LaborSituationinthePhillipines:InterviewwithDarwinMarianoofWorkers

AssitanceCenter,Phillipines

Introduction

DarwinMarianoisoneofthestaffinWorkersAssistanceCenter(WAC)basedinthe
Philippines.WACislocatedabout30minutessouthofManila.WACwasfoundedin1995
byitslateExecutiveDirector,FatherJoseDizonwhenhewastheParish(priest)ofthe
town(Rosario,Cavite).FatherDizoncreatedit(WAC)asasocialpastoralprogramofthe
church.Butafterayearbecauseofthegrowingdemandorneedfortheworkerstoaddress
theirneedsandconcerns,FatherDizonestablishedWACasanIndependentLabourNGO
(NonGovernmentOrganization).ThislaborNGOworksprimarilytoorganizeworkers,
especiallyinthefactories(manufacturingplants).WACalsohasservices,suchaslegal
assistanceandeducationprogram.Itgivesfreeadviceandlegalassistancetoworkerswho
needtofilecaseswhentheyregettingfiredorhavingsomeproblemswiththeirworkinthe
manufacturingplants.WACalsohaslaboreducationprogramsuchasgendereducation
programforworkers.TheeconomiczonewherethisNGOworksistheCaviteEconomic
Zone(CEZ)inRosarioofCaviteProvince.Itisthebiggestpubliclyownedandoperated
economiczoneinthePhilippineswhere60to70thousandworkersworkinabout280300
foreignownedmanufacturingplants.Almostaround50to60percent(oftheworkersin
CEZ)arewomen.

SedaneinterviewedhimduringAsianRoundtableonSocialProtection(AROSP)organized
byAMRC(AsiaMonitoringResourceCenter)7and8December2016inJakarta.
AROSPservesasaplatformtoprovidemutualhelp,facilitateinformationsharing,and
helporganisationsbuildtheirunderstandingonsocialprotection.Asaregionalnetwork,it
aimstosupportandconsolidatetheregionalstruggleforsocialprotectionforthepoor
acrossvarioussectorsinAsia.

WhatsthelaborsituationinthePhilippinesforthelasttwotofiveyears?

ThelaborsituationthelasttwotofiveyearsinthePhilippines.ActuallyIcantspeakforthe
PhilippinesingeneralbutIcanspeakfortheareawherewearebased,inthecavite
economiczone(CEZ).
(In)Thelasttwotofiveyears,werealreadyfacing,asidefromunionorganizing,were
alreadyfacingandtryingtosolvetheproblemofcontractualizationinourarea.But
actually,ourworkagainstcontractualizationreallystartedevenasearlyas2000.Wehave
twostrategiesinaddressingcontractualizationinthelabormovement,inlabororganizing
inthePhilippinesinourareainparticular.Oneistheunionshouldtakeupthestruggleof
contractingworkersinthefactory;andsecond,theworkersundercontractualscheme
shouldchallengethelaw,especiallythelaborlaw.LaborlawinthePhilippines,orthelabor
codeinthePhilippines,theresaspecificprovisionthatstatesworkerswhoworkina
companyforsixmonthsormorethanayearshouldbedeclaredregularorshouldgain
regularstatus.

Sohowdowedoitincaseoftheunionorganizing?Wehavetwospecificcaseswherethe
uniontookupthestruggleofthecontractingworkers.Althoughtheyreadecadeapart.The
firstoneisaroundearly2000whenwefoundedagarmentunioningarmentsfactoryinthe
economiczone(CEZ).Almost50%oftheworkforcewerecontractualworkers.Whenthe
unionwasfinallyestablished,thecontractualworkerswereactuallysupportedtheunion.
Whentheunionwonthecertificationelection,they(union)foughtfortherightsofthe
contractualworkerstoberegular.Themanagementgrantedit.Althoughthemanagement
closedthefactory,itisoneofourbiggestvictoryinaddressingthecontractschemeinthe
Philippines.

Thesecondoneitwasinthe2010orsomewherelikethat.ItsGoldenWillFashion.We
managedtoorganizeaunionthere.Thefactorywaslocatedattheothereconomiczone,
FirstCaviteIndustrialEstates(FCIE)inDasmarias,itsaprivateindustrialestate.Therere
alotofgarmentworkerswhoworkedinsidetheplantforalmosttwoyears,threeyears,
undercontractualscheme.SoWemanagedtoconvincetheworkerstofilecasesfor
regularization,tochallengethelaw.Tomakethelabordepartmentdeclarethemasregular
workersintheplant.Thecaseshavevaryingdecisions,sincedifferentlaborarbiters
handledthecases.Butmostlylaborarbitersdeclaredtheworkersasregularworkersinside
thefactory.

Atthesametime,whenthecontractualworkersarefacingtheircasesforregularization,we
werealsoorganizingtheunion.Soalmostatthesametime,whentheunionwas
establishedandwon,thecontractualworkersalsowontheirregularizationcases.They
became,thecontractualworkerswhobecameregular,becamequalifiedtovoteinthe
certificationelection.Duetothependinglossofthemanagementagainsttheunion,the
ownercloseddowntheplantandtransferedtoanotherplaceinthePhilippines.Closing
downthecompanyistheeasiestwayforthecapitalisttobusttheunion.Justclosethe
plant,andthatsit.Becauseiftheydosomethingelse,theworkerscanstageastrike.So
theyjustclosetheplants,andrelocateittoothercityorprovince.Itsreallydifficulttofind
them,tolocatethemespecially,whenworkersfilecasesforcompensationagainstthe
company.WiththeGoldenWillFashionscase,thelaborarbiterissuedadecisionthatthe
workerswhofiledacaseagainstthecompanyshouldbereinstated.But,theycantgoback
toworkbecausetheplantissofarawayfromtheprovince.

Andthesecondone,we,justlikewhatIsaid,wechallengethecontractualschemeby
challenginglaw.Again,wealreadyconvincedmostoftheworkerstofilecasesfor
regularization;theywereworkingintheplantforaboutonetotwoyearscontinuously.We
hadalotofpositiveresults.Eventhoughthemanagementterminatedthem,theystillwon
thecases.Theworkersaccordingtothedecisionareregularworkersofthecompanyand
notbythelaboronlycontractorandshouldbereinstatedinthecompany.Inaddition,the
companyisorderedtopayworkersbackwagesandotherdamagesduethem.Thisforced
thecompanyitsaKoreancompany,itscalledDaeDuckPhilippinesInc.,(DDPI)which
manufacturesPCBforcars,tosettlewiththeworkersbecausetheyhavethisinvestors
comingintoboosttheirproductioninthecompany.Buttheinvestorisnoncommittal
becauseofthependingcasesfiledbytheworkersagainstDDPITheillegaldismissal,and
regularizationcasesbytheworkersagainstDDPIwhichWAChandlesweresettled.

Inourviewofcontractualization,whatweareoppossing,istheillegalschemeoflaboronly
contractinginthePhilippines.BecauseitisreallyillegalaccordingtothePhilippinelabor
code.Itiswhatweareopposingbutthe(DepartmentofLaborandEmployment)
departmentorder18A,ifIamnotmistaken,issuedalmostonetotwoyearsafterthe2008
financialcrisis,they(thedepartmentoflabor)almostgavethemanpoweragencies,labor
onlycontractors,toexistlegally,almost.Thelabordepartmentsetstandards/qualifications
fortheselaboronlycontractorstooperate.Sotheyaretoleratingthislaboronlycontractors
tooperateaslongastheymeettherequirements.
Sowearestillchallenging,wearechallengingthelaw.Asofnow,thenewadministration,
althoughitsstillrhetoricforus,theysaythattheywillendcontractualizationwith
compromises.Butaswecanseethecompromisewouldmeanthattheywouldstilltolerate
thescheme,becauseintheirviewtheinvestorwouldhavebadimpressionagainstthe
Philippines,wouldlaterfleeifcontractualizationisended,butstillwereopposing.

AnysignificantsituationinLabourLaws/regulation(national,provincial)inthelas
fiveyears?Why?

TherewasabillpassedinthePhilippinecongressbeforetochangethePhilippineLabor
Codebutitdidntpassthecommitteelevel.Ifweopenthelaborcodetorevisionor
changes,ifitisbadnow,itwouldbecomeworse.ThePhilippineslaborcodeisbadasitis,
butitisnotyetbeingfullyimplemented,inourview,tobenefittheworkers,justlikethe
PhilippineConstitution.Wedontwantittoberevised,especiallyfortheinterestofthe
Philippinesdynasty,thebusiness;theyhavethemoneytolobby,whatprovisionsaregoing
tobeincluded,andthepeoplebeleftbehindagain.

Inrelationtolaboronlycontractoragencies,isitsomekindofcompanythatoutsource
workersandthendistributethemtoworkindifferentplantsanddeductsomeoftheir
wages?

LaboronlycontractingareillegalinthePhilippines,because,laboronlycontractorsjust
supplyworkersinsidetheplants,theydonthaveanycapitalormachinesrelatingtothe
businessofacertainmanufacturingplant,soitsillegal.Buttherearejobsthatcanbe
outsourcedallowedbylawlikeutilitywork/cleaningservicesandsecuritydetailsbecause
thesejobsarenotdesirableandnecessaryforthebusiness.Andtherearealsocertain
provisionsinthelaborcodethatpermitcompaniestohireadditionalworkersinacertain
periodoftimewhenthecurrentmanpowerlacksinrelationwiththevolumeofwork.But
thisprovisionisusuallyviolatedascompanieshiremoreworkerstomeetthedeadline
earlierandavailtheincentivesfromthebuyer.Thispracticeofhiringalotofworkerswhile
imposinghighquotas,workersareleftwithnojobsinperiodsoftimeliketwotothree
monthsbecausetheyfinishedtheorderofthebuyerfaster.

Soiftheircontract,ThecontractwiththebuyerisaboutOk,finish100millionunits,and
finishitfor6months,andyoullgetincentives.Ifyoufinishitearlieryouwillgetthe
higherincentives.Sowhattheowner,foreignowneroftheplantwilldo,justraisethe
quota.Sotheworkwhichissupposedtobe6monthslongtheycanreduceitto3months.
Soafter3months,theworkerswereabletomeetthebuyersdemandfor100millionunits,
inthenextthreemonthstheyareoutofjobs.Companiesusuallydeclarevacation.What
willhappentotheworkers?Theyhavefamiliestosupport.Theyaresettinghighquotas.
Naturally,workerscantachievethequotainan8hourwork,sotheywillrenderovertime.
Andtheovertimeisverytiring.Accordingtothelaborinternationalstandardovertime
shouldbevoluntary;itshouldnotbemorethantwohoursinaday.Ifitsmorethantwo
hoursyoushouldagain,asktheworkers,iftheyarewillingtoworkformorethantwo
hours.Butthenthetwohourovertimeworkisjustinternationalstandard.Butinsomeof
theplantstheymaketheworkersforciblyworkforfourhours,andsometimestheymake
theworkerssleepintheplant.Sometimestheyevencheattheworkersfornotpayingthe
rightovertimepay,wecallitovertimethankyou(OTTY).Itsstillhappening,nomatter
howweaddressedit.SoThishappensbecauseaworkerishaslowawarenessofhisrights,
hecanbecheatedandbesubmissivetowhattheplantownerwants.

OTTYwasprevalentinthegarmentsectorbefore.