Labor

I was in Malacañang, the presidential palace, yesterday, May 1, to witness three major milestones:

One, the 122nd Philippine Labor Day.

Two, the 50th anniversary of the Philippine Labor Code of 1974, one of the most progressive labor codes and most significant pieces of social legislation in the world, then president Ferdinand Edralin Marcos Sr. told me, as a young reporter.

Three, the awarding with trophies and cash prizes to this year’s Rotary Club of Manila “The Outstanding Workers of the Republic” (TOWER) awardees.

Few countries, if any, guarantee permanent employment to workers after six months of initial employment. Fewer still are countries that mandate clearance before you can fire your worker after he has worked for six months.

Abroad, if your boss sees you at 9 a.m. and feels like firing you by 9:10 a.m., you are fired, pronto. No questions asked.

Here, in the Philippines, under the Labor Code, you cannot fire a worker without cause.

Labor Secretary Benny Laguesma masterminded the glittering Labor Day celebration at the Palace.

The leaders of four major business groups, the employers, were invited –the Philippine Chamber of Commerce and Industry led by chair George Barcelon, the Management Association of the Philippines represented by Karen V. Batungbakal of the IT and BPO industries, the Federation of the Filipino-Chinese Chambers of Commerce and Industry led by Cecilio Pedro and, of course, the Rotary Club of Manila with its proponent of the TOWER Awards.

RCM was represented by president Raffy Alunan, VP Reggie Yu, together with RCM pentennial president Susing Pineda, chair of the TOWER Awards; past RCM president Teddy Ocampo, Dean Amado Valdez, Art Lopez, chair of the RCM Tourism Awards; John Emyl Eugenio and myself as an RCM director.

Marcos Jr. extolled his father’s landmark Labor Code as one “borne out of the vision for development, employment and social justice, has been one of the most enduring pieces of social legislation in the country.”

The President reaffirmed his “government’s commitment to champion the rights of Filipino workers, in pursuit of development and prosperity [applause]. Today – today, we stand in awe of the remarkable contributions of Filipino workers here in the country and also abroad. I offer them our gratitude and recognition as beacons of hope, as important pillars of our country’s foundation. It has been their dedication and tireless pursuit of a better life for their loved ones which fuel the engine of progress in our nation.”

“You are the heart and soul of our workforce, the drivers of our success and the reason why we continue to dream of a brighter tomorrow,” Marcos said.

Marcos said, “Guided by the Philippine Development Plan, the government endeavors to improve the lot of the Filipino worker, strengthen the economy, create new jobs and eliminate poverty.”

Marcos said “we aim not just for job growth, but for quality and green jobs that are aligned with our vision for a sustainable, human capital-centered economy.”

He cited recent initiatives for the benefit of the labor sector.

• Review current wages to align them with the pesky inflation rate which rose to 3.7 percent in March 2024 from 3.4 percent in February 2024, for a year-to-date inflation of 3.3 percent, above government target. Review must come 60 days before the anniversary of the previous wage increase.

Half of the blame for the high inflation rate is food – not enough of it and its high prices. So expect a new minimum wage, hopefully not the P100 per day raise sought by workers.

• Suspend the spot market for electricity (WESM) whenever the NGCP declares a red alert – severe electricity shortage – to discourage speculation on or rigging of electricity prices to take advantage of the shortage.

• Financial assistance to farmers hit by El Niño drought.

• A P2.6-billion action fund for distressed or maltreated OFWs.

• Build a Workers’ Rehabilitation Center on a 50-hectare government land in Tanay to benefit workers injured at work and upskill them. I suggested to the President to rename the sprawling facility Workers Care Center, because “rehab” sounds like drugs or a mental problem.

• A scheme to convert some one million contractual government workers into permanent workers.

• Signing last September of the Trabaho Para sa Bayan Act to bolster jobs creation efforts and address various challenges like jobs-skills mismatch, underemployment and youth unemployment.

• DOLE to prioritize addressing underemployment by promoting training in skills that the local and international labor markets need and ensure that there is placement for those who are going to be trained.

TESDA has more than two million trained under its technical and vocational courses, including over one million under BBM.

• Congress to pass job-creation bills like the Enterprise-based Education and Training Program law, the Revised Apprenticeship Program Act and the CREATE MORE law or the law on Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy.

• More workers’ benefits like affordable housing (P126 billion from Pag-IBIG), 30 percent higher health care coverage (breast cancer insurance up from P100,000 to over P1 million), TUPAD cash assistance to hundreds of thousands of workers, plus the expansion of KADIWA retail stores for basic goods.

• More investments and promotion trips to generate jobs. In 2023, investment incentives-offering agencies approved P1.7 trillion in projects that could create 108,000 jobs in the year alone.

Marcos said he convinced 21 investors to start projects in the Philippines, out of the 200 investors who had promised to bring P4 trillion in investments in the country.

• Build Better More infra will boost economic growth which in turn will improve the quality and capability of Filipino workers.

• Ratification of the convention against harassment and violence in the work place.

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