It is the commitment of the government to promote optimum
employment of the factors of production including human and
natural resources and produce goods and services that are
competitive in both domestic and foreign markets. The
government helps stimulate organizations to improve quality
and production to obtain competitive edge through improved
performance or quality results and outputs.
In the middle of 2008, the country’s economy faced the
challenges of the global financial crisis. The government
implemented coping mechanisms and measures to cushion its
impact to the economy, particularly to prevent job and
business closures.
Productivity technologies, best practices and total
productivity improvement systems were utilized at the
firm/entity and farm levels and by the individuals.
Institutions and mechanisms were established. Action plans
were prepared and implemented.
II. Assessment
The region was challenged to respond to a difficult
situation needing prompt and judicious attention. It was
faced with a weakening economy, the existence of supervening
condition, workers’ demand for a wage adjustment and
employers clamor for reasonable returns on their
investment. The RTWPB conducted annual review of minimum
wage levels regionwide. Public sector
consultations/hearings were undertaken to give both labor
and management sectors the opportunity to articulate their
positions on the issues.
To enhance compliance with the existing prescribed minimum
wage rates, “Operasyon PAWIS Project” was intensively
operationalized. Through the program a heightened level of
consciousness of both workers and employers further
increased and improved wage compliance.
In terms of productivity, the Regional Tripartite Wages and
Productivity Board continued to implement the
Industrious, Systematic,
Time
Conscious Innovative
and Strong-Value
for work (ISTIV)-PAP which responded to emerging training
needs for workers, supervisors and managers alongside
productivity enhancement and improvement. Productivity
awareness seminars and workshops were undertaken to update
local companies on recent business trends, developments and
opportunities in order to ensure a decent standard of living
for workers and to improve their labor productivity. The
program was not only meant for workers, but for company
owners and managers as well.
The RTWPB also launched and conducted series of trainings on
specialized productivity management systems such as Good
House Keeping (5S) – DOLE Inter-Agency/Company Contests on
5S Model Area Labor Education Project in coordination with
the DOLE attached agencies (RCC) and other government
offices including private sector organizations – Union
Organizations, Company Workers Associations, etc.
To implement the Medium-Term Regional Action Agenda for
Productivity 2007-2010, meetings were held among
member-agencies of the Regional Productivity Committee (RPC)
of the RDC including the RPC TWGs.
The continuing public awareness campaign on the flagships
program were undertaken regionwide through various
communication channels employing the tri-media as well as
interpersonal exchanges. As of December, six wage clinics,
DOLE labor-education-CLEEP orientation and symposia were
held assisting 605 companies and serving 1,300 clients.
There were also 50 press releases issued, three press
conferences co-sponsored with the RCC, twenty (20)
television and radio interviews granted, and a total of 55
wage and wage-related queries answered. Public information
services on wages and productivity and other related
information were provided. Strong coordination was
established in the conduct of selected wage/productivity
studies, surveys, collection and compilation of data and
research studies.
In the labor market, large industries particularly export
sector were heavily affected by the global economic
downturn. The effect of the crisis though in the region was
very minimal since 98 percent of business establishments
were categorized under the small and medium enterprises (SMEs).
Results of the labor force survey as of October 2008 showed
a slight decrease in employment rate from 95.8 percent in
2007 to 94.8 percent in 2008. The survey also showed that
the labor productivity in the region was consistently fourth
from the bottom.
III.
Prospects and Trends for 2009
The regional assessment reports reflected that employers
were already looking for ways to reduce production costs
including labor costs. The recurring coping mechanism for
companies is the adoption of flexible working arrangements
such as job rotation, compressed workweek and forced leaves
in order to prevent retrenchment.
The adoption of productivity improvement programs (PIPs) and
non-wage benefit measures will soften the heavy blows
brought by the evolving global financial crisis. It will
enable firms to manage costs and shift to higher cost
efficiency strategies.
The RTWB will continue to implement the ISTIV-PAP not only
in responding to the crisis situation but to prepare the
work force in the economic rebound. Skills development and
productivity improvement training and seminars will continue
to be pursued to serve as an opportunity to build and
upgrade capacities of people and to be taken as a way of
life. The trainings shall match with job opportunities.
Business firms will do business planning to find the right
combination of inputs that will optimize outputs.
Productivity shall function both as an adjustment and
capacity enhancing strategy.
The Economic Resiliency Plan (ERP) will be implemented to
help displaced workers.
