Angara seeks amendments to 1974 Labor Code

SEN. Edgardo Angara over the weekend stressed the need to immediately amend certain provisions of the Labor Code to increase national productivity and employment.

The Labor Code was enacted in 1974, and over the years a lot of amendments have been introduced to it in Congress, but what Angara proposes is an overhaul to make the whole Code more suitable to the needs and demands of today.

“The liberalization of international economic trade has led to the advent of a global economy that is fast becoming one integrated unit. As a result of better communication and transportation facilities, business opportunities abroad are now within closer reach of local business entities. However, these opportunities may be lost if the local economy fails to adjust and cope with the new demands of the international market,” Angara said.

Angara filed a bill, which seeks to amend and update the Labor Code in order to be attuned of the demand of the labor market, particularly recognizing the economic and labor contribution of call center agents, most of who are women and are working at night.

“Working of women at night is prohibited by the current Labor Code. We really need to change some provisions of the Code in order to compensate the current situation. There are almost 200,000 call center agents in the country, majority of them are women and most of them work at night. We cannot negate their contributions to the economy and it is also imperative for us to afford certain Labor rights to protect them,” he said.

Angara said that it is necessary that the government creates a business environment that allows the local economy to be more competitive in the global market. He is in favor of the overhaul of the Labor Code so the country’s labor rules can adapt to the dramatic changes brought about by technological strides and outsourcing, and the challenges brought about by globalization on the work place.

Under his proposal, amendments to the existing Labor code will include: a compressed workweek or flextime arrangements; revision of the doctrine against the elimination/diminution of benefits under certain conditions; restructuring of the visitorial and enforcement power of the Labor Secretary to allow for self-regulation; and exception from the night work prohibition on women such industries or establishments operating on a continuous 24-hour schedule.

“The old standard of working eight hours a day for a working time of 40 hours a week is becoming obsolete. We now have 24-hour, seven day-a-week schedule, mostly employing hard-core of basic information technology skills, more women work at night and the bulk of OFWs are now women. Some work at home with flexible schedules,” he said.

In the coming weeks, we will find out what organized Labor has to say about the proposed Labor Code amendments. Certainly whatever amendments are to be introduced should always ensure decent work and respect for core labor standards. Workers must also be given more participation in the decisions that affect their plight and they must have a stronger voice in resolving work-related disputes.

Look after displaced med reps, workers

The Trade Union Congress of the Philippines (TUCP) has urged the Department of Labor and Employment (DOLE) to tend to the medical representatives and production workers facing retrenchment as a result of the merger of four multinational pharmaceutical companies.

The DOLE should see to it that the displaced workers, whether sales staff or factory personnel, get the severance benefits due them, plus any extra assistance from the government, whether financial or by way of facilitation toward a new job placement.

We were informed that the four drug manufacturers intend to reduce their Philippine staff by an average of 15 percent, and that they are now in the process of identifying the jobs for elimination. Among them are New York, New York-based Pfizer Inc.; Madison, New Jersey-based Wyeth Inc.; Whitehouse Station, New Jersey-based Merck & Co. Inc.; and Kenilworth, New Jersey-based Schering-Plough Corp.

Pfizer is acquiring Wyeth for $68 billion, while Merck is buying Schering-Plough for $41 billion. Pfizer had said its takeover of Wyeth would result in the removal of 19,000 employees, including those in the overseas operations of the two firms.

Pfizer has a Philippine staff of more than 1,000, while Wyeth has a local staff of over 700.

Meanwhile, Merck and Sche-ring-Plough had said they would slash their combined global headcount by 16,000. Merck, which does business here through Merck Sharp & Dohme Philippines Inc., has a local staff of 400. No figures on Schering-Plough’s local headcount were readily available.

Known for its injectable antibiotics and powdered milk for infants and children, Wyeth generates around P15 billion in annual revenues from its Philippine operations.

Based on their filings with the Securities and Exchange Commission, Pfizer and Merck produce about P7 billion and P2.6 billion in annual revenues, respectively, from their Philippine operations. Schering-Plough generates some P1 billion.

ernestboyherrera@yahoo.com