With ASEAN integration come social cost and disruption, labor group warns

THE COUNTRY’S biggest labor coalition warns of a disruption among workers with the realization of the planned economic integration of the Association of Southeast Asian Nations (ASEAN).
In a statement on Sunday, the Nagkaisa group of the Trade Union Congress of the Philippines (TUCP) said regional integration of which programs are under way could lead to low-quality jobs as well as a surge in unemployment.

“The integration will further stimulate jobless growth, race to the bottom phenomenon and promote other forms of precarious work conditions including lowered standard in occupational safety and health particularly if labor laws enforcement is weak and regulatory institutions are irrelevant,” TUCP-Nagkaisa Spokesperson Alan T. Tanjusay said.

The group referred to jobless growth as economic growth marred by unemployment, underemployment and poverty, and to the bottom phenomenon as competition among companies in cutting wages and workers’ living standards.

The TUCP said that, with regional integration, employers will have more leeway to pursue leaner operations, outsource jobs across borders, and relocate production to locations with the most affordable labor.

But Mr. Tanjusay for his part also said: “... [W]e can expect a wider job market for Filipino workers who are highly sought after because of their reputation for excellent craftsmanship. Thus, we see a rise in remittances and the spike of job-creating allied services which are additional perk to the economy.”

The group called for a review of the country’s Alien Employment Permit, issued by the Department of Labor and Employment, and the Work Visa and the Special Work Permit (SWP) issued by the Bureau of Immigration.

“Because of these double functions and lack of coordination between these two agencies, work permits are rife with graft and corruption resulting [in] lack of protection for foreign workers working in the country,” the group said. The group also urged the government to organize a single oversight body to grant, supervise and manage these permits. - By Alden M. Monzon, Reporter BusinessWorld Online