High time for PH to end wage-regionalization and wage-setting at barest minimum rate

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TO REALIZE the national vision of every Filipino living a life of dignity and enjoying quality standard of living as a matter of right, 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, from the time the Constitution was ratified up to the present, the issue on living wage has never been addressed; one administration after the other deviated instead toward “wage-regionalization.” This consequently created wide gaps in wage levels all over the country.

Meanwhile, the wage-setting practice drifted toward containing the wages to the barest minimum, seeking the lowest level of balance in every region where the market clearing price of labor was 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 exists in the public sector despite the salary standardization program.

This has created the condition for chronic poverty in the country, which has further deepened inequality as millions of workers are consigned to sustaining their families on wages that can hardly meet even half of the daily cost of living.

We, at Nagkaisa—a coalition of 47 labor federations, workers organizations in the private and public sectors, and urban and peasant groups—therefore, welcome the current administration’s plan to nationalize minimum wage, as announced recently by Labor Secretary Silvestre Bello. Indeed, there clearly is a need to rectify the deformed policy of regionalizing minimum wages.

However, a major government pronouncement remains a propaganda if left without form at the policy level. That, certainly, is what happened to the living wage principle that has lain lifeless in the Constitution for the last three decades. But with the new administration’s pledge to rectify the errors of previous administrations, Nagkaisa and the government can work together in achieving our common goal of stopping contractualization and realizing the living wage.

At this point, Nagkaisa gladly presumes that the Duterte administration remains committed to the principle of living wage and that its planned nationalization of minimum wage will ultimately lead to the realization of this goal. Workers, in the first place, deserve not a minimum wage but a fair share in the product of their labor.

Hence, encouraged by the announcement of Secretary Bello, Nagkaisa calls on Malacañang to issue an order directing all regional wage boards to set a uniform minimum wage based on the Metro Manila rate. At the same time, we call on President Duterte to certify as urgent a bill seeking the same and the repeal of the existing Wage Rationalization Act.

Nagkaisa also calls for a uniform application and implementation of the Salary Standardization Law among all local government units. Nagkaisa strongly believes in the principle of equal pay for equal work and work of equal value, not just for private sector workers but also for government employees who are in the same bind.

It is high time the Philippines ended wage-regionalization and -setting at the barest minimum. Nagkaisa believes this can be done, especially with government treating the labor movement as its main partner in this enormous reform endeavor.

—NAGKAISA (47 labor federations and workers organizations both in the private and public sectors) - By @inquirerdotnet

Labor unions press end to contractualization

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THE country’s biggest group of labor unions pressed for the total ban on contractualization scheme as it rejected the short-term hiring of workers for being illegal.

The Associated Labor Unions (ALU), through spokesperson Alan Tanjusay, on Sunday said short-term employment contracts, either through direct hiring by employers or through sub-contracting, violates Articles 106 to 109, Article 259, and Articles 294 to 296 of the Labor Code.

Leaders of ALU, along with Nagkaisa (Solidarity), an alliance of labor federations and workers’ organizations, and other labor groups are set to meet with Labor Secretary Silvestre Bello 3rd this week for another round of consultative discussions on the implementation of the President’s directive to put a stop to contractualization.

Earlier, Trade Secretary Ramon Lopez proposed to end the contractualization scheme through the regularization of employees by manpower and recruitment agencies instead of the principal employer.

But Tanjusay pointed out that Lopez’s proposal is not acceptable because there is nothing in the law that allows it.

“This is not what our President Duterte has said in his vow to workers. The President has said to end contractualization, period. What Mr. Lopez and the employers’ lobby group are proposing now is still a form of contractualization and we strongly oppose it,” Tanjusay said.

ALU and its allied groups also called for a ban on all fixed-term employment and the repeal of all department orders that allows contractual work schemes .

The group said all employees should be regularized after the six-month probationary period as mandated by law.

“Labor groups have been lenient with government and employers by allowing them to have more flexibility in the past several decades. During these periods, employers’ profits improved and the country’s wealth developed. But workers’ and their families, who helped built that profit and wealth, are getting poorer because contractualization deprived them of their right to proper wages, adequate social protection and safe and healthy workplace,” Tanjusay pointed out.

Earlier, the militant Bukluran ng Manggagawang Pilipino (BMP) and its allied organizations dubbed Henry Sy as the country’s “King of Contractual Labor.” - By William Depasupil, The Manila Times

DOLE: Employers sector's position on endo opposite Duterte's

AN OFFICIAL of the Department of Labor and Employment (DOLE) on Sunday expressed belief that the “win-win solution” being pushed by the employers’ sector would become a major obstacle in their bid to eliminate contractualization.

In an interview, DOLE Undersecretary Joel Maglunsod said the “win-win solution” is expected to be persistently rejected by the labor sector and pushed by employers, thereby delaying the full realization of their plan.

“This will definitely cause a delay because the ‘win-win solution’ is a position of employers that is totally against the stance of workers and that of President Duterte,” said Maglunsod in an interview.

And in a bid to at least ease the expected tension, the labor official said they are already set to meet with the employees’ sector next week, October 3.

“The labor sector shall have their turn in the dialogue with the Department on the campaign against contractualization next week,” said Maglunsod.

After the dialogue with workers, a tripartite conference is expected to be called by the DOLE, this time also involving employers once again.

For its part, the Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) agreed with Maglunsod that they are rejecting the “win-win solution” pushed by the employers and the Department of Trade and Industry (DTI).

Under the said proposal, only contractual workers at the level of manpower agencies or recruitment agencies would be the ones set for regularization and will be receiving full benefits, including social security, health and retirement benefits.

“This proposal does not address the problem of contractualization brought on the workers and it does not provide security of tenure to workers as envisioned by the Philippine Labor Code. We don’t accept such proposition,” said ALU-TUCP Executive Vice President Gerard Seno.

And given their staunch opposition to the proposal, ALU-TUCP said they are even prepared to have a prolonged debate with their counterparts in the employers’ sector.

“Progressive labor groups are well-prepared to engage employers, businesses, and government to argumentation and debate on the issue. We anticipate a clash in positioning in the coming days and we are prepared to slug it out with them,” said ALU-TUCP Spokesman Alan Tanjusay. - SunStar(HDT/Sunnex)

Labor group rejects govt ‘endo’ proposal

THE country’s biggest labor group has rejected a government proposal that will allow regularization of contractual workers at the manpower service provider level rather than by concerned companies that need the workers.

The Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) on Sunday said the proposal is a clear circumvention of the Labor Code.

Besides, the group added, there is no such provision in the law.

“There is nothing like that in the Labor Code. They want to make another form of contractualization that is not in the Labor Code,” ALU-TUCP spokesman Alan Tanjusay told The Manila Times.

What the the government is proposing is “another form of labor slavery,” Tanjusay said.

Gerardo Seno, executive vice president of the ALU-TUCP, said the proposal will not resolve the problem of contractualization as it does not provide security of tenure to workers as provided by the Labor Code.

Earlier, Labor Secretary Silvestre Bello 3rd said President Rodrigo Duterte wants the illegal end-of-contract (“endo”) practice reduced by 50 percent by year-end and eliminated by 2017.

Contractualization, or “endo” or “555” is a work arrangement whereby workers are only hired for about five months or less than six months without security of tenure, monetary, non-monetary and social protection benefits from the Social Security System (SSS), Pag-IBIG and PhilHealth.

But last week, Trade Secretary Ramon Lopez and Presidential Adviser for Entrepreneurship Joey Concepcion came up with a “win-win” arrangement wherein the workers will be hired by the manpower service providers and agencies as regulars, receiving full benefits including social security, health and retirement benefits.

Under the arrangement, companies would have the option to directly hire workers as regular employees or outsource them through manpower recruitment agencies to perform seasonal work.

Also under the Lopez-Concepcion plan, Seno said, workers are still vulnerable to exploitation and abuse because there is still no employee-employer relationship between the worker and the principal employer.

“Under the scheme, workers are denied fair wages and social protection benefits. At any moment, the contract between manpower recruitment agency contractor is rescinded, absconded or terminated by the principal employer, workers will definitely suffer,” he added.

Seno said the ALU-TUCP is proposing amendments to provisions of the Labor Code that will totally ban all forms of contractualization and prohibit all forms of fixed-term employment.

Under these amendments, all workers should become regular employees at the company level after a six-month probationary period.

Tanjusay said a strong debate between workers and employers interest groups is inevitable over the policy of the Labor department to regularize all contractual workers upon instruction of the President.

“Progressive labor groups such as ALU are well-prepared to engage employers, businesses and government in argumentation and debate on the issue. We anticipate a clash in positioning in the coming days and we are prepared to slug it out with them,” he added. - By The Manila Times