Calpers ‘bothered’ by reports of RP labor violations — TUCP

Published by rudy Date posted on July 26, 2006

American and other foreign investors are bothered by reports of widespread labor standard violations in the Philippines and may pull out their capital from the country, the Trade Union Congress of the Philippines (TUCP) warned yesterday.

TUCP said the California Public Employees Retirement System (Calpers), one of the country’s top investors, is worried over reports of labor violations in the country.

Calpers previously commissioned a study, which indicated widespread violations in the Philippines.

Even data from the Department of Labor and Employment (DOLE) showed that some 40 percent of firms inspected by the department violate standards, ranging from non-compliance with the minimum wage law and occupational safety and health regulations to non-payment of SSS and Pag-IBIG premiums.

While admitting that the weakness in enforcement of labor standards is partly due to the DOLE’s lack of inspection personnel, TUCP president Democrito Mendoza said the problem must be addressed.

Mendoza pointed out that many foreign investors are now putting a premium on compliance to labor standards in choosing investment destinations. Thus, there is the need to strengthen the enforcement of such regulations.

“It is essential to address such concerns to ensure the steady flow of capital into the country and to generate jobs for the over 35 million-strong labor force,” he explained.

“We may wake up one day to find that these investors have pulled out their money from the Philippines because we are unable to enforce our own labor standards,” Mendoza added.

TUCP then called on new Labor Secretary Arturo Brion to tap employers’ groups and trade unions to help in labor standards inspection and enforcement.

“The DOLE direly needs assistance in inspecting the country’s close to a million registered business establishments and we strongly recommend to Secretary Brion to mobilize employers to police their ranks and to allow trade union leaders to help in the inspection and advocacy for compliance on labor regulations,” Mendoza said. — Mayen Jaymalin, Philippine Star