ECOP calls for labor reforms to improve competitiveness, productivity

MANILA — The Employers Confederation of the Philippines (ECOP) passed a five-point resolution on Tuesday calling for reforms in the labor market to improve competitiveness, productivity and sustain the country’s economic growth.

The two-page resolution of the 33rd National Conference of Employers, with the theme “Pathways to Growth,” calls for: comprehensive and inclusive review of the Labor Code, including all labor-related legislation; the implementation of a two-tiered wage system in the country; practice of corporate social responsibility programs; sustain efforts to improve growth; and continued dialogues with responsible trade unions.

“These measures are critical pathways to sustained growth and the operation of a dynamic labor market,” the NCE resolution said. The annual conference is organized by the Employers Confederation of the Philippines.

On the first resolution, the 33rd NCE said that the review of the Labor Code should include reform of pertinent regulatory provisions overtaken by the rapid changes taking place in the global marketplace and which have become archaic and inflexible in terms of providing the environment that would enable enterprises to flourish and compete in the face of relentless globalization.

The resolution also called for the repeal of, and desistance from imposing, harsh penal sanctions against employers for non-egregious violation of Labor Law, and instead prescription of appropriate sanctions with corresponding civil liability, including damages.

On the second resolution, ECOP further pushed for the implementation as policy and incorporation in the Labor Code of the two-tiered wage system introduced by the Department of Labor-National Wage and Productivity Council, to rationalize regional minimum wage fixing.

The first tier consists of a basic regional floor wage as safety net which uses as additional standard/criterion reference to the prevailing regional poverty threshold and is intended to protect the incomes of the most vulnerable workers such as the unskilled and new entrants to the labor force.

The second tier consists of a productivity-based pay system based on wage advisories to guide enterprises in the design and implementation of adjusting wages above the floor wages.

On the third resolution, ECOP has urged for the implementation of priority public-private partnership projects to spur the generation of employment and spiral economic activities.

Businesses are also urged to practice Corporate Social Responsibility (CSR) that focuses not only on profit but also on contribution to the welfare and the safety of the environment.

The employers group also committed, as its fifth resolution, to strengthen social dialogue with responsible trade unions in tandem with government in addressing issues of mutual concern, particularly in securing an equitable balance of rights and obligations between employers and workers arising from law and policy. (PNA)scs/bac/utb