The Philippine Online Chronicles

The concept of “holiday economics” was introduced by the Arroyo administration in 2001.

Holiday economics or the practice of shifting holiday observances aim to reduce disruption to business and production schedules, encourage tourism and give employees long weekends. The policy went into full force since 2002 and is now an official government policy after President Gloria Macapagal-Arroyo signed Republic Act 9492 into law.

Republic Act 9492 or “An Act Rationalizing the Celebration of National Holidays” mandates that most holidays, except those with religious significance, will be shifted to the nearest Monday. It was enacted to “rationalize” the celebration of national holidays in the Philippines.

Movable holidays

The law made holidays “movable” to Mondays, except Christmas Day and New Year’s Day. In the event that the holiday falls on a Wednesday, the holiday will be observed on the Monday of the week. If the holiday falls on a Sunday, the holiday will be observed on the Monday that follows.

More on movable holidays, the President will have to issue a proclamation, at least six months prior to the holiday concerned, that the specific date will be declared as a non-working day.

The Eidul Adha is celebrated as a regional holiday in the Autonomous Region in Muslim Mindanao only. Malacanang made a fiasco on this recently after it declared the feast date, November 27, 2009, as a holiday. It took back the order after realizing the mistake.

For law practitioners, the issuance of a Proclamation, at least six months prior to the holiday concerned, is partly intended for employers to prepare for added costs in case they require work on those holidays, or in preparation of contingencies.

There are certain days, aside from those enumerated by RA 9492, that the Palace may declare as special holidays. The more recent Proclamations were last August 5 (burial of former President Cory Aquino) and September 7 (burial of Iglesia ni Cristo Minister Erano Manalo).

Boon or bane?

Various groups have expressed different opinions on the movable holidays. The Makati Business Club (MBC), who is often critical of the President Arroyo’s policies, expressed its approval of the “holiday economics.”

According to MBC Executive Director Alberto Lim, “this will be a big boost to the tourism industry. It will be beneficial to the domestic tourism, as people will be encouraged to travel more. This would mean increased spending for transportation, food and other services, benefiting the rest of the economy.”

“We are definitely not objecting to this because a lot of industries will benefit,” Lim added, explaining that the business community’s objections to sudden holiday declarations in the past were due mainly to the disruptions they caused on company operations.

Another business group also welcomed the Palace’s move of declaring long weekends. According to Philippine Chamber of Commerce and Industries (PCCI) chair emeritus Donald Dee, “this way, we can schedule our work plan with our workers. Instead of causing workers to slack off, the long holidays might actually end up helping firms improve productivity. Since there will no longer be any surprises, we can maximize our work schedule.”

But some critics questioned the soundness of the policy saying it would only result in lower output and affect economic productivity. Others also disapproved to what they regarded as “the presidential play with history.”

The Joint Foreign Chambers of the Philippines also opposes ‘holiday economics.’  The Chamber, representing seven chambers of commerce and industries and around 1,700 multinational investors in the country, complained about the “unplanned and spur-of-the-moment” announcement of holidays, the lack of any consistent pattern and the “very short lead time” in making announcements.

With an unpredictable calendar, business complains of unplanned orders, deliveries, shifts, holidays, maintenance, meetings and deadlines. They said this drives foreign investments away from the Philippines and force businesses to “less worker-friendly” locations such as China or Vietnam.

Meanwhile, bloggers also expressed disappointment on movable holidays. One blogger even commented that holidays are, “usog lang ng usog?” He even asked if Arroyo will go as far as “change the birthday of Jesus Christ?” Another said the policy is not doing any good and only makes people “idle, lazy and unproductive.”

Gatmarcelo said it is high time to review this policy.  He argued, “the idea of boosting domestic tourism is good but the question is the money and resources. How many Filipinos can afford going on holiday tours in the first place? Most of them will prefer to stay at home. Hence, it does not contribute to the economy.”

Labor group Kilusang Mayo Uno (KMU) is among the consistent critics of holiday economics as most employers observe 'no-work, no pay' policy. In 2002, Malacanang even tried to move Labor Day only to earn the ire of workers and labor unions.

But holiday economics is not just about business, it can also get political. There was a time when Malacanang declared public holiday on the date of President Arroyo’s State of the Nation Address, an obvious attempt to keep people away from anti-SONA protests.

According to the law

Under the Philippine Labor Code, employers must pay 200 percent of the daily rate to those employees who report for work on legal holidays -- January 1, April 9, May 1, Maundy Thursday, Good Friday, June 12, National Heroes Day, Eid’l Fitre, November 30, Christmas Day and December 30.

On special holidays, employers must pay 30 percent over the regular rate. These are Ninoy Aquino Day (August 21), November 1, Election Day, November 30, Black Saturday and holidays that may be declared from time to time by the President. The Philippine E-Legal Forum further discussed on its blog the different holidays and holiday pays.

Holidays for 2010

No more surprises! Malacanang issued Proclamation No. 1841 declaring the regular holidays, special (non-working) days and special holidays (for all schools) for 2010.

The Proclamation was signed last July 21 in line with R.A. 9492, which provides that non-religious holidays be moved to the nearest Monday. According to the proclamation, “this will serve to strengthen family relations by providing a longer weekend and renewing ties for a longer period of time, as well as to promote domestic tourism.”

For 2010, the regular holidays are New Year’s Day (January 1), Maundy Thursday (April 1), Good Friday (April 2), Araw ng Kagitingan (April 9, Friday), (Labor Day May 1), Independence Day (June 14, Monday nearest June 12), National Heroes Day (Aug. 30, Last Monday of August), Bonifacio Day (Nov. 29, Monday nearest November 30), Christmas Day (Dec. 25, Saturday), and Rizal Day (Dec. 27, Monday nearest December 30).

Another holiday is the Eid’l Fitr, which is determined either by the Islamic calendar or the lunar calendar, or upon Islamic astronomical calculations.

The Proclamation also designates special non-working holidays – Ninoy Aquino Day (Aug. 23 – Monday nearest August 21), All Saints Day (Nov. 1, Monday), Dec. 24 (Friday), and Dec. 31 (Friday). EDSA Revolution Anniversary (Feb. 22, Monday nearest Feb. 25) is also a special holiday for all schools.

Photo: “Parol kayo dyan!” by Stranded Wahine. Taken from Flickr. Some rights reserved.