Employers push changes to RP labor schemes

Employers convene today for a two-day annual conference that will focus on pushing changes to the Labor Code to foster competitiveness amid changing business conditions. The program of the 31st National Conference of Employers, which will be held at the Manila Hotel, identified its theme as "Unleashing reforms: business, jobs and governance." Last year’s dwelt on addressing job losses amid the global financial crisis. "The purpose is to review and amend the Labor Code in order to make the labor market competitive," Employers Confederation of the Philippines (ECOP) President Edgardo G. Lacson said in an interview on the sidelines of a wage hearing in Quezon City on Monday. "We are not asking to abolish certain provisions. We want them amended so as to strengthen and update [the law] in line with the current business environment towards job creation and security," he added. Lacson said some of the issues to be discussed are legalization of night shift work for women in light of the growing call center industry, amending the provision that prohibits women from working from late night to dawn; and requiring the National Labor Relations Commission to settle labor disputes in 90 days. The latter will ensure consistent decisions on disputes involving unfair labor practices, illegal dismissal and discrimination, among others. Employers will also discuss updates from the Labor department on about 100,000 pending labor cases. They will also talk about proposed amendments to Article 283, Book VI of Presidential Decree 442 or the 1974 Labor Code, which allows businesses to layoff workers after installing labor-saving devices, or when there is redundancy to prevent losses or avoid circumstances that would lead to a company’s closure. Lacson cited the need to find ways to ensure job security, including prohibiting contractual work. For his part, ECoP honorary chairman Sergio R. Ortiz-Luis, Jr. said collective bargaining agreements (CBA) are a better mechanism than wage boards to determine appropriate salary levels for workers, especially since small businesses, which make up the bulk of the private sector, may not be able to shoulder mandatory daily minimum wage increases as they recover from the crisis. "I think the best way to set wages is [through] the CBA because this would encourage unions to talk things out with employers within the organization, especially for those who have not yet recovered from the crisis," Ortiz-Luis said in a phone interview. "But I’m not asking that the wage board be abolished. Although it’s not perfect, I think it’s better than the government interfering through legislation," he clarified. Last year, employers passed a resolution ruling out any wage petition to help companies battered by the financial turmoil. They also sought the adoption of flexible work arrangements. The Labor department then implemented Advisory No. 2, which allowed compressed work weeks, reduced work days, rotation of employees, forced leaves, broken time schedule and flexible holidays. Senator Edgardo J. Angara, who will deliver the keynote speech, said the next government should focus on education to ensure students develop skills needed by the market, as well as entrepreneurial aptitude. He sought a review of Article 72 of the Labor Code, which allows companies to hire on-the-job trainees working as part of school requirements. "These students are well-educated, computer literate and hard-working, and some of them have insufficient money to cover their expenses," Angara said by phone, noting that interns who do get paid get just P100 per day on average. "I think everybody should be paid and at a higher rate." The Trade Union Congress of the Philippines (TUCP), which will provide reactors during the summit, was amenable to the proposed changes. "We have antiquated provisions that have been there for more than 20 years. We have to take into account now the ascendancy of IT (information technology)-related jobs, review the health and safety provisions given the increasing number of Filipinos with HIV (human immunodeficiency virus) and protect [Filipino workers overseas] who mostly have limited length of service abroad," TUCP Secretary-General Ernesto F. Herrera said by phone. Commission on Human Rights Chairman Leila M. de Lima, who will also speak during the summit, said her agency would push a review of laws to improve companies’ compliance with human right standards. "We are advocating a human rights-based approach to crafting of labor laws and policies — meaning adherence to the principles of transparency, inclusiveness or multi-sectoral participation, nondiscrimination, accountability and special attention to the vulnerable and disadvantaged sectors," she said. — Ma. Aizl Camille B. Cabarles, BusinessWorld