INTRODUCTION
I congratulate and commend the Caucus for Labor Unity (CLU), the Philippine Chamber of Commerce and Industry (PCCI), and the Employers Confederation of the Philippines (ECOP) and other industry sector groups for forging this milestone social accord just one month after Labor Day.

Openness of mind and commitment to our people’s welfare and the common good made possible this long-needed accord to insure industrial peace.

This accord could not have come at a better time because, as its opening statements remind us, the need for cooperation between labor and employers is more urgent now than ever before.

First, it comes at a time when we have been promoting national reconciliation and unification to enhance our political stability and social cohesion. The approval into law today of various bills enacted by congress significantly improves our socio-economic and political climate.

In ten days, we will celebrate our 96th independence anniversary which, as in the past, focuses on our goals for lasting peace and progress.

I am most gratified by the progress of our peace process, highlighted this week by the ratification by congress of our two latest presidential proclamations. The signing of this accord further reinforces our national consolidation in a more concrete form because it favorably impacts upon the continued growth and democratization of our economy.

It augurs well for the economic viability of employers while, at the same time, enables labor organizations to remain responsive to workers’ welfare.
KEEPING UP WITH GLOBAL CHANGES
Global political realities and the economic framework have indeed changed. Economic imperatives are being adjusted to suit the dynamism of the changing times. We have to shape up and cope with the competitiveness in the international arena in order to share the benefits of dynamic growth and prosperity in our part of the world.

Hitherto closed economies like the People’s Republic of China and, more recently, Vietnam, have opened up to foreign trade and investment. India is fast liberalizing. The republics of the former Soviet Union, most notably Russia, are undertaking drastic market reforms to develop their vast economic potentials.

Industrialized countries are coming out of a recession spanning several years. Newly-industrializing economies in the Asia-Pacific region are positioning themselves to exploit their comparative advantages into the 21st century.

Economic arrangements are being pursued under an increasingly global and open perspective, particularly through greater market accessibility and the elimination of protectionist barriers. The key words are trade, liberalization and productivity, backed up by an effective government machinery and a just and equitable legal system.

If social partners refuse to ride the tide of change and continue to be hamstrung by outdated socio-economic approaches, growth will not happen and our people will continue to suffer.

Just as the new economic order demands the highest degree of competitiveness, it also makes for a more vibrant and interdependent global structure. It promises the increased capacity of national economies to attain unprecedented levels of productivity, affluence and growth.

Our economy is now geared to respond to the challenges of the new economic order. We have embarked on a massive economic restructuring at home and opened the Philippine economy to foreign competition.

As a result, the economy is seen to be picking up even by the stringent standards of international financial institutions.

For the first quarter of the year, GNP grew by 3.5%, compared to 1.69 % for the same period last year. Real GNP should grow by at least 3.9% for 1994 and 5.2% in 1995.

Trade deficit narrows as foreign demand picks up and imports of large items drop. Currency risk and interest rates are decreasing. Inflation rates are down. Investment inflows are up. Employment opportunities are expanding.

Nowhere in the last seven years had labor relations been more stable. Last year, there were only 122 strikes. From January to May this year, there have been 39 strikes compared to the 59 registered from the same period last year.

More resources are being allocated to manpower development. This should ensure that we maintain our comparative advantage of having one of the most industrious, most highly-skilled and most flexible workforces in the world.
CLOSING
The accord signed today is part of our strong response to change. It will strengthen our industrial resilience and insure constructive and principled cooperation on the part of all concerned.

I acknowledge the valuable contribution of the social partners, particularly the PCCI, the ECOP, and the Caucus for Labor Unity together with the trade unions within its umbrella.

The international community is looking at the Philippines as a country no longer merely on the threshold of change but on the launching pad of economic takeoff.

The national unity expressed in this accord and all other accords of similar nature is essential to fuel our advance to a more prosperous life for all Filipinos.

Thank you and good day.