workers especially in the private sector.

Wennie Sancho, secretary-general of Gawa, said that because of high prices of fuels as well as operating expenses, companies may not be able to sustain the expenses based on their capital expenditures that may result to retrenchment of employees.

“This is now the apprehension of the labor sector,” he added.

Sancho cited the case of Coca-Cola Femsa Philippines which has been reported to retrench some 600 personnel nationwide due to the bottling company's impending restructuring.

In Bacolod City, 51 rank-and-file employees of the bottling plant will be laid off, said Emmanuel Bandola, president of New Independent Workers’ Organization.

Sancho said that although there are workers’ unions and that employees are covered with Collective Bargaining Agreements, there are also employees who are unorganized yet that may be affected most by the spiraling of prices due to the tax reform law.
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