THE IMPACT OF GLOBALIZATION ON TRADE UNIONISM IN THE PHILIPPINES

A Term Paper in IR 201

(Introduction to Industrial Relations)

Presented to

Dr. BACH M. MACARAYASchool of Labor and Industrial Relations, University of the Philippines

Diliman, Quezon City

In partial fulfillment of the requirements in

IR 201 First Semester Academic Year 1999-2000

By

JAIME E. NOBLE, JR.IR 201 / 1:00-4:00 p.m., Saturday

October 15, 1999

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Table of Contents

Page

I. Introduction 1

II. Abstract 2

III. The Philippines in the Midst of Globalization 4

Table 1 6

IV. The Philippine Trade Union 7

Table 2 8

V. The Impact of Globalization on Trade Unionism 9

VI. Positive Approaches of the Philippine Trade Unions 13

VII. Globalization Actors: The Dunlopian Model 14

VIII. Conclusion and Afterthoughts 18

Bibliography 21

I. Introduction

Globalization is a reality to almost all countries. It can be considered as the biggest challenge facing the Philippine trade unions at present. Others call it a phenomenon. Because of rising trend of unequal income distribution, the poorer segments of society in terms of income status became more vulnerable to the ill effects of globalization.

To address the outcome of globalization issues, various countries resulted to different structural adjustment as instigated by IMF-WB. This has brought massive displacement of workers because various labor flexibilizations adopted by different enterprises. Such labor flexibilization schemes are the reason for

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the very small percentage of unionized employees and the beleaguered state of the Philippine trade unions.

Workers around the world organize in the form of trade unions to obtain and defend their rights. For it is only through union that workers can effectively air their grievances and demands. Trade union in a way serves as an indication of the progress and extent of participation of workers in running and shaping the direction of industries1. However, unemployment and series of structural adjustments brought about by these phenomena deters efforts to organize the working class.

In the Philippines, instead of the having deadline of full liberalization 2010, the government has reset to year 2004 as the country’s deadline that is much earlier than the deadline for developed economies.2 Consequently, the country has one of the most liberal economic policies in the region that is already quite advanced in the implementation of liberalization.

The paper begins with the Philippine scenario in the midst of globalization. Followed by, closer look at the country's trade union and it's respond to the challenge of globalization. This is followed by positive approaches of the Philippine trade unions. Moreover, an analysis on globalization actors in the context of Dunlopian model was presented. Finally, the paper ends by setting out the conclusions and then afterthoughts are drawn.

II. Abstract

1 Ibon Databank Philippines, “Trade Unionism”, Ibon Facts and Figures, Manila: Ibon Databank Philippines, Vol.11, No.8, April 1988, pp. 2. 2 Antonio Tujan, “Globalization and Labor: The Philippine Case”, Institute of Political Economy Journal, Manila: IPE, No.15, March 1998, pp. 3.

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Globalization is the biggest challenge facing the Philippine trade unions at present. Workers around the world organize in the form of trade unions to obtain and defend their rights. For it is only through union that workers can effectively air their grievances and demands. This paper is a closer look at the country’s trade union in the midst of global competition. It provides positive approaches of the Philippine trade unions as a responds to the challenge of globalization.

The subject has become a major element affecting economic policy. In the Philippines, the most obvious consequences to labor and trade unions have been the downsizing of some companies to reduce their labor cost. Sad to say, some companies are using globalization to bust unions.

The impact of globalization on trade unionism includes; first, increase trade union militancy. It can be noted that one of trade union's responds is to increase wages; second, is weakened trade unions. Globalization policies and the apparent adverse effects of the economy have politicized and mobilized the workers to conduct collective action to demand economic concessions to improve workers conditions; third, is the declining trade union membership.

In all these adjustments, the base for union organizing dramatically shrank. Thus, we need a positive approach of the Philippine trade unions. These are the following; 1) Forming new trade union strategy. To play trade union's roles more effectively, they should address with boldness and seriousness other pressing issues. 2) Forming a global solidarity among trade unions. We can notice that the Philippine trade unions are singing different tunes. Trade

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unions specifically the Philippines should speak one voice and reflect on to these pressing issues.

On analysis of these issues, the author uses the Dunlopian model. In globalization, the state trade unions, and employer's group are the important players. It is often suggested that the bargaining power of the trade unions in general and workers in particular will diminish in an increasing globalized world. Trade unions exist to protect the livelihood and interests of a worker. Certainly, trade union movement does not oppose technological change and various adjustments. Unfortunately, the Philippine trade unions choose solely on increasing wages instead of these programs. The presence of an agent on worker's behalf specifically the trade union may create an atmosphere that it will benefit not only the management but also the workers.

Trade Unions are indeed the only voice of the front-line workers in the Philippines. The Government should encourage employees to join union with the goal of improving quality of work life. In fact, promotion of trade union is mandated in the labor code. There are many misunderstandings among the three actors (state, employers, union) about what really the best action in response to globalization. Thus, the government is expected to act accordingly.

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III. The Philippines in the Midst of Globalization

Let me start by identifying various concepts pertaining to globalization. Globalization means; first, trade liberalization and consequential growth in trade relations within the region and with countries beyond it; second, intensified flows of capital; and third, greater mobility of workers across borders. The term sometimes presented as the preferred alternative to regionalism.

Globalization has become a major element affecting economic policy. It encompasses wide-ranging moves towards trade liberalization, including removal of non-tariff barriers and leveling of tariff rates, more freedom for capital movement across national borders, and advances in communications and methods of quality control. All this turns the world in global factory. 3

Globalization is not really a phenomenon. It is a pretentious term for what we have fought against for many years which is the foreign control of our economy, in short economic imperialism. Nevertheless, the new term is enticing, because it promises so many things that would make heaven on earth. Yet, when we look when we look at the actual consequences of globalization, it is just the opposite.

Just look at the crisis we are suffering in Asia. Asian countries are supposed to be dragons, tigers, and cubs. Now no Asian country, not even Japan and China were spared of currency crisis, food crisis, energy crisis and employment crisis. In the Philippines alone, land conversion of fertile lands into golf courses and industrial complexes has reduced the lands for the cultivation

3International Labor Orgasnization & Japan Institute of Labor, Globalization With Equity: Policies for Growth, Bangkok: ILO Regional Office for Asia and the Pacific, 1998, pp. 1.

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of staple food. Likewise, there were adverse effects on soil fertility because of massive use of fertilizers. The Philippines now imports rice, whereas it used to provide sufficiently in the past.

So, are we saying that no one is benefiting from globalization? Of course not! However, the question is who benefit from it? The upper class who have the capital. The basic sectors of the society are not only excluded but are negatively affected.

Globalization is generally perceived in Third World as an instrument of suppression and exploitation by the industrialized countries.4 Thus, Renato Constatino5 termed it as imperialism. It has successfully "macdonaldized" or "cocalized" the world. This implies rapidly increasing global integration, with far-reaching implication on economy of countries and its trade unions.

In the Philippines, the most obvious consequences to labor and trade unions have been the downsizing of some companies to reduce their labor cost. Likewise, cost-cutting measures and productivity schemes was adopted to improve the global competitiveness of the company. These consequences have dislocated workers and their families. Because of downsizing, unemployment was dramatically increased and those who are retained are assuming heavier workloads.

Sad to say, some companies are using globalization to bust unions. Other plant closures are not the result of bankruptcies, as their owner's claim, but are a common strategy for union busting and to get rid of old workers earning high salary. The company will close it's manufacturing plant but will eventually reopen to another place with new contractual workers with a very low pay. 4 Bach Macaraya, Rene Ofreneo, “Structural Adjustments & Industrial Relations: The Philippine Experience”, Philippine Labor Review, Manila: ILMS, Vol. 16 No. 1, January-June 1992, , pp. 25.5 Renato Constatino, a nationalist writer.

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Table 1ESTABLISHMENT RESORTING TO PERMANENT CLOSURE OR RETRENCHMENT

AND WORKERS DISPLACED BY INDUSTRY

INDUSTRY NUMBER DISPLACED WORKERAgriculture, Fishery, & Forestry

20 386

Industrial 213 7,039 Mining & Quarrying 8 203 Manufacturing 172 5,999 Electricity, Gas, & Water 5 285 Construction 28 552Services 382 5,803 Wholesale & Retail Trade 136 1,525 Transport & Storage 37 666 Finance, Insurance, Real Estate

129 2,513

Community, Social, Personal

80 1,099

TOTAL 615 13,228

Source: Department of Labor and Employment

The Philippines finally came out of recession by the end of 1998, registering positive 1.2 growth rate for the first quarter of 1999. The conditions are comfortable for business to operate based on macroeconomic figures but investments are slow in coming.

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Investors are still cautious while bankers remain conservative in lending. In reality, despite signs of recovery industry is left in doldrums.6 There were 3,072 establishments in 1998 that resorted to closure, retrenchment, and rotation that affected 155,198 workers. From January to March 1999, there have been 615 establishments in the same predicament affecting 13,228 workers. Most of the workers are in manufacturing and CBA covered.

IV. The Philippine Trade Unions

The monopoly of skills is a primary weapon of the trade unions in their quest to improve their membership. Through such monopoly of skills, the threat of the use of strike becomes real. 7 This becomes a major negotiating advantage of the trade unions in asking for such political rights as “union shop” or “closed shop.” However, with deskilling the degree of effectiveness of such negotiating advantage has been considerably reduced.

The Filipino working class constitutes the largest segments of the society. We saw what mass organized expression could accomplish. The Philippine working class played a major role in bringing down the Marcos despotic regime. Similarly, trade unions as the representations of working class organization are expected to play a major role in accumulation wealth by high productivity as well as equitable distribution of wealth through the process of collective bargaining. 8 6 Rosario Guzman, “The Economy Midyear 1999: Crisis Amidst Growth”, Ibon Midyear 1999 Briefing. Manila: Ibon Databank Philippines, pp. 15.7 Bach Macaraya, “Where to, Trade Unions?”, Philippine Labor Review, Manila: ILMS, Vol. 14 No. 1, January-June 1990, pp. 39.8 Ibid., pp. 31.

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There exist other groups with different programs and organizing direction wherein the trade union can collaborate with to fight for social justice. Concerted action therefore is difficult.9

Table 2 LIST OF LABOR UNIONS IN THE PHILIPPINES10

Kilusang Mayo Uno (KMU) Member Organizations:ADLO - Association of Democratic Labor OrganizationANGLO - Alliance of Nationalist and Genuine Labor OrganizationDFA - Drug, Food and Allied Industries Workers AllianceIBM - Ilaw at Buklod ng ManggagawaNAFLU - National Federation of Labor UnionsNFL - National Federation of LaborNFSW - National Federation of Sugar Workers GLOHRAIN - Genuine Labor Organization in Hotel, Restaurant, and Allied

Industries OLALIA - Organized Labor Association in Line Industries and AgricultureSPFL - Southern Philippines Federation of LaborULGWP - United Lumber and General Workers of the Philippines

World Federation of Trade Unions in the Philippines Member Organizations:Katipunan Member Organizations:

9 Ibon Databank Philippines, “Trade Unionism”, Ibon Facts and Figures, Manila: Ibon Databank Philippines, Vol.11, No.8. April 1988, pp. 8.10 Ibon Databank Philippines, “Trade Unionism”, Ibon Facts and Figures, Manila: Ibon Databank Philippines, Vol.11, No.8. April 1988, pp. 8.

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UIF - Union de Impressores de FilipinasAMA - Aniban ng Mangagawa sa AgriculturaKAMPIL - Kaisahan ng Manggagawang Filipino

KMKM - Kalipunan ng malayang Kapisanang ManggagawaLAND - Labor Alliance for National Development NATUA - National Trade Union in Airline IndustryNATU - BATE - National Association of Trade Union (Bate’s Faction)PAFLU - AYROSO - Philippine Association of Free Labor Unions (Ayroso

Faction)TUPAS - Trade Union of the Philipppines and Allied Services

Samahang Demokratiko ng Manggagawa (SDM)Federation of Free Workers (FFW)

Lakas ng Manggagawa Labor Center (LMLC) Member Organizations:GATCORD - Garment, Textiles, Cordage, & Allied Workers of the

PhilippinesKAMADA - Kapisanan ng mga Manggagawa sa DaunganKAMAO - Kristiyanong Alyansa ng Makabayabang Obrero NATAW - National Alliance of Teachers and Allied WorkersNUHWRAIN - National Union of Workers in Hotel and Allied IndustriesMEWA - Meralco Employees Workers Association

Pambansang Demokratikong Manggagawa sa Pilipinas (PMMP Diaz) Member Organizations:PSSLU - Philippine Social Security Labor UnionPLAC - Philippine Labor Alliance Council

Confederation of Free Workers (CFW, Aranza Mendez Faction) Trade Union Congress of the Philippines (TUCP)

ALU - Associated Labor UnionPTGWO - Philippine Transport and General Workers Organization (Diaz

faction)NCFO - National Confederation of Farmers Organization

V. The Impact of Globalization on Trade Unionism

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A. Increase Trade Union MilitancyThe most apparent impacts of globalization on trade

unionism are the series of chain reaction that can be trace its roots from labor flexibilization. The government adopted various repressive policies because of its commitment of lowering the tariff, implement full liberalization. These have sparked trade unions aggressive opposition. By teaming up with other sectoral groups, trade unions formed a broader front from which they could launch their collective action against full liberalization.11

It can be noted that one of trade union's responds is to increase wages. The absence of a living wage, or consistently depressed wage below the already low cost of living standards in the Philippines is the source for monopoly of capitals huge profits. Besides depressed minimum wage standards, additional profits are made because the majority of the enterprise did not implement the minimum wage.12

Companies are legally able to evade the minimum wage law by hiring workers on piece rate basis or hiring workers as trainees or apprentices. Some, industries also apply for exemptions based on distressed status.13 Furthermore, companies also flaunt the law by hiring contractuals who are afraid to complain of being paid less than level mandated by law.

B. Weakened Trade UnionsThere has been a major change in the balance of power,

both internationally and in the individual countries, in favor of the 11 Philippe Lim, “Structural Adjustment in the Philippines & Their Effects”, Philippine Labor Review, Manila: ILMS, Vol. 16 No. 1, January-June 1992, , pp. 19.12 Antonio Tujan, “Globalization and Labor: The Philippine Case”, Institute of Political Economy Journal, Manila: IPE, No.15, March 1998, pp. 18.13Ibid., pp. 18.

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First World. This can be seen in the collapsed of commodity prices of raw materials, partly because of the weakened bargaining power of the trade unions in the third world countries.14 While the Developed countries are hugely benefited from this trend, developing country as the Philippines is unable to shift its gears towards the challenge of global competition because the control lies in the hand of the first world countries.

Labor participation rates rose significantly, particularly among women that increased from 43.7 percent in 1982 to 48.3 percent in 1984. More women were forced to work by the crisis to meet family survival needs.15 The effect globalization on agriculture tended to have negative outcome. These allegedly reflected in such policies as regulated pricing, government control of trade, export taxes, export quotas, export levies which tended to depress agricultural sector contributing to worsening of incomes among rural households where the incidents of poverty were extremely high.16

Globalization policies and the apparent adverse effects of the economy have politicized and mobilized the workers to conduct collective action to demand economic concessions to improve workers conditions. Under Dunlopian theory of industrial relations, trade unions are given an active role to strengthen and to ensure more equitable income distribution within the continuum. Unfortunately, the policy of this theory treated as a counter of the state as evidenced by its policy.

14 A. Singh, “Labor Markets and Structural Adjustments: A Global View”, G. Standing and V. Tokman, Eds., Towards Social Adjustments, Geneva: ILO. 15 Philippe Lim, “Structural Adjustment in the Philippines & Their Effects”, Philippine Labor Review, Manila: ILMS, Vol. 16 No. 1, January-June 1992, , pp. 15.16 Cornea, Giovanni, etal, Adjustment with a Human Face, Quezon City: Clarendon Press, 1987,

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C. Declining Trade Union MembershipOne of the obvious reason is the decline of mass production

capitalism, which gave birth to a mass of blue-collar and, later, a mass of white-collar workers. Capitalism re-invented itself by adopting new technologies, and new ways of organizing business such as having a core-periphery business arrangement, lean-and-mean operation, subcontracting some marginal jobs to other providers, entering to supplier arrangements, networking and so on.17 In all these adjustments, the base for union organizing dramatically decreased.

With the effects of globalization and the changing nature of global economy, employment in manufacturing has been declining while service sector employment has been increasing. However, union membership in the service sector even in the developed countries is relatively low because proliferation of small and micro enterprises where unionism is not viable. Likewise, because of the low pay and marginal nature of jobs in some service sector enterprises were resulting to high employee turnover.18 These instances prevent the organization of employees. Thus, it is a high time for trade union to modify itself.

Another instances wherein trade unionism unsuitable is the rising labor flexibility measures and reorganization. Under globalization, employers have been adopting all kinds of cost-cutting and productivity enhancement measures to get ahead of

17 Rene Ofreneo, Trade unionism in the next wave of globalization: Reflections on union strategies in the new era, Quezon City: UP School of Labor and Industrial Relations, 1999. pp. 4.18 Rene Ofreneo, Trade unionism in the next wave of globalization: Reflections on union strategies in the new era, Quezon City: UP School of Labor and Industrial Relations, 1999. pp. 1.

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the competition. Very often, such effort lead to subvert job security and the usual outcome is the reduction of work force and the net effect of such adjustments is fear among workers.19

Because of the increase load of work, employees who are not unionized are unable to entertain the introduction of union among their companies. 20 Therefore, labor organizing and collective bargaining have become extremely difficult.

VI. Positive Approaches of the Philippine Trade Unions

A) Forming new Trade Union StrategyThere is a need to study how unions can sustain with

greater effectiveness, traditional roles given by globalization forces lined up against the trade union movement are somewhat irrelevant already. To play these roles more effectively, trade

19 Ibid., pp. 2.20 Ibid., pp. 3.

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unions should address with boldness and seriousness other pressing issues.

The main issues for trade union struggle includes; first, living wages; second, end to flexible hiring and other unfair labor practices; third, amendments of the labor code to realized the workers rights to strike fully the law somewhat favored the capitalist. The greatest disservice of Herrera Law is its criminalization of the strike, limiting issues that strike can be legally called, creating a long difficult process.

B. Forming a Global Solidarity among Trade UnionsWe can notice on Table 2 that the Philippine trade unions

are singing in different tunes. Of course, conflict is inherent in any country like ours. It is healthy in a sense, if it creates a balance of opinions to pursue trade union's operations and goals. However, when the situation calls for cohesive effort trade unions should act collectively and establish solidarity with other sectors of the society.

We can say that globalization has managed to transform the global economy into one economic unit. Transnational corporations now routinely declare that their plans are based on the “global strategy”. Under globalization, the world has become a global village.21 This therefore is a wake up call for the trade unions to act as one facing the realities in a progressive approach to address the challenge. Trade unions specifically the Philippines should speak in one voice and reflect on to these pressing issues.

VII. Globalization Actors: The Dunlopian Model 21 Rene Ofreneo, Trade unionism in the next wave of globalization: Reflections on union strategies in the new era, Quezon City: UP School of Labor and Industrial Relations, 1999. pp. 5.

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This chapter seeks to present new ways of thinking about the Philippine globalization experiences in the context of Dunlopian model of Industrial Relations systems.

The Dunlopian model on Industrial relations recognizes tripartism as the cornerstone of sound, progressive and equitable industrial relationships. It embodies the notion of social partners. The state as industrial partner acts as a regulator, moderator, conciliator, and arbiter. It involves three groups of actors; first, the workers and their organizations; second, management22 and their organization; and third, the state specifically the Philippine government. These actors are bonded by common ideology. 23 Clearly, sets of ideas and belief are commonly held by the actor that helps to bind or integrate the system together as an entity. Consequently, the ideology defines the role of each actor that holds toward the place and function of the others in the system.

In other words, it is shared understandings among the three actors. However, economic constraints may impinge on each actor because the product market may vary in the degree and character of competition. Thus, the actors should be adaptive to market and budgetary constraints.

The relative distribution of power among the actors in the larger society tends to a degree to be reflected within the industrial relations systems; their prestige, position, and access to the ultimate of authority.24

22 In this chapter the word “management was translation of a word used as capitalist and employer.23 John T. Dunlop, Industrial Relations Sytems, USA: Southern Illinois University Press, 1958, pp. 17.24 Ibid., pp. 11.

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These and many other features of workplace are significant to the type of managerial and worker hierarchies and government agencies that arise.25

It is often suggested that the bargaining power of the trade unions in general and workers in particular will diminish in an increasing globalized world. Using Dunlopian model, issues related to these assumptions need to be understood clearly by the State, the Employer, and the Union to avoid misconceptions that encourage ill-conceive measures such as the suppression of trade unions what is happening right before our very eyes.

As we can see our unions struggle every day for recognition and for their right to exist at a particular workplace or establishment of whatever kind. Unfortunately, the exercise by the workers of their right to associate freely with one another is always challenge by the employer as if the effort to assert that right could properly be addressed as the subject of a contest. The workers who attempt to form or join a union are faced with squarely with the employer and its advisers. Here, the employer mounts campaign propaganda such as team building, company loyalty, pre-employment pleas of loyalty to the employer, and often intimidation and coercion. In respond, the union and its advisers mount a counter indoctrination to offset the employer's subterfuge and to attract new adherents to the union cause and to at least minimized any intimidation or coercion. In the end, the inevitable result of the struggles is the maintenance of a climate in which cooperation is difficult and productivity is upset.

Again, the author of this paper wants to reiterate that trade unions exist to protect the livelihood and interests of a worker. Therefore, it safe to say that those matters that do not touch a 25 Ibid., pp. 11.

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worker directly, a union can not and will not challenge. However, when management decisions or state decisions affect workers directly a union will intervene.

Certainly, trade union movement does not oppose technological change and various adjustments. There can be no turning back to a shortsighted policy of limiting progress. The answer to these changes lies in smoothing its transition and cushioning the shocks that attend it. This means that the employer should provide reasonable severance pay in case of retrenchment, retraining, and multi-skilling of worker, and reorganization of work schedules to accommodate other workers. These are the social cost that the industry will have to bear in order to avoid wasting of human resources.

For the government, let me emphasized that only when industry has failed to accept social responsibility has labor, along with people as a whole, turned to government for help. There are always dangers that a concentration of power to one of these actors may sacrifice individual freedoms. In fact, the heavy hand of the government siding on capitalist has suffocated the trade unions in general and the worker particular.

The Dunlopian paradigm presupposes that the government has an obligation to help people do what they can not do for themselves. The state should address the problems being caused by globalization through policies that provide social safety nets, and non-bias arena in the field of Philippine Industrial relations. Until government actions (not merely by words) demonstrate that the country is very sincere furnishing impartial playing field, we can attain equal distribution of wealth resulting from investment and therefore a healthy economy.

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The government has an essential role in adapting raw forces of supply and demand. Here, consultation will enable the adjustments of policies concerning economic and labor matters to have programs that are more meaningful. Judgments on the part of the state should be made about minimum income levels, welfare support systems, and protection of basic standards of work, of safety and hygiene. Thus, facilitate the achievement by the government with the cooperation of employers and workers for economic and social development.

Again, author of this paper still believes that the government alone should not be called upon to provide complete social security. The inadequacies of the government system give trade unionist to press for realistic security through private health, welfare, and pension plans. Unfortunately, the Philippine trade unions choose solely on increasing wages instead of these programs. We should bear in mind that collective bargaining, and not government musts ultimately provide the necessary protection against the deficiencies of the system.

The government as an actor in industrial relation, should strengthen grievance and arbitrary procedures and promote stability of the workforce that worker's productivity. In many job's workers are better informed than management on how to improve productivity. The presence of an agent on worker's behalf specifically the trade union may create an atmosphere that it will benefit not only the management but also the workers. Thus, trade unionism should be encourage and not to be curtailed because unionized firms tended to train their workers more which enhance flexibility and efficiency to addressed global competition.

Trade Unions are indeed the only voice of the front-line workers in the Philippines. The Government should encourage

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employees to join union with the goal of improving quality of work life. In fact, promotion of trade union is mandated in the labor code. Suppression of worker's rights creates atmosphere of confrontation that adversely affects the perception of political stability and harmony that are crucial determinant investments in the long run.26 Thus, the government should start reviewing its current programs in promoting trade unionism to attune it to the changing times.

Job security is best achieved by being given the requisite skills and then doing a good job, so that you are in demand, and not by mandating tenure because, globalization is global competition. It is achieve by attracting investment to create massive need for labor. There are many misunderstandings among the three actors (state, employers, union) about what really the best action in response to globalization. One critical area in which change should occur is in the labor environment. The governing laws that are mandated in the labor code are not attuned to the current labor situation.

Furthermore, a number of issues should be resolve to make the country globally competitive. In addition, the challenge of the three actors, more importantly the state. The state should come up with policies and programs that will advance the interest of both labor and management. Likewise, management must lead a positive a positive transformation process in productivity and labor reforms if the overall competitiveness of a business is to be maintained or increased.

26 Bach Macaraya, “Where to, Trade Unions?”, Philippine Labor Review, Manila: ILMS, Vol. 14 No. 1, January-June 1990, pp. 47.

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VIII. Conclusion and Afterthoughts

Globalization succeeds or fails in certain countries. It succeeds on developed countries as goods from them can easily compete globally. In contrast, developing countries like the Philippines, globalization was a failure and resulting from social injustices.

The interplay of various actors as Dunlopian model emphasized has complicated the globalization trend. Each actor had diverse interest to protect. Thus, vulnerable groups specifically the poor were at the receiving end of bad performance of the actors.

As hindsight, the economic hardship being brought by anti-labor policies as result of globalization impinged renewed militancy of the worker. It also a reality that unless we unchain ourselves from the bondage of American colonialism government efforts to transform the Philippines itself from NIChood.

It is apparent that the Philippine economic recovery was consumer led. Capitalism will not work without labors that are themselves consumer at the same time. Accordingly, we have to redirect our politics, economy, and society towards a new development strategy.

As a strategy, it is important to note specifically for the government that globalization has improved the opportunity for a special kind of return migration of skilled labor.27 Here, we can look upon the Chinese return migration as a model. Chinese28 nationals used to work in as engineers and programmers in the West. Until recently, they decided to go back to launch their 27 Azizur Khan, Philippines: Employment in Globalizing and Liberalizing World, Bangkok:ILO

Regional Office for Asia and the Pacific, 1997, pp. 68.28 Chinese from Mainland China and Chinese from Taiwan.

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software firms and high tech companies that has emerge as a major exporter of these products to the industrial countries. There is a distinct possibility for the skilled migrant Filipinos in the United States to do the same once economic reforms make it profitable for them to do so.29 This will have propelling positive effects on investment and employment.

For the trade unions, muscle flexing seems to be the only way workers can be noticed. Nevertheless, the question is how many muscles are available to be flexed. Various protests have been initiated by militant trade unions up to the present, but the state seems to be deaf when it is the issue on wage increase. They assume that other firm might cease in its operation because such increase in wage will make them more vulnerable to financial collapse or might follow what the transnational corporation did recently. Personally, I found the argument very weak. Because the government was not even sure that cost of labor was the inducing factor for these incidents. In fact, Dr. Bello30 emphasized that the main reason for the relocation was the country's instability and extreme economic asunder as manifested by the country’s dual economy asunder. Unfortunately, the government can not notice that from the past to the present workers still continue to one of the economy’s sacrificial lambs.

Finally, the Philippines should avoid the temptation to curb the right of the workers to organize freely in the false belief that this would help promote international competitiveness and encourage foreign investments. In fact, free trade unions can help 29 Azizur Khan, Philippines: Employment in Globalizing and Liberalizing World, Bangkok:ILO Regional Office for Asia and the Pacific, 1997, pp. 68.30 Professor University of the Philippines School of Economics. Emphasized during an interview with Abs-Cbn.

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productivity in a variety of ways. The presence of free and healthy unions helps to counter the adverse effects of globalization in the guise of humanitarian and environmental concerns.

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Bibliography

A. Singh. “Labor Markets and Structural Adjustments: A Global View”. G. Standing and V. Tokman. Eds., Towards Social Adjustments. Geneva: ILO.

Antonio Tujan. “Globalization and Labor: The Philippine Case”. Institute of Political Economy Journal. Manila: IPE. No.15 March 1998.

Azizur Khan. Philippines: Employment in Globalizing and Liberalizing World. Bangkok: ILO Regional Office for Asia and the Pacific. 1997.

Bach Macaraya, Rene Ofreneo. “Structural Adjustments & Industrial Relations: The Philippine Experience”. Philippine Labor Review. Manila: ILMS. Vol. 16 No. 1, January-June 1992.

Cornea, Giovanni, etal. Adjustment with a Human Face. Quezon City: Clarendon Press. 1987.

Ibon Databank Philippines. “Trade Unionism”. Ibon Facts and Figures. Manila: Ibon Databank Philippines. Vol.11, No.8. April 1988.

Ibon Databank Philippines. Ibon Midyear 1999 Briefing. Manila: Ibon Databank Philippines.

International Labor Organization & Japan Institute of Labor. Globalization With Equity:Policies for Growth. Bangkok:: ILO Regional Office for Asia and the Pacific. 1998.

John T. Dunlop. Industrial Relations Sytems. USA: Southern Illinois University Press. 1958.

Philippe Lim. “Structural Adjustment in the Philippines & Their Effects”. Philippine Labor Review. Manila: ILMS. Vol. 16 No. 1. January-June 1992.

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COMMENTS

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