"DOLE: Too many holidays not good for economy..."

**ghosthunter** · February 23rd, 2012 08:49 AM

DOLE: Too many holidays not good for economy, workers' pay
February 23, 2012 5:49am

Citing adverse effects on productivity, competitiveness and workers’ pay, the Department of Labor and Employment said Wednesday it is not too keen on proposed laws that would add more non-working holidays.

DOLE Secretary Rosalinda Baldoz also urged local executives to think twice before declaring additional non-working local holidays in their respective areas.

“Holidays have both economic and sociological effects. They promote or stimulate domestic consumption because people undertake recreational and cultural activities, thereby, scoring high in management and work-life balance practices,” Baldoz said in a statement posted on the DOLE website.

However, she added that holidays may also affect the capability of firms to “coordinate a mutually desired equilibrium of wages and labor hours.”

PHL has more holidays than some

A report from Bureau of Working Conditions director Brenda Villafuerte showed the Philippines has 12 national holidays, both working and non-working.

This is more than Australia, which has eight; Singapore, 11; Indonesia, 14; Japan, 15; Thailand, 15; Malaysia, 16; South Korea, 16; and Hong Kong, 17. Only China has more holidays, 29, than the Philippines.

“The Philippines has 12 regular holidays and three special days in any given year. We have also another three special days, on the average, which the President may declare through a proclamation. These are Black Saturday, EDSA Revolution (Feb. 25), and All Soul’s Day (Nov. 2),” Baldoz said.

“And at any given year, there are two local holidays on the average, be it municipal, city, or provincial, and an average of four days, based on experience, of inclement weather,” the DOLE chief added.

She further noted that there are now 184 local holidays based on either presidential proclamations or an act of Congress. Of these local holidays, one is a regional holiday, 41 are provincial, and 142 are city or municipal holidays.

Holiday bills

The DOLE noted the House of Representatives has approved on third reading House Bill 5068 declaring National Victory and Liberation Day on September 3.

Now on second reading is House Bill 3962 declaring National Women’s Day every March 8.

Eight other pending bills seek to declare non-working holidays, including:
- HB 1072 for Chinese New Year
- HB 1182 for Tandang Sora Day
- HB 1631 for Founding of Katipunan
- HB 2249 for Corazon Aquino’s Natal Day
- HB 2756 for National Heroes’ Day
- HB 3152 for December 25 to 31 and January 1
- HBs 3705 and 4414 for Iglesia ni Kristo Day
- HB 5259 for Corazon Aquino Day.

At the Senate, hearings are being conducted on five local bills:
- SB 459 for Lapu-lapu Day
- SB 550 for Chinese New Year
- SB 829 for Iglesia ni Kristo Day
- SB 1094 for National Teacher’s Day
- SB 3112 for Filipino Day of Goodwill or Boxing Day.

“Declaring holidays has implications on productivity and competitiveness. It is associated with issues on rights at work. Reviewing the implementation of holidays is necessary to contribute to the Philippine development goal of inclusive growth, through decent and productive work,” Baldoz said.

Negatives of holiday economics

Baldoz observed that during the Arroyo administration, so-called holiday economics moved the celebration of holidays to the nearest Friday or Monday to create long weekends and promote domestic tourism.

But the DOLE said the Institute of Labor Studies noted that holiday economics seemed to have negative impact.

“SMEs might have less capability to bear the additional costs of having a higher wage bill if they need to operate during holidays,” it said.

“As to other businesses, they would look to reduce costs or save in other areas of their wage expenses if confronted with higher labor costs due to holidays,” it added.

The Bureau of Working Conditions said more special non-working holidays create negative rather than positive welfare effects because the principle of “no work, no pay” applies.

“For daily paid workers, the opportunity to produce goods of economic value and to earn wages is lost during a special non-working day,” it observed, saying that the cost of labor increases by 30 percent if the day is worked.

Both the ILS and the BWC agreed that the increase in labor cost is both artificial and inefficient for employers because it is not accompanied by an increase in productivity.

2012 holidays

For 2012, Baldoz said 18 holidays have been declared by virtue of Proclamation 95 signed by President Benigno Aquino III.

Out of the 18 holidays, 12 are regular holidays and six are special non-working days.

SOURCE: DOLE: Too many holidays not good for economy, workers' pay | GMA News Online | The Go-To Site for Filipinos Everywhere

**KERSMcRae** · February 23rd, 2012 10:03 AM

Agree... and this is really bad.. (basta sobra masama..)

Our big boss from the US doesnt like these bunch of no-work days. Everytime our office administrator sends a "holiday notice" addressed to "All Company', we felt ashamed and very troubled, ...

**_Qwerty_** · February 23rd, 2012 10:44 AM

wtf.. what are they thinking?? ano yang mga bills na yan?? wala na ba silang ibang maisip?? sobra sobra na nga holidays natin.. dadagdagan pa nila??

**Retz** · February 23rd, 2012 11:51 AM

kawawa ang mga mangagawa na arawan ang sweldo. no work no pay.

**uls** · February 23rd, 2012 12:14 PM

holidays = lost productivity

the stupid govt should have figured that out already

customers (specially abroad) don't freaking care about our holidays. they demand prompt delivery. if you keep failing to meet deadlines (which screws up their supply chain) they will look for other suppliers

your plant shuts down and your employees go on permanent holiday. i guess mas gusto ng gobyerno yan. mahilig sa holiday ang gobyerno. what better holiday than having no job right?

**Monseratto** · February 23rd, 2012 12:25 PM

Bakit ginagawang national holiday ang founding ng INC when the make up less the 10% of the population? Also bakit kailangan ng Cory day (butt sucking sound). I wonder who are the authors of those bill...

**A121** · February 23rd, 2012 12:35 PM

Hmm. Iba naman ang nakasulat dito.

Daily chart: The idlers | The Economist

Mas marami tayong public holidays pero yung time-off na allowed sa employees mas kaunti. I think this is referring to the mandatory 5 days Service Incentive Leave (SIL). Wala kasi sa labor code na mandated yung sick at vacation leave.

Tingin ko kaya pinapatanggal ito ni Pnoy ay dahil ito ay proyekto na pinauso ni GMA. Hindi naman magshutdown ang planta or BPO offices kapag holidays. Mas mataas lang ang bayad sa mga nagtatrabaho kapag holiday, which is still relatively low sa ipapasweldo ng BPO kapag locals nila ang magtatrabaho.