dole -arangkada progress report - department of labor … arangkada progress report 201… · final...

DOLE -ARANGKADA PROGRESS REPORT

2012

Final Copy 11 September 2012 DOLE-Arangkada Progress Report 2

TABLE OF CONTENTS

DOLE Progress Report (as of September 2012) o Labor and Employment Reforms

- Wage Policies (Two-Tier Wage System) …………………………p.2 - New Labor Code of the Philippines………………………………..p.7 - Labor Arbitration and Adjudication………………………………...p.10

o Rationalization of Non-Working Holidays/FWAs ………………………. p.13 o Creation of One (1) Million Jobs………………………………………… p.16 o Job-Skills Mismatch……………………………………………………..... p.23 o Employment of Foreign Professionals/Processing

of Alien Employment Permit Application……………………………….. p.26


Make wage increases consistent with inflation and productivity

ARANGKADA Evaluation in 2011:STARTED**** The NWPC is introducing the Two-Tiered Wage System (TTWS), which consist of (a) a regional mandatory floor wage based primarily on the regional poverty threshold and (b) non-mandatory productivity pay to adjust wages above the floor. Over time, this reform could correct the problem of recent minimum wage policy that was disconnected from productivity and linked to populism and inflation.

DOLE Progress Report as of September 2012: The NWPC has introduced and implemented the Two-Tier Wage System (TTWS), which consist of a mandatory regional floor wage (1st tier) and a voluntary productivity-based pay to adjust wages above the floor ( 2nd tier). The floor wages (1st tier) allows for minimum wage adjustments to be more predictable, regular and moderate. It considers as parameters Poverty Threshold and Average Wages to ensure social protection to workers and allow space for collective bargaining and other bilateral forms of wage negotiations. On the other hand, the productivity-based pay (2nd tier) is a variable component that links wage increases to workers‟ productivity and business performance. Over time (i.e., 3-5 years), the two-tier wage reform should promote flexibility in wage determination based on productivity, performance, skills and collective bargaining and lessen the pressure on minimum wages. As a whole, the TTWS will revolve around three program components that provide social protection to low-paid workers (i.e. minimum wage earners ) and link pay and productivity towards competitiveness of business and industry: 1. Minimum wages

Minimum wage fixing under TTWS is being undertaken within the current framework of R.A. 6727 or the Wage Rationalization Act. The Regional Tripartite Wages and Productivity Boards set the minimum wage across regions, industries or geographical areas, in accordance with guidelines issued by the NWPC.

1.1 Eleven (11) Regional Boards have issued Wage Orders granting increases in wages and/or COLA. The range of increases are P2-P23 ( in basic pay) and/or P10-P30 (in COLA). These are in NCR, CAR, I, II, III, IVA, V, VI, VIII, XII and ARMM. The TTWS features of the new Wage Orders are:



o Upward adjustments in MWR for regions whose minimum wage are below Poverty Threshold (III and IV-A)

o Prudent adjustments (CAR, I, III and V) o Simplification of minimum wage structure (CAR, IV-A and V) o Inclusion of provision for issuance of Productivity-Based Pay advisories

(NCR, CAR, I, III, IV-A and VIII) o No exemption (CAR and IV-A)

The TTWS will be fully implemented in 2013.

1.2 In Region IV-A, 16 companies are already implementing the Productivity-Based

Pay system under Wage Order No. 15, and were issued Certificates of Compliance by the DOLE. Twelve (12) of these companies are members of the Association of Laguna Technopark Personnel and Human Resource Administrators Inc. (ALPHA). The PBP ranges from P12.50/per day to P86/ per day and are on top of other incentives currently enjoyed by the workers. Supervisors and middle level managers are also given PBP or pay-for- performance, which is usually higher than those received by rank-and-file. Twenty seven (27) other companies have reported that they are already implementing PBP schemes and majority said these are integrated into their management systems.

1.3 TTWS is also being implemented in the public bus transport sector, where bus operators are required under DO No.118-12 to pay their bus drivers and conductors a part-fixed, part performance compensation scheme. The fixed component shall not be lower that the applicable minimum wage and wage- related benefits. The performance component shall be based on business and safety performance.

o The DOLE issued 68 Labor Standards Compliance Certificate (LSCC) covering 3,627

buses in regions NCR, CAR, 3, 4A, 6 and 10. The LSCC is a recognition given by DOLE to bus operators for compliance with general labor standards on compensation, hours of work, social welfare benefits and safety and health.

o The new compensation scheme is being implemented in coordination with MMDA, LTFRB and DOLE agencies (NWPC, OSHC, TESDA and DOLE ROs).

o LTFRB Memorandum Circular 2012-001 requires the submission of an LSCC in the grant and/or renewal of franchise, effective July 2012. On the other hand, TESDA is responsible for competency training, assessment and certification of bus drivers, while OSHC provides training on basic OSH to enable bus companies to set up their own OSH policies and programs.



2. Productivity Improvement

Productivity improvement is crucial to expanding the wealth-creating capacity of firms and industries which, in turn, should lead to higher wages and better standard of living for workers and their families. Towards this end, NWPC intensifies its promotion of productivity improvement programs and gain sharing schemes among micro, small and medium enterprises (MSMEs) which comprise about 99% of total establishments in the country.

2.1 Under the TTWS, workers are given the opportunity to become partners with the

employer in expanding the capacity of the enterprise to create wealth. As they develop their skills and knowledge through productivity trainings, and engage employers inproductive and competitive endeavors, wage adjustments become more sustainable, being proportionally linked to worker‟s productivity and business performance.

2.2 From January- August 2012, NWPC has conducted productivity trainings and

orientations in 5,983 MSMEs covering 16,620 workers. The trainings/ orientations are on ISTIV Bayanihan, 5S of Good Housekeeping, Green Productivity and Service Quality for Hotels and Restaurants.

2.3 NWPC is also training DOLE frontliners (e.g., labor inspectors, livelihood officers, conciliators-mediators and LMC organizers) to become productivity specialists and immerse them in productivity concepts, values and technologies towards a less regulatory and more developmental approach in labor administration.

3. Non-Wage Benefits

3.1 Non-Wage Benefits (NWB) is part of Income Policy which DOLE/NWPC pursues

in coordination with concerned agencies in government and the private sector. It aims to address specific needs of a target group of workers, specifically minimum wage earners, and improve their access to basic services. NWB includes Family Welfare programs in workplaces, Diskwento Caravans and housing assistance or socialized housing schemes.

3.2 On housing, NWPC has initiated a program for housing assistance for minimum

wage earners, in coordination with Pag-IBIG. This is to help minimum wage earners access affordable housing programs of government, in light of the findings that housing rental expenditure is the second largest family expenditure, next to food, in all regions and across all income households (2009 FIES, NSO). A Pag-IBIG housing scheme is generally at no-cost to employers. For government, a lower annual interest rate (e.g. 4.5%) will provide low-income workers with easier payment schemes and higher disposable income.



3.3 To date, Pag-IBIG has developed and approved an affordable housing scheme for minimum wage earners. The implementation of the scheme is currently the subject of consultations with stakeholders for purposes of dissemination and securing support and commitment of employers. NWPC is proposing that the scheme be pilot-tested in economic zones and other places with high worker-concentration such as NCR, IV-A, VII and X.

For more information, contact: National Wages and Productivity Commission (NWPC) Head: Executive Director Ciriaco A. Lagunzad III Tel. No: 527-5141 E-mail: [email protected] Website:www.nwpc.dole.gov.ph

http://www.nwpc.dole.gov.ph/


Modernize the 36-year old Labor Code to end the disadvantage it

creates for the Philippines with regional competitors

ARANGKADA Evaluation in 2011:STARTED****

There have been several attempts at wholesale revision of the 1974 Labor Code. Some provisions have stood the test of time, while others are archaic and restrict enterprises from competing globally. Application of the Code has been mostly populist, protecting workers in the formal sector, with harmful effects on the informal sector, comprising 75% of the workforce. The current initiative of DOLE to modernize the Code is under the Tripartite Labor Code Reform Project organized by AO 375 in 8/11. Meanwhile, certain legislation and DOLE Department orders, revise or correct grossly irrelevant provisions of the Labor Code.

DOLE Progress Report as of September 2012: Tripartite Labor Code Reform Project (AO No. 375, s 2011) is on-going and the New Labor Code is targeted to be submitted during the opening of the 16th Congress. Between now and the opening in 2013, the drafting and consultation process will be undertaken. Working Draft No. 1 of the codal provisions of the proposed New Labor Code has been completed and was submitted in July 2012. Working Draft No. 1 will be presented to the SOM for deliberations and approval before end of Sept. 2012. Thereafter, the Working Draft will be discussed in the Small Tripartite Group prior to the conduct of tripartite consultations at the regional and national levels. It consists of the following:

Book I – Preliminary Title and Governing Principles Book II – Development of Human Resources and Employment Book III – Employment Standards and Productivity Book IV – Social Protection Book V – Employment Relations and Social Dialogue Book VI – Government Role and Dispute Resolution Book VII – Transitory and Final Provisions

The drafting of the codal provisions was done through the DRAN (Delete, Retain, Amend, New Provision) method using the following resources: The Labor Code of the Philippines, as amended; R.A. 8042 (Migrant Workers Act of 1995); R.A.10022 (Amendatory Law on Magna Carta for Migrant Workers); R.A. 9700 (Expanded CARP Law); RA 10151 (Nightwork for Women); Civil Code of the Philippines; DOLE Policy Pronouncements; DOLE Cluster Inputs; Proposed New Labor Code by Prof. Azucena; and ILO Publications.


Modernize the 36-year old Labor Code to end the disadvantage it

creates for the Philippines with regional competitors

New tool in the development of the New Labor Code is the Regulatory Impact Assessment (RIA). RIA is a process that improves the regulatory environment and supports „ease of doing‟ business by identifying more efficient policy and administrative options, hence minimizing the burden/red tape on impacted stakeholders in business, community and government. This is a technical assistance program under the Strengthening Institutions for an Improved Investment Climate with the Philippine Government. The Asian Development Bank (ADB) is assisting the implementation of a RIA regime across Departments. The pilot RIA departments include the DOLE, DOT and DOF. Regulatory reviews enrolled under RIA are the following: (1) Firing and Post-Employment Regulations in PD442 as amended and its proposed severance scheme; and (2) Private Recruitment Regulations. Other regulations within the purview of the Labor Code Review as determined by the TWG and agreed with ADB may be undertaken in 2013. An on-line regulations consultation portal -doleregulations.gov website – is being developed and is expected to be operational by end of 2012.

For more information, contact: Bureau of Labor Relations (BLR) Head: OIC-Director Romeo C. Montefalco Tel. No: 527-2551 E-mail: [email protected] Website:http://blr.gov.ph

http://blr.gov.ph/


Improve the speed and fairness of the adjudication of labor cases

before the NLRC

ARANGKADA Evaluation in 2011:STARTED **** Employers have long complained that labor court adjudicators were biased towards workers and often sought payments to avoid higher awards in penalizing firms. The problem is recognized by DOLE and NLRC. The speed in adjudication has increased recently, particularly with the introduction of SEnA (single Entry Approach) where all types of cases or complaints may be filed at all DOLE Offices – NCMB, NLRC or the regional offices.

DOLE Update as of September 2012: Reform in the labor arbitration and adjudication system pursuant to the 22-point labor and employment agenda of the President is the DOLE‟s contribution towards creating an environment conducive to business and investments. The country continues to experience stable, sound, and just industrial peace with no strike incidence for the first semester of 2012, resulting from the combined effects of SEnA and SpeED:

The 30-day mandatory conciliation-mediation through the Single Entry Approach (SEnA) seeks to provide a speedy, impartial, inexpensive, and accessible settlement services for unresolved grievances and complaints arising from employer-employee relations. It covers all Regional Offices of the DOLE including its Attached Agencies (NCMB, NLRC, POEA, NWPC) at all levels of the adjudication system.

From October 2010 to August 31, 2012, a total of 53,931 requests for assistance (RFAs) have been submitted under the SEnA. DOLE ROs settled 17,229 or 71% of the requests, NLRC settled 3,907 or 19% while the other Attached Agencies settled 7,512 or 81%. If not for the SEnA, these 28,648 requests for assistance could have added to the labor cases filed at the different DOLE adjudication system. SEnA also contributed to the reduction of the regular conciliation-mediation cases of the NCMB, both in the notices of strike and in the preventive mediation cases. It also complemented and strengthened the bipartite workplace relations mechanisms. Relative to the impact of SEnA on cases involving small money claims (SMCs), there is considerable reduction of SMCs filed, from 2,409 cases in 2010 it remarkably decreased to 76 SMC cases as of 1st semester 2012, or 96% reduction in SMC cases (Note: the data covers Regions NCR, 3, 5, 6, 8 and13).



before the NLRC

Project SpeED is among the DOLE reforms in labor arbitration and adjudication system pursuant to the 22-point labor and employment agenda of the President which calls for the restoration of integrity and fairness in the system; and ensuring quality decision through speedy, fair and just disposition of labor cases.

Project SpeED sets a very high 98% disposition rate. The reform covers all offices of the DOLE including its Attached Agencies, at all levels of adjudication system, and has reduced by almost 60% the case dockets of the compulsory arbitration. By the 4th quarter of 2012, case dockets are expected to be current and all cases will be resolved within the prescribed period.

By the end of the implementation of the project SpeED 5 as of August 31, 2012, 80% of the labor cases enrolled have been disposed of. The Offices and Agencies accomplishment are as follows:

o ECC – 100% disposition of its commitments of 4 cases; o BLR – 72% disposition of its commitment of 68 cases; o NLRC – 93% disposition of its commitments of 12,084 cases; o NCMB– 80% disposition of its commitments of 166 cases; o BWC – 96% disposition of its commitments of 3,927 cases; o POEA – 38% disposition of its commitments of 3,838 cases; and o LS – 84% disposition of its commitments of 227 cases.

On NLRC Reforms: The NLRC pursued reforms in three (3) areas: (a) quality of decisions; (b) improvedockets; and (c) integrity. The quality of decisions and improve dockets are being addressed through the 2011 NLRC Rules of Procedure. The new rules introduced the following:

(1) Amended certain provisions to expedite proceedings (2) Streamlined procedural requirements to ensure integrity of the process and to avoid

unnecessary delays (3) Expanded list of prohibited pleadings to address the dilatory tactics resorted to by the parties. (4) Grants authority to the Chairman to blacklist bonding companies on justifiable grounds in order

to ensure that judgment awards are fully guaranteed. (5) Ensure immediate and effective enforcement of final (6) New provision on third party claim (7) Provision on Extraordinary Remedies to address the problem of multiple appeals. (8) Strengthen the contempt power of the Commission (9) Grants authority to the Commission and Labor Arbiters to impose fines in order to ensure

compliance with decisions, orders, or awards.



before the NLRC

Amended the NLRC Rules of Procedure Governing Administrative Disciplinary Proceedings for the Commission‟s Efficiency and Integrity Board (EIB) to ensure integrity and fairness in the system and to conform to the Revised Rules on Administrative Cases in the Civil Service (RRACCS).

Revised the Manual on Execution of Judgment to conform to the reforms instituted by the 2011 NLRC Rules of Procedure, and to address the pervasive public trust on the process of execution, expedite enforcement of decisions, ensures transparency in the enforcement of decisions through uniform observance of prescribed procedures, and ensures receipt of monetary awards by prevailing litigants through institutionalization of safeguards in the handling of fiduciary funds. The Manual on Execution is scheduled to be deliberated upon by the Commission during the En Banc session on 26-28 September 2012.

Proposed the creation of an Internal Audit Unit (IAU) in the Rationalization Plan. The IAU shall be responsible for the conduct of management audit to ensure efficient utilization and stewardship of resources as well as to monitor observance of the NLRC Rules of Procedure and established legal precedents.

Developed a Case Tracking System (CTS) for the Regional Arbitration Branches to provide a comprehensive database of all cases. The CTS was designed to expedite the resolution of cases through the effective monitoring and strict observance of time limits. For the NCR-Arbitration Branch, the NLRC improve the existing Case Management System (CMS) to ensure the integrity of electronic raffling of cases (e-Raffle) and to effectively assist litigants in filing complaints.

Conducted capability building to enhance and update the Labor Arbiters and Commissioners on new trends on labor dispute resolution.

For more information, contact: National Labor Relations Commission (NLRC) Focal Person: Commissioner Isabel P. Ortiguerra Tel. No: 474-5010 E-mail: [email protected] Website: http://nlrc.dole.gov.ph

http://nlrc.dole.gov.ph/


Maintain the low level of labor disruption of business operations.

Allow self-regulation of companies

ARANGKADA Evaluation in 2011:SUBSTANTIAL PROGRESS***** Employers have long complained that labor court adjudicators were biased towards workers and often sought payments to avoid higher awards in penalizing firms. The problem is recognized by DOLE and NLRC. The speed in adjudication has increased recently, particularly with the introduction of SEnA (single Entry Approach) where all types of cases or complaints may be filed at all DOLE Offices – NCMB, NLRC or the regional offices.

DOLE Progress Report as of September 2012: Reform in the labor arbitration and adjudication system pursuant to the 22-point labor and employment agenda of the President is the DOLE‟s contribution towards creating an environment conducive to business and investments. The country continues to experience stable, sound, and just industrial peace with no strike incidence for the first semester of 2012, resulting from the combined effects of SEnA and SpeED:

The country continues to experience sustained industrial peace with no strike incidence for the 1st Semester of 2012, resulting from the exhaustive efforts of the DOLE in Conciliation-Mediation. Exhaustive Con-Med (Creation of CMOs).

Furthermore, the DOLE continues to cultivate a culture of voluntary compliance by reaching out to big companies so they will deal only with subcontractors legitimately doing business through the Big Brother- Small Brother Program. From 2007 to July 2012, there are 105 big employers or big brothers dealing with 949 subcontractors that employ 236,684 workers.

Full implementation of the Incentivizing Compliance Program with conferment of the Tripartite Certificate of Compliance with Labor Standards by end of 2012.

For more information, contact: National Conciliation and Mediation Board (NCMB) Focal Person: Deputy Executive Director Shirley Pascual Tel. No: 332-2689 E-mail:[email protected] Website: http://ncmb.ph Bureau of Working Conditions (BWC) Head: Director Catherine Legados-Parado Tel. No: 5273000 loc. 308 E-mail:[email protected] Website:http://www.bwc.dole.gov.ph

http://ncmb.ph/

http://www.bwc.dole.gov.ph/


Rationalize holidays to approach the ASEAN average of 15 paid

holidays a year

ARANGKADA Evaluation in 2011: BACKWARD**

This issue is also discussed under Business Costs. The GPH is not undertaking a study to recommend fewer paid holidays to improve competitiveness. While there is a fixed list of regular national holidays, the Executive and legislative branches of government ass more holidays without consulting employers. In December 2011, Chinese New Year 2012 was added. Bills in Congress to observe paid holidays for teachers and to commemorate September 3, National Victory and Liberation Day are moving.

DOLE Progress Report as of September 2012:

The Department has been consistent with its position for the maintenance of the existing holidays to 12 regular holidays and 3 special days. Every time there is a proposal in Congress or the Office of the President to declare additional national and local holidays, the DOLE always reiterates its position either by submission of comments and recommendations or attendance in committee hearings and articulating the Department‟s position, to limit or maintain the number of holidays under existing law.

The DOLE emphasizes that more non-working holidays has implications on productivity and competitiveness and is associated with issues on rights of work. For daily paid workers, the opportunity to produce goods of economic value and to earn wage is lost if the day is unworked. On the other hand, the cost of labor increases if the worker is required to work on such holidays due to the obligation to pay premium.

On the issue of suspension of work on August 7, 2012

o The Department has issued Labor Advisory No. 1, Series of 2012 (Payment of Wages Due to Cases of Suspension of Work in Calamity Stricken Areas Pursuant to Presidential Proclamation or Similar Issuances) and a Q&Ato guide the employers and the employees on the payment of wages and other related issues on such suspension of work due to a calamity.

o The rule is that an employee who did not report to work on August 7, 2012, is not entitled to be paid his/her wage. In this instance, the principle of “no work, no pay” applies. However, an employee can avail of his/her accrued leave credits, or be covered by a favorable company policy and practice, or by collective bargaining agreement (CBA) granting payment of wages during calamities or emergencies.

o The employer should have only required his employees to work on August 7 despite the suspension of work under the following conditions: (a) the employer had ensured the safety of the employee in going to and from work, like the provision of free transportation, personal protective equipment, first aid medicine, etc. and (b) payment of 30% premium pay.

o An employee should not be disciplinarily sanctioned for failing to report to work on said day if he/she has advised the employer of his/her inability to report for work on that day.

For more information, contact: Bureau of Working Conditions (BWC) Head: Director Catherine Legados- Parado Tel. No: 5273000 loc. 308 E-mail:[email protected] Website:http://www.bwc.dole.gov.ph



Allow firms providing same day services to overseas clients to

provide employees who work on Philippine holidays, substitute

days off with pay without holiday premium.

ARANGKADA Evaluation in 2011:COMPLETE******

This arrangement is covered by DOLE DO No. 2, series of 2009, and continues.

DOLE Progress Report as of September 2012:

The DOLE has issued Department Advisory No 2., Series of 2009 (Guidelines on the Adoption of Flexible Work Arrangements) and subsequently reiterated in Department Advisory No. 4, Series of 2010 (Guidelines on the Implementation of the Flexible Work Arrangements & Exemption from Nightwork Prohibition for Women Employees in the Business Process Outsourcing Industry) recognizing therein Flexi-holidays Schedule as one of the flexible work arrangements that may be considered by the employer and the employees. Flexi-holidays schedule refers to one where the employees agree to avail the holidays in some other days provided there is no diminution of benefits as a result of such arrangement.

On August 7, 2012, the Department has issued Labor Advisory No. 1, Series of 2012 and a Question and Answer to guide the employers and the employees on the payment of wages and other related issues on such suspension of work due to calamity.

For more information, contact: Bureau of Working Conditions (BWC) Head: Director Catherine Legados- Parado Tel. No: 5273000 loc. 308 E-mail:[email protected] Website:http://www.bwc.dole.gov.ph



Create millions of new jobs, many of higher quality, through

increased investment.

ARANGKADA Evaluation in 2011:BACKWARD** For over a decade, the Philippines has been experiencing jobless growth, with the labor force increasing each year by more than the new jobs created. The labor force in 2010 reached 38.9 million, of which 5.7 million worked in the formal sector and 27.3 million in the informal sector, with the remainder unemployed, underemployed, or non-working. To reduce chronic unemployment and underemployment, levels of sustained inclusive growth of 7% and above are required. Such high levels are only possible with higher domestic savings and investment, including FDI.

DOLE Progress Report as of September 2012: From July 2010 to April 2012, employment continued its momentum with net employment generation exceeding the average one (1) million target per year, except in the survey round of July 2010, and January and July 2011. The average net employment generation per year reached 1.061 million which is on track with the PDP target.

NEDA estimates generation of 1.3 million to 2.3 million jobs annually from the public infrastructure investments (i.e., roads, rails, airports, seaports, water, energy, ICT, social).

In April 2011, the DOLE & its social partners endorsed a set of policy and program actions to cut high and persistent unemployment in the medium-term contained in a document called the Labor and Employment Plan (LEP). One reform area was to tackle obstacles to labor demand by making the environment hospitable to businesses by :

1. removing impediments to the creation and expansion of enterprises; and 2. identifying positive reinforcing elements to business innovation and dynamism.

Recognizing that job creation through increased investment is a horizontal issue, that is, its realization dependent on multi-party efforts, the DOLE essentially exploited policy synergies that it deemed imperative to improving employment performance. The following outputs have been produced.

o Framework for Integrating Employment in Industrial Policy (completed June 2012).A parallel effort to the DTI-initiated Philippine Industrial Development Master Plan was to develop a framework for growing businesses and employment at the same time. The framework will be tested this last quarter of 2012 in at least one sector to determine what elements (for example, turning SME’s as input and service suppliers, forming a domestic equipment and supplies industry cluster) should industrial policy contain so that employment generation can be enhanced. This prepares DOLE for the policy discourse engagement on the DTI’s Industrial Development Master Plan preparation(said to be released end of 2012).



increased investment. o Dialogue Process on Industrial Policy (started April 2012). The DOLE has initiated the Dialogue

Process on Industrial Policy, industrial policy having been identified in the LEP as a strategic instrument for employment generation. The DOLE has brokered the initial meeting of the Labor Sector with DTI Secretary Domingo and then NEDA Secretary Paderanga. Also, all ITCs have geared up to tackle issues pertaining to industrial policy and are now in process with DOLE acting as coordinating entity for said efforts.

o DOLE Competitiveness Agenda (framed February 2012) .The DOLE has framed its

Competitiveness Agenda with a view to improving labor market efficiency indicators. It has linked up with the National Competitiveness Council (NCC) and the Makati Business Club (MBC) to address said efficiency issues towards improving the Philippine competitiveness ranking. In the 2012-2013 Global Competiveness Report of the World Economic Forum, the Philippines ranked 65th, up by 10 notches compared to its last year’s 75th ranking. It has registered an overall score of 4.23 out of 7. Specific to Labor Market Efficiency (LME), the same showed improvement, up by 10 notches as well, ranked 103rd from last year’s 113th ranking. Five out of nine LME indicators showed significant improvements (i.e., Cooperation in labor-employer relations; Hiring and firing practices; Pay and productivity; Reliance on professional management; Brain drain), up between 5 and 20 notches.

o DOLE-JFC Exemplars in Competitiveness Initiative (launched September 2010)The mutual benefit of this partnership was access to an increased knowledge- base and expert exchange on labor market governance. Five exchanges have been completed (BPO, Tourism, Mining, Creative Industries and Agribusiness) and the following results have been facilitated:

BPO - OSHC Basic Safety & Occupational Health Training for BPOs conducted - BPAP has actively opened its doors to partnering with DOLE regional offices to

promote better working conditions among BPO workers. - Close coordination between DOLE-NCR and BPAP on workers’ concerns on BPO

companies

Tourism - ILS Forum on Employment Potentials of Cultural Heritage in cooperation with Tourism

Industry to build the economic case for tourism heritage - Tourism ITCs created in select Regional Offices (CARAGA, RO6, CAR)

Mining - Mining ITCs created (CARAGA, RO3) - ILS-ILO-IPEC Study on Hazardous Work



increased investment. Creative Industries

- BLE Promotion of Creative Industries as a key employment generator

Agribusiness - Creation of RO11 Banana Tripartite Industry Council

o Community-Based Employment Program (institutionalized in 2011). The Philippine Government is

also implementing the Community-Based Employment Program (CBEP), one of the priority programs of President Benigno S. Aquino III that aims to contribute to the national goal of inclusive growth through poverty reduction and employment creation. The DOLE, in its capacity as Chairperson of the CBEP Steering Committee, continuous to coordinate and monitor jobs generated from the infrastructure and non-infrastructure projects of national government agencies. In 2011, 1.238 million jobs were generated (infra: 515,682; non-infra: 722,543) from the 68 programs of 29 implementing agencies. Most of the jobs were from Region IV-A (16.5%), Region III (11.1%), and Region VII (5.4%) where the highest unemployment rates were recorded in 2011. As of June 2012, a total of 768,063 jobs (infra: 361,158; non-infra: 403,311) have been reported preliminarily out of the 74 projects of the national government agencies.

o Employment Facilitation Services.The DOLE provides cost-free on-line job and skills matching

facility (Philjobnet), where employers can log their vacancies and job seekers their skills profiles. The Department also provide career guidance and employment counselling, including job referrals and placement assistance through our network of LGU-based Public Employment Service Offices (PESOs) and Guidance Counsellors in schools, colleges and universities. Part of the DOLE advocacy is the institutionalization of the PESOS, as its conduit in providing employment facilitation services at the local level. Beginning 2012, the DOLE targets 80 PESOs to be institutionalized each year, translating to five (5) PESOs per region.

o Green Jobs Initiative (launched January 2012).DOLE recognizes that the green shift may bring about three types of results: job creation, job transformation, and/or job elimination. The Green Jobs Initiative therefore is about managing the green transition essentially to understand the extent the green shift is shaping the sector activities and consequently the types of employment that will be generated in these sectors.

DOLE’s Green Jobs Initiatives are of two types:

Efficiency Enhancing (EE). This refers to policies/programs that seeks to improve efficiency gains through the promotion of green practices and/or regulation of the same. For instance, a green skills agenda fulfills the competitiveness objective as it will allow firms to source skilled workers with green skills in the event green becomes the standard.



increased investment. Risk Reducing (RR). This refers to policies/programs that seeks to reduce or minimize

harms/problems brought about by the adverse result of a climate event. For instance, a green adjustment measures program fulfills the social protection objective as it will provide workers with a bridging mechanism in the transition should they lose jobs due to a climate event ( either from a firm closure brought about by the green shift i.e. plastics, or from a natural disaster)

An essential component of the Green Jobs Initiative is the Green Skills Agenda that is managed by TESDA. The Agenda is expected to contribute to fulfilling the competitiveness objective as it will allow firms to source skilled workers with green skills in the event green becomes the standard. Currently, TESDA has 16 Qualifications with Green Competenciesthat clearly specifies environment-related knowledge, skills and attitudes in the Training Regulation and its corresponding Competency-Based Curriculum. Prospectively, it plans to push for the inclusion of the environment as an awareness component in the curriculum. There is also a plan to conduct a curriculum review and undertake revisions to incorporate environmental concerns and climate change issues in the contextual-learning matrices for all promulgated qualifications.

o Philippine Employment Projections Project (started August 2011).A parallel effort to the NEDA’s official employment projections, the objective is to provide DOLE with a general outlook for industries and occupations in the Philippines to be used as basis for DOLE program targeting for the medium term. While they may not provide a complete picture, they do provide a best guess about the Philippine industry and occupational employment in the future. Occupational projections for instance can be an indication of demand and data for observed fastest growing occupations can be used for placement and training decisions.

Initial projection runs include the following : Industry projection results

Employment levels per industry Industries share to total employment Employment growth rate per industry Additional employment per industry

Occupational projection results

Employment levels per occupation Occupation share to total employment Employment growth rate per occupation Additional employment per occupation

The project is still in its capacity building phase and is expected to be operative in 2013.

o Employment Scorecard (initiated in July 2012).The project is for the DOLE & its social partners to develop results-based metrics thru:

- Developing sectoral and organizational outcome indicators that are linked with PDP critical

indicators as benchmark for performance monitoring and evaluation of key results under the LEP;



increased investment. - Identifying key deliverables in terms of outputs, programs, projects and activities across the

LEP commitments; and - Defining clear accountabilities among the tripartite partners.

Consultations are underway and the Scorecard’s initial framework is expected to be in place by end of 2012. The Scorecard is a management tool that will allow the monitoring of how implementation is progressing with respect to the plan

o Framework on the Trade & Employment Linkage. In the light of increasing trade liberalization

through regional and bilateral free trade agreements, the framework assesses the impact of trade on employment. To analyze for employment effects, critical elements in the framework include the following:

- Benefits of trade liberalization on employment - Role of government in facilitating the transition process following trade reform - Labor market policies that should accompany trade reforms in order to maximize the

opportunities arising from liberalization

Results of the study reveal large analytical and capacity gaps that DOLE plans to address by end of 2012.

o My First Job Program. According to an ADB Study, the first job matters in influencing a young

person’s lifetime employability. The project therefore is a pilot which designs develops and pre-test a full cycle job placement (career counseling and coaching, access to career information, access to training and linked to internships) for high school leavers and teenagers , deemed most vulnerable to unemployment and precarious forms of employment .

The Project will be tested in three “ready” PESOs and targets 1,600 youth. Impact evaluation after two years will ascertain if the beneficiaries did better in finding comparable jobs than their peers and help inform DOLE if a larger project be undertaken.

The project will commence as soon as the ADB support is made available.

o Livelihood Convergence Program. This DOLE project provides bridging mechanisms, nurtures the entrepreneurial climate and promotes transitions to formal employment.

For more information, contact: Bureau of Local Employment (BLE) Head:Director Maria Criselda R. Sy Tel. No: 5270108 E-mail:[email protected] Website:http://www.ble.dole.gov.ph Technical Education and Skills Development Authority (TESDA) Focal Person:Executive Director . Maria Susan P. Dela Rama

Tel. No: 893-1966 E-mail: [email protected] Website:www.tesda.gov.ph

http://www.ble.dole.gov.ph/

http://www.tesda.gov.ph/


Further narrow the skills-jobs mismatch by revising curricula and

training. Ensure that skills needed for the Seven Big Winner

sectors are included in the curricula. Increase interaction

between TESDA and the private sector

ARANGKADA Evaluation in 2011: STARTED**** There is substantial recognition at leading public sector education agencies of the need to provide students with basic and specialized skills for employment in the 7 big Winner Sectors. Getting the match right is a challenge, as the current large oversupply of the PRC-certified nurses shows among the most adversely affected by unemployment in the youth sector, In 2010, out of the 2.9 million unemployed, 1.5 million were in the 15-24 age group, constituting 51% of the unemployed and compared to the national unemployment rate of 7.4%. The mismatch between labor supply and labor demand occurs on two levels: educated employed and out-of school youth.

DOLE Progress Report as of September 2012: The DOLE chairs the Technical Working Group on Convergent Programs to Address Job Mismatch under the Human Development and Poverty Reduction (HDPR) Cluster.

Convergent Program # 1: Education and Training Curriculum Review a. K to 12 Modeling Program for Grades 11 and 12

by virtue of DepEd Order No. 36 issued on 09 May 2012, the modeling approach for Grades 11 and 12 started in SY 2012-2013 in 33 schools (9 public schools, 15 public Tech-Voc schools, and 9 higher education institutions) nationwide with the identified schools offering subjects of specialization relevant to the needs of industries in the locality.

b. Review of Higher Education and Training Curriculum

On-going review/updating /modifications of policies, standards and guidelines (PSGs) of curricular programs in the following: - Maritime. Maritime Education, Management Level Courses for Deck and Engine; Bachelor of

Science in Naval Marine Engineering; Bachelor of Science in Marine Transportation; and Bachelor of Science in Marine Engineering

- Engineering. Development of Graduate Programs for Engineering; review of monitoring

instrument for Engineering.





between TESDA and the private sector - Architecture. Bachelor of Science in Architecture; Bachelor of Science in Interior Design;

Bachelor of Landscape Program - Board Programs. Nursing, Medicine, Occupational Therapy, Physical Therapy, Dentistry,

Optometry, Midwifery, Respiratory Therapy, Pharmacy, Rad Tech, Nutrition, Medical Technology, Biology, Geology, Chemistry

Continuing and sustained dialogue with industry associations and experts for the development and review of Training Regulations (TRs). TESDA targets 8 new TRs for development and 70 TRs for review and updating in 2012. The new TRs are for priority sectors such as ICT/BPO, Tourism, Agriculture and Semiconductor industries. In 2011, 14 new TRs were developed for Game Programming NC III, 2D Game Art Development NC III, Micro Finance Technology NCIII, Fashion Design NCIII, Telecom OSP and Subscriber Line Installation NC II, among others. The First National Technical Education and Skills Development (NTESD) Congress themed “Investing in the 21st Century Skilled Filipino Workforce” was held on August 29, 2012 in Le Pavilion, Metropolitan Park, Pasay City. The event was able to gather more than 1,000 education specialists, technical vocational education training (TVET) administrators and providers, policy makers, industry executives and representatives from the International Labor Organization, World Bank, Asian Development Bank and other international organizations. The Congress focused on strategies to develop the 21st century skilled Filipino workforce linking technical education and skills development to the requirements of the labor market as a way to solve the problems of jobs-skills mismatch. The topics included the education reforms to prepare the 21st century skilled workforce, developing the higher level technical education and skills development, Green Skills, and 21st century learning skills thru ICT.

Convergent Program # 2: Development of Philippine Qualification Framework

The Philippine Qualifications Framework (PQF) establishes the national standards and levels of outcomes of education and training, skills and competencies that are internationally benchmarked for all qualifications at all levels of education and training in the Philippines, thereby facilitating international mutual recognition of skills and qualifications of the Filipino workforce.






The PQF was presented to several En-Banc bodies (CHED, K to 12 Steering Committee, ICT Industry Group, CHED Technical Panel on Engineering and TESDA Technical Experts); was approved and endorsed by the HDPR Cluster on May 10, 2012 and by the NEDA-SDC Cabinet Level on May 18, 2012. An Executive Order, Institutionalization of the PQF has been drafted and presented to the external Technical Working Group composed of DepEd, TESDA, CHED, DOLE and PRC. The EO is now under review by the Office of the Executive Secretary.

Convergent Program # 3: Career Guidance Advocacy Program

a. Career Guidance Advocacy Plan will pave the way to making national and

regional labor market information (LMI) trends (e.g. Hot Jobs, In-demand and Hard-to-fill occupations) and publications (e.g. Occupational Briefs, Career Industry Guides, Labor Market Intelligence Reports) more accessible to the public.

b. The First National Career Advocacy Congress was held on 24-25 May 2012 in

Manila. The event was able to gather 419 participants from the academe, network of career guidance counselors, Public Employment Service Offices, key industry players and government sector. As an outcome of the activity, a Statement of Cooperationwas signed by 217 government and private sectors representatives. A memorandum of Understanding among DOLE, DepEd and other agencies regarding inter-agency collaboration in the promotion of LMI and career guidance has been forged as well.

c. The Career Guidance Week (dissemination of LMI Materials, Career Guidance

Orientation Sessions, Psychological and Personality Test in participating schools, colleges and universities) is scheduled to be incorporated in the High School curriculum starting SY 2013-2014.

Convergent Program # 4: Optimizing the Utilization of Enhanced PhilJobNet a. The Skills Registry System (SRS) aims to promote the utilization of Phil-Jobnet

by enjoining all newly graduates to register to the Skills Registry System (SRS). The SRS is a major sub-system of the Phil-Jobnet that houses a “live” registry of skills at the Philippine Employment Service Offices (PESOs) to facilitate referral and placement of jobseekers, given the available job vacancies of establishments in the community.






SRS 1st and 2nd Wave deployment has covered 150 LGUs, with 224,607 registrants as of February 2012. SRS 3rd Wave implementation targets 200 LGUs.

b. Expanded links of the DOLE Data Warehouse aims to integrate government data

hubs to facilitate verification of applicant information on skills certification and accreditation, licensure, and local and overseas employment data. The DOLE Data Warehouse is another major sub-system of the enhanced Phil-Jobnet, which is capable of performing online verification of applicant information on skills certification and accreditation, licensure, and local and overseas employment data from the data hubs of DOLE-BLE, POEA, TESDA, PRC, Maritime Training Council (MTC) and the National Maritime Polytechnic (NMP).

Note: During the 2nd State of the Nation Address last July 2011, President Benigno S. Aquino III directed the DOLE, CHED, TESDA and DEPED to jointly address the „job mismatch‟ issue through:

a. Reviewing the education and training curriculum to suit industry needs, and b. Guiding the course and career choices / decisions of students.

TESDA - Industry partnerships are strengthened through continuing dialogues to generate labor market information on in demand jobs and priority qualifications for which Training Regulations should be developed. In 2011, consultations were conducted with the following sectors:

ICT-BPO

Telecommunications

Construction

Agri-Fishery

Semiconductor and Electronics

Tourism

Automotive

Maritime These resulted to at least 10 Labor Market Intelligence Reports (LMIRs) and the identification and promulgation by the TESDA Board of the priority qualifications.





between TESDA and the private sector TESDA – Private Partnerships were forged to expand access to quality technical education and skills development, to wit:

HOLCIM for construction

COKE for grassroot retailers

PLDT for the Telecommunications qualifications, among others. Related Issues Preventing Brain-Drain: Continuing consultations with industry players on in demand and hard to fill occupations as part of labor market signalling of DOLE.

1. To ensure the supply of the much needed skills in the labor market, regular signaling on the in-demand and hard-to-fill occupations by DOLE dubbed as "Project JobsFit" must be done between and among key industry players and educational institutions. The labor market information generated from said signaling activity shall be processed into career advocacy materials for the youth to guide them in their future career choices. "Project JobsFit" as the main LMI of DOLE is updated every two years.

2. Provide the OFWs real time information on available jobs and labor market

developments, accreditation, and permits for re-employment. 3. Engage local government units in implementing the skills registry system for skills

profiling of their constituents, including OFWs, to identify those who may be invited to conduct technology transfer and those who are in need of skills training and entrepreneurship assistance.

Issuance of policy guidelines on the Positive List of Occupations for the Philippine Labor Market Test:

a. The DOLE has a mandate to gather and develop labor market intelligence and it is in pursuit of this mandate that the Department has identified CNC Machinist as Mission Critical Skill (MCS) through the issuance of Memorandum Circular No. 02, Series of 2012 establishing specific measures on protecting the workers as well as clear-cut requirements on their hiring by overseas employers. Following the issuance of the circular, a technical working group within the DOLE was tasked to formulate specific measures for Philippine industries to retain mission-





between TESDA and the private sector critical skills, boost the competitiveness of the country‟s industries, and squarely address the "brain drain" issue.

b. The proposed Positive List of Occupations is a listing of hard to fill occupations

derived from the result of survey and consultations conducted by the DOLE. The objectives of the positive list are: 1) to assist industries find the qualified workers to fill in their vacancies so as not to disrupt operations by removing rigidities in hiring foreign experts; 2) to serve as signal to academe and training institutions to produce the critical skills; 3) to serve as policy guide in the deployment of persons possessing the skills. Foreign nationals possessing the requisite qualifications specified in the positive list who will be hired by companies to fill in their hard to fill vacancies will be exempted from the labor market test.

Development of training subsidy program for hard-to-fill occupations:

a. TESDA shall develop a more comprehensive subsidy program for dual training

courses, especially those identified under hard-to- fill occupations. This is in response to the demands to provide adequate supply of skills to key industries that are expected to generate the most number of employment for the economy. Currently conducting consultation/review of the Guidelines for the Implementation of the Apprenticeship and Learnership Program.

b. TESDA and OWWA shall network with businesses and other industry partners in

providing a package of services, including training, investment, saving, and entrepreneurship assistance to OFW returnees.

c. TESDA and DOST to strengthen their partnership with academe in the

development and implementation of modules particularly on the training of CNC Machinists, to be used by the education and training institutions to hasten the production and replenishment of said hard-to-fill occupation.

For more information, contact: Bureau of Local Employment (BLE) Head: Director Maria Criselda R. Sy Tel. No: 5270108 E-mail:[email protected] Website:http://www.ble.dole.gov.ph Technical Education and Skills Development Authority (TESDA) Focal Person: Executive Director Maria Susan P. Dela Rama Tel. No:893-1966 E-mail:[email protected] Website:www.tesda.gov.ph


http://www.tesda.gov.ph/


Processing of Alien employment Permit (AEP) application

DOLE Progress Report as of September 2012: In response to the clamor to simplify the procedures and requirements in the issuance of Alien Employment Permits, particularly the observations made by the Office of the Ombudsman, the DOLE amended the existing Department Order No. 97-09, entitled Revised Rules on the Issuance of Employment Permits to Foreign Nationals, through the issuance of Department Order No. 120-12 which took effect on 10 April 2012.

Following are the revisions made to simplify the processing of AEPs: a. The requirements for copy of AEP in case of renewal as well as the notarization of

the application form were removed. b. Processing period for renewal of AEP is within 24 hours after receipt of

application. For new AEP, processing time is 24 hours after publication or within 3 working days after receipt of application.

c. Ocular and verification inspections were removed d. Conviction of criminal offense and/or fugitive from justice were identified as

specific grounds for denial or cancellation of AEP instead of derogatory record.

e. Employers who are employing foreign nationals without valid AEP are now covered by the penalty provision.

2. The study on the Philippine labor market test conducted by Dr. Charles Stahl under

the Trade Related Technical Assistance Project 2 of the EU has been published. 3. DOLE will consult the stakeholders in October 2012, especially the professionals and

labor groups, employers, academe and government to finalize the Positive List of Occupations, which are hard to fill. Foreign nationals who possess the required qualifications and experiences will be exempted from the labor market test if they are hired by companies to fill in their hard-to-fill vacancies, which are included in the Positive List.

4. An AEP Online Application System will be launched by DOLE before the year ends.

The system will eliminate personal contact between the applicant and the DOLE employees thereby reducing probable red tape. Application form and supporting documents will be submitted online using the applicant‟s personal email, and payment of fees and fines will be received over the counter by an accredited bank.

For more information, contact: Bureau of Local Employment (BLE) Head: Director Maria Criselda R. Sy Tel. No: 5270108 E-mail:[email protected] Website:http://www.ble.dole.gov.ph



Develop a package of incentive to attract manufacturers

relocating from China

ARANGKADA Evaluation in 2011:NOT ONGOING***

The GPH continues to offer fiscal incentives under EO 226 and laws for SEZs and PEZA. DOF proposals to end ITH would handicap Philippine competitiveness ability to attract manufacturing relocating from China and elsewhere. While some relocations are beginning under existing incentives, special labor incentives for relocating manufacturers – such as 5-year holiday from minimum wage are non-existent.

DOLE Progress Report as of September 2012: The Two-Tiered Wage System would eventually address the issue, in 3-5 years of its implementation, wage reform will lessen the pressure on minimum wage and will promote collective bargaining and other forms of voluntary, enterprise-level negotiations between workers and employers.

dole -arangkada progress report - department of labor … arangkada progress report 201… · final...

Documents