Speech
of
His Excellency Fidel V. Ramos
President of the Philippines
At the Labor Day celebration with the labor groups

[Delivered at the Ninoy Aquino Memorial Stadium, May 1, 1997]

The Bonifacio
in each of us

WHAT ANDRES BONIFACIO wrote and exemplified more than a century ago holds even more special meaning today. His heroism was manifested not only by his bravery in leading the revolution; he showed it as much by seeking and developing excellence despite his limited means.

He explored opportunities for advancement not only in the political sphere but in the economic field as well. He was also not averse to cooperating with foreign interests, where practical benefits could be realized for his people. His teachings on patience, constancy of efforts and faith in one’s country—these all speak to us today, in our quest for a better life for the Filipinos of the next century.

The improvement of our economy has translated into significant gains from labor and employment. Unemployment fell to 8.5 percent in 1996, the lowest since 1991.

Strong growth rates were registered in the industrial service sector, accompanied by considerable improvement in the quality of employment generated during the period.

The national unemployment rate fell from 8.3 percent in January 1996 to 7.7 percent in January this year. Also, more persons found full-time employment (or worked for 40 hours or more during the week) as their number grew by 4.0 percent to reach 17.7 million.

Wage and salary workers grew by 6.6 percent, increasing from 12.2 million to almost 12.9 million. In fact, almost 98 percent of the total increment in employment during the period was among the wage and salary workers.

Complementing gains in full-time employment, 19 wage orders and implementing rules were issued in 1996 to protect workers’ incomes. Together with 13 other wage-related issuances, these directly benefited 1.5 million workers and indirectly about 4 million workers.

Most of last year’s gains in employment occurred in the rural areas. Rural employment expanded by 7.3 percent compared with urban employment, which contracted by 1.5 percent. This already indicates that our efforts to disperse economic activities from the usual city centers are succeeding.

The quality of Filipino labor

There is more than quantity involved here; the quality of Filipino labor is also noteworthy.

We have always praised the adaptability of our country’s work force as one of our most important advantages. This is something we must continue to build on as we strive for international competitiveness. That the Philippines retained the overall championship in the Second Association of Southeast Asian Nations (ASEAN) skills competition—first held in Malaysia and then here in Manila—is proof of the competitive potential of our work force.

We also know that we can improve Filipino labor by improving its conditions, including its organizational capabilities. Thus, we have carried out many empowerment programs such as the Workers’ Organization and Development Program for organized labor, particularly for the federations.

Empowering our workpeople

Over the past year, the Department of Labor and Employment released P9.5 million in loans, plus another P6.5 million due to be released soon, to finance livelihood projects for 13 federations. It has also released P4.75 million, and is about to release another P2 million in training grants for capability-building programs ranging from cooperative development to entrepreneurship and leadership training for 155 labor organizations.

Let me emphasize that the empowerment programs of the Government should not be taken as doles subject to the principles of accountability and audit. These are funds from the people and organized labor should use them in accordance with the purposes for which they were appropriated. In the same vein, let me also instruct the Department of Labor and Employment and the Department of Budget and Management to ensure that the budget requirements of the program are sustained.

As we enter the 21st century, the pressures of globalization will continue to be felt by all, not least by the labor sector. Responding to these fears, we have established a GATT assistance fund, which is being administered by the labor department to help workers and employers cope with adjusting to this new global regime. I urge organized labor to access these funds, subject of course to our minimum requirements of fiscal responsibility and accountability.

The Employees’ Compensation Commission also has funds, now amounting to more than P16 billion, for improving employees’ compensation schemes and for funding related health and rehabilitation programs.

Housing for Filipino workers

Last year, through the workers’ fund, we launched two workers’ villages—named Harmony Hills I and II—in San Jose del Monte and Marilao. These two villages consist of 548 houses and are nearing completion. Today, we are launching two more—Workers’ Village 3 and Workers’ Village 4—in Dasmariñas and Tanza, Cavite, consisting of 358 houses. These projects could not have been possible without the initiatives of the workers themselves, and their adherence to the principle of self-help, self-sufficiency and hard work.

The workers’ fund, I understand, is also contemplating a workers’ mart, where members can buy basic commodities at discounted rates. I remember that we celebrated Labor Day 1993 at the National Food Authority warehouse in San Francisco del Monte, where a workers’ mart was supposed to be established.

I fulfill that commitment today with my directive to DOLE, the Department of Agriculture and the National Food Authority to immediately work out means to provide the workers’ fund with warehouses within the premises. Also, today, I authorized the full release of the P10-million grant from the President’s Social Fund for the Kaunlaran ng Manggagawang Pilipino Inc. additional seed capital to the workers’ fund.

Let me move on to a number of our concerns.

Implementing the Labor Code

I am informed that Labor Secretary Leonardo Quisumbing has issued the revised rules implementing Book V of the Labor Code. I recall that at the national tripartite conference held in April last year, the tripartite sectors agreed to amend these rules to facilitate union organizing and the disposition of cases.

The rules are the product of a tripartite consensus, and I am especially encouraged by the active and constructive participation of the labor sector in their formulation. This is the social partnership we would like to sustain—each partner taking a share of responsibility in defining the rules of the game.

In the process, we are also assured of commitment from all players to abide by the rules, rather than taking to the streets to denounce perceived injustices.

I have also directed the Department of Labor and Employment and the Department of Foreign Affairs to do what needs to be done so that we can ratify the International Labor Organization Convention on safety and health in the mines as soon as possible.

Our mine workers—especially those involved in small mining such as in Mount Diwalwal—need more protection, given the terrible risks under which they work. Toward this end, I am authorizing the release of P300,000 to the labor department from the President’s Social Fund to help start the operations of the working council created by the tripartite forum.

A common legislative framework

I am awaiting the final action of the tripartite partners on two other ILO conventions on homeworkers and child labor. The significance of these conventions should not be lost on us: whether we eventually ratify them or not, they provide us with a directional framework for development of specific sectors in the work force, and at the same time serve as ideal benchmarks by which we can measure the extent of our own social gains in the international community.

I have come across suggestions that the Labor Code has ceased to be labor-friendly. This perception is premised on two factors. First is the increasing incidence of contractualization and flexible work arrangements which are seen to undermine security of tenure, labor standards and the right to collective bargaining. Second is the perceived delay in the dispensation of labor justice.

We are all committed to a tripartite process in evolving a legislative and policy framework which will balance protection to labor, on the one hand, and the improvement of productivity and competitiveness, on the other.

Globalization requires a purposeful response to the issue of flexibilization and contractualization. In last week’s employers’ conference, I asked Secretary fast-track action on the rules of subcontracting, without of course ruling out further legislative action on this issue.

But the best answer to the rise of flexible work arrangements is the setting up of the institutions we need to develop, a flexible and adaptable work force, with the skills and the capacity to take advantage of the changing requirements of industry.

Government has seen to it that these institutions are in place with the creation of the Technical Education and Skills Development Authority and the Commission on Higher Education. With the labor department’s labor market information which we are launching today, a critical mechanism for matching skills and jobs is also now in place.

Speeding up labor justice

On the other hand, the fair and speedy administration of labor justice has been partly dealt with through the issuance of Executive Order 26, which prescribes deadlines, on pain of administrative sanctions, within which cases should be resolved. Through the labor department, we have nurtured a policy orientation toward the use of voluntary modes of settling disputes, such as conciliation, mediation and voluntary arbitration.

Beyond these, I am aware of pending legislation intended to improve workers’ benefits. Unfortunately, some of these measures are being pushed for their populist rather than their strategic value.

Legislation should expand the field of mutually reinforcing rights, privileges and benefits between labor and management, particularly in such areas as self-organization, collective bargaining negotiations and dispute settlement.

Reviewing the Labor Code

The strategic objective of any legislative proposal should be to allow as much freedom as equitably possible to management and workers so that they can manage and regulate their relations by themselves. What we need therefore is a thorough and comprehensive review of the entire Labor Code to determine which provisions have outlived their usefulness, which provisions should be strengthened, and what new concepts should be introduced as we refocus labor-management relations on the demands of the 21st century.

For this purpose, I direct the labor department, through its tripartite industrial peace council, to start tripartite consultations immediately on the changes that need to be introduced into the legal framework, and to formulate recommendations that can be the basis for legislative action.

In the public sector, my Administration is dealing with two critical issues that Government workers have always raised. First is the issue of full recognition of organizational rights, including the right to collective negotiations and bargaining, to a level comparable with the private sector. Second is the issue of improving the wage and nonwage benefits of public-sector employees.

In response to a long-standing call of public-sector unions, I have signed today an order to the chairman of the public-sector labor-management council allowing the participation of four representatives from public-sector unions, one each coming from National Government agencies, Government-owned and controlled corporations, State universities and Local Government units.

Participation of the labor sector in the council is imperative if we are to push for legislative reforms, particularly in public-sector labor relations. With its strengthened composition, the council should now conduct new consultations on ways of further empowering Government workers.

I also urge Congress to take immediate action on pending bills relating to our public servants, of course with the active involvement of the council and all concerned sectors.

Salary standardization and health care

On the matter of benefits, the second part of the Salary Standardization law will be fully carried out by November of this year. This early, some sectors within Government are again calling for a third salary standardization law. While everyone in the Government will benefit from such a proposal, we should note that, except on the executive levels, Government rates now compare favorably with rank-and-file jobs of equal content in the private sector.

Any measure to increase wages should, therefore, take into account the strategic concept of wages, which is to attract the right people into the bureaucracy, keep them there and sufficiently motivate them to render honest service and to raise their productivity.

On another front, I understand that the Philippine Government Employees’ Association is also calling for measures to carry out an accessible annual medical check-up benefit program for Government employees. I have therefore directed the Civil Service Commission, the Department of Budget and Management and the Department of Health to fast-track the study on how this proposal can be funded and carried out.

Looking after port workers

As we reap the benefits of liberalized trade, let me acknowledge the contribution of one group of workers who risk life and limb to ensure the smooth flow of trade in our port areas. I have directed the Department of Labor and Employment and the Department of Transportation and Communications to finalize and carry out without delay the social amelioration for port workers.

The program includes the compensation of port workers or their families for major contingencies such as death, disability—whether total or partial—retirement—whether optional or compulsory—and layoff or separation. Other possible benefits that can be provided under the program will be determined by a tripartite meeting with the Secretary of Transportation and Communications or his authorized representative as chairman.

The program shall cover all port workers working in Government ports nationwide, whether permanent, probationary, temporary, casual or otherwise, but excludes those supplied by labor-only contractors and agency workers.

Today, Labor Day and Bonifacio’s centennial, I am pleased to announce that the Senate President, the Speaker of the House and I will sign in your presence, Republic Act 8282, which strengthens the Social Security System and makes it more responsive to the needs of its growing number of members.

This law is expected to bring more benefits and broader coverage to private workers, including such groups as self-employed persons farmers, fisherfolk, household help, overseas workers and household managers.

More than 355,000 pensioners will benefit from increased minimum levels of retirement, disability and death pensions. The minimum monthly pension for those who meet the requirement of contributions is P1,000. But pensioners with 20 or more credited years of service can look forward to a minimum monthly pension of P2,400.

A landmark law expanding welfare benefits

I trust that this new law will contribute to higher productivity and a better quality of life for our workers and their families. In behalf of our people, especially the SSS members and their families, I thank our legislators, led by Senate President Ernesto Maceda and House Speaker Jose de Venecia, and their colleagues—the authors, sponsors and supporters—of this landmark law that expands our workers’ welfare benefits.

One of our most basic concerns, of course, is for workers and their families to have sufficient incomes to meet their needs. Previous efforts were focused on increasing wages and salaries. Today, nonwage measures have to be taken to supplement the net take-home pay of workers.

During last year’s Labor Day celebration in Malacañang, I announced I had certified the Comprehensive Tax Reform Package, through which we intend to broaden the tax base, simplify the tax system, improve tax collection and strengthen tax enforcement. I call on both houses once more to fast-track the passing of the tax reform package, which is expected to impact significantly on our ordinary workers.

DOLE on the Internet

Part of the pole-vaulting strategy that will take us to the next century is to jump-start selected “growth stimulants.” These include the implementation of projects that will focus on the development of information technology in our country. Our being abreast with information technology is a vital prerequisite to our pursuit of international competitiveness.

I am therefore delighted that the Department of Labor and Employment has launched today its own home page on the Internet, through which interested parties can access information, 24 hours a day, about Philippine labor policies and conditions—our programs, relevant statistics and decisions on labor cases, among others.

With technology allowing instant global communication, Congress should now push legislation for absentee voting by overseas Filipino workers. Absentee voting is consistent with the provision enshrined in Section 2, Article 5 of the 1987 Constitution, which seeks to allow qualified Filipino citizens working or living abroad to exercise their right of suffrage.

As we rejoice in our achievements, however, we cannot sit back, relax and believe that we can just ride the wave of our initial accomplishments. Much remains to be done. We still have not decisively vanquished poverty and the forces of corruption, lawlessness, complacency, selfishness and injustice in our society.

Becoming our own heroes

We can now become our own heroes by making higher demands on ourselves—to ask and deliver the best that we can to contribute to the general welfare of our people and the nation.

Bonifacio and our other heroes won us our first freedom—our first opportunity, as a nation, to do right by ourselves, and do ourselves proud. Now we must carry that effort into a new century, on a higher plane of both material and moral achievement.

In giving justice to the labor of the common Filipino, we recognize and encourage the Bonifacio in each of us—that hero who will do all to improve himself, so that he can then do all to improve the lot of his countrymen. In this I put my faith, hope and reliance in the ability of the Filipino.