Labor and Employment Agenda

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The Philippine
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Labor &
Employment Agenda
2011-2016
Advancing Inclusive Job Rich Growth
through Decent Work
For Discussion Purposes Only
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Table of Contents
Chapter 1 Deriving the Agenda: An Introduction…………………………………4
Chapter 2 Declaration of Policy………………………..………………….………...7
Chapter 3 Outlining Solutions …………………………………………………… 17
3.1 Rights at Work……………………………………………………..17
Outcome ………………….……………………………….
Background ……………………………………………….
Issues and Challenges……………………………………..
Objectives and Strategies…………………………………
3.2 Employment……………………………………………………….25
Outcome ………………….……………………………….
Background ……………………………………………….
3.3 Social Protection…………………..…………………...…….........34
Outcome ………………….……………………………….
Background ……………………………………………….
3.4 Social Dialogue……………………………………………………39
Outcome ………………….……………………………….
Background ……………………………………………….
3.5 Sustaining Outcomes……………...…………………………........42
Background……………………………………………….
Annexes The Philippine Jobs Pact

Results Evaluation and Monitoring Matrix (REMM)
Labor and Employment Agenda - Draft as of March 21, 2011
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Chapter
1 Introductory Chapter
13THE LABOR AND EMPLOYMENT AGENDA 2011-2016
14The Labor and Employment Agenda seeks the attainment of the over-all macroeconomic
15goals set forth in the Philippine Development Plan 2011-2016, particularly the goal of
16inclusive growth. Through this Agenda, labor and employment stakeholders recognize that
17inclusive growth will only occur by underscoring the need for decent work for all Filipino
18workers, thereby achieving the country’s Millennium Development Goal on eradicating
19extreme poverty and hunger by achieving full and productive employment and decent work
20for all, including women and young people.1
21It is anchored on the President’s social contract with the Filipino people and inspired by his
22vision of a transformed, just and righteous Philippines. It is based on the 22-point labor and
23employment policy agenda that has the overarching goal of investing in our human resource
24to make them more competitive and employable while promoting industrial peace based on
25social justice.
26It recognizes that economic growth should be job-rich and the benefits of growth are spread
27more widely. It takes into account public-private partnerships and the strong link among
28government, the academe and industries in the development of human resources. It also
29recognizes that in light of labor market realities, measures to support the competitiveness of
30enterprises should be balanced with provision of adequate social safety nets to protect
31vulnerable workers. It considers that fair and speedy labor justice is indispensable to sound
32industrial peace and favorable climate for investments. It gives value to social dialogue in
33the formulation of sound and responsive policies to attain inclusive growth. Most
34importantly, competence, integrity, transparency and accountability in labor governance
35forms part of the Agenda as an acknowledgement that these are requisites for its successful
36implementation and for sustaining outcomes.
37Using decent work as the agenda framework, reforms in the Agenda cover a comprehensive
38and integrated policy and program response in the areas of: employment facilitation,
39workers welfare and protection, and labor relations. The Agenda also provides for the labor
40law reforms that seek to modernize the Labor Code and re-align its provisions to the realities
41of the labor market in the 21st century globalized economy.
42
43PROCESSES
11 Target 1b under MDG Goal 1 with indicators on growth rate of GDP per person employed (Labor Productivity); Employment-to-
2population ratio; Proportion of employed people living below $1 (PPP) per day (Working poor); and Proportion of own-account and
3contributing workers in total employment (vulnerable employment)
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44The Agenda is a result of a series of inclusive social dialogue that started in July 2010 until
45March 2011 with workers, employers, youth, and civil society groups involved in local and
46overseas employment as well as with national government agencies whose mandates
47impinge on the attainment of the reform areas found in this Agenda. In these series of
48dialogues and consultations, the reforms areas received broad commitment and support for
49successful implementation from 2011 to 2016. The following dialogues and consultations all
50led to the shaping of the Agenda:
51  Discussions at the National Tripartite Industrial Peace Council (TIPC)

52  Dialogues with workers and employers groups
53  Dialogues with social partnership organizations
54  Dialogues with industry associations and chambers of commerce and industry
55  Dialogues with non-government organizations
56  Dialogues with the diplomatic corps and international organizations
57
58These crucial discussions were complemented by a series of island-wide and sectoral

59consultations among workers, employers, civil society, youth and government
60representatives in the latter part of 2010 and more in-depth planning discussions in the first
61quarter of 2011 where issues and recommendations to address matters on human resource
62development, employment, social protection, labor relations, labor law reforms, and
63migration and development were thoroughly discussed and where agreements on the way
64forward were arrived at.
65To ensure that the Philippines’ commitment to the attainment of decent work remains on
66track, the process in shaping this Agenda also includes a tripartite assessment of the 3rd
67Cycle of the Philippine Decent Work Common Agenda toward identifying priorities that
68should be included in this Agenda as the 4th cycle of the Philippine Decent Work Agenda.
69In all these activities, tripartite participation was ensured not only in discussions but more
70importantly in the actual formulation of the reform package that shall become the essence
71of the Labor and Employment Agenda 2011-2016 as well as in the determination of tripartite
72commitments to the Philippine Jobs Pact which is the accompanying document of the
73Agenda.
74BASES FOR THE AGENDA
75The Agenda is based on the following documents:
76  Philippine Millenium Development Goals

77  Philippine Development Plan 2011-2016
78  22-Point Labor and Employment Agenda
79  DOLE 100 Days Accomplishment Report on Reforms Programs
80  DOLE Legislative Agenda
81  DOLE Employment Diagnostic Analysis 2010
82  Results of island-wide and sectoral consultations leading to the National Summit on
83 Labor and Employment
84  Results of DOLE 2011 Corplanning Exercises
85  Assessment Report on the 3 rd Cycle of the Philippine Decent Work Common Agenda
86 (PDWCA)
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87  ILO Country Scan for the Philippines

88
89STRUCTURE
90The Agenda has the following structure:
91 Chapter 1: Introduction
92 Chapter 2: Declaration of Policy
93 Chapter 3: Outlining Solutions
94 3.1 Rights at Work
95 3.2 Employment Opportunities for All
96 3.3 Social Protection
97 3.4 Social Dialogue
98 3.5 Sustaining Outcomes
99 Annexes:
100  Philippine Jobs Pact

101  Labor and Employment Results Evaluation and Monitoring Matrix (REMM)
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Chapter
2 Declaration of Policy
124
125Inclusive Growth and the Medium-Term Strategy 2011-2016
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126
127 1. Inclusive growth is the avowed Medium-Term Philippine Development Plan’s
128 (MTPDP) imperative. It is defined to be sustained growth that massively creates jobs,
129 draws the vast majority into the economic & social mainstream and continuously
130 reduces mass poverty.1
131
132 2. How inclusive growth as envisioned will be made manifest in the medium-term is
133 outlined in the MTPDP Five Strategic Pillars, viz.:
134  Macroeconomic Policy
135  Infrastructure Development
136  Strengthening the Financial Sector and Capital Mobilization
137  Enhancing Peace & Security for Development
138  Protecting the Integrity of the Environment & Natural Resources
139
140 3. Essentially, the MTPDP Five Strategic Pillars outlines priorities and programs that are
141 designed to increase productive capacity in the economy with the strategic intent of
142 creating jobs and reducing poverty. The Pillars, as conceived, particularly highlights
143 the requirements of vulnerable groups in terms of resources, opportunities and
144 protection to consequently allow these groups to participate fully in the development
145 process.
146
147 4. Focusing on inclusiveness therefore from the labor & employment perspective
148 denotes inclusive growth to mean the following 2 :
149  growth that creates jobs;
150  growth that expands equal opportunities and access;
151  growth that brings about pro-poor improvements in the non-income dimensions;
152 and;
153  growth that promotes cooperation and innovation in labor and management
154 relations for mutual gains
155
156
157
158
159
160
161
162
163Translating growth into employment opportunities
164
165 5. That recent growth in the Philippines has failed to translate into equivalent rates of
166 absolute job creation is therefore of enormous concern to the MTPDP.
167
168 Table 1. Gross Domestic Product and Employment
Year Employment Gross Domestic Product
In 000 Growth Rate In million P Growth Rate
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(%) (At constant prices) (%)

2005 32,313 2.2 1,211,452 5.0
2006 32,636 2.0 1,276,156 5.3
2007 33,560 2.8 1,366,625 7.1
2008 34,089 1.6 1,417,087 3.7
2009 35,061 2.9 1,432,115 1.1
2010p 36,035 2.8 1,537,152 7.3
169 p Preliminary.
170 Sources: National Statistics Office, Labor Force Survey; and National Statistical Coordination Board,
171 National Accounts of the Philippines.
172
173 6. Moreover, that growth has failed to generate the types of jobs that make the largest
174 and most sustainable inroads to poverty reduction and socio-economic development
175 – namely, those that are productive and decent and upholds fundamental human
176 rights and protections, compounds the issue. 3
177
178 Table 2. Employment by Class of Worker

179 (In 000)
Wage and Vulnerable Employment
TOTAL Salary Employers Unpaid
Year Self-
Workers Family Total
Employed
Workers
2005 32,31 16,316 1,520 10,584 3,893 14,477
3
2006 32,63 16,673 1,425 10,525 4,012 14,537
6
2007 33,56 17,508 1,430 10,570 4,052 14,622
0
2008 34,08 17,846 1,426 10,654 4,161 14,815
9
2009 35,06 18,681 1,438 10,724 4,218 14,942
1
2010p 36,03 19,627 1,393 10,858 4,157 15,015
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180 p Preliminary.
181 Source: National Statistics Office, Labor Force Survey.
182
183 Vulnerable employment referred to are normally found in the category of the self-
184 employed and unpaid family workers, the nature of work described to be
185 employment-led survival activities. These workers are those who create their own
186 economic exchanges and employ themselves and their families. They are less likely
187 to have formal work arrangements, access to benefits or social protection programs
188 and are more “at risk” to economic cycles. They are too presumed to be largely
189 impervious to macroeconomic parameters and policies. 4
190
191 However, the jobs in the wage and salary category are likewise not spared from the
192 risks and vulnerabilities brought about by the seismic shifts in work and work
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193 arrangements that have rendered existing standards ensuring workers protection
194 and representation inadequate.
195
196 Of the total unemployed of 2.9 million in 2010, more than half are young people
197 (aged 15-24 years old). Their unemployment rates have been consistently more than
198 twice the national unemployment rates from 2005-2010. This evinces the lack of
199 productive capacity in the economy to mine the tremendous energies and potential
200 of its human capital particularly its youth population.
201
202 Table 3. Youth Unemployment (2005-2010)
Youth Unemployment Unemployment Rate Total Unemployment

Year
Rate (%) (%) (In 000)
2005a 17.2 7.8 2,748
2006 17.8 8 2,829
2007 16.8 7.3 2,653
2008 17.4 7.4 2,716
2009 17.6 7.5 2,831
2010 p
17.6 7.4 2,859
203 p Preliminary.
204 a Average of April, July and October data as definition of unemployment revised in April
205 2005.
207
208 Further, vulnerabilities are clear and present in overseas jobs as well , jobs that
209 swelled to unparalleled numbers, again evidence of the lack of employment
210 opportunities in the domestic economy. While a boon to the economy given the
211 enormity of the resultant remittance contributions (accounts for around 9% of GNP),
212 it too is a bane given its attendant social costs and welfare issues.
213
214 Table 4. OFW Deployment and Remittances
Year OFW Deployment Remittances (In thousand USD)
2005 988,615 10,689,005
2006 1,062,567 12,761,308
2007 1,077,623 14,449,928
2008 1,236,013 16,426,854
2009 1,422,586 17,348,052
2010 1,079,221 (Jan-Oct) 18,762,989
215 Source: POEA. 2009 Overseas Employment Statistics and BSP
216
217 7. Pursuing the same growth path and given a 7% growth scenario for 2011-2016,
218 indicative results from employment projections runs resulted into numbers less than that
219 of what is required to employ the vast multitude of the increasing unemployed. This
220 raises the issue of the magnitude of growth that is really required to ease vulnerabilities
221 in the labor market. 5
222
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223
224
225 Table 5. Employment Projections- 7.0% Annual Economic Growth Scenario
Employment Projections
2011 1,274,367
2012 1,200,399
2013 1,122,138
2014 1,150,291
2015 581,709
2016 1,532,072
Total 6,860,975
226 Source: DOLE (2010). The Philippine Employment Projections Model Project
227
228 8. That growth translates to achieving the declared Millennium Development Goals
229 (MDGs) is also another major concern. While the government’s mid-term report shows
230 the country is on track to meet a number of 2015 targets, it at the same time highlights
231 areas that are still lagging and thus require renewed efforts to meet their targets. These
232 include universal primary education, maternal heath, and reproductive health services, all
233 of which impact on the quality of human capital .6
234
235 Table 6. Philippines MDG Rate of Progress at the National Level
MDG Goals and Targets Probability of Attaining the
Targets
Eradicate extreme poverty and hunger High
Achieve universal primary education Low
Improve maternal health Low
Increase access to reproductive health Low
services
Reduce child mortality High
Combat HIV and AIDS, Malaria and other High
Diseases
Ensure environmental sustainability High
236
237 9. Further, trending of listed indicators on MDG Goal 1 on eradicating extreme poverty
238 and hunger that targets the achievement of full and productive employment and decent
239 work for all reveal the following:
240
241  That labor productivity’s fluctuating growth rates put in question the capacity of
242 the country’s economic environment to create and sustain decent and
243 employment opportunities with fair equitable remuneration;
244  That stagnancy in the employment-to-population ratios further raises the issue of
245 the economy’s ability to provide employment to its working population or to
246 provide jobs for those who want to work;
247  That the increasing proportion of working poor in total employment points to the
248 growing lack of decent work; and
249  That the increases in the absolute numbers of self-employed and unpaid family
250 workers indicate increasing vulnerabilities.
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251
252 TABLE 7: MDG Goal 1:Eradicating extreme poverty and hunger
253 Target 1.B. Achieve full and productive employment and decent work for all,
254 including women and young people
Indicator Description Trend
1.4. Growth rate of GDP Annual change in gross  Fluctuating
per person employed domestic product (GDP)  Steep decrease from 2007
(Labor productivity) per person employed to 2009
1.5. Employment-to- Proportion of country’s  Relatively constant
population ratio working age population o Lower for women
that is employed o Decreasing for
youth
1.6. Proportion of Proportion of working  Increasing (from 2003 to
employed people poor in total employment 2006)
living below the
poverty line
(working poor)
1.7. Proportion of own- Sum of self-employed  Increasing in absolute
account and persons and unpaid number
contributing family family workers as a
workers in total percentage of total  Decreasing as a
employment employment proportion of the total
employed
255 Source: Based on figures from the Bureau of Labor and Employment Statistics, 2010, The Philippine
256 Employment Situation and MDG Employment Indicators.
257
258 10. In addition, further to the MDG goals of equality at work characterized by fair pay,
259 equal opportunities and equal access for both women and men in the labor market,
260 the outcomes are still found wanting.
261 Table 8. Labor Force Participation Rate, by Sex, 2006-2010

262 (In %)
Year Men Women Men-Women
Participation Gap
2006 79.3 49.3 30.0
2007 78.8 49.3 29.5
2008 78.8 48.6 30.2
2009 78.6 49.4 29.2
2010p 78.5 49.7 28.8
263 p Preliminary.
265
266 While women’s labor force participation rates have been slightly but constantly
267 increasing over the recent years, their level of participation have lagged behind that
268 of men. Other issues related to discrimination, stereotyping, unequal pay, violence
269 and vulnerabilities in the workplace have barred women from acting as potent forces
270 and partners in development.
271 11. All these factors cast serious doubts over the quality of recent growth in the country
272 – that the present growth-led strategy (where jobs are generated by demand in the
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273 products/services markets) is neither adequate in itself for good jobs to be created
274 nor an adequate predictor of the quality of employment outcomes.
275
276 12. With vulnerability therefore as a major social or labor concern ,a more integrated
277 approach to the inclusive growth challenge is needed. In this regard, a balancing
278 initiative to the growth-led strategy is posited – the employment-led strategy.
279
280 13. The employment –led strategy deems human resources and the labor force to be not
281 just primarily beneficiaries of growth but also creators of growth. Investments in the
282 qualitative development of human resources make up the foundation and essence of
283 inclusive job-rich growth.
284
285 Qualitative attributes include education, skills, health and cognitive abilities among
286 others. They set the parameters for a worker’s ability to access productive
287 employment. They also make possible increases in the scope for technological
288 advancement, increased labor productivity and returns to labor at the aggregate
289 level.7
290
291The 22-Point Labor & Employment Agenda
292 14. It is along this quest for new solutions that the 22 point agenda, the platform and
293 policy pronouncements on labor and employment of the new administration was
294 framed.
295
296 The Goal which asserts that the State will invest in our country’s top resource, our
297 human resource, to make us more competitive and employable while promoting
298 industrial peace based on social justice is essentially an articulation of support for a
299 strategy that is employment-led.8
300
301 15. The idea is to link closely employment led-labor markets to the growth-led model,
302 not necessarily to change the status of employment or to change the sector of
303 activity of these vulnerable sectors but to create the virtuous circle of shared value –
304 that by improving value in one area gives rise to opportunities in the others.
305 Ultimately, it is by better connecting economic goals with societal goals that will
306 make inclusive growth possible.9
307
308 16. Further, the idea is to link markets and non-markets – that growth is defined not
309 only by interactions governed by markets and contracts but also by social, political
310 and legal arrangements outside of, but in conjunction with markets and contracts.
311
312 17. The principle is that non-market solutions to economic problems should run basically
313 parallel to market solutions. While markets determine the significance of non-market
314 issues, the non-markets shape opportunities in the marketplace.
315
316 18. Non-market issues high on P.Noy’s 22-point labor and employment agenda include
317 governance, human rights, social protection, tripartite cooperation, labor arbitration
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318 and adjudication systems, safe migration, skills upgrading, health and safety and
319 social insurance.
320Labor & Employment in the MTPDP Five Strategic Pillars10
321
322 19. It behooves the Department of Labor & Employment, as a primary labor market
323 governance institution, to therefore be in a perpetual collaboration mode as labor
324 and employment outcomes are shaped by drivers outside its organizational realm
325 and its future deeply intertwined with the complex policy web.
326
327 20. Macroeconomic policies have a direct impact on income & employment as the
328 maneuverings of monetary, fiscal, exchange rate, trade and price policies predicts
329 how much of the economy’s productive capacity will be used. High unemployment
330 means that there is unused productive capacity in the economy, which implies
331 wastage and lost opportunities.
332
333 21. Infrastructure development is an important driver of economic growth.
334 Characteristically labor intensive, it is a key employment generator.
335
336 22. Strengthening the financial sector and capital mobilization allows money from
337 lenders to find its way to borrowers who use it for investments such as starting a
338 business and increasing production capacity. A healthy financial sector therefore can
339 stimulate the employment of labor as firms may hire more personnel when they
340 expand.
341
342 23. Good governance provides an environment that attracts business and commercial
343 activities. Better governance and stronger rule of law permits a stricter
344 implementation of existing policies and laws, less bureaucracy and red tape and
345 faster processing of business requirements. In effect, the increase in number of
346 businesses can generate additional employment.
347
348 24. Enhancing peace & security for development is a broad concept that includes
349 improving a persons’ health, education, income and quality of living. It contributes
350 to the protection of labor and the promotion of productivity. Likewise, it promotes a
351 physical environment conducive to investments and higher level business and
352 commercial activities.
353
354 25. Protecting the integrity of the environment & natural resources creates value,
355 promote innovation, build competitive advantage and improve lives. It also addresses
356 the social justice issue head-on as the only security the poor have is derived from
357 having a well balanced and preserved environment that primarily is where their
358 livelihoods/incomes are sourced.
359
360Advancing Inclusive Job-Rich Growth thru Decent & Productive Work
361
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362 26. In this regard, the major goal in the medium-term is to advance inclusive job-rich
363 growth thru decent and productive work. Achieving this goal can be seen as the
364 combined impact of two categories of factors:
365  increased opportunities for & returns to human capital; and
366  enhanced human capital base
367
368 27. On creating opportunities for and returns to human capital , a vital element is the
369 need to conceive of policies in more integrated ways. This should give space to
370 combined economic growth, employment and social protection policies. Such polices
371 support both labor demand and labor supply to enable more men & women to enter
372 into productive employment.
373 Effective Implementation of this strategic priority depends on applying these policy
374 principles:
375 To increase employment levels:

376  The package of macroeconomic policies is conducive to growth and
377 competitiveness
378  Attendant to the package are supporting sector policies conducive to employment
379 growth : agriculture, infrastructure, education, health
380 o As employment in agriculture comprise one third of total and where the
381 bulk of vulnerable groups are found, sector policies with regard to the
382 transformation of agriculture will receive high priority
383 o Given the total infrastructure investment scenario using the PPP strategy
384 and the potential of the sector to employ rural and semi-skilled workers
385 will be targeted to facilitate growth
386 o Education sector policies including well-targeted vocational and
387 entrepreneurial education will be given priority to improve the base
388 knowledge and skills of the workforce
389 o Health sector polices will receive priority to ensure the basic level of
390 health of the workforce and improve productivity
391  The dimensions of fiscal policy that favor most job creation in the real economy
392 and maintain social protection for the most vulnerable are given priority
393  The financial sector meets the need for investment, innovation, trade &
394 consumption in the real economy and adopts financial policies and regulations
395 which encourage resource flows and allocations – including development
396 cooperation towards longer-term productive investment by sustainable
397 enterprises
398  Market oriented mechanisms allow for higher savings to be channeled into
399 higher capital formation (especially for remittances)
400
401 To provide equal access to labor markets & employment opportunities
402  Urban bias in program design is reduced to favor more of rural, agri-based
403 initiatives
404  Gender issues in work and in workplaces adequately addressed
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405  Access to capital, to common resources, technology for the vulnerable groups are
406 greatly improved
407  Labor market intermediation aided by technology to increase geographic,
408 occupational and social mobility is promoted
409  Mechanisms to facilitate transit of small-scale entrepreneurs from the informal to
410 the formal sectors can be accessed
411  Social protection as it positively impacts on equity, redistribution and social

412 justice contributes to sustainable growth in the long-term
413  Reintegration programs for OFWs to facilitate re-entry to the labor market is
414 prioritized
415  Mutual recognition agreements are delved into to provide equal access to
416 professionals who opt to work abroad
417  Bilateral agreements with OFW destination countries opened to improve market
418 access and protection for OFWs
419
420 To improve quality of employment
421  Flexible and moderate wages policy linked to productivity improvement are in
422 place
423  Given differing work and representation requisites , human resource systems as
424 envisioned are present for both domestic and overseas workers
425  Conditions conducive to growth and development of the private sector (laws,
426 land arrangements, labor market information, banking development) are
427 promoted
428  Cost of doing business greatly reduced
429  Growth not concentrated in the “winner” sectors only but also in emergent
430 sectors
431
432 28. On enhancing the level of human capital , it is imperative that in the context of
433 changing technologies and global competition, a mutual gains strategy that is
434 human resource or market enhancing – one that encourages firms and employees to
435 focus on the joint outcomes of improving competitiveness of the enterprise and the
436 economy through a high productivity and high skills labor force is pursued
437 Effective Implementation of this strategic priority depends on applying these policy
438 principles:
439 To promote cooperation and innovation in labor and management relations for
440 mutual gains 11:
441  The influence of human resource considerations and employee interests in the
442 long term strategic decisions and governance processes of the firm/state are
443 institutionalized/prioritized
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444  The diffusion of human resource policies within individual firms to the larger
445 business environment is supported to encourage wide adoption as it may
446 produce benefits for the macroeconomy and society
447  Incentives for “coupled” capital and human resources investments to encourage
448 enterprises to invest in both capital and human resources and put in place the
449 governance and human resources required for these investments to reach their
450 full potential are available.
451  Industry human resource advisory councils with a broad and open ended
452 mandate to allow for appropriateness in response depending on context are set
453 up to foster continuous improvements in practices and outcomes. For instance,
454 the council could tackle current regulatory and management systems in the
455 industry deemed effective in managing the risks associated with the use of
456 contract labor
457  Risk- rewards sharing & governance are observed as new participatory and
458 representative structures and processes that upgrades the voice of employees
459 and human resource considerations in corporate/firm governance
460  Updating & transforming worker rights to representation from a protracted &
461 adversarial course to human resource based - focused on the development of
462 skills and abilities to promote, develop, utilize and mobilize human capital as
463 embodied in the labor force of the future.
464
465The strong primacy of economic growth as the foundation of all efforts to promote inclusive
466growth is recognized. But because creation of jobs and poverty reduction are the clear and
467compelling reasons that will serve the objectives of inclusive growth, initiatives therefore to
468promote human capacities which this Philippine Labor and Employment Agenda embodies
469are to be pursued with equal & fierce fervor.
470Sources:
471
4721. Medium-Term Philippine Development Plan 2011-2016
4732. ADB Sustainable Development Working Paper Series No. 12, June 2010
4743. Philippines Country Scan, ILO,2010
4754. The non-mystery of employment led growth, Duncan Campbell, ILO
4765. National Statistics Office, Labor Force Survey
4776. National Statistical Coordination Board, National Accounts of the Philippines
4787. Employment Projections, 2011-2016, DOLE
4798. Bureau of Labor and Employment Statistics, 2010, The Philippine Employment
480 Situation and MDG Employment Indicators.
4819. Philippine overseas Employment Adminisration
48210. Bangko Sentral ng Pilipinas
48311. Employment Diagnostic Analysis, Concepts & Methods, ILO,2010
48412. The 22 Point Agenda
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48513. Creating Shared Value, Harvard Business Review, Jan-Feb 2011

48614. Labor and Employment in the Five Pillars, IDEA, Jan 2011
48715. Principles for A Post New Deal Employment Policy, Kochan,T.A., May 1992
488
489
490
491
492
493
494
495
496
497
Chapter
Outlining Solutions
3
499PILLAR I. RIGHTS AT WORK
500OUTCOME: Strengthened observance of the constitutionally protected rights of workers
501BACKGROUND
502
503Achieving decent work for Filipino workers calls for the promotion and protection of
504fundamental rights at work that cover the following:
505  The rights to form or join trade unions and workers’ organizations of one’s choosing
506 and the right to free collective bargaining with management
507  Freedom from forced labor, involuntary servitude, slavery or slave-like conditions at
508 work
509  Freedom from discrimination at work, including getting equal pay for work of the
510 same value
511  Absence of child labor
512
513The eight (8) ILO Conventions embodying these fundamental rights have been ratified by
514the Philippines. These are: C87 on Freedom of Association and Protection of the Right to
515Organize (1948); C29 on Forced Labour (1930 ); C105 on Abolition of Forced Labour
516(1957); C138 on Minimum Age for Employment (1973); C182 on Worst Forms of Child
517Labour (1999); C100 on Equal Remuneration (1951); and C111 on Discrimination
518(Employment and Occupation) (1958). Toward ensuring the observance of these
519Conventions, policies and programmes seeking to promote and protect fundamental rights
520at work have been identified as priorities in the country’s Decent Work Common Agenda –
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5213rd Cycle2 and are crucial in the achievement of the over-arching goal of inclusive job-rich
522growth.
523ISSUES AND CHALLENGES

524
525Toward ensuring that the rights of workers are observed in the Philippines, the following
526issues and challenges must be taken into account in the Agenda:
527 Inconsistencies between national laws and ratified conventions. Much effort is
528 still required to make national laws consistent with conventions ratified by the Philippines
529 and to strengthen its application. Meanwhile, there are conventions to which the
530 Philippines has committed that may no longer be applicable in the present work
531 environment. Thus, there is a need to amend labor laws and to prioritize legislation that
532 would operationalize, in a sound and realistic way, the principles of social dialogue,
533 productivity and competitiveness, and business self-regulation while at the same time
534 prescribing policy directions on emerging employment arrangements.
535
536 Limitations in the enjoyment of fundamental rights, particularly in respect of

537 freedom of association and collective bargaining. Freedom of association and
538 collective bargaining are linked to the guarantees of basic human rights and civil
539 liberties. These rights cannot be realized if there is rampant violation of human rights.
540 The Philippines faces this challenge in view of reports to the ILO on various cases of
541 detention, arrest, physical threats, assaults or disappearances of leaders and workers’
542 and employers’ organizations for activities in connection with the exercise of their right
543 to organize. This concern reinforces the climate of violence and insecurity which further
544 threatens and limits the exercise of trade union rights by hampering the development of
545 genuine, free and independent workers’ and employers’ organizations. 3
546
547 Lack of protection of workers through labor standards. With the changes in work
548 arrangements in the country, it is observed that existing standards ensuring workers’
549 protection have become inadequate. This gap in promoting and protecting the rights of
550 workers have manifested in: low wages, weak enforcement of minimum standards,
551 weakening trade unionism and collective bargaining and limited representation of
552 workers in policy-making.4 These are challenges that impinge on the Philippines’ efforts
553 in promoting and ensuring workers’ rights and are central to meeting the objectives of
554 decent work in the country.
555
556 Increasing workers’ insecurity due to flexible arrangements. Competition in

557 global markets has pushed businesses to resort to outsourcing as a strategy to decrease
558 labor cost and increase flexibility. This strategy, however, raises labor issues that are
559 seen throughout Asia such as the increased insecurity of jobs, lower wages, and the
560 weakening of the influence of workers and unions. Most commonly, these include the
561 duration, nature and termination of employment contracts and the conditions for the use
562 of temporary or outsourced labor. The Philippines, as with other countries in the Asian
563 region, faces the challenge of balancing the legitimate needs of employers for flexibility
564 with the equally legitimate demands by workers for stability and protection.
52 DOLE-NTAC (2011)Assessment of the 3rd Cycle of the Philippine Decent Work Common Agenda
63 DOLE (2009). Proceedings of the National Tripartite Conference on Principles of Freedom of Association
74 ILO (2009). Technical Memorandum:Philippines Labour Inspection Audit.
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19 | P a g e 2011-2016
565
566 Increasing vulnerability among migrant workers. Migration among Filipinos today
567 is largely contract migration or migration for temporary work and is progressively on the
568 rise and getting diverse. Whereas before, workers were involved mainly in infrastructure;
569 in more recent times, they have moved into service occupations. Previously, migrants
570 were mostly men; now women have become more significant in the migration flows.
571 This trend calls for responses from countries of origin such as the Philippines to ensure
572 the protection of overseas workers from exploitative practices not only during
573 employment in the destination country but also during the recruitment and pre-
574 deployment phase both in the country of origin and destination as well as upon return
575 and reintegration.
576
577 Vulnerability among domestic workers. Domestic workers include both OFWs
578 working abroad as domestic workers and Filipino domestic workers working within the
579 Philippines. Their work situation which are usually private households, either overseas
580 or locally, exposes them to vulnerabilities particularly abuse and exploitation. While a
581 package of reforms was introduced to establish higher labor standards for migrant
582 domestic workers resulting to reduction in their deployment, an upsurge in deployment
583 has lately been observed. On the other hand, reforms in the protective mechanisms for
584 domestic workers in the local economy are also called for.
585
586OBJECTIVES AND STRATEGIES
587
588Objective: Improving quality of employment
589Strategies:
590 Align labor policies with international treaties and ILO conventions in a sound
591 and realistic manner5 and toward responding to labor market realities 6.
592 Through consultations and with tripartite support, reforms will focus on the
593 following priority legislative proposals7:
594
595 1. Amendment toward modernizing the Labor Code to make the country more
596 competitive as a destination for investments particularly in terms of: 1) reasonably
597 terminating employees; 2) allowing subcontracting to meet the needs of a global
598 market.8
599
600 2. Repeal of Article 130 of the Labor Code on nightwork prohibition for women
601 employees in industrial and commercial undertakings toward allowing allow women
602 employees estimated to be close to 1 million who are working in the business
603 process outsourcing (BPO) and manufacturing sector to work at night, consistent
604 with rights to equal employment opportunities and the right against employment
605 discrimination.9
606
85 As discussed in Chapter 3 Competitive Industry and Services of the Philippine Development Plan 2011-2016, page 15 (25
9February 2011 Draft)
106 Agenda 7 of 22-Point Labor and Employment Agenda
117 DOLE Priority Legislative Proposals
128 Joint Foreign Chambers of the Philippines (2010). Arangkada Philipines 2010: A Business Perspective, Part 3. BPO
13Headline Recommendation, page 86.
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607 3. Passage of a Holiday Rationalization Act which “(1) restricts the total number of
608 national non-working holidays to a regionally competitive number; (2) allows firms
609 servicing foreign clients on Philippine national and local non-working holidays to give
610 employees substitute days-off; (3) exempts firms engaged in the export of goods
611 and services from local non-working holidays. 10
612
613 4. Amendment to Sections 3,6, and 7 of the Public Employment Service Office (PESO)
614 Act of 1999 toward the establishment, operation and maintenance of the PESOs in
615 capital towns, key cities and municipalities by local government units; the
616 establishment of job placement offices instead of PESOs; and a provision on the
617 services of PESOs.
618
619 5. Enterprise-Based Training (EBT) Act toward strengthening the enterprise-based

620 training by consolidating apprenticeship and learnership (Art. 57 to 72 and 73 to 77
621 of the Labor Code), dual training (RA No. 7686), on-the-job training and all other
622 forms of industry-based training arrangements into one rationalized system.
623
624 6. Institutionalization of the Ladderized Education Program toward strengthening the

625 same by developing and implementing a unified national qualifications framework
626 that established equivalency pathways for the ladderized system and which allows
627 transition and progression between techvoc education and training and higher
628 education.
629
630 7. Integration and harmonization of the existing regulatory laws under the jurisdiction
631 of the Professional Regulations Commission (PRC) through codification of all
632 regulatory laws of the various professions and toward promoting consistent
633 enforcement of professional standards.
634
635 8. Amendments to the Productivity Incentives Act of 1990 (RA 6971) toward liberalizing
636 the law to make it more attractive and palatable to its intended sectors by
637 eliminating existing conditions that unduly limit or regulate the process of
638 productivity improvement.
639
640 Provide an enabling environment for the observance of the constitutionally

641 protected rights of all workers as well as their right to freedom of association
642 and collective bargaining and the right to participate in the policy-making
643 process11, particularly avenues for dialogue and cooperation based on the
644 spirit of mutual benefits 12 . Through consultations and with tripartite support,
645 reforms will focus on the following13:
15Recommendations page 88.
17Recommendations page 87 and Part 3 Manufacturing and Logistics Recommendations, page 196.
1912 As discussed in Chapter 3 Competitive Industry and Services of the Philippine Development Plan 2011-2016, page 16 (25
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646
647 1. Amendment to Articles 234, 235, 236, 237 and 270 of the Labor Code toward
648 strengthening workers right to self-organization and toward synchronizing particular
649 provisions of the Labor Code with ILO Convention No. 87 (Freedom of Association
650 and Protection of the Right to Organize, ratified on December 29, 1953), as
651 committed by the Philippines relative to the findings of the ILO High Level Mission to
652 the Philippines in 2009. Proposed legislation on this matter seeks to further liberalize
653 the exercise of trade union rights by removing the 20% minimum membership
654 requirement for registration of independent unions and reducing the registration
655 requirement for federation, which was previously 10, to just 5 duly recognized
656 bargaining agent-local chapters. It also seeks to repeal the requirement of prior
657 authorization for receipt of foreign assistance.
658
659 2. Amendment to Arts. 263, 264 and 272 of the Labor Code, as amended, on the power
660 of the Secretary of Labor to assume jurisdiction over labor disputes imbued with
661 national interest toward limiting the automatic issuance of assumption of jurisdiction
662 to two situations: (1) in the ILO concept of “essential services” or industry
663 determined through tripartite consultation as providing essential services which, if
664 interrupted, would endanger the life, personal safety or health of the whole or part
665 of the population; (2) in non-essential services, upon request from both parties
666 involved in the labor dispute after mandatory conciliation. Amendment shall also
667 pursue retention of the residual power of the President to determine industries that
668 are providing essential services and from intervening and assuming jurisdiction
669 during acute national emergency where all normal functioning of the society has
670 ceased and for the removal of criminal sanction for mere participation in an illegal
671 strike on ground of non-compliance with the administrative requirements.
672
673 3. Amendment of Article 275 of the Labor Code toward the institutionalization of a
674 framework for tripartism and social dialogue by defining the objectives, functions,
675 composition of the National Tripartite Industrial Peace Council and mandating the
676 creation of TIPC counterparts at the regional and local levels as well as the
677 establishment of industry tripartite councils (ITC) for purposes of promoting
678 industrial peace and developing voluntary codes of good practices, with a view to
679 benchmarking compliance with labor laws and regulations on an industry-wide basis.
680
681 4. Amendment of Article 228 institutionalizing the 30-day mandatory conciliation period
682 of all labor and employment disputes consistent with the Single Entry Approach
683 (SENA) under DOLE Department Order No. 107-10 and toward complementing the
684 existing labor dispute settlement mechanism by providing speedy, impartial,
685 inexpensive, and accessible settlement services for unresolved issues/complaints
686 arising from employer-employee relations.
687
688 5. Amendment of Article 129 and 217 of the Labor Code toward simplifying money
689 claims by removing the jurisdictional cap providing that all claims without a claim for
690 reinstatement shall be cognizable by the Regional Office and only those with claim
691 for reinstatement shall be recognizable by the NLRC.
692
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693 6. Amendment of Amending Arts. 141-143, 148 and 151 of the Labor Code, as
694 amended (Kasambahay Bill) toward improving the minimum working conditions that
695 will ensure the protection of an estimated 2.5 million domestic workers; mandating
696 that employment contracts shall be written in a language or dialect understandable
697 by both the worker and the employer; providing for higher minimum wages, a
698 minimum age requirement of 18 years old and mandatory coverage of SSS and
699 Philhealth, among others.
700
701 Pursue the ratification of ILO Conventions that promote the rights of workers,
702 particularly14:
703
704 1. Seafarers’ Identity Documents Convention (Revised), 2003 (No. 185) which
705 contributes to safer shipping and makes life easier for seafarers through positive
706 identification of bona-fide seafarers; provides for “shore leave” enabling seafarers to
707 go ashore in foreign ports after perhaps weeks or even months on board, and
708 facilities for joining their ship or for transit across a country for professional reasons;
709 and radically enhances the security features and the uniformity of the SID that
710 countries are required to issue to their seafarers, and lays down minimum
711 requirements with respect to countries’ processes and procedures for the issuance of
712 SIDs.
713
714 2. Consolidated Maritime Labour Convention, 2006 (No. 186) which provides
715 comprehensive rights and protection at work for around 250,000 Philippine
716 seafarers, representing 25% of the world’s seafaring population; consolidates and
717 updates more than 65 international labor standards related to seafarers adopted
718 over the last 80 years; and sets out seafarers’ rights to decent conditions of work on
719 a wide range of subjects, and aims to be globally applicable, easily understandable,
720 readily updatable, and uniformly enforced.
721
722 3. ILO Convention 187 or the Promotional Framework for Occupational Safety and
723 Health (OSH) Convention15 which endorses the establishment of a national policy,
724 national system and a national program on OSH while fostering decisive
725 commitments with tripartite partners for the improvement of conditions and
726 environment that will ensure the safety and health of Filipino workers in about
727 800,000 establishments nationwide.
728
729 Promote better observance of international labor standards toward protection

730 of workers, through16:
731
732 1. Intensified labor inspection program through the Labor Enforcement Action Program,
733 or LEAP which covers not only payment of minimum wage, overtime pay, night shift
734 differential pay, service incentive pay, holiday pay but other labor standards like
2315 Labor and Employment Policy Reforms and Program Implementation for the First 100 Days, 30 June - 08 October 2010
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735 payment of SSS and Philhealth premiums, incidence of child labor and labor-only
736 contracting arrangements, and issuance of alien employment permit. 17
737
738 2. Compliance Certification System/Tripartite Assessment which promotes pro-active

739 involvement of companies in the implementation of tripartite certification of labor
740 standards compliance under the Labor Standards Enforcement Framework. 18
741
742 3. Designation of labor laws-compliant zones toward the promotion of the practice self-
743 policing among firms as part of compliance with labor standards laws.
744
745 4. Promotion of labor law compliance among business and industry groups by jointly
746 developing a Q & A on all labor laws including components on culture and values to
747 be translated into various languages and dialects and to be used during seminars for
748 member companies including small and medium enterprises.
749
750 5. Establishment of a “two-tiered wage system” that seeks to correct the exclusion of
751 millions of workers in more than 700,000 small enterprises from the protection of
752 minimum wage subsequently contradicting and violating the intent of RA 6727 or the
753 Wage Rationalization Act. The system will address unintended outcomes such as
754 inflation, unemployment, informality, weak collective bargaining, distortions in pay
755 systems, widespread atypical employment arrangements, involuntary non-
756 compliance, and reduced incentive to adopt pay-for-performance or productivity
757 schemes.19
758
759 Guarantee the rights and protection of workers in mutually agreed upon work
760 arrangements20 while also balancing the legitimate needs 21 of employers for
761 flexibility by22:
762
763 1. Pursue amendments to the Labor Code toward addressing contracting and
764 subcontracting issues particularly the Security of Tenure Bill (SB 858, SB 1060, HB
765 303, HB 1451, HB 692) and to the rules implementing Art. 106 to 109 toward
766 imposing stricter penalties on labor-only contracting; defining what is “usually
767 necessary and desirable in the usual trade and business of the employer” to
768 determine who is a regular employee; allowing subcontracting that is done in good
769 faith and due to the exigencies of business and to distinguish between
770 subcontracting and outsourcing practices
771
2517 ILO (2009). Technical Memorandum: Philippines Labour Inspection Audit.

2618 Joint Foreign Chambers of the Philippines (2010). Arangkada Philipines 2010: A Business Perspective, Part 4. Labor
27Recommendations, page 313.
2819 Joint Foreign Chambers of the Philippines (2010). Arangkada Philipines 2010: A Business Perspective, Part 3.
29Manufacturing and Logistics Recommendations, page 194 and 196.
3020 As discussed in Chapters 1 and 2 of the Philippine Development Plan 2011-2016, pages 10 and 19 (25 February 2011
31Draft)
3221 Joint Foreign Chambers of the Philippines (2010). Arangkada Philipines 2010: A Business Perspective, Part 4. Labor
33Headline Recommendations, page 313.
3422 Cited in ILO Country Scan and issue and recommendations raised in consultations leading to the National Summit on
35Labor and Employment
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772 2. Amendment of Article 156-165 of the Labor toward defining definite and indefinite
773 period of employment; simplifying the legitimate grounds for termination of
774 employment and toward ensuring that workers are provided with the same or similar
775 non-wage benefits as regular contracts, and same rights of association and
776 bargaining and determining the limits on the duration of the contract
777
778 3. Review the Dual Training Act, the Apprenticeship and LearnershipProgramme toward
779 preventing circumvention of the right to security of tenure of workers
780
781 4. Review current outsourcing strategies among industries toward balancing protection
782 of workers’ rights and ensuring business competitiveness 23 and the determining the
783 application of relevant provisions of the Labor Code and its implementing rules to
784 company decisions to outsource
785
786 5. Support initiatives toward establishing alternative employment arrangements such as

787 the proposed repeal of the 8-hour law and adoption of the 48-hour workweek to
788 afford flexibility in hiring workers for industries or firms where work hours vary based
789 on demand for products or services (overtime pay starts after the 48 hours subject
790 to OSH guidelines)
791
792 6. Study the possibility of setting-up an unemployment insurance scheme as the

793 workers’ income floor in case they lose their job and which allows time to find a new
794 job while unemployed
795
796 Ensure protection of overseas Filipino workers, including those in vulnerable
797 occupations24
798
799 1. Expand protection measures for migrant workers through the full implementation of
800 RA 10022
801 2. Decrease deployment of low-skilled workers in work prone to abuse and exploitation
802 3. Advocate for the review of bilateral and multilateral agreements toward ensuring that
803 OFW destination countries have protective measures for migrant workers
804 4. Conduct intensive information campaigns on the protective measures set forth in RA
805 1002
806 5. Generate international support for the DomWork Convention, particularly among
807 labor-receiving countries
808 6. Generate multi-stakeholder support for the passage of the instrument to implement
809 the ASEAN Declaration on the Promotion and Protection of Rights of Migrant Workers
810 and their Families
811PILLAR II. EMPLOYMENT
812OUTCOME: Increased employment levels and increased access to employment

813opportunities
814

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8161. Low levels of employment
817  Need for rapid and sustained economic growth to spur massive employment
818 generation. “Quality economic growth means that rapid output increases are
819 translated to employment creation.” Economic growth in the past decade (1998-2009),
820 however, has not translated to equivalent improvement in employment levels.
821 Employment growth tended to be slower than economic growth. On the other hand,
822 unemployment rates showed little improvement despite periods of marked economic
823 growth. Low economic growth is attributed to “lagging capital accumulation”
824 (investments) and slow technology progress. The country is also prone to economic
825 shocks, natural disasters and extreme weather disturbances that affect the agriculture
826 sector, which is biggest employer in the country next to the services sector. Strategies
827 for economic growth must ensure that growth will not only be substantial and
828 sustained, but that it will also translate to an employment growth considerable enough
829 to significantly reduce unemployment. (MTPDP Chapter 1. In pursuit of economic
830 growth, pp. 1,7; Chapter 2: Macroeconomic Policy, p 2; BLES, 2010,
831 Employment and Economic Milestones 1998-2009)
832  Brain drain. The inadequacy of employment opportunities in the country is a

833 “contributory factor” in driving the outmigration of professionals and skilled workers in
834 the country, and in discouraging their return. Skilled migration is not inherently
835 detrimental, as long as their optimal economic gains are ensured and social costs,
836 including brain drain, is minimized. The challenge is how to translate the gains of
837 skilled migration in productive investments in the country by transforming migrant
838 workers into entrepreneurs and investors and by harnessing their skills for knowledge
839 transfers to spur productive activities in the country. (MTPDP Chapter 1. In pursuit
840 of economic growth, p. 1; Chapter 2: Macroeconomic Policy, p. 8)
841  Low level of investments. The country’s poor investments record constrains
842 employment generation. From 2004 to 2010, investments in the country dropped. The
843 country’s investment record is also the weakest in ASEAN-6 (Brunei, Malaysia,
844 Indonesia, Singapore, Thailand, Philippines). “Inadequate infrastructure and a
845 resulting poor logistics” have been identified as a cause of poor investments record.
846 Weak investments in power generation are also a problem, resulting in unreliable or
847 short supply of energy and causing disruptions in production and other economic
848 activities. (MTPDP Chapter 1. In pursuit of economic growth, p. 4; Chapter 3:
849 Competitive Industry and Services Sector, p. 3)
850  Low productivity. The MSME sector is the largest sector in the country, accounting
851 for 99.6 of the total establishments and contributing 63.2% of the total employment in
852 2009. MSMEs are however associated with low productivity and ”poor business
853 conditions.” Low productivity in turn constrains further job creation. “Low productivity
854 of MSMEs can be attributed to lack of access to new technology, weak technological
855 capabilities, and failure to engage in innovation and research and development
856 activities.” (MTPDP Chapter 3: Competitive Industry and Services Sector, p.
857 14)
858  A deteriorating environment that threatens human and physical capacity for
859 productive undertakings. The environment is deteriorating. Urban centers are
860 polluted and wastes are improperly managed. Continued deforestation is exacerbating
861 loss of watershed, which affects water supply. Land and water resources are fast
862 depleting. Consequently industries, which inevitably rely on natural resources for
863 inputs, are threatened. Poor population is also at risk because they mostly depend on
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864 natural resources for their sources of livelihood. ( MTPDP Chapter 9: Conservation,
865 Protection and Rehabilitation of the Environment and Natural Resources
866 Towards Sustainable Development, p. 34-35)
8672. Lack of access to employment opportunities
868  Structural employment. Despite periods of marked improvements in the economy

869 (5.0% in 2005 to 7.3% in 2010 at an annual average of 4.9%), unemployment barely
870 improved over the years, from 7.8% in 2005 to 7.4% in 2010. This means that
871 unemployment in the country is structural, which means that joblessness is not caused
872 by an overall lack of jobs, but because of lack of access to remunerated work, because
873 of the inability of workers to cope with changes in the economy, including changes in
874 technology and production and skill requirements. The phenomenons of high level of
875 unemployed youth and educated unemployed indicate lack of access to employment
876 opportunities in particular because of mismatch of available skills and required skills.
877  High youth unemployment. Globally, one out of four in the working age population
878 is between 15 and 24 years old. About half of them are unemployed. In the
879 Philippines, the ratio is one out of four. In 2009, of the total 2.8 million unemployed,
880 more than half were young workers. In the same year, among the unemployed youth,
881 only a little more than half looked for work. This might be explained by the
882 requirement of schooling. However another half of the total were unemployed not
883 because of schooling but because of lack of employment opportunities or slow entry or
884 reentry to the labor market. These youth were either discouraged due to perceived
885 lack of employment opportunities (believed no work was available), were awaiting
886 results of previous job applications or were waiting for rehire or job recall.
887  Educated unemployed. The levels of educated unemployed are also high. In 2005
888 to 2010, an average of 39.8% of the unemployed or 1.1 million reached college. The
889 unemployment of the educated means loss of opportunities for productive work.
890  Job skills mismatch. The high levels of unemployed youth and unemployed
891 educated can be attributed to mismatches between the skills supply and skills
892 demand, i.e., that the academic preparation of workers is either inadequate or
893 incongruent with that required by the labor market. It also means limited job
894 opportunities in the formal economy, which is a preferred employment destination of
895 those with higher levels of education and training. Based on a survey of the Bureau of
896 Labor and Employment Statistics covering a period of January 2007 and January 2008,
897 despite unemployment affecting more than two (2) million Filipinos, employers had
898 difficulty filling up their vacancies because of shortage of applicants with the right
899 competencies and qualifications for the job. Skills mismatch in the country received
900 huge attention in the 2006 National Manpower Summit. Think papers released as
901 discussion documents found areas of concern pertaining mismatches. These include
902 high turnover rates and low hiring rates affecting the customer contact industry,
903 oversupply of ratings among seafarers and short supply of officers, and oversupply of
904 inexperienced nurses. On the other hand, results of skills assessment through
905 multisectoral and regional consultations in 2009 contained in the document, Project
906 Jobsfit 2020, noted concentration of hard‐to‐fill occupations in high‐end categories,
907 such as accountants and engineering professionals. ( MTPDP Chapter 3:
908 Competitive Industry and Services Sector, p. 16-17)
909  Need to improve labor market signaling and employment services. When
910 potential labor supply have no access or lack access to right information on the labor
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911 market requirements, they may come out of learning institutions endowed with skills
912 that are not necessarily what are required. This highlights the relevance of a labor
913 market information system and job facilitation services that can anticipate and
914 mobilize institutional mechanisms for responding to demand changes, and for seizing
915 opportunities out of these changes. Labor and Employment for Philippine
916 Development: Summary of DOLE Inputs to the MTPDP)
917  Ensure market-driven education and training services. The supply side of the
918 labor equation should be addressed through quality education/training and effective
919 assessment and certification systems. Undertake and maximize capacity-building
920 programs with the support of foreign governments and intra-government
921 organizations under the framework of various bilateral and multilateral engagements.
922 Further enhance linkages among Filipino skilled workers and their business network,
923 technical experts and Filipinos involved in epistemic communities abroad under various
924 multi-stakeholder talent-sharing and brain-gain and skills enhancement initiatives (e.g.
925 Science and Technology Advisory Council, the Balik-Scientist Program and ERDT).”
926 (MTPDP Chapter 8: Social Development, p. 26)
927
929
930Objective: Invest in our country’s top resource, our human resource, to make us
931more competitive and employable ( 22 Point Platform and Policy Pronouncement
932on Labor and Employment)
933
934STRATEGIES
935
936 Improve employment levels by:
937
938 1. Target the creation of additional one (1) million jobs per year. Economic
939 growth will be targeted to grow by 7-8% per year. This annual growth target is
940 expected to “generate an average of some one million new jobs annually and these
941 jobs will be found primarily in industry and services.” On the other hand, growth in
942 agricultural employment will be pursued through agrarian reform, infrastructure
943 development and agri-processing packages. Unemployment is projected at 6.8-7.2%
944 given 2.75% labor force growth. Bigger drops in unemployment might also be
945 expected if there is a huge “reversal in overseas migration trends as more domestic
946 jobs are created.” (MTPDP Chapter 1: In Pursuit of Inclusive Growth)
947
948 2. Focus interventions to increase productivity, employment, exports and
949 investments in key job generating areas. To increase exports and encourage
950 foreign and domestic investments and thus to spur employment creation, the
951 government shall pursue intensive promotion, industry development and a more
952 focused incentives package in key areas, as indicated below: ( MTPDP Chapter 3:
953 Competitive Industry and Services Sector, p. 27-37)
954
955 o Tourism. “Strategic tourism and development will be pursued in a
956 sustainable manner to continuously create jobs and livelihood for local
957 communities.” Toward this end, human resources development will be a key
958 strategy. International and domestic tourism promotion campaign and
959 programs will target new markets with the support of overseas Filipinos.
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960 (p.29)
961 o Business Process Outsourcing. “Services and Creative Industries, in
962 addition to BPO shall be promoted and enhanced,” covering services such as
963 accounting, education services, engineering services, franchising, interactive
964 media with focus on animation, gaming, health and wellness and shipcrewing
965 and shipmanagement. Legislation for the Magna Carta for Call Center
966 Workers will also be pursued. “To support the industry, there is a need to
967 nurture the talent pool…” by harmonizing the “educational system with the
968 needs of the industry,” career advocacy and training. ( p. 30)
969 o Electronics. “To show reliability of Philippine electronics and increase
970 exports,” there is a need, among others, for the “establishment of human
971 competencies throughout the value chain” through talent development
972 particularly among PhDs and Masters in Sciences. (p. 31)
973 o Mining
974 o Housing
975 o Agribusiness
976 o Logistics
977 o Shipbuilding. The government will continue to provide skills enhancement
978 programs to ensure availability of skilled workers in the sector. ( p. 34)
979 o Infrastructure. Infrastructure initiatives of the government will be pursued
980 through public-private partnerships (PPP). (p.34)
981 o Other high-potential industries. These include homestyle products
982 (furniture and furnishings, holiday décor, housewares, woodcraft),
983 wearable’s, motor vehicles parts and components, garments and construction
984 and related materials. (p. 35-36)
985
986 3. Develop green programs. Enhancement of productivity and efficiency will be
987 undertaken through the development and implementation of green programs and
988 sustainable consumption and production patterns. These programs will include PPP
989 initiatives and will also entail investments promotion. ( MTPDP Chapter 3:
990 Competitive Industry and Services Sector, p. 36 )
991
992 4. Develop and implement technology development projects. To boost
993 innovativeness and competitiveness, technology development projects will be
994 developed and implemented, including “the design of ICT-based English language
995 learning to increase the human resource uptake of call centers.” ( MTPDP Chapter 3:
996 Competitive Industry and Services Sector, p. 36 )
997
998 5. Promote labor-intensive undertakings through infrastructure. An
999 employment–intensive scheme in infrastructure development, where applicable, will
1000 be also adopted by harnessing the skills and technical expertise of Filipino ( Chapter
1001 5: Infrastructure Development)
1002
1003 6. Support the promotion of better business environment . With the overall goal
1004 of raising the competitiveness ranking of the country, better business environment
1005 and improved productivity and efficiency. The following strategies will be adopted:
1006
1007 o Flexible and moderate wages policy linked to productivity improvement
1008 (Labor and Employment for Philippine Development: Summary of DOLE
1009 Inputs to the MTPDP) ;
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1010 o Support to MSMEs through financing and productivity enhancement ( Labor

1011 and Employment for Philippine Development: Summary of DOLE Inputs to
1012 the MTPDP) ;
1013 o Industry cluster development to foster linkages among MSMEs through

1014 human resources development and productivity enhancement ( Labor and
1015 Employment for Philippine Development: Summary of DOLE Inputs to the
1016 MTPDP);
1017 o Measures to reduce pollution and waste generation through the “promotion
1018 of green jobs and greening the industry” (MTPDP Chapter 9: Conservation,
1019 Protection and Rehabilitation of the Environment and Natural Resources
1020 Towards Sustainable Development, p 34) ;
1021 o Support amendments to the Barangay Micro Business Enterprises (BMBEs)

1022 Act so that it will “support the growth and development of microenterprises”
1023 (MTPDP Chapter 3. Competitive Industry and Services Sector, p. 22)
1024
1025 o Pursue national interests for employment creation in bilateral, multilateral and
1026 regional negotiations to maximize opportunities offered by trade agreements.
1027 One approach is to assist MSMEs in becoming globally integrated, i.e.,
1028 mainstreamed, in the global production networks. ( Chapter 3. Competitive
1029 Industry and Services Sector; p. 24)
1030
1031 o “The government shall formulate a national industrial policy that will pave the
1032 way for an industrial plan that will lay down a mapping of opportunities,
1033 planning, coordinating, and promoting the growth of forward and backward
1034 linkages in priority areas and high-potential growth sectors, as well as
1035 prepare other industries that will attract investments and promote job
1036 generation. (Chapter 3. Competitive Industry and Services Sector; p. 22)
1037
1038 7. Improve employment levels with adequate supply of qualified and
1039 competent workers
1040 o Education and training programs that will create supply of workers for hard to
1041 fill occupations will be developed Continuing professional education (CPE)
1042 among professionals to sustain/strengthen competencies will be promoted;
1043 and
1044 o Initiatives to reverse brain drain will be undertaken. ( Results of the

1045 consultations for the National Summit on Labor and Employment )
1046 8. Improve employment levels with job-rich trade and investment policies
1047 o Employment generation mainstreaming in agri-business trade and investment

1048 policies will be pursued;
1049 o Investor friendly policies to encourage investor confidence will be adopted;
1050 o An enabling environment that will encourage the return of overseas Filipinos
1051 and their productive investments will be pursued;
29
30 | P a g e 2011-2016
1052 o Capital and knowledge transfer initiatives will be undertaken to harness

1053 positive development outcomes of migration and create domestic
1054 employment opportunities; and
1055 o Employment will be mainstreamed as core objective of free trade agreements

1056 (Results of the consultations for the National Summit on Labor and
1057 Employment)
1058 9. Improve employment levels by promoting entrepreneurship through education

1059 and training and community based entrepreneurial activities ( Results of the
1060 consultations for the National Summit on Labor and Employment )
1061 10. Promote investments and entrepreneurship among overseas Filipinos

1062 (OFs)
1063
1064 o Pursue a more aggressive information and marketing campaign to
1065 tap overseas Filipinos (OFs) as sources of capital. Toward this end, “DTI and
1066 DOLE will review and strengthen existing programs and consider ways by
1067 which to maximize the brain gain derived by OFs from their foreign
1068 deployment” (Chapter 3: Competitive Industry and Services Sector, p. 38)
1069
1070 o Create linkages among Filipino skilled workers and their business
1071 networks, technical experts and Filipinos abroad to promote multi-stakeholder
1072 talent-sharing and brain-gain and skills enhancement initiatives. ( Chapter 3:
1073 Competitive Industry and Services Sector, p. 27)
1074
1075 o Assist OFWs in achieving financial stability through training,
1076 investment and savings programs. (22-Point Platform and Policy
1077 Pronouncements on Labor and Employment). LGUs need to work with others
1078 in databanking, skills training, and promoting the economic undertakings of
1079 their constituency OFWs. National agencies should concentrate on the
1080 training of trainers. (Trade Union Congress of the Philippines, Labor Position
1081 on the National Summit on Labor and Employment )
1082
1083 o Adopt a global trading master plan with the aim of establishing
1084 worldwide trading posts that rely on the labor, knowledge and
1085 entrepreneurial spirit of Overseas Filipino Workers (OFWs) will be adopted
1086 (22-Point Platform and Policy Pronouncement on Labor and Employment )
1087
1088 o Facilitate the re-integration of returning OFWs by favorable terms of
1089 investment, tax incentives, access to government financial institutions and
1090 other benefits that are offered to foreign investors. ( 22-Point Platform and
1091 Policy Pronouncement on Labor and Employment ). Consider OFW-oriented
1092 investment funds and OFW-oriented lending operations. (Trade Union
1093 Congress of the Philippines, Labor Position on the National Summit on Labor
1094 and Employment)
1095
1096 11. Improve financial sector policies to encourage resource flows and allocations
1097 toward long-term productive investment by sustainable enterprises, to meet the need
1098 for investment, innovation, trade and consumption, and to allow for the channeling of
1099 higher savings toward higher capital formation. (Labor and Employment for Philippine
1100 Development: Summary of DOLE Inputs to the MTPDP)
30
31 | P a g e 2011-2016
1101
1102 Improve access to employment opportunities by:
1103 1. Adopt reforms in employment facilitation. Reforms on employment facilitation

1104 shall be pursued to “support a policy environment that will increase labor demand
1105 and improve labor supply using pro-employment labor market policies that foster
1106 flexibility, efficiency and equity supported by a strong system of public employment
1107 service.” Programs that will be covered in the reforms include the creation of an
1108 Integrated Human Resources Data Warehouse and a National Skills
1109 Registry System, advocacy for necessary allocation to subsideize low-income LGUs
1110 for the institutionalization of Public Employment Services Offices (PESOs), and
1111 the Expansion of the Walk-In Examination (WES) for Maritime
1112 Professionals to cater to the needs of the growing needs of maritime professionals
1113 for licensure. (Labor and Employment Policy Reforms and Program Implementation
1114 for the First 100 Days of President Benigno S. Aquino III Administration). Career
1115 advocacy, coaching and counseling will also be enhanced to improve the
1116 employability of graduates and workers. (Results of the consultations for the
1117 National Summit on Labor and Employment)
1118
1119 2. Address the labor-mismatch problem by promoting better coordination between
1120 employers, academia and government through strengthening both public (e.g. Public
1121 Employment Service Offices – PESO) and private sector labor market information and
1122 exchange institutions, especially at the local levels. ( 22-Point Platform and Policy
1123 Pronouncements on Labor and Employment ). Toward this end, “DOLE and TESDA
1124 should engage with major investment-incentive granting agencies (BOI, PEZA) in
1125 validating projections of skills in demand in economic zones and elsewhere in
1126 preparing programs to meet skills requirements.” (Trade Union Congress of the
1127 Philippines, Labor Position on the National Summit on Labor and Employment, p. 1 )
1128
1129 3. Enhance human capital through education and training. Qualitative
1130 attributes such as education, skills, health cognitive abilities, set the parameters for
1131 individual’s ability to access productive employment as well as the scope for
1132 technological advancement, increased labor productivity and returns to labor at the
1133 aggregate level. A focus on inclusiveness from the human resource base perspective
1134 requires a special focus on the working poor and unemployed which comprise a
1135 significant percent of the labor force.” ( MTPDP Chapter 2: Macroeconomic Policy, p.
1136 9). Based on the DOLE inputs to the MTPDP, adopted texts in the MTPDP and the
1137 results of the consultations for the National Summit on Labor and Employment, the
1138 following strategies will be adopted:
1139
1140 a. Diffusion of human resource policies within individual firms to the larger
1141 business environment to encourage wide adoption toward larger benefits for
1142 the macroeconomy or society.
1143 b. Incentives for “coupled” capital and human resources investments to

1144 encourage enterprises to invest in both capital and human resources and put
1145 in place the governance and human resources required for these investments
1146 to reach their full potential are available
1147 c. Industry human resource advisory councils with a broad and open-ended
1148 mandate to allow for appropriateness in response will be established. For
31
32 | P a g e 2011-2016
1149 instance, the councils could tackle current regulatory and management
1150 systems in the industry deemed effective in managing the risks associated
1151 with the use of contract labor
1152 o Market-driven and quality education and training, effective skills assessment
1153 and certification systems and career advocacy especially in areas with high
1154 potential for growth and job generation: business process outsourcing (BPO),
1155 tourism, agribusiness and forestry-based industries, logistics, shipbuilding,
1156 housing, electronics, infrastructure and high potential areas
1157 o Capacity-building programs under the framework of various bilateral and

1158 multilateral engagements
1159 o Review and strengthening of programs in skills bridging, on-the-job

1160 training/apprenticeship/learnership to enhance human resource development
1161 programs
1162 o Expanded Ladderized Education Program to cover all degrees
1163 o Quality Management Systems for competency-based training
1164 o Training reforms oriented to the needs of youth
1165 o Entry into mutual recognition agreements to provide equal access to

1166 professionals who opt to work abroad
1167 o Enhanced financial literacy in the countryside and OF-rich areas abroad
1168 through public-private partnerships.
1169 o Better mid-level skills governance through by strengthening TESDA in the

1170 areas of “development planning, resource allocation, standard setting and
1171 quality assurance” and by encouraging “LGUs and industry to directly
1172 participate in the delivery of technical-vocational education and training and
1173 skills development programs.
1174 o Implementation of the Philippine National Qualification Framework (PNQF) to

1175 enhance the mobility of students between higher education; ladderization,
1176 the expanded tertiary education, equivalency and accreditation program and
1177 related modalities shall be adopted as specific approaches.
1178 o Industry-academe linkage and dissemination of labor market information,

1179 delivery of career guidance and counseling services, “improving education
1180 and training with particular
1181 o Emphasis on generic competencies including trainability, work ethics, ICT

1182 literacy, critical thinking and problem-solving skills and good communication
1183 skills to produce globally competent and flexible workforce with positive work
1184 values responding to highly demanded critical skills, especially in the growth
1185 corridors,” and improving levels of competencies of trainers and assessors in
1186 manpower development.
1187
1188  Invest in the formal and regular skills training and upgrading of services
1189 worker and utilize returning OFWs to conduct training. (22-Point Platform and
32
33 | P a g e 2011-2016
1190 Policy Pronouncements on Labor and Employment.) “TESDA should concentrate funding
1191 in institutions with sterling records (in) training and placement. and OWWA should
1192 collaborate in expanding scholarships for upgrading the education/skills of OFWs and
1193 their families.” (Trade Union Congress of the Philippines, Labor Position on the National
1194 Summit on Labor and Employment, p. 6)
1195
1196PILLAR 3: SOCIAL PROTECTION

1197
1198Outcome: Access to social protection mechanisms for all ensured and safe work promoted
1199
1200BACKGROUND
1201
1202The Philippine Development Plan 2011-2016 on Social Development seeks to improve the
1203quality of life of all Filipinos by ensuring equitable access to adequate and quality social
1204services and assets. Central to achieving this goal is the implementation of social protection
1205interventions to reduce vulnerabilities of individuals and households against risks (e.g. loss
1206of income, unemployment, sickness among others) particularly during crisis brought about
1207by economic downturns or natural disasters which can push them down to poverty. Social
1208protection policies and strategies are guided by the government’s social operational
1209framework which identifies four major areas for intervention, namely:
1210
1211 o Labor market intervention thru policies and programs designed to promote and
1212 facilitate enhance employment opportunities, the efficient operation of labor markets
1213 and the protection of the rights and welfare of workers;
1214 o Social insurance programs that seek to mitigate income risks associated with old
1215 age, ill health, disability, work-related injury, unemployment among others;
1216 o Social welfare as preventive and developmental interventions that seek to support
1217 the minimum basic needs of the poor usually in the form of direct assistance in the
1218 form of cash or in-kind transfers as well as social services; and,
1219 o Social safety nets as stop-gap mechanisms or urgent responses that address
1220 effects of crises or shocks on vulnerable groups. 25
1221
1222These shall be carried out taking into consideration the convergence of social protection
1223programs and partnership building through participatory governance. Policies and programs
1224that were identified under the PDP were likewise highlighted as priority interventions under
1225the 22-point Aquino Administration Labor and Employment Agenda and the 3 rd Cycle of the
1226Philippine Decent Work Common Agenda.
1227
1229
3825 Draft Philippine Development Plan 2011-2016, Chapter 8: Social Development (as of
39February 10, 2011)
33
34 | P a g e 2011-2016
1230 Limited social protection coverage. In 2009, the country’s social protection schemes
1231 covered a mere 24.1% of the total labor force, effectively marginalizing the larger part
1232 of the workforce which are found in informal, less permanent, and vulnerable
1233 occupations. While there are windows for social protection coverage among workers in
1234 the informal economy, membership or access to these institutionalized social protection
1235 schemes is generally on a voluntary basis. Thus, in addition to making social protection
1236 schemes more inclusive, policy responses must be able to address the needs of workers
1237 that suffer from external shocks in the labor market and from natural disasters that lead
1238 to loss of incomes or livelihoods. Moreover, the upsurge in more flexible forms of
1239 employment give rise to an increased need for social protection for workers in these
1240 schemes, particularly toward guaranteeing full portability of their social security benefits.
1241 Among migrant workers, social protection responses should be able to respond to
1242 concern of lack of social security coverage particularly for landbased OFWs and also
1243 ensure facilitation of their effective reintegration when they eventually return home from
1244 overseas work.
1245
1246 Minimum wage as a social protection measure has limited coverage .
1247 There is difficulty in making the policy of wage fixing translate into wages that
1248 serve as safety net for vulnerable workers, due to its limited coverage, either
1249 because of exclusions or of exemptions. Minimum wage fixing as a means to
1250 afford equity among workers is also yet to be achieved.
1251
1252 Growing need for workforce-focused occupational safety and health
1253 programs. With a labor market characterized by higher informality and a large
1254 deployment of OFWs, there may be a need for workforce-specific OSH
1255 interventions. While a National OSH Plan is has been drafted and is ready for
1256 adaptation, OSH policies, programs and services as well as compensation and
1257 rehabilitation programs and services would have to take into account the varying
1258 needs of workers in the informal economy and those taking the option of
1259 overseas employment. The challenge also includes addressing the emergence of
1260 contentious diseases such as mental health problems among OFWs suffering
1261 from depression, psychosis, anxieties and phobias poses and the incidence of
1262 HIV/AIDS among workers both in the domestic market and those deployed
1263 overseas.
1264
1265 Increasing vulnerabilities of working children as they engage in high-
1266 risk occupations/industries. Working children remains vulnerable given their
1267 presence in industries considered to be high-risk or hazardous such as
1268 agriculture, domestic work, mining and fishing. Their chances and opportunities
1269 to develop more skills decrease as they continue to find themselves at work to
1270 augment their families’ income rather than in school.
1271
1273Objective: On expanding access to employment opportunities
1274Strategies
1275
34
35 | P a g e 2011-2016
1276 Strengthen the Emergency Community Employment Program (ECEP) to create

1277 jobs that provide income to workers and their families 26
1278
1279 1. Work and coordinate with relevant agencies (e.g. NEDA, DPWH, DOST,
1280 DSWD, DILG, DA, DAR, DOT, DENR, DTI) towards identification ans
1281 implementation of public work programs and other labor-based programs in
1282 communities.
1283
1284 2. Sustain dialogue with government agencies at the local level to scale
1285 up/expand employment opportunities for community-based emergency
1286 employment schemes
1287
1288 3. Prioritize placement of disadvantaged/vulnerable groups of workers (e.g.
1289 youth, women, low-skilled) for available employment opportunities under
1290 community-based emergency employment schemes
1291
1292 Develop sustainable livelihood and entrepreneurship opportunities for
1293 vulnerable workers27
1294
1295 1. Intensify advocacy on financial literacy and community cooperative
1296
1297 2. Establish partnership with other entities to facilitate product-market linkage
1298 for livelihood project of vulnerable workers
1299
1300 Intensify implementation of active labor market policies and programs that
1301 shall enhance employability of vulnerable workers (workers affected by crisis,
1302 workers in the informal economy, displace and distressed OFWs, youth and
1303 women) to facilitate labor market (re)integration28
1304
13051. Invest in the formal and regular skills training and upgrading of Filipino service
1306workers with TESDA to develop new skills
1307
13082. Expand coverage of tech-voc trainings and scholarship particularly on skills and
1309occupations required by the seven growth areas
1310
13113. Improve access to TESDA training for vulnerable groups by providing free access,
1312ensuring timely release of training funds and increasing subsidies for vulnerable groups
1313
13144. Facilitate placement of vulnerable groups of workers with TESDA certification
4026 PDP Chapter 8: Social Development p. 46, Agenda No. 8 of 22-Point Aquino Administration
41Labor and Employment Agenda. The said strategy was also surface during the island-wide
42and sectoral consultations
4327 PDP Chapter 8: Social Development p. 46
4428 Ibid, Agenda Nos. 13 and 15 of the 22-Point PNOY Labor and Employment Agenda.
45Identified also as a priority during the island-wide and sectoral consultations
35
36 | P a g e 2011-2016
1315
13165. Enhance coaching and counseling services for workers trained/re-trained
1317
13186. Establish linkages with CSR programs and companies to have initiatives on HRD
1319training and workplace experience for vulnerable youth
1320
1321  Initiate policy interventions, program/project measures to ensure the
1322 transformation of the brain-drain phenomenon into a brain-gain benefit
1323 and enhance capabilities and entrepreneurship opportunities of the
1324 returnees29
1325
1326 1. Facilitate reintegration of OFWs and assist them in achieving financial stability
1327 through training, investment and savings program
1328 2. Utilize returning OFWs to conduct trainings so that they may transfer skills
1329 learned abroad
1330
1331Objective: On enhancing quality of employment
1332
1333Strategies
1334
1335  Develop enhanced social protection programs such as social security (e.g
1336 social insurance), workmen’s compensation, health insurance and housing
1337 for vulnerable groups against economic and natural shocks particularly for
1338 laid-off workers30
1339
1340 1. Advocate for the establishment of an unemployment insurance scheme
1341
1342 2. Develop alternative schemes of social security initiatives which may include:
1343 promoting firm-based retirement program, exploring creation of mutual or
1344 provident funds for vulnerable workers or a possible social amelioration fund
1345 similar to sugar for selected industries (construction, plantation, agriculture –
1346 banana, pineapple, rubber; and, supporting indigenous insurance schemes
1347
1348 3. Explore hazard insurance for workers in high-risk industries
1349
1350 4. Expand rehabilitation program and services for occupational disabled workers
1351
1352 5. Promote workers cooperative in the community for mutual protection programs
1353
4629 PDP, Chap. 8 Social Development p. 46

4730 PDP, Chapter 8 Social Development, also in the 22-Point Aquino Administration Labor and
48Employment Agenda
36
37 | P a g e 2011-2016
1354  Expand social protection for Filipino migrant workers and review the
1355 continued deployment of workers to countries that are high- and medium-
1356 risk and also deployment in high-risk occupations 31
1357
1358 1. Implementation of a comprehensive program of prevention, protection and
1359 reintegration services for migrant workers
1360 2. Monitor strict compliance to the Compulsory Insurance Coverage for OFWs
1361 under RA 10022
1362 3. Strict implementation of the Reform Package for Household Service Workers
1363 4. Intensify anti-trafficking efforts thru prevention, protection, prosecution and
1364 reintegration strategies
1365 5. Support strengthening or creation of community-based support groups for
1366 families of OFWs
1367 6. Implement mandatory SSS coverage for landbased OFWs and include SSS
1368 enrollment as pre-requisite in the issuance of the Overseas Employment
1369 Certificate
1370
1371 Limit the unintended outcomes of the current wage system
1372
1373 1. Implement the two-tiered wage system establishing a wage floor and
1374 productivity-based pay
1375 2. Enhance monitoring of compliance to minimum wage and intensify strict
1376 compliance to criteria for exemptions or exclusions
1377
1378 Intensify workforce-focused occupational safety and health (OSH) programs 32
1379
13801. Sustain dialogues between labor and management on compliance to OSH
1381standards and promotion of OSH programs at the enterprise level, particularly on industries
1382identified as KEGs/industry winners
13832. Intensify IEC campaign on OSH standards in high-risk industries
13843. Intensify campaign on the integration of OSH in local development plans for
1385workers in the informal economy
13864. Advocate for the integration of OSH in the educational curriculum
13875. Intensify campaign on family welfare program at the firm-level
13886. Implement gender-responsive programs
1389
1390  Strengthen measures to prevent and eliminate the worst forms of child
1391 labor 33
1392
1393 1. Institutionalize strategic partnership and intensify advocacy and action at all
1394 levels
4931 PDP, Chap. 8: Social Development p. 47, Agenda No. 9 of the 22-Point PNOY Labor and
50Employment Agenda. Identified also as a priority during the island-wide and sectoral
51consultations
5232 PDP, Chap. 8: Social Development p. 46. Identified also as a priority during the island-wide
53and sectoral consultations
54
5533 Ibid
37
38 | P a g e 2011-2016
1395 2. Improve access to quality and integrated services

1396
1397
1398
1399PILLAR 4: Social Dialogue
1400Outcome: Strengthened tripartism and broadened representation of workers as a tool for

1401attaining employment goals and toward productivity and competitiveness
1402
1403Background
1404
1405Social dialogue is primarily indicated by how much workers are being organized, how many
1406collective agreements are concluded, and how labor education services are being extended.
1407It also refers to a labor relations system which encourages less adversarial modes of settling
1408disputes and which aims to ensure speedy disposition of labor justice.
1409
1410In general, the Philippines has been recognized for its “vibrant” labor relations environment
1411which is characterized by strong tripartite ties and constant social dialogues among
1412employers, workers and government, with established labor dispute resolution mechanisms.
1413The labor dispute settlement system, however, receives criticism for having a litigious and
1414adversarial process, leading to complaints that the Constitutional mandate of speedy
1415disposition of cases is not realized. In turn, delays in the delivery of labor justice have
1416adverse effects on the free exercise of collective rights among Filipino workers. Many
1417workers are denied of labor justice due to alleged corruptions and inefficiency in labor
1418justice administration.
1419
1420Issues and Challenges
1421
1422 Decreasing representation of workers in trade unions and collective
1423 bargaining agreements. During the past medium term, actual union membership is
1424 increasing while figures of union registration appear to be static. From 2006 to 2009,
1425 there was a general decline recorded on annual union registration from 777 in 2004
1426 down to 384 in 2009. A reverse trend, however, is seen in the number of collective
1427 bargaining agreements (CBAs) and collective negotiations agreements (CNAs) forged as
1428 total CBAs and CNAs of 417 in 2004 rose to 476 in 2009, covering about 81,978 workers
1429 from the private and the public sector. Contrasts appear in terms of coverage of
1430 collective agreements between the private and public sector with great increases in the
1431 coverage of collective agreements among government workers while indicating a slow
1432 downward trend in coverage of workers in the private sector, this, despite an increase in
1433 employment in the private sector.
1434
1435 Need for a more conducive policy environment for social dialogue and new
1436 forms of representation of workers. Achieving an atmosphere for more vibrant
1437 tripartism and social dialogue in the country is currently fettered by old policy and
1438 workplace practices that do not encourage free organization and representation of
1439 workers and by existing structures in government, as well as by governance issues. The
1440 Labor Code, which sets the basic policies for employment relations upon which social
1441 dialogue and freer exchange among tripartite partners are founded, has long been
1442 overdue for a legislative overhaul. Also, the Labor Code does not explicitly provide for
38
39 | P a g e 2011-2016
1443 avenues of representation of the much larger population of workers such as those in
1444 informal work arrangements and those who belong to micro and small enterprises.
1445
1446 Multiple layer in labor adjudication and delay in the disposition of labor cases.
1447 Perceived labor governance issues, including concerns on the disposition of Labor cases,
1448 the NLRC structure, multiple layers in labor adjudication, accessibility to agencies which
1449 have possible jurisdiction over labor cases by workers in unorganized establishments, as
1450 well as the need for workers to legal assistance are immediate issues that contribute to
1451 the over-all climate that are seen as impediments to making social dialogues as a means
1452 to achieve industrial peace.
1453
1454Objectives and Strategies
1455
1456Objective: Promote cooperation and innovation in labor and management
1457relations for mutual gains
1458
1459Strategies:
1460
1461 Improve labor adjudication system in the country by ensuring transparency,
1462 efficiency and integrity in the labor dispute settlement system and
1463 transforming the traditional conflictual and litigious labor relations system
1464 towards one that is reflective of Asian and Philippine culture of consensus
1465 building by:
1466
1467 a. De-judicializing the labor dispute settlement system through Alternative Dispute
1468 Resolution (ADR) mechanisms using mandatory conciliation-mediation of all labor
1469 cases and industry-based conciliation-mediation by the Industry Tripartite Councils
1470 members.
1471
1472 b. Institutionalizing the 30-day mandatory conciliation-mediation of all labor cases
1473 under a single entry approach that will be made available at the regional and
1474 provincial offices of the DOLE
1475
1476 c. Promoting the primacy of collective bargaining in the settlement of disputes through
1477 the grievance machinery voluntary arbitration such labor adjudication bodies will no
1478 longer entertain cases that have unresolved grievances and which have not
1479 exhausted settlement through voluntary arbitration
1480
1481 d. Achieving a 98% disposition rate of all cases in DOLE by April 2011 under the Project
1482 Speedy and Efficient Disposition (SpeED) of labor cases and sustain such disposition
1483 rate throughout the current medium term until case dockets have been effectively
1484 cleared
1485
1486 e. Ensuring transparency and accountability in dispute settlement by posting the status
1487 of labor cases of NLRC, NCMB, ECC, BLR, BWC, and ROs at the DOLE website where
1488 parties involved can immediately view the status of cases filed at any DOLE quasi-
1489 judicial offices
1490
1491 f. Expand the Case Docketing and Monitoring System (CDMS) as a means of tracking
1492 documents internally toward including with e-raffling features in addition to the
1493 electronic tracking system on monitoring of cases and allowing concerned DOLE
39
40 | P a g e 2011-2016
1494 officials real-time tracking and monitoring of cases from the Field Offices to the
1495 Central Office
1496
1497 g. Simplifying adjudication proceedings of PRC cases concerning the regulation of
1498 professionals and their conduct by: 1) Adopting the use of position papers in lieu of
1499 trial type hearing; 2) Preparing a summary of docketed cases; and 3) Constituting a
1500 committee to study and draft Revised Rules of Procedures in the investigation of
1501 cases
1502 Provide an environment for more inclusive tripartism and social dialogue to
1503 make representation of interests of sectors more broad-based and highly
1504 participatory by:
1505
1506 1. Reviewing representation in tripartite bodies toward mainstreaming emerging labor
1507 organizations and employer organizations
1508
1509 2. Developing a criteria for nomination and selection of sectoral representatives as well
1510 as the seats to be allotted to such bodies through consultations
1511
1512 3. Strengthening the Secretariat capacities of the TIPC Secretariat lodged with the
1513 Bureau of Labor Relations
1514
1515 Promote alternative venues for social dialogue particularly at the firm and
1516 industry level by:
1517
1518 1. Facilitating the creation, strengthening or reactivation of more industry tripartite
1519 councils (ITCs) in key employment generators (tourism, agribusiness, BPOs, mining)
1520 including the seven big winners identified by the Joint Foreign Chambers of
1521 Commerce and to replicate the same at the regional level
1522
1523 2. Encouraging the formulation of Voluntary Codes of Good Industry Practices as
1524 guideposts for self-regulation and for addressing industry specific issues toward
1525 industry self governance
1526
1527
1528
1529
1530
1531
1532
1533
1534
1535
1536
1537
1538
1539
40
41 | P a g e 2011-2016
1540
1541
1542
1543
1544
1545
1546
1547
1548 3.5 SUSTAINING OUTCOMES
1549
1550A. Background
1551The Philippine Development Plan 2011-2016 notes that “underpinning inclusive growth must
1552be a bedrock of sound institutions that promote transparency, accountability, the rule of
1553law, and effective and impartial performance of the regulatory function of government.” It
1554also recognizes that “a big part of the solution to the governance problem lies outside
1555government itself and resides rather in the active participation of civil society and the media
1556in governance, monitoring, and feedback.” 34 The PDP also underscores that these solutions
1557and the involvement of the private sector in governance are essential in the competitiveness
1558of enterprises.35
1559Toward this end, the Labor and Employment Agenda provides for mechanisms that promote
1560better labor governance institutions as well as partnerships that shall ensure the realization
1561and sustainability of outcomes.
1562B. Strategies
1563Reforms shall focus on two areas: broadening public-private sector partnership to maximize
1564limited resources and introducing institutional reforms to ensure prudent spending, eliminate
1565red tape, strengthen integrity and accountability of all officials and personnel, reduce
1566processing time of key frontline services, and use technology to quicken the pace of service
1567delivery. Capacity-building for DOLE personnel is also a priority through a human resource
1568development program that rewards competence and builds character and ethical standards
1569for excellence public service. Specifically36:
1570 Partnerships in governance toward developing industry-based approaches on

1571 self-regulation and the crafting of voluntary codes of good practice. These
1572 include partnerships toward:
1573
5634 As cited in Chapter I Introduction and Chapter 6 Good Governance and the Rule of Law of the Philippine Development
57Plan 2011-2016, page 8 and pages 10 to 20, respectively (25 February 2011 Draft)
5835 As cited in Chapter 3 Competitive Industry and Services of the Philippine Development Plan 2011-2016, page 1 (25
61
41
42 | P a g e 2011-2016
1574 1. Sharing of good industry practices in the seven big winners identified by the Joint
1575 Foreign Chambers of Commerce
1576 2. Assisting micro enterprises using the big brother-small brother program of ECOP
1577 where large companies “adopt” micro or small enterprises and provide them with
1578 technical assistance to be able to gradually comply with labor standards and
1579 implement productivity improvements
1580 3. Developing a Q and A on all labor laws to be translated into Chinese and to be used
1581 during a series of seminars jointly organized by DOLE Federation of Filipino-Chinese
1582 Chamber of Commerce and Industries (FFCCI) and for all its member companies to
1583 educate them towards 100% compliance with labor standards including adoption of
1584 productivity improvement program.
1585
1586 Institutional reforms that pursue responsive public service delivery and
1587 efficient use of resources through37:
1588
1589 1. Simplified and unified system of overseas operations, financial management and
1590 reportorial and administrative support services involving DOLE and OWWA
1591 2. Integration of labor market information and employment facilitation systems which
1592 include supply and demand data, crafts and livelihood information and training
1593 opportunities from TESDA, BLE, MTC, PRC and POEA through a data warehouse that
1594 is easily accessible, either on-line or through the PESOs, to job applicants,
1595 employers, investors and manpower placement agencies. 38
1596 3. Convergence of programs on labor law compliance toward incentivizing compliance

1597 with a tripartite seal of excellence on the establishment and its products
1598 4. Speedy and efficient delivery of labor justice through Project SpeED 2 which aims to
1599 reduce case backlog and to ensure that case dockets remain current. 39
1600 5. Integration of livelihood and community enterprise development programmes to

1601 ensure better targeting of beneficiaries and maximizing of resources. 40
1602 6. Ensuring Integrity of PRC documents and anti-fixing measures as an advocacy

1603 against the proliferation of fake licenses or professional IDs and to protect legitimate
1604 professionals and the public against such fraudulent acts41
1605 7. Provision of the following e-services at the PRC-NCR office to provide faster, secure,
1606 and more cost-efficient transactions for professionals and examinees: 1) online
1607 verification of room assignments; 2) professional identification card availability
6237 DOLE Corplanning Exercises 2011-Workshop Outputs

42
43 | P a g e 2011-2016
1608 verification; 3) online verification of eligibility system; 4) online verification of

1609 academic records; 5) online board examination application system; 6) online renewal
1610 application system; 7) online verification of registered professionals; and 8) regional
1611 ID printing.
1612
1613 Institutional reforms toward transparency, accountability, and respect for the
1614 rule of law through:
1615
1616 1. Zero-and performance-based budgeting system that ensures responsible allocation

1617 and use of government resources and where plans and programs are shaped and
1618 reviewed based on intended results and in compliance with COA reports. 4243
1619 2. Economy measures seeking to eliminate wasteful spending and which monitors fund
1620 utilization on a monthly basis
1621 3. Strict implementation of the Citizens’ Charter which spells out the accountability of
1622 each DOLE official and personnel in providing public services with utmost integrity
1623 and efficiency and provides the transacting public with complete information about
1624 dealing with the DOLE, including schedule of fees, timelines, and step-by-step
1625 procedures in availing the DOLE’s frontline services.
1626
1627 4. Establishment of a National Tripartite Efficiency and Integrity Board (NTEIB) as and
1628 its DOLE-wide and agency-level counterparts which shall serve as monitoring and
1629 oversight body and which shall recommend the review of systems and procedures in
1630 the DOLE and its attached agencies
1631 5. Adoption of a DOLE Code of Conduct which sets the standards of integrity and
1632 excellence among DOLE officials and employees in the performance of their duties as
1633 public servants
1634 6. A Quick Response Mechanism to Citizen’s Feedback in addition to existing feedback

1635 response mechanisms in all DOLE offices, attached agencies, and Philippine Overseas
1636 Labor Offices (POLOs).
1637 7. Posting of Statements of Assets and Liabilities of DOLE officials.
1638
1639 Capacity-building toward ensuring better service delivery through:
1640

43
44 | P a g e 2011-2016
1641 1. Pilot implementation of the CSC-Strategic Performance Management System in all

1642 DOLE offices including its attached agencies 44
1643 2. Monitoring of CES Eligibility Compliance of DOLE Officials45
1644 3. Implementation of a DOLE Competency Development Program that identifies,

1645 develops, and reinforces the competencies (knowledge, skills and attitudes) needed
1646 for the attainment of labor and employment goals
1647 4. Implementation of a DOLE Management Succession Program toward the

1648 identification and development of a corps of future leaders thereby ensuring
1649 continuity at all levels of service delivery in the DOLE.
1650 5. Implementation of an enhanced selection and promotion system that observes merit,
1651 fitness and fairness in the selection and promotion of employees for appointment to
1652 positions in the career service at all levels.
1653

44

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1

For Discussion Purposes Only

Chapter 1 Deriving the Agenda: An Introduction…………………………………4

Chapter 2 Declaration of Policy………………………..………………….………...7

Chapter 3 Outlining Solutions …………………………………………………… 17

3.1 Rights at Work……………………………………………………..17

3.3 Social Protection…………………..…………………...…….........34

3.4 Social Dialogue……………………………………………………39

3.5 Sustaining Outcomes……………...…………………………........42

Annexes The Philippine Jobs Pact

13THE LABOR AND EMPLOYMENT AGENDA 2011-2016

51  Discussions at the National Tripartite Industrial Peace Council (TIPC)

58These crucial discussions were complemented by a series of island-wide and sectoral

74BASES FOR THE AGENDA

75The Agenda is based on the following documents:

76  Philippine Millenium Development Goals

87  ILO Country Scan for the Philippines

90The Agenda has the following structure:

100  Philippine Jobs Pact

(%) (At constant prices) (%)

178 Table 2. Employment by Class of Worker

Youth Unemployment Unemployment Rate Total Unemployment

261 Table 8. Labor Force Participation Rate, by Sex, 2006-2010

375 To increase employment levels:

411  Social protection as it positively impacts on equity, redistribution and social

48513. Creating Shared Value, Harvard Business Review, Jan-Feb 2011

500OUTCOME: Strengthened observance of the constitutionally protected rights of workers

523ISSUES AND CHALLENGES

536 Limitations in the enjoyment of fundamental rights, particularly in respect of

556 Increasing workers’ insecurity due to flexible arrangements. Competition in

619 5. Enterprise-Based Training (EBT) Act toward strengthening the enterprise-based

624 6. Institutionalization of the Ladderized Education Program toward strengthening the

640 Provide an enabling environment for the observance of the constitutionally

729 Promote better observance of international labor standards toward protection

738 2. Compliance Certification System/Tripartite Assessment which promotes pro-active

2517 ILO (2009). Technical Memorandum: Philippines Labour Inspection Audit.

786 5. Support initiatives toward establishing alternative employment arrangements such as

792 6. Study the possibility of setting-up an unemployment insurance scheme as the

812OUTCOME: Increased employment levels and increased access to employment

3623 Agenda 4 of 22-Point Labor and Employment Agenda

8161. Low levels of employment

832  Brain drain. The inadequacy of employment opportunities in the country is a

8672. Lack of access to employment opportunities

868  Structural employment. Despite periods of marked improvements in the economy

1010 o Support to MSMEs through financing and productivity enhancement ( Labor

1013 o Industry cluster development to foster linkages among MSMEs through

1021 o Support amendments to the Barangay Micro Business Enterprises (BMBEs)

1044 o Initiatives to reverse brain drain will be undertaken. ( Results of the

1047 o Employment generation mainstreaming in agri-business trade and investment

1049 o Investor friendly policies to encourage investor confidence will be adopted;

1052 o Capital and knowledge transfer initiatives will be undertaken to harness

1055 o Employment will be mainstreamed as core objective of free trade agreements

1058 9. Improve employment levels by promoting entrepreneurship through education

1061 10. Promote investments and entrepreneurship among overseas Filipinos

1102 Improve access to employment opportunities by:

1103 1. Adopt reforms in employment facilitation. Reforms on employment facilitation

1143 b. Incentives for “coupled” capital and human resources investments to

1157 o Capacity-building programs under the framework of various bilateral and