Holiday blues

EDITORIAL

There are just are too many holidays in this country. Good for government and private sector workers, but bad for those in business particularly the owners. The former administration implemented “holiday economics” believing it would spur tourism and economic activity but then tourism found as only a minimal element in boosting economy.

Now, this new administration is trying to lure more job-generating investments to spur economic growth projecting a new team and that the country is open for business. But investors are watching and assessing how receptive the new government is to their suggestions.

One of these is to initiate changes in labor laws which business owners and investors say, are more in favor of workers. Employers for one, say there are undesirables who don’t perform well and even go against them, but still, the latter have government laws on their side.

Business owners want more leeway in management of erring workers like having them fired without lawsuits filed against them which are a waste of time and money. Business owners, even the small entrepreneurs, also want to set up businesses or projects which are not mired in government red tape and graft and corruption.

Last week, reports said the Joint Foreign Chambers unveiled a medium-term plan for attracting $7.5 billion in direct investment, presenting a bullish outlook for the Philippine economy.

They had several suggestions which were not new. One was that too many holidays deterred investment, forcing enterprises with low profit margins to cut jobs, close, or move into the underground economy.

Overtime pay adds to business costs and affects income projections. Businesses such as those that must meet delivery deadlines, cannot afford to suspend production during holidays. These enterprises suffer when new non-working holidays are declared just weeks or even days before the date.

As the study undertaken by the foreign chambers revealed, the country had 21 public holidays this year, compared to nine in Vietnam, 11 in Singapore and 12 in Taiwan.

Add Saturdays and Sundays and you have an additional 96 days plus the 21 and you have 117 holidays. Workers get paid double their salaries for working on working holidays and any honest-to-goodness small entrepreneur would have a hard time making ends meet and having to pay taxes with this setup.

Those in government are paid for not working during holidays with Juan de La Cruz footing the bill. Combine this with the unpredictability of the Philippine business environment and it is not hard to understand why this country is lagging behind most of its neighbors in foreign direct investment.

Businessmen are concerned about legislative proposals to add to the growing list of holidays, to honor heroes, children, families, farmers, fishermen, soldiers, human rights, Chinese Lunar New Year, significant religious days and yes -- pets.

A country open for business cannot always be on holiday. The government should pay attention to investors’ and business sector’s concerns. They are after all the economy’s shipmasters. You put them down and the economy suffers.