Economy yet to recover, say employers

THE International Labor Organization (ILO) said job-creation would lag behind the recovery of export markets.

On the sidelines of the 31st National Conference of Employers, Linda Wirth, director of the ILO Manila Office, told reporters that jobs are not coming back as quick as the recovery in the export sector.

She said employment in Region 4A—where many economic zones are located—is slowest in picking up.

Edgardo Lacson, Employers Confederation of the Philippines (ECOP) president, said the recovery in exports experienced so far may be just “spurts,” and that bringing back employment to pre-crisis levels may still be far-off.

He said many employers have yet to fully recover from the effects of the global economic slowdown, and so cannot afford an increase in the minimum wage of workers.

The ECOP head said employers however are amenable to granting non-wage benefits, such as allowances and subsidies.

In a letter dated April 19, the Federation of Philippine Industries Inc. (FPI) asked the National Capital Region-Regional Tripartite Wages and Productivity Board for a “status quo of the minimum wage levels,” as “an increase at this time would cause undue burden on the local industries which are still reeling from the damaging effects of the global economic slowdown.”

“The government should instead consider alternatives other than a minimum wage increase, such as measures to make the cost of living lower, and generation of employment,” FPI said.

ECOP today will present to President Gloria Arroyo the conference resolutions, which would address unemployment and push for reforms in labor market policies, including justice administration and governance.

ECOP specifically recommended the following, among others:

• A review of the policy on contracting and subcontracting to create “more dynamic and flexible work arrangements,” especially in the business process outsourcing (BPO) industry;
• A repeal of the policy on night work prohibition for women; and
• A review of the law and policy on wage fixing and determination to give “employers the flexibility and leeway to adjust wages especially in times of economic difficulty, [and] the prerogative to consult workers on the need to realign compensation and other benefits to remain resilient, operational and prevent job losses.” –Ben Arnold O. De Vera, Manila Times