Big investors not exempt from labor laws—labor chief

Published by rudy Date posted on January 9, 2011

MANILA, Philippines–Department of Labor and Employment (DoLE) Secretary Rosalinda Dimapilis-Baldoz has rejected proposals that would exempt large-scale investors from complying with labor laws and standards, including minimum wages for workers.

In a news release, Baldoz reacted to an online article which proposed the setting up of special labor employment zones in very poor regions of the country, where large-scale investors can engage in business and be exempted from compliance with labor laws, including minimum wages, in order to accelerate the country’s economic growth.

“The proposed employment zones would promote a race-to-the-bottom situation where a country competes on the basis of standards that subject workers to unjust and inhumane conditions of work,” the labor and employment secretary said.

She added that disregarding labor standards especially the provision of just wages to workers will not induce growth because it is inconsistent with any development paradigm and the country’s millennium goals that seek to reduce of poverty and hunger among the poor.

“On the contrary, a low-wage regime perpetuates poverty because it will only attract investments that create low-waged and low value-adding jobs which do not empower workers to uplift themselves from hunger and poverty,” she said.

The DoLE chief observed that the country can attract investments not by the presence or absence of labor standards, but by more fundamental business requirements such as good governance, availability of highly skilled workers, macro-economic stability, information communication technology readiness, adequacy of infrastructure, and efficiency of public institutions, among others.

“Already, the Philippines meets most of these essential requirements, which make the country an attractive investment destination,” she said adding that the country also enjoys a relatively peaceful industrial front that is very conducive to investments and job generation.

She said the country has maintained its status as Asia’s industrial peace hub for sustaining its one-digit strike rate in the past four consecutive years.

“Industrial peace will provide investors an environment imperative to business growth, which is in turn favorable to generation of quality and decent jobs that ensure due wages and benefits to workers,” Baldoz said. –INQUIRER.net

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