RP may need to relax labor regulations

THE country must relax its labor laws to attract foreign investment and remain globally competitive, Trade and Industry Secretary Gregory Domingo said Thursday on the sidelines of the Philippine Business Conference in Manila.

More restrictive labor laws would make potential investors shy away from the Philippines, Domingo said, citing security of tenure and union rules as examples to make his point.

Security of tenure and the right of workers to organize are guaranteed by the Constitution and the Labor Code, but “a balance” must be struck between the rights of labor and management, Domingo said.

A restrictive interpretation of security of tenure would also mean fewer opportunities for others.

“Those employed will be more secure, but it will also result in an increased number of unemployed in this country,” Domingo said.

The right to strike may also hamper business operations and drive investors away, he said, adding the rules on unionism must be studied to provide a better balance.

But amending the Constitution to solve this problem would take time.

“No one knows when the Constitution will be amended. That’s a tough question,” Domingo said.

He said the Philippines should seize the opportunity to continue participating in trade agreements to avoid being left behind by its neighbors.

“Not participating in these trade agreements will be a disaster for our industries. We should compete in the global market,” Domingo said. –Julito Rada, Manila Standard Today