SocialASEAN

Wigberto Tañada, Lead Convenor

We, at the Fair Trade Alliance (FairTrade), are pleased to be a co-sponsor of this Inter-University Conference, which seeks a deeper discussion of the social and human dimension of regional integration, a process inextricably linked with globalization. We join our brothers and sisters from the UNI Global Union and other civil societies in their call for a people-centered regional integration. We commend the socially-committed academics and scholars for bringing about a Conference focused on People Solidarity and involving representatives of the working people as direct participants. Together, we can help shape the social and labor rules of regional integration to make the process inclusive, broad-based and pro-people.

Yes, ASEAN or the Association of Southeast Asian Nations is fast integrating, in fact, it is hailed as the core of an emerging East Asian economy, which includes China, the new economic dragon of Asia, and Japan, the original Asian dragon, and the tiger economy of South Korea.

And yet, recent reports of the UNDP and the ILO tell us that East Asia, Southeast Asia in particular, has been experiencing deeper inequality and rising unemployment under economic liberalization and globalization. Some countries are even experiencing jobless growth. Thus, the 2006 Asia-Pacific Human Development Report: Trade on Human Terms of the UNDP posed the following:

…the region has embraced free trade, but has free trade embraced the poor?

This development is vividly illustrated by the present food crisis being experienced by the Filipino poor, urban and rural, due to ill-advised World Bank policy of deregulating and liberalizing agriculture, which has been enthroned in the last 25 years or so. Today, the Philippines, from a net rice exporter in the late l970s, has become the number one global importer of rice.

Likewise, the Philippines has been experiencing a pattern of jobless growth, as it has become dependent on a few growth industries such as IT/ICT and electronics while losing all other industries, from shoe and textile production to tire and steel manufacturing.

To a certain extent, this phenomenon of hollowing out of the economy – the shrinking of industry and agriculture — has led to similar patterns of jobless growth and rising unemployment in other ASEAN and Asian countries, with the exception of a few robust economies. As the UNDP and ILO put it, this is the reason reason why some countries in the region have become vendors of global services, meaning providers of migrant labor, those who do the SALEF jobs – shunned by all except by a very few.

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Published online in ABS CBN News Online
By Isagani de Castro, Jr.

The Philippine labor movement has weakened considerably and its militancy has softened. This trend isn’t likely to change in the coming years unless there’s a major economic policy shift, labor analysts said.

“The labor movement, like it or not, its future is linked to a strong, solid agro-industrial base. If you do not address that, it will continue to be weak,” Dr. Rene Ofreneo, former dean of the School of Labor and Industrial Relations of UP and executive director of the Fair Trade Alliance, told abs-cbnNEWS.com/Newsbreak.

“Decent wages require decent jobs. Decent jobs require decent industry. Decent industry will prosper only in a well-managed economy. So it’s intertwined,” he said.

Membership in labor organizations, including unions, is one barometer of a strong labor movement.

Unionized workers, especially those with collective bargaining agreements, often have better pay and working conditions than non-unionized labor.

On these scores, the Philippine situation is worrisome.

Official labor statistics and surveys show that despite increasing population (88 million) and labor force (36 million), membership in labor organizations has declined from over 3 million in the mid-1990s to 1.8 million in 2006. (See table)

The number of collective bargaining agreements (CBAs) in the private sector has also fallen from a peak of 4,500 in 1992 to 1,742 in 2006. (See table)

In addition, there are now less workers covered by CBAs. In recent years, only half a million workers, out of around 16 million wage and salary earners, were covered by CBAs. In 2006, those covered by CBAs declined even further to 250,000 workers.

No longer as militant

The weakness in numbers is also accompanied by a softening of labor militancy.

Rene Magtubo, former representative of the workers party, Partido Manggagawa, told abs-cbnNEWS.com/Newsbreak many workers and unions “have become conservative in their actions.”

“They have this sentiment that nothing happens if you struggle. Things don’t change because of the weak labor movement,” he said.

One problem is the negative attitude of many owners of enterprises toward unionism.

“There’s this stigma: if they unionize, they risk losing their jobs–even if they win their labor cases at the labor department,” Magtubo said. “Workers are afraid to unionize.”

From over 1,000 strike notices filed in the late 1980s and early 1990s, the number of strike notices filed fell to 353 in 2006. This is about the same level during the middle years of martial law.

The drop in number of strikes is even more dramatic.

From a peak of 581 in 1986, the year democracy was restored, the number of strikes/lockouts dropped to below 100 starting in 1994. And in 2006, there were only 12 strikes/lockouts, the lowest number ever recorded. (See table)

Magtubo said many problems faced by workers can only addressed by the government. Going on strike in factories will not help them attain these demands.

“The problems are socio-economic policies. Before it was per factory. Now, it’s the economic policies which affect everyone, especially our homegrown industries,” he said.

Flexibility

One of the biggest problems of the labor movement is the expanding use of non-regular workers such as casuals and contractual workers.

“The most common is hiring through agencies. Another is outsourcing, where you don’t bother whether the workers of the agency are regular,” Ofreneo said.

As early as the 1990s, data from the labor department already showed an upward trend in non-regular workers.

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The struggle to afford basic food staples such as rice was the focus of many of Labor Day demonstrations in Asia, where rallies were patrolled by huge numbers of police.

Thousands of workers in the Philippines marched in various cities to demand higher wages in the face of inflation that has sent food prices soaring.

President Arroyo made surprise visits to regional wage boards Thursday to show her support for an increase in minimum wages.

In an interview with abs-cbnNEWS.com/Newsbreak, Prof. Rene Ofreneo, executive director of the multi-sectoral coalition, Fair Trade Alliance (FTA), said Arroyo’s endorsement of a wage hike is part of the government’s effort to prevent food riots.

He noted that this was the first time that a chief executive had paid such close attention to regional wage boards.

“There is an assessment by Malacanang that the food crisis, which is both global and local, has created a very sensitive situation which can ignite so much social tension,” he said.

Since poor Filipinos spend around 60% of their family income on food, he said a doubling of rice prices will surely lead to widespread hunger.

Labor leader Rene Magtubo of the workers’ party, Partido Manggagawa, warned that once cheap rice is no longer available during the lean months, food riots may also occur in the Philippines.

“Filipinos are patient, but they have a tipping point. What if there’s no rice available?” he said.

Economic relief

Labor federations have demanded wage increases of between P80 to P125 per day across-the-board to help wage earners cope with the food crisis.

“It is government’s obligation to give immediate economic relief. Given the situation of 11 million Filipinos living below $1 a day, and the wide gap between wages and cost of living, which is P858 per day for a family of six, you can call this a national calamity,” Magtubo said.

In its Multi-Sectoral Declaration for Labor Day, the Fair Trade Alliance urged the Arroyo government to “provide immediate economic relief to the poorest of the poor, both in the urban and rural areas, by way of food subsidy and the creation of emergency emmployment programs.”

The FTA also proposed that the government suspend the expanded Value-Added Tax on food, medicine, water, electricity, transportation “for the duration of the food crisis.”

“The economic crisis is sharper and more intense this year,” said Renato Reyes, secretary general of the left-leaning group Bayan. “Workers in the Philippines have every right to be angry and frustrated.”

The militant May One Movement demanded that Arroyo step down, accusing her of failing to put in place relief measures amid soaring prices of the staple rice or prioritizing a legislated wage increase.

“Workers are hungry and angry over the Arroyo government’s callousness in addressing demands for wage hikes, price controls and significant economic reforms,” said Elmer Labog, the group’s chairman.

“Calls for a legislated wage hike are justified now more than ever with the rising cost of all products, utilities and services,” he said.

Aside from wage increases, demonstrators also called for the prohibition of contractualization and the provision of more jobs to address the country’s unemployment problem.

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