ROMAC Group Chairman and Pampanga Chamber of Commerce and Industry (PamCham) Director Rene G. Romero declared “anti-business” the proposed ordinance which calls for the mandatory “hiring and posting” of security guards in establishments in the City of San Fernando, Pampanga.

Romero said that the business groups will oppose the draft ordinance, which is now pending at the CSF Sangguniang Panlungsod, and is also being considered as a prerequisite in the issuance of business permits for all business firms in CSFP with a P3-Million capitalization must not prosper, as it  is practically “telling entrepreneurs how to operate our businesses.” 

Romero furthered, “Even if they increase the capitalization amount to P10 million, they cannot require each business firm. It cannot be a one-size-fits-all requirement.” 

The businessman explained, “Maiintindihan po natin at dapat lang talaga meron security ang mga banko, bahay sanglaan at iba pang high risk na negosyo. Pero paano naman po yung mga nasa palengke, mga nagtitinda ng inumin at pagkain, bigas, gulay, mga simpleng mangangalakal lamang na kung saan ang capital ay umaabot na rin ng P3 million dahil sa taas ng presyo ng supply at materials, gas ngayon at iba pang gamit pang negosyo?” 

Romero stressed that, derived from the tax  payments of businesses, the protection of business establishments is the prime responsibility of law enforcement.

He expressed concern that the planned imposition of this measure would hurt small and micro enterprises who may not afford hiring and posting of security personnel that cost anywhere from P20,000 to P35,0000 per guard, depending on number of duty hours.

Under the draft ordinance, businesses that will be found to be in violation of the mandatory hiring and posting will be subject to suspension of operations and revocation of business permit.

For reference, Romero furnished a copy of pointers that would bring light to the opposition of the ordinance. They are as follows:

𝐋𝐚𝐜𝐤 𝐨𝐟 𝐃𝐚𝐭𝐚-𝐃𝐫𝐢𝐯𝐞𝐧 𝐉𝐮𝐬𝐭𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧: The proposed ordinance mentions an increase in criminal incidents involving business establishments in the city but fails to provide concrete data or analysis to support this claim. It is essential to base such a significant regulatory change on empirical evidence to ensure that it is necessary and proportionate to the problem.

𝐎𝐧𝐞-𝐒𝐢𝐳𝐞-𝐅𝐢𝐭𝐬-𝐀𝐥𝐥 𝐀𝐩𝐩𝐫𝐨𝐚𝐜𝐡: The proposed ordinance applies uniformly to all business establishments with a capital of Three Million Pesos (PHP 3,000,000) or more, regardless of their specific risk profiles. This one-size-fits-all approach does not take into account the varying levels of risk and security requirements among different types of businesses.

𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐁𝐮𝐫𝐝𝐞𝐧 𝐨𝐧 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬𝐞𝐬: Requiring all eligible businesses to hire licensed, trained, and armed security guard personnel places an additional financial burden on business owners. This burden is particularly challenging for small and medium-sized enterprises (SMEs) operating on tight budgets.

𝐁𝐮𝐫𝐞𝐚𝐮𝐜𝐫𝐚𝐭𝐢𝐜 𝐂𝐨𝐦𝐩𝐥𝐞𝐱𝐢𝐭𝐲: The ordinance introduces a bureaucratic process for businesses to prove compliance, involving appointment letters/ designations, employment contracts, and social insurance contributions. These administrative requirements may be onerous and time-consuming for business owners.

𝐂𝐨𝐧𝐭𝐫𝐚𝐝𝐢𝐜𝐭𝐢𝐨𝐧 𝐰𝐢𝐭𝐡 𝐄𝐚𝐬𝐞 𝐨𝐟 𝐃𝐨𝐢𝐧𝐠 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐈𝐧𝐢𝐭𝐢𝐚𝐭𝐢𝐯𝐞𝐬: The Philippines has made significant efforts to improve the ease of doing business in the country. This proposed ordinance, with its added regulatory burden, appears to contradict these national initiatives, potentially discouraging investment and economic growth.

𝐏𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥 𝐟𝐨𝐫 𝐀𝐛𝐮𝐬𝐞 𝐚𝐧𝐝 𝐂𝐨𝐫𝐫𝐮𝐩𝐭𝐢𝐨𝐧: The mandated hiring of security guards may inadvertently create opportunities for abuse and corruption.