After weeks of grassroots consultations and webinars with labor leaders, academe and some economists, the labor coalition Nagkaisa! has unveiled its “Labor Agenda sa Panahon ng Pandemya”, which contains proposals for the protection of labor rights during crisis, income and guaranteed employment for workers, support to key sectors of the economy, and a proposal for a wealth tax to fund economic stimulus, sustain development and address poverty and inequality.
The presentation of Nagkaisa’s Labor Agenda came on the same day the House approved on second reading the Bayanihan to Recover as One and a day before today’s official announcement of the economy sinking deeper to a 16.5% contraction in the second quarter.
“This Bayanihan 2, with its measly budget of P162-B bdudget, will neither stimulate a shattered economy nor heal an ailing nation,” declared the group in a statement, saying that a crisis of this magnitude requires a bigger stimulus and a secured, healthy labor force to prevent an ultimate collapse.
Nakaisa’s Labor Agenda estimates not lower than a trillion-peso stimulus is needed immediately to prevent further collapse of key economic sectors; including our micro, small and medium enterprises (MSMEs) which employ majority of our labor force; and to avoid millions of working people regressing back or sinking deeper into extreme poverty.
The group’s accompanying proposal for a wealth tax is aimed at countering the official narrative about ‘lack of money’ hampering the delivery of aid, as well as the reluctance of economic managers to spend more for stimulus just to protect the country’s high credit rating.
“Our wealth tax proposal once imposed upon obscene private wealth will ensure a steady funding stream of not less than P1 trillion per year. We can do so by just taxing the richest 650,000 individuals by 5%, the richest 160,000 individuals, or those with net worth of P10 million and up, by 7%, and the richest 40 individuals, or those with net worth greater than P10 billion, by 10%,” said Nagkaisa.
“President Duterte has declared war against the oligarchy. Here is a just and winnable, whole of society struggle against poverty and inequality compared to personal attacks against a select group among the oligarchs,” added the group.
The group said its wealth tax proposal is in fact the right way in putting flesh and blood on the constitutional provision that Congress shall evolve a progressive system of taxation (Sec 28, Art VI). “The adoption of the tax on wealth, Robin hood tax or solidarity tax is a step in the right direction as the country needs fresh sources of money to fund recovery and development.”
Nagkaisa’s Labor Agenda has 5 R’s that represent Rights, Relief, Repair, Resilience, and Resource Refueling.
On the protection of labor rights, the group reiterates its stand against flexible work arrangements such as endo and wage cuts, and for workers to enjoy full benefit in cases of layoff or retrenchment amid the pandemic. Nagkaisa also renew its call for #BalikTrabahongLigtas, which it claims the government has failed thus the resurgence in Covid-19 infections. Its demand includes PCR-based mass testing and safe transportation, strict compliance to OSH protocols, workers’ participation at workplace and tripartite levels, and the regular hiring of additional healthcare workers to the civil service, among others.
The Labor Agenda likewise calls for various types of assistance, depending on the situation of those affected: guaranteed incomes for those still employed but are unable to work due to the lockdown, including returning and stranded OFWs; wage subsidies for those working in MSMEs that needed support to stay afloat; 100-day employment guarantee for those unemployed or 3-month paid trainings for those needing retooling or skills upgrading. Amelioration and income guarantee should also be extended to the informal sector as well as the elderly.
On support to MSME’s Nagkaisa is proposing for a bridging support, which include one-time grant of up to P500,000 depending on size, wage subsidy, soft loans, and even rental subsidy, with the condition that companies receiving subsidy from government do not only retain their workers but also comply with core labor standards.
On support to key economic sectors, Nagkaisa identifies agriculture and its forward and backward links to food production and other industry, garments with new emphasis on producing PPEs, chemicals and pharmaceutical industry, and construction to get immediate and strategic financing support from the government.
Nagkaisa! Labor Coalition
August 6, 2020
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