JFC asks House to drop bill limiting casual labor

The Joint Foreign Chambers (JFC), which is made up of the biggest foreign trade groups in the country, has opposed a bill seeking to limit the number of casual workers hired by firms operating in the country.

The bill seeks to strengthen the security of tenure of workers in the private sector but JFC said this would discourage new investments.

In a letter dated Aug. 18 to Speaker Prospero Nograles, the group said House Bill 6532 named An Act Strengthening the Security of Tenure of Workers In The Private Sector is counterproductive and is against the objective of enhancing employment and employability in the country.

“If House Bill 6532 is passed into law, we believe the Philippines would suffer a further decline in its competitiveness in the global market,” the group wrote.

Foreign direct investments expected to flow into the Philippines in 2009 are estimated to be only a fourth of 2007 levels.

“With more restrictive laws, lower foreign investment can be expected for years to come. Further, existing investors could close and move to more investment-friendly destinations in region. The attached comparison of Labor Codes and Laws among our neighboring countries supports this prognosis,” it noted.

“The JFC believes House Bill 6532 is not conducive to creating an environment for attracting and maintaining foreign investment as well as the creation of and new jobs. However, we shall be willing to support government’s initiatives to enhance the employment, skills development and employability of Filipinos over the long-term, considering market realities in a global business environment,” the group said.

The group said employees in the private sector are already more than amply protected by the Constitution, the Labor Code of the Philippines, Department Orders from the Department of Labor and Employment, and labor jurisprudence that are all supportive of the welfare of workers.

“We do not need more legislation to strengthen employees’ security of tenure. Existing laws and jurisprudence already have a pronounced bias in favor of labor. If there are violations against existing laws and regulations by so-called “sweat shops” (not to our knowledge members of foreign chambers or business organizations we represent), the solution is better inspection and mechanisms to ensure proper compliance with existing laws and regulations,” JFC added.

The group said the proposed HB 6532 would remove the flexibility that the Constitution allows in managing businesses and their workforce, which is crucial amid the globalized environment.

HB 6532 seeks to place a cap to the number of casual and contractual employees that companies could hire at 20 percent of the total workforce. –Ayen Infante, Daily Tribune