BIBLIOGRAPHY SACLA, ELLAINE...
BIBLIOGRAPHY
SACLA, ELLAINE B. APRIL 2012. Employment Generation of Cooperatives in
La Trinidad, Benguet. Benguet State University, La Trinidad, Benguet.
Adviser: David Joseph Bognadon, MSc
ABSTRACT
The case study was conducted to determine the employment generation of
cooperatives in La Trinidad.
Fifty-one cooperatives were the respondents and were classified into multi-purpose
agriculture, multi-purpose non-agriculture, credit and service. Majority of the cooperatives
were operating in the municipality and existed for ten years or more. Cooperatives incurred
increases as to their total asset and total paid-up share capital.
As to employment, thirty-one out of fifty-one cooperative respondents have hired
employees and showed increasing trend in employment generation. A slight increase was
shown for labor costs.
Cooperative preferred college graduates that took up accountancy or commerce
course. Most of the respondent do not have manual of policies and procedures. Regarding
issues, cooperative respondents comply with labor policies only to their regular employees
in terms of legal minimum wage and 13th month pay and mandatory requirement
contribution or remittance. In addition, most cooperative do not give retirement benefits.
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
Cooperatives were hard-up to comply with BIR requirements because of
voluminous paper required. For employment turn-over and problems regarding
employment, majority answered that they have low salary or salaries were not enough.
From the results, it was recommended that cooperative should closely monitor and
improve their business operation to become competitive and would be able to hire more
employees. Furthermore, cooperatives without manual of policies and procedures should
formulate their own policies and procedures and should review their existing guidelines
and policies regarding human resource development. Cooperatives must also monitor the
compliance of requirements with the different agencies.
In addition, to reduce voluminous works which were the problem of institutional
cooperative, it is recommended for them to hire full-time employees. For the cooperatives
that do not have regularly paid employees and members doing the voluntary work, they
should organize human resource capability building to their members. This would likely
be helpful when the cooperative will be able to hire employees because the members that
were educated would be the one to orient the new employees.
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
INTRODUCTION
Rationale
Cordillera Administrative Region is rich in natural resources. As the population
frantically arises, it results into increase of human resources. The region, especially the
province of Benguet, fully supports the cooperative code of the Philippines. For that reason,
there are 151 operating cooperatives in Benguet as of December 31, 2010 based from the
data of the Cooperative Development Authority (CDA). The thirteen municipalities of
Benguet are engage more on agricultural activities. La Trinidad is the capital municipality
of Benguet, wherein according to the latest census of the National Statistics Coordination
Board, it has a population of 97,810 people in 13,658 households. The main source of
livelihood remains to be agriculture, comprising 35% of the household population, this is
followed by employment at 33%, and business at 23% and practice of profession at 9%. In
1996, 66% of the total households had incomes above the poverty line. In year 2002, this
decreased to 55% of the total households or an equivalent of 7,512 households. It is
estimated that in 2007, 9,921 households out of the 18,039 total households live below the
poverty line.
In year 2000, the estimated Annual Per Capita Poverty Threshold in La Trinidad is
Php 14,520. In 2007, this increased to Php. 16,735. The Average Annual Family Income
in 2006 was at Php. 158, 000. The average Annual Family Expenditures in year 2000 was
estimated to be Php. 113,846, this rose to Php. 147,231 in 2003. The total potential labor
force, belonging to the 15 to 64 years age group, was 39.1% of the total population. Out of
this figure, in 2008, an estimate of 66.5% or 26,780 persons participated actively in the
labor force. Unemployment rate in 2008 is comparatively low at 4%. Estimated
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unemployment figures for 2008 are 1,611 persons. The municipality has a land area of
8,273.80 hectares, representing 3.16% of the provincial land area. There are 51
cooperatives in La Trinidad which are engaged in credit, consumers, marketing, service
and multipurpose cooperatives (CDA, 2010).
Cooperatives are known to many which provide services only to its members. The
International Labor Organization (ILO) which is concerned about rural employment and
how to ensure that decent jobs are available in rural areas sees the cooperatives as an
enterprise with a difference. It is described as an organizational model and a decent work
paradigm engaging in common values which are fair wages, secure jobs, social protection,
voice and participation, and equality of opportunity. Thus, it greatly affects our economy.
The cooperative model is an option by virtue of the integral relationship between a
cooperative and its community. Cooperatives are rooted in their communities, offering jobs
to local people. Cooperatives tend to be more stable employers especially in rural areas as
their members are in the community where they are located. Individuals and enterprises in
a particular community form cooperatives to serve their needs. Cooperatives are less likely
relocates to lower wage areas, but find innovative ways to retain jobs and remain
competitive. Cooperatives also assist in circulating financial resources locally. The services
and products offered assist in keeping money in the community and so promote further
employment opportunities in other enterprises.
Economic generation of cooperatives in our country regarding employment is
surely worthy to be recognized. Its economic contribution is upstaged only by its key role
in fighting poverty in a stellar performance by the poor themselves. On rural areas, it is a
classic case of the income-poor lifting themselves by their own bootstraps.
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
Importance of the Study
The study seeks the employment generation of cooperatives in La Trinidad. The
researcher studied cooperative generation of cooperatives. Furthermore, using the gathered
profile of the employees, the researcher determined the number of all employees in
cooperatives in La Trinidad and this may find out problems and issues faced.
In addition, the result of the study increases the level of awareness of the people in
our country on the importance of cooperatives to our economy. Furthermore, the study
could be a basis of cooperatives in assessment of cooperative employment. For cooperative
movement and government agencies, it could act as a policy guide. It could also serve as a
reference for the communities in coming up with improvement of employment system.
The study could be a guide for researchers to compare employment generation of
millionaire multi-purpose cooperatives in La Trinidad with other private institutions.
Results could serve as basis of innovation to have a further study of cooperative
employment in Benguet or CAR.
Statement of the Problem
The research intended to answer the following questions:
1. What are the profiles of cooperatives in La Trinidad?
2. How much are the labor cost spent by the selected cooperatives in the
municipality of La Trinidad?
3. How many are employed in these cooperatives of La Trinidad?
4. What is the growth trend of cooperative employment for the past five (5) years
of the cooperatives studied in La Trinidad?
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
5. What are the problems and issues faced related to employment by cooperatives
of La Trinidad?
Objectives of the Study
To assess the contribution of the cooperatives in La Trinidad in terms of employment, the
study intended to achieve the following:
1. To determine the profile of cooperative employees;
2. To identify the labor cost spent by the selected cooperatives in the municipality
of La Trinidad;
3. To determine the number of employees of cooperatives in La Trinidad;
4. To determine and analyze the growth trend of cooperative employment for the
past five (5) years of the cooperatives studied in La Trinidad; and
5. To identify the problems and issues faced related to employment by
cooperatives of La Trinidad
Scope and Delimitation
The research is an assessment of the employment generation of cooperatives in the
municipality of La Trinidad. It focused on the fifty-one (51) operating and complying
cooperatives of La Trinidad and the investigation was limited to the employability.
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
REVIEW OF LITERATURE
Cooperative Employment
Employability is described by Apruebo (2006) as the “new deal” employment
relationship in which the job is temporary event and employees are expected to
continuously learn skills that will keep them employed in a variety of work activities.
Cooperative as an enterprise despite its significant and positive impact on economic
and social development continues to be underutilized and poorly understood. Few today
are aware that an estimated 100 million jobs worldwide are provided by cooperatives to
salaried employment – which is 20% more than multinational corporations. This is in fact
a conservative figure considering that cooperatives provide not only direct employment,
but also self-employment, indirect and induced employment. For example, in agriculture
where the majority of cooperatives are still found, cooperatives maintain farmers’ ability
to be self-employed given that for many farmers the fact that they are members of a
cooperative and derive income from the services, allows them to continue to farm and
contribute to rural community development. And in both urban and rural contexts, the
impact of cooperatives in providing income to members creates additional employment
through multiplier effects including enabling other enterprises to grow and in turn provide
local jobs – the indirect employment capacity of cooperatives (Hertig, 2008).
With persistent poverty and widespread unemployment still plaguing nations and
communities around the globe, especially within Third World countries, economic
development analysts are looking increasingly at the role that cooperatives play in
generating much-needed occupational opportunities and income security.
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
A recent report by the International Labor Organization notes that cooperatives
enhance employment by: (1) serving as direct employers in the case of workers’ co-ops, service
co-ops, and consumer and financial co-ops among members, owners, and non-members alike;
(2) promoting and enabling self-employment and self-advancement by providing technical,
marketing, and social services to their members’ households and communities; and (3)
boosting indirect employment by creating ancillary opportunities in institutions and businesses
related to the operations of cooperatives (Lindenthal, 1994)
Many are also unaware of the significant impact that cooperatives have on national
economies and in particular their impact on employment. In a number of countries,
cooperatives are sizable employers, for example, cooperatives are the largest private
employer in Switzerland, the second largest employer in Colombia; in India the dairy
cooperatives alone generate nearly 13 million jobs for farm families, while in France and
Italy they provide for over a million jobs. To cite a few salient facts, the state, provincial
and local levels, they too are significant as is the case in Quebec, Canada where a financial
cooperative. The Desjardins Group is the leading employer, or in the US State of Wisconsin
where 71% of all jobs are attributed to the cooperative sector (Hertig, 2008).
Philippines Present Situation on Employment
According to the GMA News, aired last January 21, 2010, the Philippine’s jobless
rate worsens to 7.5% in 2009. About 2.8 million Filipinos did not have jobs last year, or a
yearly unemployment rate of 7.5 percent that is worse than the prior year.
In a statement, the National Statistics Office (NSO) said jobless Filipino men
outnumbered their female counterparts at 1.7 million versus 1.1 million. The 2009 jobless
rate was worse than the 7.4 percent recorded in the prior year. The economy grew by a
Employment Generation of Cooperatives in La Trinidad, Benguet |
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measly 0.8 percent in the third quarter, below the government's 0.8-1.8 percent goal for the
year (GMANewsTV, 2010).
Economist Victor A. Abola of the University of Asia and the Pacific noted that
while the government could have generated one million jobs last year, this was no match
to the number of people looking for work.
According to the NSO, the labor force population reached 37.9 million persons, with an
annual job participation rate of 64 percent. The highest rate was recorded in Northern
Luzon at 70.4 percent."Storms in the last part of the year amid the global economic
slowdown could have led more Filipinos to look for jobs to finance house rebuilding,"
Abola said to the interview of GMA News.
The government earlier said the country was on the path of recovery after being
battered by two major storms last year amid the global economic slump. It is aiming for 3-
4 percent growth this year. The latest labor survey also showed that the underemployment
rate had eased to 19.1 percent last year from 19.3 percent in 2008.Employed persons who
want to higher their work hours or get a new job with longer work hours are considered
underemployed. Half of the estimated 35 million employed Filipinos were in services,
mostly in wholesale and retail trade, and repair of vehicles, motorcycles and other
household goods. About 35 percent were employed in agriculture, while the rest worked in
industries (GMANewsTV, 2010).
The International Labor Organization (ILO) earlier said employment in developing
countries, including the Philippines, would continue to drop in the near term despite early
signs of economic recovery. In a report released last month, the ILO advised governments
to continue spending to stimulate the economy and focus on creating jobs even at the
Employment Generation of Cooperatives in La Trinidad, Benguet |
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expense of wider budget deficits to avoid threatening the job scenario. The Philippines, in
particular, will likely take two years to recover as Indonesia, the report said
(GMANewsTV, 2010).
According to CDA (2010), cooperatives posted a total business volume worth
P78.5-billion. Composed of some 3.7-million members, the cooperatives have total assets
of P79.9-billion and P4.76-billion in net surplus. Moreover, it generated some l.6-million
in jobs. In terms of assets, cooperatives have almost 53% of the total assets which are a
little behind their not-too-distant cousins—the rural banks, whose assets of Pl50.9-billion
in 2007. The keenest competitors of cooperatives, the rural banks are now the main
providers of microfinance loans in the banking sector. Though, cooperatives, in the strictest
sense, are not considered part of the banking sector. But in terms of total loans granted, the
cooperatives' loans are almost comparable to the total loans of P74.86-billion extended by
rural banks in 2006.
In the province of Benguet, with the total of 151 cooperatives complied reports to
the CDA an estimated total of P23, 219,098.43 is used for salaries and wages in the
cooperatives. In terms of employment Benguet contributed 40% in the CAR, employing
583 part-time and full-time employees (CDA, 2010).
Definition of Terms
Employment generation- productive capability of a firm or an organization to the
community in terms of the employment
Management staff - headed by the general manager, the day-to-day affairs of the
cooperative shall be entrusted to the management staff, which will implement the policies
of the Board and the membership assembly to attain the objectives of the cooperative. The
Employment Generation of Cooperatives in La Trinidad, Benguet |
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members of the management staff are the policy implementers of the cooperative, and as
such, they shall be responsible to the Board for the performance of their functions.
Cooperatives- an autonomous and duly registered association of persons, with a common
bond of interest, who have voluntarily joined together to achieve their social, economic
and cultural needs and aspirations by making equitable contributions of the capital
required, patronizing their products and services and accepting fair share of the risks and
benefits with universally accepted cooperative principles.
Credit Cooperatives- one that promotes and undertakes savings and lending services among
its members. It generates a common pool of funds in order to provide financial assistance
and other related financial services to its members for productive and provident purposes.
Service Cooperatives- one which engages in medical and dental care, hospitalization,
transportation, insurance, housing, labor, electric light and power, communication,
professional and other services.
Multi-purpose Agriculture- one which combines two (2) or more of the business activities
of the different types of cooperative that are engage in agriculture.
Multi-purpose Non-agriculture- one which combines two (2) or more of the business
activities of the different types of cooperative.
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
METHODOLOGY
Locale and Time of the Study
The study was conducted in the municipality of La Trinidad, Benguet. The study
was focused on the fifty-one (51) cooperatives in the different barangay’s of La Trinidad
which were Alapang, Ambiong, Bahong, Balili, Beckel, Betag, Cruz, Lubas, Pico,
Poblacion, Puguis, Shilan, Tawang and Wangal. The study was conducted from October
2011 to February 2012.
Respondents of the Study
The information needed in the study was gathered from the complying and
operating fifty-one (51) cooperatives in La Trinidad. These cooperatives were classified
into four, multi-purpose agriculture (20 respondents), multi-purpose non- agriculture (22
respondents), seven credit cooperatives (7 respondents) and service cooperatives (2
respondents). The respondent of the cooperative were the general manager or any of the
management staffs that the general manager has authorized to answer the questionnaire.
Data Gathering Procedure
A structured questionnaire was personally floated to the respondents. The
questionnaires serve as instrument to gather data for the study. It contains the information
about the cooperative regarding employment. Likewise, a copy of the financial report and
annual reports submitted to the CDA was also taken to supplement the information
gathered through the survey questionnaire.
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
Data Gathered
The research made used of secondary and primary data. The primary data consisted
of the cooperative profile. Meanwhile, secondary data gathered were name of cooperative,
the nature of businesses, numbers of employees, labor cost and constraints on employment.
Data Analysis
Various statistical tools were used by the researcher in the data analysis. Data that
were collected were tabulated, summarized and analyzed with the used of frequency
analysis, mean and percentage ranking.
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
RESULTS AND DISCUSSION
Cooperative Profile
This section presents the cooperative profile of fifty-one cooperatives in La
Trinidad according to the area of operation, type of cooperatives, date of registration, years
of existence and number of members.
Type of cooperatives. The different cooperatives in La Trinidad were credit, service, multi-
purpose agriculture and multi-purpose non-agriculture. As shown in Table 1, 22 (43%)
cooperatives were multi-purpose non-agriculture, 20 (39%) were multi-purpose
agriculture, 2 (4%) were service and 14% or 7 were credit. The results points out that
majority of cooperatives which are operating were multi-purpose agriculture and multi-
purpose non-agriculture.
Area of operation. The area of operation refers to the place where the members of
the cooperative came from or the area that is covered in the requirement for membership.
The information was gathered from the annual reports of the cooperative. Table 2 presents
that in multi-purpose non-agriculture cooperative, one (2%) of the cooperatives was
operating in a school, 6 (12%) were operating in a barangay, 4 (8%) were operating in the
municipality, 10 (20%) were provincial-based and one (2%) was operating regionally. For
multi-purpose agriculture cooperatives, there were 8 (16%) operating in a barangay, 2 (4%)
municipality, 9 (18%) provincial and 1 (2%) regional. For credit cooperatives, 3 (6%) in
the municipality, 3 (6%) provincial and one (2%) was operating regional while for service
cooperatives, one (2%) was on barangay and one (2%) was provincial based.
Employment Generation of Cooperatives in La Trinidad, Benguet |
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The finding indicates that the scope of operation of cooperatives in La Trinidad
does not only operate in their respective barangays but cover other areas. Therefore, the
cooperative do not limit the growth of membership in the municipality.
Table 1. Type of cooperatives in La Trinidad, Benguet
TYPE OF COOPERATIVE
FREQUENCY
PERCENTAGE
Credit
7
14
Service
2
4
MP Agriculture
20
39
MP Non-Agriculture
22
43
TOTAL
51
100
Table 2. Area of operation of the cooperatives in La Trinidad, Benguet
AREA OF
MPA
MPN
CREDIT
SERVICE
OPERATION
F
%
F
%
F
%
F
%
School-based
-
-
1
2
-
-
-
-
Barangay
8
16
6
12
-
-
1
2
Municipality
2
4
4
8
3
6
-
-
Provincial
9
18
10
20
3
6
1
2
Regional
1
2
1
2
1
2
-
-
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
Date of registration. Table 3 shows the date of registration of the cooperatives. For multi-
purpose agricultural cooperative 9 or 18% were registered between the year 1991 to 1995,
6 or 12% were registered between the year 1996 to 2000, 2 o 4% were registered between
the year 2001 to 2006 and 3 or 6% were registered after 2006. In multi-purpose non-
agricultural cooperative, one (2%), which is the Benguet Government Employees MPC,
was registered in 1973, 8 or 16 % were registered between the year 1991 to 1995, 8 or 16
% were registered between the year 1996 to 2000, 3 or 6% were registered between the
year 2001 to 2005, and 2 o 4% were registered after 2006. Two or 4 % credit cooperatives
were registered between the years 1991 to 1995, 3 or 6% were registered between the years
1996 to 2000, one or 2% was registered between the years 2001 to 2005 and one or 2%
was registered after the year 2006 while in service cooperatives one or 2% was registered
between the years 1991 to 1995 and one or 2% was registered between the years 1995 to
1996. Results indicated that most cooperatives in La Trinidad were registered in between
the year 1991 to 1995.The results also show that there was decreasing trend of registration.
Table 3. Date of registration of cooperatives in La Trinidad, Benguet
DATE REGISTERED
MPA
MPN
CREDIT
SERVICE
F
%
F
%
F
%
F
%
1990 and below
-
-
1
2
-
-
-
-
1991-1995
9
18
8
16
2
4
1
2
1996-2000
6
12
8
16
3
6
1
2
2001-2005
2
4
3
6
1
2
-
-
2006 and above
3
6
2
4
1
2
-
-
Years of existence. Table 4 presents the year of existence of the selected cooperative
studied in La Trinidad, Benguet. As shown in the table, three or 6 % from the multi-purpose
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
cooperatives existed for less than 5 years, 2 or 4% existed for 6 to 10 years, 6 or 12%
existed for 11 to 15 years and 9 or 18% existed for 16 to 20 years. For multi-purpose non-
agriculture cooperatives, 2 or 4% existed for less than 5 years, three or 6% existed for 6 to
10 years, 8 or 16% existed for 11 to 15 years, 8 or 16% existed for 16 to 20 years and 1 or
2% existed for 21 years and above which was the BGEMPC.
For credit cooperatives, 1 or 2% existed for less than 5 years, 1 or 2% existed for 6 to 10
years, 3 or 6% existed for 11 to 15 years and 2 or 4% existed for 16 to 20 years while for
service cooperatives, 1 or 2% existed for 11 to 15 years and 1 or 2% existed for 16 to 20
years. The results show that majority of the cooperatives in La Trinidad are existing for ten
years and more.
Table 4. Years of existence of cooperatives in La Trinidad, Benguet
YEAR OF EXISTENCE
MPA
MPN
CREDIT
SERVICE
F
%
F
%
F
%
F
%
5 and below
3
6
2
4
1
2
-
-
6-10
2
4
3
6
1
2
-
-
11-15
6
12
8
16
3
6
1
2
16-20
9
18
8
16
2
4
1
2
21 and above
-
-
1
2
-
-
-
-
Cooperative membership. Table 5 shows the number of members of the cooperatives
studied. A cooperative have two kinds of membership; the regular members and the
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
associate members. A regular member is one who has complied with all the membership
requirements and are entitled to all the rights and privileges while an associate member is
one who has no right to vote nor be voted upon and shall only be entitled to such rights and
privileges as the by-laws may provide (RA 9520, 2008). The study focused on the regular
members.
Most of the cooperative classification has members less than 100. These finding shows that
most cooperatives have few members which must be looked into consideration by the
cooperatives studied. Membership generation is very important in every cooperative.
Therefore, it is recommended that cooperatives must formulate strategies to attract more
individuals to become members in the cooperative.
Table 5. Cooperative membership
NUMBER OF MEMBERS
MPA
MPN
CREDIT
SERVICE
F
%
F
%
F
%
F
%
100 and below
9
18
8
16
4
8
1
2
101-200
4
8
5
10
1
2
-
-
201-300
1
2
1
2
-
-
-
-
301-400
1
2
3
6
-
-
-
-
401-500
1
2
1
2
-
-
1
2
501 and above
4
8
4
8
2
4
-
-
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
Cooperative Financial Data
Table 6 shows the financial data of the different type of cooperatives studied as to
total assets and total paid-up share capital for 2006 until 2010.
Total Asset. As shown in Table 6, for the periods 2006 to 2007 majority of
cooperatives, for the total asset, have an increasing percentage wherein the highest
percentage increase was 57.43 % in service cooperatives. Furthermore, most of the
cooperatives have slight increase for the following years except for credit cooperative that
has a decrease of 5.94% in the years 2007 to 2008 where the total asset decreases from
Php. 74,300,845.52 to Php. 70,134,393.2.
Paid-up Share Capital. Table 6 also presents the share capital of the different types
of cooperatives including the percentage increase from year to year. Result shows that all
the cooperatives have an increasing paid-up share capital based from the percentage
increase presented and the highest percentage increased to 64.50% was observed for the
multi-purpose agriculture cooperatives in the year 2006 to 2007. For multi-purpose
cooperative, there was a recorded decrease of 5.84% when the total paid-up share capital
for the year 2008 of Php. 111,939,107.31 decreased to Php. 105,764,864.57 in the year
2009.
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
Table 6. Financial data of cooperatives in La Trinidad from 2006 to 2010
YEAR
TOTAL ASSET PER YEAR
MPA
MPN
CREDIT
SERVICE
2006
31,210,783.70
87,206,980.27
59,003,874.10
1,159,303.13
% 57.24
41.22
20.59
57.43
2007
72,994,546.24
148,366,718.64
74,300,845.52
2,723,390.03
% 37.97 17.64
(5.94)
24.49
2008
117,672,676.06
180,138,242.29
70,134,393.20
3,606,731.66
% 10.54 16.99
21.96
4.80
2009
131,532,011.02
217,009,318.17
89,873,442.22
3,788,759.41
% 10.53 18.84
6.84
0.47
2010
147,005,981.94
267,394,411.42
96,471,608.24
3,806,753.78
YEAR
TOTAL PAID-UP SHARE CAPITAL
MPA
MPN
CREDIT
SERVICE
2006
6,808,135.22
41,716,795.19
12,384,650.26
864,000.00
% 64.50 41.51
22.48
56.71
2007
19,177,742.60
71,319,120.36
15,976,454.65
1,995,834.64
% 27.62 36.29
9.95
1.66
2008
26,495,627.87
111,939,107.31
17,741,456.98
2,029,522.00
% 14.68 (5.84)
16.00
2.47
2009
31,053,049.34
105,764,864.57
21,121,421.72
2,080,972.86
% 10.69 16.95
14.33
1.14
2010
34,771,204.23
127,347,696.17
24,655,602.88
2,105,025.88
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
Cooperative Employment
As shown in Table 7, there were fifty-one respondents in the study but only thirty-
one cooperatives hired employees wherein ten (20%) were multi-purpose agriculture, 14
(27%) were multi-purpose non-agriculture, five (10%) in credit and two (4%) were service
cooperative. The remaining twenty cooperatives said that members voluntarily do the job
and do not hire employees.
Table 8 presents the employment generation of the different type of cooperatives
in La Trinidad for the past five years. As it was shown, majority of the employees were
regular followed by part-time employees and last were contractual employees. For the year
2006, cooperatives employed a total of 113 individuals and it increased to 136 in the year
2007. A decreased to 135 cooperative employees was realized in 2008 but it increased to
173 in year 2009. It further increased to 194 employees in the year 2010.
The result shows that there was a slight increase of employment this past five years
from 2006 to 2010 because some of the selected cooperative decreased their employees
while others were stagnant. Furthermore, it shows that majority of the cooperative
employees were female which indicates that findings support the statement of the National
Statistics Office (NSO) where they said in an interview that jobless Filipino men
outnumbered their female counterparts at 1.7 million versus 1.1 million employed Filipino
(GMANewsTV, 2010).
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
Table 7. Availability of employees
PARTICULAR
AVAILABLE
NOT AVAILABLE
F
%
F
%
MPC Agri
10
20
10
20
MPC Non-agri
14
27
8
16
Credit
5
10
2
4
Service
2
4
-
-
Table 8. Cooperative employment generation in La Trinidad from 2006 to 2010
COOPERATIVE
2006
2007
2008
2009
2010
F
%
F
%
F
%
F
%
F
%
MPC Agri
Regular
Male
4
4
10
7
11
8
16
9
21 11
Female
11
10
16
12
14
10
25
14
30 15
Contractual
Male
-
-
1
1
2
1
1
1
4
2
Female
-
-
2
1
3
2
5
3
4
2
Part-time
Male
2
2
2
1
-
-
-
-
1
1
Female
5
4
1
1
1
1
2
1
5
3
MPC Non-agri
Regular
Male
14
12
12
9
14
10
20
12
24 12
Female
25
22
25
18
26
19
29
17
30 15
Contractual
Male
2
2
3
2
2
1
8
5
8
4
Female
3
3
3
2
4
3
7
4
6
3
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
Table 8 continued . . .
COOPERATIVE
2006
2007
2008
2009
2010
F
%
F
%
F
%
F
%
F
%
Part-time
Male
5
4
5
4
7
5
4
2
8
4
Female
22
19
24
18
20
15
23
13
19
10
Credit
Regular
Male
3
3
4
3
4
3
4
2
4
2
Female
5
4
4
3
4
3
4
2
5
3
Part-time
Male
4
4
2
1
2
1
2
1
2
1
Female
8
7
11
8
11
8
11
6
11
6
Service
Regular
Male
-
-
5
4
5
4
5
3
5
3
Female
-
-
5
4
4
3
6
3
6
3
Part-time
Male
-
-
-
-
-
-
-
-
-
-
Female
-
-
1
1
1
1
1
1
1
1
TOTAL
113 100 136 100 135 100 173 100 194 100
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
Labor Cost
This section discusses the labor cost incurred by the different types of cooperatives
for the past five years from 2006 to 2010. It focused on salaries and wages and the benefits
and privileges given to their employees.
Salaries and wages. As shown in Table 9, multi-purpose agriculture cooperatives
incurred a percentage increase of 47.44% in year 2006 to 2007 but it declined to 1.49% in
2007 to 2008. Moreover, it further increased to 38.93% in 2008 to 2009 and 39.22% in
2009 to 2010. For multi-purpose non-agriculture cooperatives, the salaries and wages had
a percentage increase of 43.21% in 2006 to 2007 but it decline in the year 2007 to 2008
with 10.53% decrease. It further increases to 21.78% and 22.11% in the following years.
Credit cooperatives also increased in terms of salaries and wages but incur a decrease of
1.35% in 2007 to 2008 and 11.55 in 2009 to 2010. . For service cooperatives, there was no
recorded cost for salaries and wages for the year 2006 because they haven’t hired
employees while in the year 2007 they incur Php. 762,000.00 which further increased in
the following years.
The results point out that there was an increase in salaries and wages except for the
year 2008 wherein most of the different cooperative type have decreasing amount but it
further increased in the following years. This implies that the selected cooperatives studied
had been spending increasing amount for the salaries and wages of the employees.
Benefits and privileges. This cost of benefits and privileges are the cost incurred by
cooperatives employees’ SSS, Philhealth or PAG-IBIG. Table 10 shows that for the year
2006 to 2007, multi-purpose agriculture incurred a percentage increase of 12.11%, multi-
purpose non-agriculture cooperative incurred 26.37% percentage increase and credit
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
cooperatives incurred the highest percentage increase in benefits and privileges of 94.47%.
Both the multi-purpose agriculture and credit cooperative incurred percentage decrease in
year 2007 to 2008 with 13.36% and 1.80%, respectively. Benefits and privileges were
further increased in the following years except for service cooperative that did not incur
expense in the past five years.
Table 9. Total salary expense of the different type of cooperative
YEAR
TOTAL SALARY EXPENSE
MPA
MPN
CREDIT
SERVICE
2006
808,223.15
1,966,773.97
866,925.00
-
%
47.44
43.21
7.77
100.00
2007
1,537,573.00
3,463,300.30
939,925.00
762,000.00
%
(1.49)
(10.53)
(1.35)
2.56
2008
1,514,960.79
3,133,435.38
927,425.36
782,000.00
%
38.93
21.78
27.61
41.20
2009
2,480,717.89
4,006,143.56
1,281,110.84 1,329,893.92
%
39.22
22.11
(11.55)
12.58
2010
4,081,497.89
5,143,256.92
1,148,452.89 1,521,254.76
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
Table 10. Benefits and privileges of the different type of cooperative
YEAR
BENEFITS AND PRIVILEGES
MPA
MPN
CREDIT
2006
66,668.60
361,016.80
27,508.31
% 12.11
26.37
94.47
2007
75,851.80
490,323.48
497,286.75
% (12.36)
21.58
(1.80)
2008
67,507.30
625,289.39
488,511.34
% 64.70
26.90
28.21
2009
191,257.46
855,393.61
680,434.49
% 17.78
12.46
13.73
2010
232,607.78
977,110.89
788,695.80
Cooperative Employment Preferences
This presents a discussion on how the cooperatives consider educational attainment
and courses on hiring, the availability of manual of policies and procedures on human
resource development.
Educational attainment. Table 11 shows the preferred educational attainment of the
different type of cooperatives in hiring their employees. Multi-purpose cooperative prefer
college graduates (35%) and high school graduates (8%). Multi-purpose non-agriculture
cooperatives also prefer college graduates (39%) and high school graduates (2%) while
credit cooperatives only prefer college graduates (14%). Meanwhile, service cooperatives
choose college graduates (4%), high school graduates (1%) and graduate of technical or
vocational courses (1%).
The findings indicate that most of the cooperative prefer college graduates and that
skills required in the job are highly technical.
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
Table 11. Preferred educational attainment of cooperatives in hiring employees
EDUCATIONAL
MPA
MPN
CREDIT
SERVICE
ATTAINMENT
F
%
F
%
F
%
F
%
High School
4
8
1
2
-
-
1
2
College
18
35
20
39
7
14
2
4
Technical/ Vocational
1
2
1
2
-
-
1
2
* Multiple response
Preferred courses. Table 12 presents the preferred courses in hiring employees of
the different type of cooperatives.
Multi-purpose agricultural cooperatives preferred accountancy or commerce
graduates (33%) than agri-business or agriculture graduates (22%) and education graduate
(2%). Accountancy or commerce graduates (39%) were preferred by multi-purpose non-
agriculture cooperatives and agri-business or agriculture graduates (8%) but also prefer
engineering and information technologists (2%). Same as through with credit cooperatives
which prefer accountancy or commerce graduates (12%) and agri-business or agriculture
graduates (4%).Service cooperatives prefer accountancy or commerce graduates and agri-
business or agriculture graduates. The Lt. Diagnostic & Medical-Surgical Clinic MPC
preferred radiologist or medical technologists.
Moreover, cooperatives also prefer that graduated in any course but were willing to
undergo trainings or any courses that are related to the job description.
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
The results implies that majority of the cooperatives preferred accountancy or
commerce graduate than the other courses, taking into consideration that the form of job
was more on bookkeeping. Some multi-purpose agricultural cooperatives prefer agri-
business or agriculture graduates because of the nature of their businesses like production
and marketing of agricultural produce.
Table 12. Preferred courses of the different type of cooperatives in hiring employees
PREFERRED
MPA
MPN
CREDIT
SERVICE
COURSES
F
%
F
%
F
%
F
%
Accountancy/
Commerce
17
33
20
39
6
12
1
2
Agribusiness/
Agriculture
11
22
4
8
2
4
1
2
Education
1
2
-
-
-
-
-
-
Hotel and Restaurant
Management
-
-
3
6
-
-
-
-
Engineering
-
-
1
2
-
-
-
-
Information
Technologist
-
-
1
2
-
-
-
-
Radiologist/Medical
Technologist
-
-
-
-
-
-
1
2
Others
1
2
1
2
-
-
-
-
* Multiple response
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
Manual of policies and procedure. Table 13 shows the availability of the manual of policies
and procedures in the different types of cooperatives with regards to human resource
development. Thirty-one of the cooperatives that hired employees answered but the
remaining twenty cooperatives noted that it is not applicable because they have no
employees.
In multi-purpose agriculture cooperatives, 17 (33%) said that there were no manual
of policies and procedure for both hiring promotion and firing and staff development while
3 (6%) have. Same as through with the other areas, 16 (31%) answered that there were no
compensation and benefits, 17 (33%) performance appraisal and 15 (29%) job description.
For multi-purpose non-agriculture cooperatives, 12 (24%) of them said they have no
manual policy for hiring, promotion and firing while 10 (20%) have. On staff development,
10 (20%) said they have the policy and 12 (24%) said they do not have. Eleven (22%)
mentioned that they have manual in policy regarding the availability of compensation and
benefits and job description while 11 (22%) mentioned that they do not have. On their
performance appraisal, 16 (31%) answered that they have no policy and 6 (12%) that have.
In credit cooperatives, 4 (8%) answered that they do not have policy on hiring, promotion
and firing, staff development, compensation and benefits and job description than the 3
(6%) that does have. Majority (10%) also answered that they do not have manual policy
regarding performance appraisal. For service cooperative, Table 13 shows that there were
an equal percentage of those who do not have the policies than those that have.
The result shows that majority of the different type of cooperatives do not have
their manual of policies and procedure with regards to human development. This indicates
that they do not have a policy that could enhance the performance of their employees.
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
Therefore, it is recommended that the Cooperative Development Authority should monitor
and supervise the cooperatives in making their manual of policies and procedures regarding
human resource development for the betterment of the cooperative employees.
Table 13. Availability of manual of policies and procedures of cooperatives
PARTICULAR
MPA
MPN
CREDIT
SERVICE
F
%
F
%
F
%
F
%
Hiring, Promotion and Firing
Manual Available
3
6
10
20
3
6
1
2
No Manual
17
33
12
24
4
8
1
2
Staff Development
Manual Available
3
6
10
20
3
6
1
2
No Manual
17
33
12
24
4
8
1
2
Compensation and Benefits
Manual Available
4
8
11
22
3
6
1
2
No Manual
16
31
11
22
4
8
1
2
Performance Appraisal
Manual Available
3
6
6
12
2
4
1
2
No Manual
17
33
16
31
5
10
1
2
Job Description
Manual Available
5
10
11
22
3
6
1
2
No Manual
15
29
11
22
4
8
1
2
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
Problems and Issues on Employment
These discussed the problems and issues on employment like the compliance of
legal minimum wage and 13th month pay, compliance of their mandatory requirement
contribution of remittance to the agencies, availability of retirement benefits, difficulty on
different agency to comply, the common factors for turn-over and problems encountered
on employment. This section was answered by the thirty-one different cooperative that
have regular employees.
Legal minimum wage & 13 month pay. It shows in Table 14 the compliance for
legal minimum wage and 13th month pay to the employees.
In multi-purpose agriculture cooperatives, 16% of the cooperatives comply and 4%
did not comply for their regular employees. Majority (20%) of the cooperatives did not
comply on contractual employees and for their part-time employees 18 % did not comply
while 2% complied. For multi-purpose non-agriculture cooperatives, 20% of the
cooperative complied while 8% did not comply on the regular employees and most
cooperative did not comply on contractual (22%) and part-time (20%).Credit cooperatives
also comply on their regular employees than on contractual and part-time. The table also
shows that service cooperatives comply for both regular (4%) and part-time (4%).
The results indicate that cooperatives comply for legal minimum wage and 13th
month pay only to the regular employees of the cooperative and do not comply with those
who work contractual or part-time.
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
Table 14. Compliance of legal minimum wage and 13th month pay to the employees
PARTICULAR
MPA
MPN
CREDIT
SERVICE
F
%
F
%
F
%
F
%
Regular
Comply
8
16
10
20
4
8
2
4
Did not comply
2
4
4
8
1
2
-
-
Contractual
Comply
-
-
3
6
1
2
-
-
Did not comply
10
20
11
22
4
8
2
4
Part-time
Comply
1
2
4
8
3
6
2
4
Did not comply
9
18
10
20
2
4
-
-
Mandatory requirement contribution of remittance to the agencies. Table 15 shows
the compliance of cooperative to the mandatory requirement contribution/remittance to
SSS, Philhealth, Home Development Mutual Fund (HDMF) and BIR. On the SSS, most of
the cooperatives comply on regular employees than on the contractual and part-time.
Majority of the cooperatives also comply on Philhealth and HDMF, Philhealth and BIR for
the regular employees.
The findings imply that majority of the cooperatives comply more on the mandatory
requirement contribution/remittance to their regular employees but not on the contractual
and part-time employees.
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
Table 15. Compliance of mandatory requirement contribution/remittance
PARTICULAR
MPA
MPN
CREDIT
SERVICE
F
%
F
%
F
%
F
%
A. SSS
Regular
Comply
6
12
9
18
2
4
2
4
Did not
comply
4
8
5
10
3
6
-
-
Contractual
Comply
1
2
3
6
1
2
-
-
Did not
comply
9
18
11
22
4
8
2
4
Part-time
Comply
-
-
1
2
-
-
1
2
Did not
comply
10
20
13
25
5
10
1
2
B. PhilHealth
Regular
Comply
5
10
9
18
2
4
2
4
Did not
comply
5
10
5
10
3
6
-
-
Contractual
Comply
1
2
3
6
1
2
-
-
Did not
comply
9
18
11
22
4
8
2
4
Part-time
Comply
-
-
1
2
-
-
1
2
Did not
comply
10
20
13
25
5
10
1
2
C. HDMF
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
Regular
Comply
5
10
9
18
2
4
2
4
Did not
comply
5
10
5
10
3
6
-
-
Contractual
Comply
1
2
3
6
1
2
-
-
Did not
comply
9
18
11
22
4
8
2
4
Table 15 continued . . .
PARTICULAR
MPA
MPN
CREDIT
SERVICE
F
%
F
%
F
%
F
%
Part-time
Comply
-
-
1
2
-
-
1
2
Did not
comply
10
20
13
25
5
10
1
2
D. BIR
Regular
Comply
5
10
7
14
2
4
1
2
Did not
comply
5
10
7
14
3
6
1
2
Contractual
Comply
-
-
2
4
1
2
-
-
Did not
comply
10
20
12
24
4
8
2
4
Part-time
Comply
-
-
1
2
-
-
1
2
Did not
comply
10
20
13
25
5
10
1
2
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
Retirement benefits. As shown in Table 16, cooperatives in multi-purpose non-agriculture
cooperatives, credit cooperatives and service cooperative gave retirement benefits to their
employees. All of the multi-purpose agriculture cooperatives answered that no retirement
benefits were given to the employees. Retirement benefits were given to those employees
who serve the cooperative for a period of time until he/she chose to leave his job or at
retirement age.
The findings implies that majority of the cooperative with hired employees were not given
retirement benefits.
Table 16. Availability of retirement benefits of cooperatives
PARTICULAR
MPA
MPN
CREDIT
SERVICE
F
%
F
%
F
%
F
%
With Retirement
Benefits
-
-
6
12
1
2
1
2
Without Retirement
Benefits
10
20
8
16
4
8
1
2
Difficulty of compliance to the agencies. Table 17 shows the different agencies that
have been ranked by the cooperatives as to their difficulty of compliance. The difficulty of
compliance was ranked based from the mean. The Bureau of Internal Revenue (BIR)
ranked first as the most difficult with mean of 1.29 while Social Security System (SSS)
ranked second with 2.16 mean and Department of Labor and Employment (DOLE) as the
third having 2.87 mean. The Local Government Unit (LGU) was considered the less
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
difficult agency to comply with, having 3.61 mean. The result implies that most
cooperative was hard up in complying with the BIR.
Reasons for difficulty of compliance. Table 18 shows the reasons of cooperatives for the
difficulty of compliance to the agencies identified. Most cooperatives answered that the
agencies have many paper requirements. Cooperatives also mentioned the unfair
computation and tax mapping, unfriendliness of employees and long queues. Cooperatives
added that the agencies have high assessment fees, difficult computation of with-holding
tax due to their yearly salary adjustment and non-remittance of employee contribution by
the past administration.
Table 17.Difficulty of cooperatives to comply with the agencies
PARTICULAR
COMPLIANCE DIFFICULTY
MEAN
RANK
4
3
2
1
BIR
2
-
3
26
1.29
1
DOLE
5
19
5
2
2.87
3
SSS
-
8
20
3
2.16
2
LGU
24
2
5
-
3.61
4
Table 18. Reasons of difficulty of cooperative on compliance on agencies
REASONS
CREDI
MPA
MPN
T
SERVICE
F
%
F
%
F
%
F
%
Many paper requirements
6
12
8
16
3
6
1
2
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
Unfair computation & tax
mapping
1
2
-
-
-
-
-
-
Unfriendly employees
-
-
1
2
1
2
-
-
High assessment fees
-
-
1
2
-
-
-
-
Difficult computation of
with-holding tax due to
yearly salary adjustment
-
-
3
6
-
-
-
-
Non-remittance of employee
contribution by past
administration
1
2
-
-
-
-
-
-
Long queues
1
2
-
-
1
2
-
-
*Multiple response
Employment turn-over. As shown in Table 19, most cooperatives have problems
for turn-over because of low salary. Other common factors for turn-over were bad working
condition, bullying in the job and benefits does not prevail which support Table 16 that
majority of the cooperative does not provide benefits. Some cooperatives also added that
they have other employment opportunities, employees have their personal problems and
having voluminous work on the main job as common factor for turn-over. Voluminous
work because some cooperatives were institutional or cooperatives that was established in
the government agency so they are hard up in doing two things at a time.
Based from the findings, it is recommended that institutional cooperatives must hire
a regular employee to lessen voluminous work.
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
Table 19. Employment turn-over
PARTICULAR
CREDI SERVIC
MPA
MPN
T
E
F
%
F
%
F %
F
%
Low salary
10
20
7
14
2
4
1
2
Bad working condition
-
-
1
2
-
-
-
-
Bullying
1
2
-
-
-
-
-
-
Benefits doesn't prevail
1
2
-
-
-
-
-
-
Other employment opportunity
-
-
1
2
-
-
-
-
Employees personal problems
-
-
1
2
-
-
-
-
Voluminous work on the main
job
-
-
-
-
1
2
-
-
*Multiple response
Problems on employment. Table 20 shows the problems of the thirty-one
cooperatives with hired employees regarding employment. Most cooperatives answered
that there was no salary increase or have low salary. Cooperatives also mentioned that
employees hired do not have job experience and works were done voluntarily.
Cooperatives also identified some of the internal problems being experienced such as
dishonesty or disloyalty of some of the employees and slow action of the BOD on their
business operation. Other cooperatives added that they were financially incapable to hire
more employees which they need in their operation resulting to another problem of
individuals doing voluntary work which affects their performance. A cooperative also
mentioned that they have no formalized human resource policies and some were unaware
about the cooperative.
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
Table 20. Problems of cooperative on employment
PROBLEMS
CREDI
MPA
MPN
T
SERVICE
F
%
F
%
F
%
F
%
Low Salary
2
4
2
4
-
-
1
2
Dishonesty/Disloyalty
1
2
-
-
-
-
-
-
Unawareness about
cooperative
1
2
-
-
-
-
-
-
No job experience
1
2
1
2
-
-
-
-
Financial incapable to hire
-
-
1
2
-
-
-
-
Slow action of BOD on
business operation -
-
1
2
-
-
-
-
No formalize human
resource policies
-
-
1
2
-
-
-
-
Works are done
voluntarily
-
-
1
2
1
2
-
-
*Multiple response
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
This study was conducted to determine the employment generation of cooperatives
in La Trinidad wherein fifty-one operating cooperatives that comply at least three years in
the Cooperative Development Authority. This includes their profile, financial data, number
of employees generated, labor costs, employment growth preferences and problems and
issues regarding employment.
Majority of the cooperative were operating in their municipality. Most are multi-
purpose agriculture cooperatives and multi-purpose non-agriculture cooperatives. They
were registered between the years 1991 to 1995 and exist for almost ten years or more.
Most cooperatives have less than 100 members.
As to their financial status, the cooperatives incurred growth in total asset and total
paid-up share capital as reflected in their financial and annual reports.
On the employment, the study shows that out of the 51 respondents, 31 cooperatives
have regularly paid employees and majority of them had an increasing trend in their
employment generation. It was also found out that majority of the employees were female.
On their labor cost, the salaries and wages and benefits and privileges slightly increased
but decreased in 2008 but further increased in the following years.
As to the cooperatives employment preferences, most of the cooperatives prefer
college graduates in hiring their employees. Cooperatives prefer accountancy or commerce
graduate but some agricultural cooperatives prefer agri-business or agriculture graduates
because of the nature of their business. Majority of the different type of cooperatives do
not have their manual of policies and procedure with regards to human development.
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
Regarding the problems and issues, cooperatives comply for legal minimum wage
and 13th month pay only to the regular employees of the cooperative. In addition,
cooperatives comply more on the mandatory requirement contribution/remittance on their
regular employees. Most of the cooperative with regularly paid employees do not give
retirement benefits.
As to their compliance to government requirements, most cooperatives are hard up
in complying with BIR and the study shows that the reason was the voluminous paper
requirements to be submitted. For the common factors of turn- over, majority mentioned
that there is a low salary. Same as through with the problems on employment, most
cooperatives answered that they have no salary increase or their salaries were not enough.
Conclusions
Based on the findings, the following conclusions were derived:
1. Cooperatives have increasing trend of regularly paid employees for the past five
years and they have 194 employees in the year 2010. Most employees are female.
2. Cooperatives’ labor costs have increased though they have a year with a
decreasing value but soon recovered and get back on track.
3. Some of the respondents do not hire employees and their members do the
voluntary work on the cooperative.
4. Most of the cooperatives spent labor cost on regular employees.
5. In hiring, most cooperatives preferred college degree holder that are
accountancy or commerce graduates.
6. Majority of the cooperatives do not have manual of policies and procedure and
does not give employment benefits.
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
7. Cooperatives favor regular employees in compliance of the legal minimum
wages and 13th month pay, also on the mandatory remittances.
8. Employees on the cooperative have problems on low salary or having no salary
increase.
Recommendations
For cooperative employment generation to improve, recommendations were made
based on the findings;
It was recommended that cooperative should closely monitor and improve their
business operation then they could become competitive and would be able to hire more
employees. Furthermore, cooperatives without manual of policies and procedures should
formulate their own policies and procedures and should review their existing guidelines
and policies regarding human resource development. Cooperatives must also monitor the
compliance of requirements with the different agencies.
In addition, to reduce voluminous works which were the problem of institutional
cooperative, it was recommended that they would hire full-time employees. For the
cooperatives that do not have regularly paid employees and members doing the voluntary
work, they should organize human resource capability building to their members. This
would likely be helpful when the cooperative will be able to hire employees because the
members that were educated would be the one to orient the new employees.
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012
LITERATURE CITED
APRUEBO, R. A. 2006. Essential of Organizational Behavior. Educational Publishing
House. Pp. 4-90.
COOPERATIVE DEVELOPMENT AUTHORITY. 2010. Master List of Registered
Operating Cooperatives. Benguet. Pp. 1-8.
GMA NEWS TV. January 21, 2010. Philippine jobless rate worsens to 7.5% in 2009.
Retrieved July 17, 2011 from http://www.gmanews.tv/story/182128/philippine-jobless-
rate-worsens-to-75-in-2009.
HERTIG, M. E. E.2008. The Contribution of Cooperatives to Employment Creation by
International Labor Organization (ILO) COOP Geneva, Switzerland. Pp. 1-9.
LINDENTHAL, R. 1994. Cooperatives and Employment in Developing Countries
Geneva: International Labor Organization, P. 2.
Employment Generation of Cooperatives in La Trinidad, Benguet |
SACLA, ELLAINE B. APRIL 2012