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The government and rural banks will now offer soft loans to struggling micro and small establishments to help them pay their workers’ 13th month’s salary, according to the Department of Labor and Employment (DOLE).
Labor Secretary Silvestre H. Bello III said the Department of Commerce and Industry (DTI) has offered to allocate a portion of the $ 10 billion in funding from its deputy agency, Small Business Corp., for this purpose. .
“They are willing to share about 4 billion of that [fund] provide soft loans to micro and small businesses so that they can make unsecured loans and pay their employees’ 13th month’s salary, “Bello said in an online briefing Tuesday.
Also, the labor chief said that the Philippine Rural Bankers Association announced that its members have also offered to grant similar soft loans to micro and small establishments.
Pending action
In a related development, Bello said his proposal for a government subsidy for distressed facilities has yet to be taken into account by the Office of the President.
The DOLE is currently requesting between P3.5 billion and P13 billion to provide a subsidy to benefit 1.5 million to 5 million workers, respectively.
“If we can find a reserve or savings fund for it, maybe we can subsidize micro and small businesses,” Bello said.
The labor chief said that the soft loan and the subsidy, if approved, will guarantee that all companies can pay the benefits of the thirteenth month of their workers on or before December 24, 2020, as ordered by Presidential Decree (PD) 851 .
Collective labor aid
Despite the DOLE guarantee, the labor advocacy group Defend Jobs Philippines (DJP) said that some companies may still choose to violate PD 851, citing the impact of the Covid-19 pandemic on their operations.
To help workers in these erroneous establishments, DJP launched a hotline, 09150052082 (Globe) or 09995542533 (Smart), where they could report non-payment of their wages for the 13th month.
“While ensuring the confidentiality of our whistleblowers, our goal is to collect employer violations related to the thirteenth month pay and submit the list of violators to the Department of Labor for appropriate sanctions and penalties,” said the spokesperson for DJP Christian Lloyd Magsoy.
DOLE spokesperson Rolly France said affected workers can also submit their complaint directly to the DOLE via their hotline 1349.
