Post on 27-Mar-2015
Reducing Income Inequalities
Trade Union Congress of the Philippines (TUCP)
Ariel B. CastroDirector for Education
Introduction and overview
1. Unions evolving role2. Labor market realities
Disturbing economic signs “Jobless Growth” High unemployment and underemployment Wages and benefits not kept up with prices
3. TUCP responses4. Concluding remarks
Evolving union roles given realities
Union renewal and revitalization strategies to confront:
• Changing nature of work• New model of human resource
management• Changing composition of labor force• Political/legislative challenges
Economic realities
• Economic growth in the Philippines is expected to fall to 4.3 percent this year and 4.2 percent in 2009 amid a global credit crisis (The Economist, 2008)
• Double digit inflation is eating into consumer spending and wages have failed to keep pace with rising living costs
Economic Realities (2)
• Remittance flows of overseas Filipino workers (OFWs) now equivalent to 10 percent of GDP
• Economy is underperforming relative to its neighbors in the region with per capita GDP growth of one percent trailing its neighbors’ 4-6 percent
• Investment climate requires some reforms that should include reducing power rates, curbing corruption and cutting red tape
The World Bank Development Report 2005
A 2003 survey involving 719 firms in the Philippines ranked the issues that make the country’s investment climate unattractive to business:
• 35.2% corruption• 33.8% courts on property rights• 33.4% unreliable power supply• 30.4% high tax rates• 29.5% uncertain economic and regulatory policy• 26.5% crimes, theft and disorder.
Jobless Growth
• Employment levels are rising, but most of the new jobs created (60-75%) are in the informal sector
• BPOs are the growth center, and would surpass manufacturing in the next few years
-500
0
500
1,000
1,500
2,000
2,500
Addition to Labor Force 1,353 621 700 -295 152 1,903 1,122 635
Job Creation 1,510 530 196 -170 -290 1,704 906 566
1996 1997 1998 1999 2000 2001 2002 2003
ADDITION TO LABOR FORCE VS. JOB CREATION
Daily Family Living Wage (Daily)
Minimum Food Non-Food
Wage Rates Expenditures Expenditures Total
NCR 382 232 601 917
Region 1 240 247 535 860
Region 2 235 231 465 766
Region 3 302 250 485 809
Region 4A 320 231 505 809
Region 4B 252 No data No data No data
Region 5 239 221 494 787
Region 6 250 210 427 701
Region 7 267 215 613 910
Region 8 238 212 343 610
Region 9 240 218 579 876
Region 10 256 218 526 818
Region 11 265 228 488 787
Region 12 245 229 481 781
CAR 260 233 570 883
ARMM 210 301 902 1,322
CARAGA 233 No data No data No data
Comparison of Daily Minimum Wage, and the Family Living Wage, Sept.
2008Source: NWPC
Labor Market, Employment and Working Conditions
• Quality of employment has deteriorated, with new employment concentrated in contractual terms, home-based work, and informal arrangements
• Women and young people face unemployment, inadequate education and training, exploitation and discrimination at work
• Inspections of establishments have indicated increasing violations of labor standards (over 50% with violations) and of the wage law (over 25%)
8.08 Filipino Migrants
Social outcomes lackluster
• Given present trends, Philippines unlikely to realize its MDGs by 2015 in:
– families living in extreme poverty
– child malnutrition
– maternal mortality
the dashed lines are the MDGs
% of families living in extreme poverty
8
13
18
23
1991 2000 2015
Prevalence of Malnutrition among 0-5
152025303540
1991 1998 2015
Maternal Mortality Rate
0
50
100
150
200
250
1990 1998 2015
Source: World Bank
Trade Union Responses
• Alliance Building for Constructive
Engagement with IFIs•Promoting Decent Work for All
Asian Labor Network on IFIs• Network of TUs, Pos, NGOs
and academe from four countries most hit by the Asian Financial Crisis [Indonesia, Philippines and Thailand]
• More than an institution for workers’ education, it has evolved into an organization with a multifaceted approach to advocacy and social action
Mission Statement
“Committed to engage IFIs and the Philippine Government in constructive dialogues on policies, programs and projects that have direct impact on
Filipino workers and society at large”
“People believe that IFIs propose, the Government implements, workers
and people suffer”
ALNI/P Priority Advocacy Issues
Framework of engagement
• Advocates to stop Liberalization, Deregulation, Privatization [LDP] until:
• Past and proposed policies are assessed as to their impact on employment and incomes
• Future policies, programs and projects must include measures to help displaced workers
• Tripartite negotiations are made
• Arose from Philippine experience in LDP
Efforts to constructively engage IFIs
Efforts to constructively engage IFIs
• Building relationships with IFI officials– Representation meetings
– Cooperation with Asian Development Bank
– Meetings with ADB Officials
– Participation in consultations (WB, IFC)
• Meetings with Government Agencies involved in the design and implementation of IFI programs
Efforts to constructively engage IFIs
• Dialogue with ADB regarding their Labor Standards Handbook• Research on CLS Compliance of IFC funded utilities company• Involvement in the WB-CAS processes• Continuing dialogue with WB, IFC, ADB, etc.
CLS in ADB Operations
Country strategy and Programs
Pre-Project Design
Project Design
Project Implementation
Labor market assessment
IPSA,
Labor consultants
Loan negotiations,Bidding documents
Compliance Monitoring, Consultation process,
Capacity building on CLS
Efforts to constructively engage IFIs• Media Advocacy
– Generate Public Support
– Media Briefings
– Press Conferences
Efforts to constructively engage IFIs
• Advocacy and Planning Workshops
Why should unions engage IFIs?
• Union jobs are at risk• ADB/IFIs heavily influence govt policies
– Privatization/restructuring public enterprises– Liberalization, deregulation policies
• Taxpayers of donor countries finance ADB lending at ~P5-7B/yr
• Citizens of borrower countries pay back loans whether or not IFI-funded projects reduce poverty– Debt burdens greatly reduce govt spending on public
infrastructure & basic social services
TUCP is also engaged in• Improving labor supply-
building skills, employment facilitation
• Raising labor demand-cooperatives, credit unions, workers’ enterprises
• Wages - pushing for productivity improvement and gainsharing
TUCP also has programs in• Country governance• CSR (corporate social responsibility)• Reproductive Health and family planning• Anti-trafficking in persons• Informal sector• Migrant workers• Etc.