"The domino effect of the TRAIN law is slowly resurfacing. Is this a positive or a negative progress? Prices for beverages goes up, Sales goes down that will lead to workforce being cut down."
Who do you think is to blame for the laying off of 600 Coca Cola bottler workers, the worsening economy or the people that made the economy worse, choose your pick? Or undeniably the rampaging runaway TRAIN Law that was just recently passed? After its passage, everything went up, except the Filipinos' normal standard height!
“This restructuring has been a very difficult decision. It was carried out only after an exhaustive and conscientious assessment of the evolving regulatory environment, our operational efficiency, and consequent performance in the market,” it added.
This comes shortly after the passage of the Train law in December last year, the first among a series of tax packages. It lowered the personal income tax while increasing consumption taxes, including sugar sweetened beverages.
The Train law imposes a P6/liter tax on beverages using caloric and noncaloric sweeteners and P12/liter on beverages using high fructose corn syrup (HFCS)."
All the sugar/sweetener/fructose user companies impacted by TRAIN will likely downsize their work force at some point due to top line and bottom lin contraction. Less income taxes and VAT to pay as inflation rises, purchasing power contracts and consumption drops.
What the right hand giveth, the left hand taketh away. A flawed TRAIN will produce blowback and the tax take envisioned could fall below expectations. A domino effect is anticipated. Every link of the business chain will recoil from the blow all the way back to the government.
About 600 workers will lose their jobs. Multiply this by 5 for the average number of members in a family to get the number of lives this TRAIN will run over soon.
We are sad for the workers and what will happen to them and their families, although the reality here is - the soda industry is taxed in other cities because of the health issues. And, they are ‘reinventing’ products because of the lower consumer demand.
It would be better if the laid-off workers just find a new job so they won't be a part of a company that sells junk food, causes obesity and diabetes.
“Everyone will be given career transition support, as well as separation packages that go beyond what is mandated by law"
Gone are the days when working at big companies provide security of tenure until good old retirement age of 60.
Businesses will always find other places where raw materials and/or labor are cheaper and where the political environment is more friendly and enticing to investors. Businesses will always have to find ways to stay competitive.
Please take note that increasing the taxes of everything is entirely not needed. The government only had to be fiscally responsible. No one asked for this but the politicians.
People are saying lots of people will be unemployed if the siftdrink company eventually runs out if business. But do we keep nuclear weapons facilities going so those working there don’t lose work. Or the tobacco industry which creates lots and lots of jobs.
We have to think about the children who grow up into these bad life shortening habits. The parents can adapt with other work.
The next brave move is to finally STOP the entire jeepney industry as the diesel and fumes are choking our major cities. In this process, jobs will be lost and the commuting public will suffer. Damned if we act, double damned if we don’t. These decisions are tough and surely people will be affected in the process, but we have to think of the greater good for all society.
"Philippines' most vulnerable time (in the hand of ageing cucaracha).
Due to the destructive TRAIN law of the government. The decrease in consumption forced the giant company to reassess its overall operations including its plan of $1 billion expansion until or by the yeat 2022.
The country is on its most vulnerable time ever, more vulnerable than of dictator's regime for the reason that we are in current time literally sharing part of our territories with China.
What else would this government of ageing cucaracha is willing to throw away out of the window to satisfy his fallacious desire?"