Wednesday, July 25, 2012

Bill creating a magna carta for workers in the informal economy

A magna carta for workers in the informal economy who were described as one of the "most neglected sector of the society" has been filed at the House of Representatives.

Rep. Raymond Democrito Mendoza (Party-list, TUCP) authored House Bill 6182 to give full protection by establishing an institutional mechanism for the informal sector.
"The informal sectors are more easily found in exploitative conditions. They are excluded from the protective scope of laws and regulations," Mendoza said.

Mendoza said the informal sector could be found in every sector of the economy including commerce, agriculture, construction, transportation, manufacturing and services.

The bill identifies the informal sector as the ordinary farmers, fisherfolk, home-based workers, industrial home-based workers, self-employed, vendors, drivers, operators of jeepney and tricycles, domestic helpers, small scale miners, workers of barangay micro business enterprises, waste pickers and recyclers, on-call workers, volunteer workers, unpaid family workers and seasonally hired workers.

Data from the National Statistics Office (NSO) shows the sector accounts for 99.2 percent of all establishments in the country, with a population of 16 million in 2005.

Mendoza said informal employment is often casual, irregular or seasonal implying frequent changes of workplaces and employers.

Under the bill, Mendoza said the informal workers will have a right to living wages, equal opportunities for promotion, safe and healthy working conditions, maternity protection and self-organization.

The bill mandates the state to extend social security protection under the Social Security System (SSS) to all workers and their beneficiaries against hazards of disability, sickness, maternity, old age, death, unemployment and other contingencies resulting in loss of income or financial burden.

Volunteer workers of government instrumentalities shall be covered by the Government Service Insurance System (GSIS) and be entitled to at least a minimum package of customized products, services and benefits.

The bill provides that all working arrangements entered into by workers in the informal economy shall be in accordance with the minimum applicable labor and social standards.

In cases wherein minors are contracted with, the negotiated contract shall be signed in his or her behalf by their parents or guardians.

The bill allows the employment of children 15 to 17 years of age provided that parental or legal guardian consent can be presented by any representative of the local government unit or a duly elected barangay official.

The bill prohibits the following: forced night work, bonded labor, labor-only contracting, recruitment and finder̢۪s fees as well as hazardous work and conditions.

The bill provides that the normal hours of work shall be set at 8 hours per day, exclusive of one hour breaks each for breakfast, lunch and dinner. They are also entitled to a P1,000 clothing allowance.

The bill will create the Informal Economy Development Authority (IEDA), the primary agency that will act as a one-stop shop to facilitate and coordinate national efforts to promote the informal economy's viability and growth. It shall also perform as a regulatory and quasi-judicial body.

The IEDA shall have a chairman with the rank of cabinet secretary. Its members will be the secretaries of the Departments of Labor and Employment, Trade and Industry, Agriculture, Agrarian Reform, Social Welfare and Development, Health, Interior and Local Government, Finance, the heads of the National Economic and Development Authority, National Anti-Poverty Commission, Technical Education and Skills Development Authority, Development Bank of the Philippines, Land Bank of the Philippines, Social Security System, Philhealth, National Commission on the Role of Filipino Women and the Housing and Urban Development Coordinating Council.

Likewise, the bill shall also create the Workers in the Informal Economy Local Development Office (WIELDO) in every province. It will prepare an overall development plan and work program to address the needs of the workers in the informal economy in the region, province, city, municipal and barangay levels.

Under the bill, 10 percent of the annual national budget shall be appropriated for programs and services for workers in the informal economy to be implemented by the proposed Informal Economy Development Authority (IEDA) and Workers in the Informal Economy and Local Development Office (WIELDO).

The bill imposes one month to six months imprisonment and a fine of P20,000 to violators. - Jazmin S. Camero, MRS-PRIB