Big Labor Alliance: Time to End Regionalization and Setting of Wages to Barest Minimum

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It is the right of every Filipino to live a life of dignity as well as to quality standard of living. And for this national vision to be realized, the 1987 Constitution directed the State to provide labor full protection and ensure the right of workers and their families to a living wage.

Regrettably over the years since the Constitution was ratified, the workers' demand for a family living wage was never addressed as previous governments deviated towards regionalization and the containment of wages to the barest minimum. This deviation consequently created wide gaps in wage levels all over the country as wage fixing mechanism now seeks the lowest level of balance in every region where the market clearing price of labor is primarily determined on the basis of employer's capacity to pay rather than on the worker's right to a living wage. The same problem can be seen in different wage levels in the public sector despite the salary standardization program.

As a result, this minimum wage and regionalization policy created the condition of chronic poverty and deepening inequality in the country as millions of workers were consigned to an imposed reality of sustaining their families on wages that can hardly meet even half of the daily cost of living.

We, the NAGKAISA, therefore, take as delighting news the planned nationalization of the minimum wage announced recently by Department of Labor and Employment (DOLE) Secretary Silvestre Bello. It is because of our long-standing position that poverty knows no boundary while inequality is the despicable outcome of unfair distribution of national wealth. This deformed policy clearly needs to be rectified, now!

However, we always consider as mere government propaganda a major pronouncement that is left without form at the policy level. That, certainly, is what happened to the living wage principle that lay lifeless in the Constitution during the last three decades. But since the new administration has made a pledge to rectify the errors of the previous administrations, stopping the plague of contractualization and realizing the living wage were core issues that NAGKAISA and the government can work together in achieving a common goal.

At this particular juncture, the NAGKAISA labor coalition gladly presumes that the Duterte administration remains committed to the principle of living wage and that its planned nationalization of minimum wage will lead towards the ultimate realization of this social objective. Workers, in the first place, deserve not a minimum wage but a fair share in the product of their labor.

Hence, in line with the pronouncement of Secretary Bello, the NAGKAISA is looking forward soon to an Order, or something to that effect, going to be issued by Malacanang. We are looking forward to an instruction to all regional wage boards to issue a uniform wage order that is based on Metro Manila rate. And we are, at the same time, looking forward to a Palace-endorsed or certified bill in Congress seeking the same and eventually the repeal of the existing Wage Rationalization Act.

The NAGKAISA also strongly believe on the principle of equal pay for equal work and work of equal value not just on private sector workers but for those government employees who are in the same bind. In the same breath, the NAGKAISA call on the government for the uniform application and implementation of Salary Standardization Law to all local government units (LGUs).

It is high time to stop the spiral race to the bottom by ending the regionalization and setting of wages to the barest minimum now. The NAGKAISA believes this can be done especially when government will treat the labor movement as main partner to this enormous reform tasks.

Therefore, we urge the government to instruct all regional wage boards to issue a uniform wage order the rate of which is based on Metro Manila. We call on government to certify a bill in Congress seeking the same and, eventually, the repeal of the existing Wage Rationalization Act. The NAGKAISA, likewise, call on the government for the uniform application and implementation of Salary Standardization Law to all local government units (LGUs).

About NAGKAISA

Issue-based NAGKAISA labor coalition is composed of 47 labor federations, workers organizations in public and private sectors and various urban and peasants groups. The group came together in April 2012 to advocate for workers' living wage, promote security of tenure, to lower the cost and ensure reliable supply of power, and for public sector workers to be allowed to form unions and collectively bargain.

The members of the NAGKAISA are: Alliance of Free Workers (AFW) , All Filipino Workers Confederation (AFWC), Automobile Industry Workers Alliance (AIWA), Alab Katipunan, Association of Genuine Labor Organizations (AGLO), Associated Labor Unions (ALU), Associated Labor Unions- Association of Professional Supervisory Officers Technical Employees Union (ALU-APSOTEU), ALU-Metal, Associated Labor Unions-Philippine Seafarers'Union (ALU-PSU), ALU-Textile, ALU-Transport, Associated Labor Unions-Visayas Mindanao Confederation of Trade Unions (ALU-VIMCOMTU), Alliance of Progressive Labor (APL), Association of Trade Unions (ATU), Bukluran ng Manggagawang Pilipino (BMP), Confederation of Independent Unions (CIU), Confederation of Labor and Allied Social Services (CLASS), Construction Workers Solidarity (CWS), Federation of Coca-Cola Unions (FCCU), Federation of Free Workers (FFW), Kapisanan ng Maralitang Obrero (KAMAO), Katipunan, Pambansang Kilusan sa Paggawa (KILUSAN), Kapisanan ng mga Kawani sa Koreo sa Pilipinas (KKKP), Labor education and Research Network (LEARN), League of Independent Bank Organizations (LIBO), MARINO, National Association of Broadcast Unions (NABU), National Federation of Labor Unions (NAFLU), National Mines and Allied Workers Union (NAMAWU), National Association of Trade Unions (NATU), National Confederation of Labor (NCL), National Confederation of Transport Union (NCTU), National Union of Portworkers in the Philippines (NUPP), National Union of Workers in Hotel, Restaurant and Allied Industries (NUWHRAIN), Philippine Airlines Employees Association (PALEA), Pepsi Cola Employees Union of the Philippines (PEUP), Philippine Government Employees Association (PGEA), Pinag-isang Tinig at Lakas ng Anakpawis (PIGLAS), Philippine Integrated Industries Labor Union (PILLU), Philippine Independent Public Sector Employees Association (PIPSEA), Partido Manggagawa (PM), Philippine Metalworkers Alliance (PMA), Public Services Labor Independent Confederation (PSLINK), Philippine Transport and General Workers Organization (PTGWO), Trade Union Congress of the Philippines (TUCP), Workers Solidarity Network (WSN).

Labor chief targets 50% reduction in 'endo' in six months

Labor Secretary Silvestre Bello III is targeting the reduction by half of the practice of "endo" among companies, in line with President Rodrigo Duterte's instructions to end the scheme.

"Siguro ang target ko is the first six months we will reduce the incidence of 'endo' and contractualization by 50 percent, that will be the challenge I will give to the officials in the department," Bello said after he signed a memorandum addressed to all regional labor officers of the Department of Labor and Employment (DOLE) in the country.

The memorandum directs the officers to strictly implement the Labor Laws Compliance System.

Bello also instructed its Bureau of Working Conditions to prepare profiles of contractors and subcontractors based on results and or findings from Labor Laws Compliance Officers (LLCO).

The memorandum also obliged regional directors to submit a comprehensive report to the DOLE secretary related to violations of existing labor laws and complaints of "endo" submitted by affected workers.

DOLE regional offices are also required to submit profiles of contracting and sub-contracting arrangements from companies.

"All documents shall be submitted to the Office of the Secretary, through the Office of the Undersecretary for Social Protection, on or before July 15," he said.

Bello noted that the undersecretary for Social Protection shall have overall supervision over the activities he stated in the memorandum.

To fully iron out technical aspects and issues surrounding contractualization, a workshop is scheduled on July 18 to 19 with labor officials and other stakeholders.

"All industries will benefit (from this), from shopping mall employees to workers from private companies even media and broadcasting companies," Bello said.

Not enough

While praising the move, however, a labor group said this strategy is not enough to curb the practice.

"The Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) lauded the DOLE secretary for issuing a memorandum ordering DOLE regional officers to strengthen assessment and inspection of all work establishments in the country through deployment of LLCOs in starting to eliminate contractualization work scheme," Alan Tanjusay, spokesperson of ALU-TUCP, said in a text message to GMA News Online.

"However, this strategy is not sufficient if President Duterte is serious about eliminating the worst form of arrangement for good," he added.

He said the DOLE needs to hire more compliance officers to effectively combat the issue.

"The current number of LLCOs are powerless against the number of work establishments in the country. There are almost one million work establishments against only less than 600 LLCOs in all regions. More LLCOs should be hired if the drive against contractualization would be successful," Tanjusay said. —By JP SORIANO and JOHN TED CORDERO, GMA News

Except for Duterte, leading candidates for the presidential race signs contract to end contractualization

​Jejomar Binay,Grace Poe and Mar Roxas


Three days before the elections, three presidential candidates signed a contract with a coalition of labor federations and workers' organizations calling for the repeal of the notorious and rampant contractual work scheme in the country.

"We have the signatures of Mar Roxas, Grace Poe, and Jejomar Binay conforming to workers' clamor to repeal contractualization work scheme in the country. While only 3 of the 5 presidential candidates have formally signed our proposed 'anti-endo contract,' we are elated that ending contractualization work scheme is among the primary social issues that is being advocated by all the 'presidentiables,' which will influence the outcome of the May 9 national elections," the NAGKAISA labor coalition said in its statement.

By affixing their signatures, the 3 candidates have signified their commitment to fight contractualization. "Regardless of who among them wins, the minority president has a binding agreement with the majority – the Filipino working people. NAGKAISA will engage the new leadership to ensure that she/he will live up to their promise to end Endo," the group said.

Unfortunately, Rodrigo Duterte' did not sign the document. "This puts into question his sincerity in fighting contractualization," NAGKAISA said.

Also known as "endo" (end of contract) or "5-5-5" jobs, this contractual work arrangement is characterized by hiring employees for only five months without security of tenure, paid with unlawful wages and without social protection benefits and privileges compared to what regular workers receive.

Both Grace Poe and Jejomar Binay signed the agreement committing themselves to, "Certify as urgent and enact the Security of Tenure bills both for the private and the public sectors as championed in the outgoing 16th congress by Representatives Raymond Mendoza, Walden Bello and Leah Paquiz."

Mar Roxas agreed to, "Certify as urgent and enact the Security of Tenure Bill to protect workers' rights from unfair contractualization," but added that he would "study and develop flexible and lawful work arrangements to adapt to the needs of employees and employers, thereby securing humane working conditions and encouraging the creation of jobs."

The Security of Tenure Bill referred to has been languishing in Congress for more than a decade now.

NAGKAISA considers contractualization as a modern day work slavery whereby workers toil to enrich their employers but are paid with measly wages, without Social Security System (SSS), Philhealth and Pag-IBIG protection benefits, cramp in risky workplaces and without security of tenure.

Aside from ending contractualization, other issues presidential candidates have agreed with NAGKAISA are providing for living wage, ensuring quality public services, reforming workplace labor inspection, ensuring the working poor's right to the city, realizing full employment before the end of six years, among others.

The NAGKAISA is a coalition of 49 labor centers, federations, and workers' organizations including big labor groups such as the Trade Union Congress of the Philippines (TUCP), Sentro ng mga Nagkakaisa at Progresibong Manggagawa (Sentro), Bukluran ng Manggagawang Pilipino (BMP), Federation of Free Workers (FFW), National Confederation of Labor (MCL), National Federation of Labor Unions (NAFLU), Partido Manggagawa (PM) and Associated Labor Unions (ALU).

TUCP deplores the absence of decency, justice, equity and fairness

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TRADE UNION CONGRESS OF THE PHILIPPINES
LABOR DAY STATEMENT
MAY 1, 2016

The Trade Union Congress of the Philippines (TUCP) today deplores the absence of decency, justice, equity and fairness in our society. Despite the continuing growth of the economy, the wages and salaries of Filipino workers remain low and inadequate. Tens of millions of workers and employees belong to the "working poor" who are without any savings, are deeply indebted, deprived of so many good things in life, and are extremely vulnerable to economic shocks and uncertainties. Working jobs that are "precarious" in nature, these are the workers who have built the wealth of the last few years. The present administration refused to support the passage of the tax reform legislation which could have provided an additional, albeit modest amount, to the take-home pay of workers. It also betrayed the workers when the President vetoed the bill increasing the monthly pension of SSS pensioners by P2,000.

Moreover, living with already low income, our workers have to further squeeze-out their meager budget to pay for their monthly electricity the price of which remains the highest in Asia. In addition, instead of giving more subsidy to mass transportation system which our workers use every day to go to work, the government decided to withdraw all the subsidies to the MRT and LRT which resulted in the increase of fare. Add to that the dangers to life and limb who use our MRT/LRT. We don't have universal and free health care system in the country. If a worker gets seriously sick, he must be prepared to just die. The practice of labor contractualization or hiring workers on time-bound contract had also widened. Tens of millions of work are under contractual arrangements, known as "endo contracts", do not receive minimum wages, have no benefits and work in poor working conditions. The very nature of their insecure work arrangements means that they cannot join unions. Most of them are not also covered by social protection.

The situation of Filipino workers remains intolerable. We want the next administration to improve the lives of workers and their families by putting back money into their hands and by providing them economic relief. We need substantial wage increases. We want the next Congress to pass the tax reform bill to reduce the taxes on workers' income so that they will have more money in their pocket. We demand the next administration to increase the monthly pension of SSS pensioners by P2,000 to help our elderly pensioners have more money to buy food and medicine. We want lower electricity rates in the country. The next Congress must amend the EPIRA and strengthen the regulatory capacity of the ERC.

Furthermore, we want the next government to put back the subsidy for MRT and LRT to decrease the existing fares and to improve the services of the said mass transportation systems. We also wish it to create a National Health Care System that will provide free and universal health care for all with a strong focus on public health and preventive care.

Most importantly, we want the new government to support the passage of the Security of Tenure bill to provide our workers security of employment which will give them all the advantages of being regular workers. Without regularization, workers have no SSS coverage, no Philhealth, no Pag-Ibig and no hope for a better life.

We in TUCP will mobilize all our resources to achieve our vision for all workers and our families. We will continue to struggle to build a more decent, inclusive, progressive, free and humane society.

We urge our social partners both in business and government to join us in reaching a new social contract under the new government.