1. Reinforcing Labor Relations through Responsive Regulations:
An assessment of the regulatory reform areas in
Book Five of the Labor Code, As Amended
PATRICK P. PATRIWIRAWAN, JR.
Institute for Labor Studies
Department of Labor and Employment
Manila, Philippines
4th Regulating for Decent Work Conference
ILO Geneva, Switzerland | 8-10 July 2015

2. Content Outline Issue Definition and Objective Theoretical Paradigms
Framework of Analysis
Policy Context and Alternatives
Labor Organization
Collective Bargaining
Dispute Settlement
Strike and Lockout
Recommendations

3. Issue Definition
Since the enactment of the Philippine Labor Code in 1974, profound changes in the socio-economic and political landscapes have taken place.
Changes have influenced the transformation of a new world of work now perceived to be incongruent with the original framework of the Code.

4. Research Objective
The paper examines the responsiveness of the Code by analyzing the extent to which policy objectives have been carried out through the issuance of regulatory interventions as measured by the identified policy indicators.
The paper advocates for the need to reform the Labor Code as policy issues arise from each of the regulatory areas identified in Book Five – Labor Relations.

5. Theoretical Paradigms
Dunlop’s Industrial Relations System
(Dunlop, 1953)
Theory explains and predicts interdependencies or interrelations among process coefficients.
Corporatism
(Philippe Schmitter & Gerhard Lehmbruch, 1982)
Direct state intervention in the political or economic system under the banner of public interest.
Theory of Economic Regulation
(George Stigler, 1971)
Regulation is instituted primarily for the protection and benefit of the public at large or some large subclass of the public

6. Framework of Analysis Labor Market Realities LR Policy Objectives
1987 Philippine Constitution
LR Legislations/
Regulations
Labor and Other Legislations
Administrative Regulations
FEEDBACK
International Conventions
PD 442 (Book V)
PD 442 (Art. 3 & Art.211)
LR Policy Formulation
LR Policy Implementation
Institutions
Stakeholders
Labor Market Realities
INPUT
PROCESS
OUTPUT

7. Policy Context: Labor Organization
Policy Objectives:
(1987 Constitution) Right to self-organization
(1974 Labor Code) Free and voluntary labor organization
(ILO Convention 87, 1953) Freedom of Association
Regulatory Interventions:
Art. 234 – 246 of Book V
Enactment of RA 9481 (2007) Strengthening the right to self-organization
DO No Series of 2003 (IRR on Book V)
Policy Outcome: low density rate over time

8. Union Density Rate
Data Source: Department of Labor and Employment. Bureau of Labor and Employment Statistics, 2012 Yearbook of Labor Statistics and Current Labor Statistics (October 2013).

9. Workers Association Density Rate
Data Source: Department of Labor and Employment. Bureau of Labor and Employment Statistics, 2012 Yearbook of Labor Statistics and Current Labor Statistics (October 2013).

10. Policy Alternatives Firm/ Enterprise Industry National Global
Level of Analysis
Policy Options
Firm/
Enterprise
Make 20% requirement for independent unions in Art.234 directory, not mandatory or completely remove minimum membership requirement in Art. 234
Recognize continuous union membership when an employee transfers to another company
Industry
Enable/Institutionalize multi-employer organizing such as craft unionism or industry unionism
National
Reduce required number of affiliates for federations
Empower TUCs to issue charters
Global
Encourage affiliations of national unions or federations with international trade unions such as the ITUC
Explore the nature of representation of such affiliations
Look at possibilities for bilateral union agreements towards multinational union collaborations
Areas to explore further

11. Policy Context: Collective Bargaining
Policy Objectives:
(1987 Constitution) Right to collective bargaining and negotiations
(1974 Labor Code) Free collective bargaining and negotiations
(ILO Convention 98, 1953) Right to Collective Bargaining
Policy Interventions:
Art. 250 – 259 of Book V
DO No Series of 2003 (IRR on Book V)
Policy Outcome: low coverage rate over time

12. Collective Bargaining Coverage Rate
Data Source: Department of Labor and Employment. Bureau of Labor and Employment Statistics, 2012 Yearbook of Labor Statistics and Current Labor Statistics (October 2013).

13. Policy Alternatives Firm/Enterprise Industry National Global
Level of Analysis
Policy Options
Firm/Enterprise
Explore WAs negotiation with local government authorities for security of tenure in the place or routes where they conduct their business/work*
Industry
Enable/Institutionalize multi-employer bargaining or sectoral/industry-wide bargaining
National
Explore prospects for national bargaining
Global
Strengthen partnerships and coordination among national trade unions of ASEAN member countries for possibility of collective bargaining with the employer sector within ASEAN
*Bitonio, B. E. R. (2012, November). Industrial relations and collective bargaining in the Philippines. ILO Working Paper No. 41. ILO: Geneva.

14. Policy Context: Dispute Settlement
Policy Objectives:
(1987 Constitution) Preferential use of voluntary modes in settling disputes, including conciliation
(1974 Labor Code) Voluntary arbitration, mediation and conciliation, and adequate administrative machinery for the expeditious settlement of labor disputes
Policy Interventions:
Art. 260 – 262 of Book V
Enactment of RA 6715 New Labor Relations Law and RA Strengthening Conciliation and Mediation
DOLE Cir. No. 1 (Administrative Intervention for Dispute Avoidance) and DO No Series of 2003 (IRR on Book V)
Policy Outcome:
low disposition rate of cases in the past but with steady improvement
Adversarial, legalistic, complex with multiple entry points
and multiple layers of appeal

15. Number of Cases Handled by Type of Case
Data Source: Department of Labor and Employment. Bureau of Labor and Employment Statistics, 2012 Yearbook of Labor Statistics and Current Labor Statistics (October 2013).

16. Disposition Rate by Type of Cases
Data Source: Department of Labor and Employment. Bureau of Labor and Employment Statistics, 2012 Yearbook of Labor Statistics and Current Labor Statistics (October 2013).

17. Policy Alternatives Firm/ Enterprise Industry National Global
Level of Analysis
Policy Options
Firm/
Enterprise
Institutionalize labor-management council and/or works council as a preventive mechanism for grievance handling and driver towards productivity gain-sharing
Promote workplace bipartite cooperation
Industry
Explore prospects for industry-based grievance machineries
National
Harmonize policies in promoting voluntary arbitration and compulsory arbitration
Streamline NLRC Rules of Procedure to improve case management and quality management systems
Global
Explore feasibility of handling grievances for workers engaged in virtual economies

18. Policy Context: Strikes and Lockouts
Policy Objectives:
(1987 Constitution) Right to strike in accordance with law
(1974 Labor Code) Not explicitly stated
(ILO Convention) “The right to strike is not set out explicitly in ILO Conventions and Recommendations.” (Gernigon, Odero, and Guido, 1998)
Policy Interventions:
Art. 263 – 266 of Book V
DO No Series of 2003 (IRR on Book V)
DO No. 40-H-13, Series of 2013
Policy Outcome: decreasing incidence of strike/lockout

19. Strike and Lockout Notices
Data Source: Department of Labor and Employment. Bureau of Labor and Employment Statistics, 2012 Yearbook of Labor Statistics and Current Labor Statistics (October 2013).

20. Policy Alternatives Firm/ Enterprise Industry National Global
Level of Analysis
Policy Options
Firm/
Enterprise
Clarify the elements considered in declaring a valid strike especially in consideration of the new element of “damage to employer” as applied in the decisions of the Supreme Court in the cases of Biflex vs. Filflex (2006) and NUWHRAIN vs. Court of Appeals (2008).
Industry
Align coverage of prohibition in the exercise of the right to strike from the ILO principle concerning the right to strike with Section 18 of DO 40-G-03 to exclude private security guards and similar personnel in the private security agency.
National
Align ‘essential services’ criterion with the ‘national interest’ requirement in the exercise of Assumption of Jurisdiction
Global
Explore the possibility of a globalized strike/lockout among internationally affiliated federation members or multinational companies to provide appropriate intervention in light of the globalized labor economy.

21. Recommendations
Alignment of the provisions of the 1974 Labor Code with the fundamental guarantees of the 1987 Philippine Constitution;
Harmonization with international conventions and other labor-related instruments;
Expansion of the coverage of employment and employment relations including promotion of gender equity and equality in the definition of employment relations;

22. Recommendations
Recognition of the emerging forms of work arrangements and work representations with consideration for gender-specific requisites;
Integration of voluntary modes of practices and partnerships between workers and employers; and
Configuration of more streamlined dispute settlement systems

23. Institute for Labor Studies Department of Labor and Employment
Thank you!
Institute for Labor Studies
Department of Labor and Employment
(+63) (02)