CHAPTER 11  LABOR WELFARE AND PROTECTION

 

Introduction

 

   As economic development proceeds, employment becomes the major source of economic support for the majority of workers and their families. Improving operations in the labor market, managing to create jobs for workers and ensuring their social protection are important strategies to reduce poverty, improve human capital and address gender inequalities.

 

   The government has an important role to play in protecting workers’ welfare in terms of social assistance and welfare service programs for the vulnerable groups, social safety nets, micro and area-based schemes and child protection measures for child workers.

 

Development Challenges

 

   Employment Generation for Marginalized Groups.      At least 2,762 students under the Special Program for the Employment of Students (SPES) were provided with employment in 2004. Clientele coverage increased to 2,720 students in 2006 and forty people with disabilities. To provide employment in the poor communities, new agri- business lands were developed in 2005 generating 19,922 jobs for agricultural commodity-related activities. Livelihood projects generated jobs and increased income for: (1) 25 rural workers under the Poverty Free Zone Project; (2) 24 families under the Community Livelihood Assistance Project; (3) 80 farmers and fisher folks who were trained in seaweed farming and 464 coconut farmers.

 

   The Self-Employment Assistance Kaunlaran (SEA-K) Level 1 associations numbering 607 consisting of 13,991 families were provided with a seed capital of P5.6 million. The SEA-Kabayan provided 491 families with capability and entrepreneurial skills training and a seed capital of P17.7 million for various livelihood projects.

 

   Employment Facilitation.  To ease the unemployment problem, the government, under the PESO Local Employment Program solicited an increasing number of job vacancies from 14,802 in 2004 to as high as 59,155 in 2006. However, the percentage of registrants and those referred compared to the number of job vacancies available showed a fluctuating trend, reflecting an increase of 5.6 percentage points from 2004 to 2005 and suddenly going down by 17.8 percentage points in 2006. In job fairs, there was also a significant slowing down in terms of those hired from 82.7 percent in 2004 to 8.5 percent in 2007. The low level of employment during job fairs reflects the mismatch of skills of workers and the job opportunities provided, hence the need for continuous skills advancement and training to enhance potentials of the Bicolanos. There is also a need to study and review curricular offerings to meet the demand in labor force.

 

   Hiring under contracts of services and job orders is being practiced by the government for services related to or incidental to the hiring agency’s functions and operations. These include janitorial, security or consultancy services for a specific period of time not exceeding six months. As a safeguard measure, the agency and the worker enter into a memorandum of agreement which stipulates remuneration not less than the applicable minimum wage rates and conditions for services rendered. In the case of local governments, emergency or casual employees or laborers paid on a daily wage or piecework basis are hired through job orders for local projects. These workers receive at least the applicable minimum wage rates.

 

   Employment Preservation. The labor environment in the region was generally peaceful for 2004-2006. Mutual support and social protection were encouraged to improve working conditions through the registration of 68 workers’ associations and 9 unions. Seven collective bargaining agreements were registered.

 

   The DOLE conducted  labor education seminars for unionized and non-unionized establishments covering 2,384 workers The DOLE conducted labor education seminars for unionized and non-unionized establishments covering 2,384 workers to minimize friction between management and labor. No mediation-arbitration cases were undertaken.

 

   The Regional Tripartite Wages and Productivity Board issued Wage Order No. RBO5-11 in August 2006 to rationalize wages. The new minimum wage rates for the cities of Legazpi and Naga range from P185 to P220 per day for the non-agricultural areas and P178–198 per day for agricultural. Wages range from P173-213 for the towns of Pili and Daraga and the cities of Iriga and Tabaco, and P168-208 for all other areas. This is an improvement of the daily minimum wage rate in 2005 which were: P169-209 for non-agricultural workers; P177-187 for agri-plantation workers; and P157-166 for non-plantation workers.

 

   Wage Order No. RB05 encourages businesses to adopt productivity improvement schemes such as time and motion studies, good housekeeping, quality circles, labor management cooperation and gain-sharing programs. An information drive dubbed as the Pagpapatupad ng Wasto at Itinalagang Sahod PAWIS project was conducted to disseminate the new wage order through TV, radio interviews and dialogues.

 

   In the agriculture sector, part of social protection services for the labor force is the availability of agricultural insurance for crops in five insurance lines – palay, corn, livestock, high value crops and agri-assets. An increase of 151 percent was noted in the total claims paid for 2,261 farmers compared to 2004. A new product line was introduced consisting of accident and dismemberment security scheme, agriculture producers' protection scheme and loan repayment protection plan. It intends to expand coverage and address the insurance needs of the target sector.

 

   Meantime, while RA 7658 prohibits the employment of children below 15 years of age, child labor still persists in the region. There were cases of child labor in mining and quarrying in Camarines Norte and Masbate, agricultural plantations, fishing, prostitution, and traffic management in road construction sites. The government in collaboration with the International Programme on the Elimination of Child Labor (IPEC) has implemented action programs against child labor to address the problems of child  workers exposed to hazardous environment. Activities included awareness raising on the plight of child laborers, employment and income-generating programs for parents and other adults, training, microfinance and other credit schemes and establishment of small industries in the community. Direct assistance to children and their families included provision of financial support to schools through scholarships, non-formal or alternative learning programs and remedial lessons to children.

 

   Employment Enhancement. In 2004, a new Labor Standards Enforcement Framework was implemented to promote a culture of safety and health, self-regulation and voluntary compliance to labor standards and productivity. Of the 379 establishments inspected, 60 percent complied with the standards. By 2006, however, only 49 percent complied with the general labor standards. This implies the need  to disseminate information and monitor the compliance to the Labor Standards Law. There were 1737 establishments inspected, about 20 percent were found complying with general labor standards and 30 percent complied with technical safety standards.

 

   Enhanced employment opportunities for groups with specific needs were undertaken during 2004-2006. This consisted of trainings on technical and business skills to undertake entrepreneurial activities. The Work and Technology Improvement in Small Enterprises (WISE) was introduced to assist small and medium scale enterprise workers improve their own working conditions and productivity. A total of 443 participants were trained in 2006. Under the Promotion of Rural Employment and Entreneurship Development (PRESEED), 100 beneficiaries were given trainings while under the Women’s Enterprise Development (WEED), there were 72 participants trained. Under the Sugar Amelioration Program, a total of P2.9 million liens collected benefited 7,473 sugar workers in 2004. In 2005, P2.1 million were distributed to 7,216 sugar workers and by 2006, this reached P2.14 million benefiting 7,554 workers.

 

   The Kasanayan at Hanapbuhay Program (KasH) was initiated to afford new graduates and young workers with the opportunity to acquire job-specific trainings from selected industries. There were 39 beneficiaries in 2006.

 

   Social protection services for the informal sector workers include coverage by the Social Security System (SSS) for death, retirement and disability. For sickness, injury, disability or death due to work-connected contingencies, a package of benefits were provided by the Employees Compensation Program (ECC) for public and private sector employees and their dependents. These include psycho-social counseling services, medical help and assistance in filing and receipt of claims, provision of vocational skills and entrepreneurial training and other assistance that will allow occupational-disabled workers to find employment/self- employment or to set up a micro-enterprise or home-based witness.

 

   For overseas workers, the government has provided for insurance and health care program services, credit, education and training and on-site services. A total of P680,000 was released for life insurance and burial benefits while P7,500 was for disability claims. Pre-departure orientation seminars were also conducted with 57 participants in attendance. Family welfare, education and livelihood assistance were given to the families of workers.

 

   There were 21 OFW organizations maintained with 516 members. Nine livelihood projects amounting to P1.45 million were given to 45 beneficiaries. Ten scholars have been maintained under the Education for Development Scholarship Program and 4 scholars under the Congressional Migrant Workers Scholarship.

 

   For the plan period, the region is still faced with issues on: (1) unsustained efforts for job generation among special groups; (2) poor absorption of labor force in the labor market; (3) increased underemployment; (4) diminishing job productivity; (5) low quality of employment and (6) decreasing income levels.

 

Objectives and Targets

 

   The following are the objectives to improve labor welfare and protection:

1. To generate more jobs for the marginalized groups.

1. Vulnerable groups shall have been assisted with skills trainings, to increase in coverage by 10 percent annually until 2010.

2. To improve the level of living for the gainfully employed, unemployed and underemployed.

1. Technical and vocational training shall have been provided to workers, with a yearly increase of 10 percent coverage.

Strategies

1. Strengthening of micro-financing and provision of credit assistance to small and medium scale enterprises and farming communities.

2. Formulation of social insurance, social assistance and welfare services programs to cushion risks associated with unemployment, particularly of the vulnerable groups.

3. Promotion of micro insurance and agricultural insurance schemes to address major community risks such as natural calamities and man-made disasters.

4. Intensification of tie-ups and participation of the LGUs, the private sector and the academe for programs that would impact on employment creation, improvement of worker's' welfare and poverty reduction. In particular, linkaging with the Export Processing Zone Authority (EDZA) shall be forged by DOLE and TESDA for matching of needed skills in industries.

5. Provision of child protective services to assist families with youth workers.

Major Programs and Projects

  

   Employment Generation

1. Special Program for the Employment of Students (SPES)

2. Work Appreciation Program (WAP)

3. Tulong Alalalay sa Taong May Kapansanan (TULAY)

4. Kasanayan ant Hanapbuhay (KASH)

5. Promotion of Rural Employment thru Self Employment and Entrepreneurship Development (PRESEED)

6. Poverty Free Zone

7. Family Welfare Program

8. Working Youth Center

9. Informal Sector and Workers Microfinance Program

10. National Program Against Child Labor

11. Social Amelioration Program

12. WEED

   Employment Facilitation 

1. PESO Local Employment

2. Job Fair

3. PRA/SRA

4. Career Guidance

5. Local Employment Regulations

6. Alien Employment Service

7. Registration Of Job

8. Labor Market Information

   Employment Preservation 

1. Workers's Organization Tripartism and Empowerment Promotion Services

2. Dispute Prevention and Settlement Services

3. Small Money Claims

4. Quick Response Team

5. Conduct of consulations, dialogues and conferences

   Employment Enhancement 

1. Standard Setting and Enforcement Program

2. Labor Standard Cases

   Programs,Benefits and Services for Overseas Workers 

1. Insurance and Health Care Benefits

2. Credit Program for OFWs

3. Education and Training Benefits

• Skills for Employment Scholarship Program

• Education for Development Scholarship Program

• Seafarer's Upgrading Program

4. Social Services and Family Welfare Assistance

• Repatriation Program

• Reintegration Program

5. Worker's Assistance and On-Site Services

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