Ma. Antonia M.

De Vera
12- Holy Cross
Activity 1: SSS Kabalikat ng Bayan

SSS is a government-owned corporation whose members own it. It

was in the news in 2013 because of the issue of the P1 million
productivity performance bonus given to SSS executives. SSS
President Emilio de Quiros stated that the bonuses were deserved
because the SSS executives and employees were able to meet, if
not exceed, their financial targets for the year through good
investments and significant savings. De Quiros also claimed and
believed that giving large bonuses to members of the state-run firm's
board of directors was not only legal but also moral, and he went on
to say that he needed to offer such a large bonus in order for the SSS
to compete with private firms.The bonuses were significantly lower
than those offered by private firms. The SSS must provide appropriate
incentives to attract the best candidates.

For this to be ethical practice, they must consider whether such

compensation is excessive in comparison to the provision of service
and whether the compensation process is compromised by
inadequately transparent negotiation.

In my personal opinion, in that case, I would say that it is legally and

ethically immoral. This is legal because Republic Act No. 6971
requires the voluntary formation of labor-management committees
to negotiate productivity agreements where employees will receive
productivity bonuses. Employees exceeded their financial targets in
this case and were thus rewarded for allowing the company to
compete in the private sector. The SSS has the authority to give
bonuses to their employees because it is written by the law and the
employees have performed well. However, it is immoral because the
amount allotted to it is excessive. The money provided by the SSS
could be used for more important purposes. That is why some
people are unable to avoid the step of awarding bonuses, claiming
that it is immoral even though it is legal because the bonuses are
authorized by the SSS, and that it is also unfair to other sectors who
work hard but do not receive such large bonuses.