Shorter Workweek Proposal Being Reviewed by Malacañang

The National Economic and Development Authority (NEDA) has submitted a proposal for a 4-day work week as well as the extension of the work-from-home arrangement. This recommendation, which is currently being reviewed by Malacañang, hopes to alleviate the impact of the continued increase of fuel prices on Filipinos and the economy.

“Iyan po ay under consideration ng ating Pangulo. Ito pong mga panukala na ito ay in case na tumaas pa ng husto ang presyo ng langis sa pandaigdigang merkado,” explained acting Palace spokesperson Martin Andanar. (“That is under consideration by the President. These measures were proposed in case oil prices in the global market rise further.”)

The proposal was forwarded by NEDA Secretary Karl Kendrick Chua on Tuesday, noting that limiting the mobility of workers through the reduction of workdays will help to tone down the economic effects of the current situation. The 4-day workweek also serves as an alternative to the minimum wage hike which the Department of Labor and Employment urged just last week.

“Let us try to conserve energy and one of the examples here is through the four-day workweek,” explained Chua. “Every Filipino will still have to work 40 hours per week but instead of five days, it will be four days, and instead of eight hours, it will be 10 hours per day.” He pointed out that a similar scheme was implemented when fuel prices skyrocketed in 2008. “This will also help save money because instead of commuting every day, they will be commuting for four days only. This will also help manage our economy.”

Chua furthered that increasing both the minimum fare for public transportation and the minimum wage would push inflation to breach the government’s 2-4% target for the year. An increase in the minimum fare for jeepneys would add 0.4 percentage points to inflation which, “According to the Bangko Sentral ng Pilipinas, our inflation rate is projected to hit 3.7 percent. If we add the 0.4 percentage points, this will be 4.1 percent.”

Meanwhile, a hike in the minimum wage would add yet another percentage point to inflation. “According to the Bangko Sentral ng Pilipinas, our inflation rate is projected to hit 3.7 percent. If we add the 0.4 percentage points, this will be 4.1 percent,” elaborated Chua. The DOLE has since expressed that a new law is not necessary for the implementation of the 4-day workweek and that employers may enforce this at any time following a consultation with their employees.

“Under the Labor Code of the Philippines, the normal workweek is six working days, but the employer can reduce it to five, four, or three days. It is a management prerogative,” said Labor Undersecretary Benjo Benavidez. “So the proposed four-day workweek does not need a law anymore to be implemented.”

Benavidez has backed the proposal of NEDA, adding that the Labor Department could issue a labor advisory to serve as guidance for employers. “In my opinion, it can help but at the end of the day, the decision will not be made by the Labor Department but by the employer and their workers if they wish to implement such a work arrangement,” he affirmed.

Senators Joel Villanueva and Ping Lacson have likewise stated their support for the arrangement. “Implementing flexible working arrangements like working from home is one of the best interventions that the government can do because it protects productivity for businesses and workers’ welfare while cutting fuel consumption,” explained Villanueva.

“We have yet to see the end to the problems of traffic and high price of fuel, and WFH is one way for industries to adjust and cope,” he added. Meanwhile, Lacson believes that a shorter workweek “is a good idea because at least three days [worth of fuel cost] would be saved.”

Source: Manila Times