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PIA Press Release
2009/02/16

DOLE tells employers to explore alternative schemes before closure, retrenchments

Iloilo City (16 February) -- There are alternative schemes to business or company closures or retrenchments which can be explored by both employers and employees to cushion economic crisis, a labor official said.

Department of Labor and Employment (DOLE) 6 Chief of Technical Support Services Salome Siaton, said that employees and employers can choose several flexi work arrangements, on voluntary basis and mutually agreed upon by both parties.

These flexi work arrangements are embodied in DOLE Advisory No. 2 to enable labor to cope with the current economic difficulties, reduce operating costs and maintain competitiveness and productivity.

Siaton said, in a radio interview, that there are six strategies the companies can choose from, provided, they fill up a form available with the DOLE so that the agency will be properly informed also.

These alternatives are compressed work week wherein a usual six-day work can be reduced to five days but with increased working hours, not to exceed 12 hours each day; reduction of work days but no additional hours of work per day; rotation of workers on alternate schedules so that all personnel will have work.

The other three include availing Forced Leave credits, practicing broken time schedule, but not on a continuous basis, and the flexi holidays, without diminution of benefits as result of such agreement.

Siaton said these alternatives were products of several consultations with a tripartite groups of government, workers and employers who approved of such, for the survival of establishments and companies hit by the global economic crunch.

Further, she said, that these work arrangements should not last more than six months, after which the companies can go back to normal work operations. (ESS/PIA 6) [top]

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