OPINION

Malaya,
Tuesday, September 15, 1998
[Column]
By Ducky Paredes

Lucio Tan’s grant of 60,000 shares to the employees of the Philippine Airlines together with three seats on the Board came as a total surprise. It may well be the only time that a major enterprise in the country and perhaps in the region shares so much with their workers.

In some countries, as in Germany, workers’ representatives sit on the board of their companies. This is granted by law. But, they do not have shares in the enterprises. Lucio Tan not only gave them board seats but also shares that will be worth billions just as soon as the economy has recovered and the luster on PAL’s shares has returned.

In companies where the workers have board representation, it is also usually expected that there will be no labor strife – no strikes, slowdowns or anything else – since, after all, they are already part of the company.

Will Lucio Tan’s gesture create an atmosphere where other taipans will follow and share their wealth and their workers? Probably not.