Productivity experts to boost output in workplace–dole

TO help boost the country’s low labor productivity, the Department of Labor and Employment (DOLE) is now pushing for a new law for the accreditation of productivity experts who can make it easier for firms to get tax incentives for productivity schemes.

National Wages and Productivity Commission (NWPC) Executive Director Maria Criselda R. Sy, in a text message, told the Businessmirror these were among the highlights in their proposed provisions of the pending House Bill 637 or the Enterprise Productivity Act (EPA).

She said they also recommended for the creation of productivity improvement and incentive committee for small enterprises, the recognition of management’s role in initiating discussions of productivity incentives programs and mainstreaming of the National Innovation Agenda and Strategy.

Also part of their proposal is the inclusion of the Productivity Incentives Committee in the labor inspector’s checklist, provision of technical aid on productivity and innovation by various government agencies to micro, small and medium enterprises.

“Said inputs were incorporated in the bill endorsed by Congressman Mark Go in the Congress,” Sy said.

The NWPC head said they expect the passage of EPA will help “tighten the nexus between wages and workers productivity, thereby promoting equity and decent work at the workplace.”

Low productivity

THE EPA part of the legislative agenda recommended under the Philippine Development Plan 2023 and 2028 to help the government achieve its goal of providing additional income to workers by linking their productivity to additional incentives.

In the new PDP, the government expressed concern over low productivity in the services sector, which has an average of 57 percent share in total employment from 2017 to 2021.

“The overall labor productivity level of services sector in 2021 [P0.44 million at 2018 constant prices] is low and slower than the productivity of the industrial sector [P0.69 million at 2018 constant prices],” PDP said.

It noted among the challenges in improving labor productivity are high shipping and logistics cost, lack of access to reliable and advanced information and communication technology, infrastructure, lack of competition, lack of access to reliable and advanced information and communications technology infrastructure, lack of competition, lack of access to markets and capital, mismatch in skills and lack of skilled talent for niche job roles, and vulnerabilities of communities to the impact of climate change.