Holy days revisited

I had written a column on Holy Days in 2018 but the topic is a hot issue again today among legislators, regulators, labor, employers and economists when new Senate President Chiz Escudero reportedly wanted a review of our “abundant” number of holidays with the implied possibility of reducing them.

It is a fact that national productivity is negatively impacted by the excessive number of holidays and legally mandated paid leaves on top of company granted vacations, emergency and sick leaves.

Productivity became a catchword as large-scale globalization began in the late 19th century. In the early 20th century, it drove a rapid expansion with the connectivity of the world’s markets.

Competition among and between nations is largely driven by high productivity output. With the rapid development of digital and AI technology the world market is now operating 24/7 and productivity has become a crucial factor in the global market competition.

This is where the Philippines with its “abundant” holidays and paid non-working days is made uncompetitive as our productivity is comparatively much lower than other countries.

The resistance from labor groups is naturally expected to the call by our top legislator to evaluate and possibly reduce our existing extravagant number of holidays.

Employers agree that holidays are important to recharge workers and honor important historical and national events.

But excessiveness, even in things that are intrinsically good, can lead to various forms of damage. In business it is reflected in low economic output and high production costs.

Our love for siesta and fiesta which we inherited from our Spanish colonizer is too ingrained in our legislators’ mindset. They, wittingly or otherwise, ignore the ruinous impact on the economy of their populist bills for more holidays and paid rest days.

Moreover, unrestrained focus on a flexible three-to-four-day holiday economics must be revisited for its similar harmful effect on productivity and its dubious contribution to our GDP.

In essence, balance is key. Even the best things, when taken to excess, can lead to negative consequences, emphasizing the need for moderation in all aspects of life.

Too many or prolonged holidays can disrupt the regular flow of work, leading to a decline in overall productivity. This is especially true in industries where continuous operations is critical, such as manufacturing, healthcare, and public services.

On a macroeconomic level, overgenerous holidays and paid leaves result in a self-inflicted slowdown in economic activity. Retail, service industries, and other sectors that rely on daily operations experience reduced revenue, as businesses close or reduce hours during holidays and paid non-working leaves.

Companies face increased costs due to the holiday pay premium or work stoppage, overtime expense, or the need to hire temporary staff to cover holiday periods. This strains the financials of MSMEs that are struggling to absorb these legally imposed additional expenses.

Holidays disrupt supply chains and in today’s interconnected global trade delay production and delivery of businesses that rely on just-in-time manufacturing or other time-sensitive operations, resulting in loss of competitiveness and market share.

We need to moderate our love for holidays as the economic reality beckons us to compete fiercely against other countries whose work ethic are on perpetual 24/7 operation.

Both houses of Congress are earnestly urged to establish a clearing house to stop new and recycled bills that will add to the existing bloated number of holidays and paid leaves, and study the possibility of reducing existing mandated non-working days.