By IRMA ISIP

Foreign businessmen yesterday proposed ways to keep workers as they prepare for tougher times.

Henry Schumacher, executive vice president of the European Chamber of Commerce of the Philippines (ECCP) said business is currently in a survival mode but it is thinking of a "rightsizing" formula that will enable it to keep jobs and not lay off workers.

In a press conference announcing the Foreign Chambers’ Trade Fair 2008 on November 19 and 20 at the SME Megamall, the Joint Foreign Chambers (JFC) said it is willing to dialogue with the Department of Labor and Employment (DOLE) to work for an arrangement that would allow employes to work on certain number of days instead of laying them off.

Schumacher said that companies will find next year more difficult specially in getting loans and only those which have pooled resources early enough will be prepared of what will hit the economy.

"Cash is in, debt is out. In God we trust all others cash, that’s the motto for 2009," said Schumacher.

He said that in a crisis period, flexibility is required so as not to lead to layoffs.

"For 2009, companies have to prepare — if they have the right size, the right number of people and the right skills. Rightsizing can be done for the foreseeable future. We don’t just go dismissing people," Schumacher said.

He said JFC wants a constructive dialogue with the DOLE to interpret labor laws with more flexibility "so we could let workers have certain work hours, or number of days depending on the job situation. It could be over a month’s arrangement that could guarantee so many days per month."

This way, he said, labor and employers could move on and even be ready when the world economy recovers.

"We have to find ways to keep people. This will be a win-win solution. We are going through cycles which we are hoping to be short. We want to be ready but we need people to take off," Schumacher said.

For 2009, Schumacher said, businessmen should go back to the old values of saving and gaining trust, and going long term than short term.

While both big and small companies are expected to get hit by the crisis, Leslie Stokes, president of the British-Philippine Chamber of Commerce, said small and medium enterprises (SMEs) all the more face restricted expansion because of difficulty in accessing finances.

Stokes also said the financial difficulties calls for SMEs to be more prudent and review their funds and competencies.

"Small business should be careful and focused. They should stick to core business and competencies to get them through difficult times," Stokes said.

Schumacher said the JFC’s SME trade fair will provide a venue for business matching especially during the difficult times. Some 37 industries are represented at the fair.

Schumacher said he shares a statement by finance secretary Margarito Teves that the impact of the crisis would be felt by the second quarter of 2009 but for some, the effect may have started earlier.

He said the Semiconductor and Electronics Industries of the Philippines Inc. has predicted a 10-percent downturn.

For a market that relies on the United States as an export market, the Philippines should be prepared to respond on the slackened demand in the US.

However, Schumacher said it is important to "try to take away the panic as it is not all doom and gloom."

The JFC believes the Philippines is better off this time than in the 1997 Asian financial crisis because many things were in place, higher foreign investments and more opportunities in mining and business process outsourcing which are lifting the economy.

Stokes said he sees a silver lining in the possibility of keeping skilled labor home.

"As overseas companies tighten operations, labor with upper and middle level skills set can be retained in the Philippines still working for international companies based here (or outsourced) such as in design and architecture. Those which have gone out, we can, bring them back here," Stokes said

The hospitality industry for one has long been suffering of lack of qualified staff which are lost overseas.

Stokes said technical and vocation skills should be upgraded as well/ Schumacher said companies look for low cost areas for their research and development and non-core jobs, which pose as an opportunity for Filipino skilled people. "They will be employed and trained to deliver these high value jobs. The last thing that government could allow to happen is for them to leave.

And I would like to see dialogue to discuss what government can do to help the private sector keep these people after they are trained," Schumacher said.