Employers’ group still dead set on reforming Philippines’ labor code

WITH BARELY a year left for the Aquino administration, the Employers Confederation of the Philippines (ECoP) has promised anew to push for reforms in the country’s labor code during its annual conference.

The move will get rid of outdated provisions in the law which governs the country’s employment practices and labor relations.

“Amending the archaic provisions of the labor code, a long-standing advocacy of ECoP, is an advocacy that cuts across [multiple] sectors and will probably take longer to be adopted. But consultations are still ongoing as we try to address contentious issues,” ECoP President Edgardo G. Lacson said in a text message.

“ECoP will continually carry this advocacy until it becomes reality,” he added.

Pressed for comment whether there were substantial progress in last year’s reform focus and measures, the ECoP official said that their reform agendas are long-term goals, and pushing for these changes is a “long process” that involves labor, capital, government and other stakeholders.

Flexibility to hire and fire

During last year’s annual conference, ECoP, through a resolution, pushed for labor code amendments, particularly in providing flexibility to hire and fire employees, “depoliticizing” minimum wages by serving as safety net for unskilled workers and new entrants to the labor force, enhancing efficiency in resolving labor disputes, and strengthening the country’s arbitration laws and its implementation.

Specific measures were also included in the resolution, which includes increasing government spending in infrastructure, deepening the links between government and educational institutions, amending the law on apprenticeship, providing employers with access to training and capacity building or assistance, and intensifying information dissemination on the changes the Association of Southeast Asian Nations (ASEAN) integration will bring.

Nevertheless, Mr. Lacson recounted that there were many strides in the development of the labor situation in the Philippines over the past few years under the Aquino administration, as pushed by ECoP.

“In 2011, the theme was tripartite. Coincidentally, Article 275 of the Labor Code on Tripartism was amended which institutionalized the TIPC (Tripartite Industrial Peace Council) that was originally created through a series of Executive Orders,” he said.

“Also the law which institutionalize mandatory conciliation and mediation was passed in response to our call to reduce the adversarial nature of labor dispute resolution,” he added.

TWO-TIERED WAGE POLICY

Similarly, the ECoP also said that a two-tiered wage policy was adopted by the Department of Labor and Employment in response to past resolutions and push from the ECoP to use poverty threshold as the most reliable indicator in fixing minimum wages.

According to the ECoP Web site, this year’s 35th National Conference will focus on the upcoming ASEAN community and its effect in the Philippine’s labor situation, adopting the theme “Evolving ASEAN Market: Towards Inclusive Growth and Prosperity.”

Sessions during the conference will also include the following topics for discussion: (1) The Philippines in a Globalizing Economy; (2) Skills Matching and Talent Mobility: Trends and Practices; (3) Raising the Competitiveness of Business: ASEAN Perspective and Experience; (4) Flexibility, Diversification, and Decentralization: The Business Imperatives; (5) Education and Skills Development: Strategies to Pursue; (6) Revisiting Law and Regulations; (7) Migrations: Gains and Pains; (8) Bridging the Social Outcomes Deficit through Job Creation and Poverty Reduction; (9) Social Protection: Costs, Coverage and Benefits; and (10) Shaping the Policy Environment: Role of Representative Organization of Business. — Alden M. Monzon, Businessworld