The Employers Confederation of the Philippines (ECOP) said the hiring and retaining of workers past retirement age should not be mandated and instead be left to the discretion of employers.
Sergio Ortiz-Luis, president of ECOP, warned mandating hiring and retaining workers of retirement age could discourage investors, would prevent the entry of a new batch workers and could have an impact on the stability of the pension and benefit funds such as the Social Security System (SSS) and the Pag-IBIG Fund.
Senior Citizens Party-List Representative Rodolfo Ordanes in House Bill 3220 seeks to amend the provision in the Labor Code declaring 65 years old as the compulsory retirement age.
The bill proposed that an employee who reached the age 65 can choose to continue their employment provided he qualifies under the bona fide occupational qualifications of his job.
However, the burden to prove otherwise is with the employer.
Ortiz-Luis said in a radio interview over the weekend the planned amendment to the Labor Code should still set a mandatory retirement age for workers. Employers will given the option whether or not to retain the worker.
In the same way, employers should be free to hire “someone who is 75 years old if he is capable.”
He added corporations retain workers past retirement age in high-level positions as consultants because of their valuable contribution to the company over the years.
“It should be management prerogative. We have no problem with extending the retirement age but employers should have the option to retain the employee. They should not be held criminally liable if they reject (an applicant past retirement age),” Ortiz-Luis said, adding factors like health, productivity and capability are all considered in hiring and retaining workers.
He also warned mandating hiring/retaining workers of retirement age would practically close job opportunities to the new entrants to the labor force, estimated at 800,000 to a million a year.
Ortiz-Luis said although seniors may be fit to work, the kind of duties they can do is limited.
“Definitely no manual work because of the risks. They may be fit to work but as we age, our reflexes become slower and our productivity declines,” he said.
“We should not stop new entrants in the job market just because we cannot remove those who are older. It’s not healthy also for the workers to stay. And management loses control over its staff and their productivity once you mandate that,” Ortiz Luis said.
Ortiz-Luis also warned the funds of both SSS and Pag-IBIG are computed based on the retirement age in the employment pool and if more older people who are still in the workforce file for claims like sickness, the funds may not be enough to cover those claims.
“Perhaps they can refocus and study the capability of the (SSS),” he said.
He added ECOP has always been in favor of giving opportunity to differently-abled individuals and its members do not discriminate on account of age and disability.
“But it should not be forced by law,” he said adding that “a capitalist from New York will hold back on his investment if he sees that provision in the law.”
