NOTABLE, but not enough. This was how political analysts preferred to illustrate President Duterte’s approach in addressing the plight of workers, saying there was effort to resolve labor issues, but it was insufficient.
Political analyst Ramon C. Casiple of the Institute for Political and Electoral Reform said Duterte has to directly interfere in discussions between labor groups and the Department of Labor and Employment (Dole) to ensure his election promises to workers are fulfilled.
“As it is, workers did not see any significant gains so far [under the administration],” Casiple told the BusinessMirror.
For economist Emmanuel A. Leyco of the Asian Institute of Management, Duterte could be more decisive in scrapping all forms of contractualization.
He reiterated job security was and will always be a serious problem confronting workers if the country’s Chief Executive continues to evade the issue.
“The latest [department] order from [the] DOLE was opposed by almost all workers’ organization, because it allowed loopholes,” Leyco said in a text message to the BusinessMirror.
Labor Secretary Silvestre H. Bello III issued Department Order (DO) 174 in mid-March to impose tighter rules on contractual arrangements. However, instead of drawing praise, Bello received flak from both labor groups and economists.
The order prohibited the practices of labor-only contracting, farming of work through cabo contracting out of jobs through an in-house agency and contracting out of jobs due to a strike or lockout, whether actual or imminent, among others.
On one hand, labor groups, including the Trade Union Congress of the Philippines and the Kilusang Mayo Uno, called on Duterte to scrap DO 174, arguing the prohibitions stated under the order were already banned by existing laws.
Economists, on the other hand, said the government will have difficulty implementing the order. Likewise, they said the State should avoid reducing the labor market into a sphere involving only firms and workers.
While painting Duterte as a “well-intended leader”, industrial-relations expert Rene E. Ofreneo of the University of the Philippines said the President was caught in the conflicting interests of unions demanding job security and managements maintaining business flexibility.
“He can be bolder,” Ofreneo told the BusinessMirror. “Why not [enter into] a social compact with the top 100 companies to stop all forms of labor abuse and bad hiring practices? Why not [enter into] a social compact with all stakeholders on rebuilding jobs, industry and agriculture?”
In spite of all these drawbacks, Duterte’s labor thrust was of notable effort, Casiple said, citing the enactment of significant social reforms under the administration, such as the P1,000 pension hike for beneficiaries of the Social Security System.
He also forecasts relationship between Duterte and labor groups can be a walk in the park, if the former can offer benefits to the latter within the context of a thriving economy.
Leyco added what is more important was that competition and new arrangement in business are established, where value addition/creation was given emphasis over low-cost production, “which almost always means cheap labor”.
“Enterprise value should be created by how and what they offer as new or added value to their products and/or services that the markets require,” eyco said. “Essentially, the adminis-
tration should provide incentives [to businesses] to push for national industrialization and modernization of agriculture that create new values for both consumers and producers, not just for the latter.”
Duterte heavily banked on an anticontractualization campaign during the election trail, earning the support of mostly left-leaning groups advocating for radical labor reforms.