INDUSTRY TRIPARTITE COUNCIL - CONSTRUCTION (ITC - ConstTRUCTION) REGION 7 VOLUNTARY CODE OF GOOD PRACTICES IN THE CONSTRUCTION INDUSTRY ther =. More Aye Republic of the Philippines DEPARTMENT OF LABOR AND EMPLOYMENT ITC-CONSTRUCTION Region 7 ee Voluntary Code of Good Practies inthe Construction Industry (TTC-Constuction RO 7)INTRODUCTION The construction industry, one of fastest-growing in the country, experienced a boom in the first quarter of 2014, generating jobs and enhancing the growth of other industries. The Philippine Statistics Authority (PSA) reported that new construction projects, as indicated by approved building permits, reached 29,468 in the first quarter of 2014, up by 20.8% from 24,000 in same period in 2013. The construction boom was fueled by the sustained growth of tourism and business process outsourcing, strong remittance inflows from overseas Filipinos, and public-private partnership initiatives, resulting in more construction of high-rise buildings, offices, roads and bridges, and facilities for utilities. The construction sector and its allied industries are projected to have a banner year in 2014 as government launched its massive infrastructure development program with nine major projects nationwide costing P62.3 billion. The National Economic and Development Authority (NEDA) said a million homes are set for construction in typhoon-hit areas. Construction products outside of Yolanda-affected areas are also expected to contribute to the growth this year, such as preparations for the Asia-Pacific Economic Cooperation meeting in Manila in 2015 (Information : Steady Growth of Philippine Construction Industry, Manila Bulletin - June 13, 2014) Data from the Bureau of Labor and Employment Statistics show an increasing trend in the construction sector's share to the country’s total employment. From 5.6% share in 2011, it rose to 6% in 2013. Numbers revealed that 48,000 more construction workers were hired in 2013 compared to 2012. In consideration of the emerging working conditions and upsurge of work- related incidents or accidents in the construction sites, the Department of Labor and Employment (DOLE), the Department of Public Works and Highways (DPWH), the Department of Trade and Industry (DT!) and Professional Regulation Commission (PRC) signed the Memorandum of Agreement (MOA) and Joint Administrative Order No. 01 series of 2011. The MOA-JAO includes measures to properly implement DOLE Department Order No. 13 (Guidelines Governing Occupational Safety and Health in the a \Voluntary Cade of Good Practices in the Construction Industry ((TC-Constrction RO 7)Construction Industry) and aims to intensify the holistic and extensive execution of the policies and programs set forth in Department Order No. 13 in the construction sites. ‘The organization of the Industry Tripartite Council - Construction (ITC - Construction) was a response to the government's call to ensure that relative to policy and decision-making in areas affecting the industry, the government; the management; and the labor sector are altogether engaged. The organization of the ITC is primarily aimed at ensuring harmonious labor management relations while addressing the need to promote gainful and decent employment in the industry including the promotion of safety and health standards. Recognizing the indispensable role that the Industry Tripartite Council serves in providing a venue for social dialogue, the members have agreed to adopt and formulate a Voluntary Code of Good Practices that shall address the basic need of ensuring occupational safety and health and achieving higher employee productivity. ‘These goals could best be achieved through the adoption of programs that shall focus on equipping the members and their employees’ basic information on labor relations and labor standards but more importantly on occupational safety and health standards (OSHS). The Code will work on the premise that knowledge of OSHS and application of the various programs will lead to harmonizing the relationship between the workers and the employers. Hence, in the long run, will ensure voluntary compliance to the set rules and standards. OBJECTIVES OF THE VOLUNTARY CODE OF GOOD PRACTICES ON DECENT WORK 1. To advance the concept of social partnership as the framework for sustainable labor and management relation in the industry that ensure job creation, employment preservation, productivity improvement, employment security, employee welfare and corporate social responsibility; | Voluntary Code of Good Practices inthe Consnucton Industry (1-Constucon RO7)2. To provide a set of guiding principles and standard that will govern the operation of the Industry Tripartite Council - Construction (ITC - Construction) in its pursuit for industrial peace, productivity, competitiveness and compliance with labor and social standards, as well as various professional regulatory laws; and, 3, To promulgate good practice guidelines in the construction industry and its key stakeholders relative to employment creation, conditions of work, and labor and management relations, and 4. Strengthen collaboration and partnership with DOLE and other government agencies for unified strategies, approaches, and programs in the advancement of the construction industry. GENERAL PRINCIPLES The members of the Industry Tripartite Council - Construction (ITC - Construction), conscious of the above objectives, hereby adopt the following general principles: 1, That as social partners, we will cooperate in putting decent work into practice believing that its four (4) pillars: rights at work, employment creation, social dialogue, and social protection are key elements to achieving a fair globalization, reducing poverty and achieving equitable, inclusive, and sustainable development; 2. That we value the impact of strengthening tripartite collaboration that marks the depth of a more harmonious relations, thereby translating tripartism into a powerful element that brings effective implementation of labor policies on a voluntary basis, among the members of the Industry Tripartite Council - Construction (ITC - Construction); 3. That we shall utilize the Industry Tripartite Council as a mechanism that enjoins forces in reviewing and developing regulations more responsive to current Bel ‘Voluntary Code of Good Practices inthe Construction industry ('TC-Consiucion RO 7)employment arrangements in the Industry Tripartite Council - Construction (ITC - Construction) through efforts of expanding the domain for social dialogue. Specifically, we join our hands and bind ourselves to the following specific Voluntary Code of Good Practices: 1. Labor Standards 1.1 We shall promote a culture of voluntary compliance with basic labor standards among key players in the industry; 114 We shall abide by company policies consistent with statutes, labor laws and other government regulations; 1.12 We shall abide by the provisions of Anti-Sexual Harassment Act (RA 7877), Philippine AIDS Prevention and Control Act (RA 8504), Comprehensive Dangerous Drugs Act of 2002 (RA 9165) and Department Order 53-03 or the Guidelines in the Implementation of Drug Free Workplace Policies and Programs for the Private Sector, D.0. 73-05 on Managing Tuberculosis in the Workplace, Department Advisory No. 05, series of 2010 or Guidelines for the Implementation of a Workplace Policy on Hepatitis B and other appropriate national policies; 1.13 We shall strengthen the Committee on Decorum and Investigation (COD!) that will receive complaints on sexual harassment, conduct investigation in accordance with the prescribed procedure and recommend actions to the disciplining authority that shall lead to increased understanding and help prevent incidents of sexual harassment within workplaces. a \Voluntary Code of Good Practices inthe Construction industry (ITC-Construction RO 7)1.2. We recognize and value Philippine Labor Laws on security of tenure, as well as procedural and substantive due process in the termination or dismissal of employees. 1.3 We shall provide equal employment opportunities in hiring, retention, promotion, ranking, transfer, classification and termination without gender bias and discrimination to civil status, race, creed, marital status, pregnancy or physical appearance or people working with disability, sexual orientation, socio-economic status, religion, race, cultural beliefs and legitimately registered institution where one graduated without compromising quality service. People with disabilities (PWos), for their own safety, shall be afforded employment opportunities in the offices; For this purpose, we commit to cooperate with the DOLE in the enforcement of labor standards done through the latter's labor standards enforcement machinery, but looking forward, we are also prepared to participate in a tripartite process of self- enforcement where the social partners would jointly assess the compliance of companies in the industry with labor standards, resulting to the issuance of a Certificate of Compliance, 2. Occupational Safety and Health Standards 2.1. We shall recognize occupational safety and health as a critical factor in worker's productivity and company competitiveness. We acknowledge that the occupational safety and health is the joint obligation of both Management and Workers and we agree to fully cooperate in its compliance and execution. For this purpose, we shall: 2.41.1 Formulate and implement occupational safety and health policy and program in pursuit of zero accident in accordance with the Occupational Safety and Health Standards (OSHS), particularly Rule 1410 (Construction Safety) and in compliance with the DOLE Department Order No. 13, series of 1998 (Guidelines Governing Occupational Safety and | ‘Voluntary Gade of Good Practices inthe Construction Indust ((TC-Constuction RO 7)212 243 244 215 21.6 24.7 Health in the Construction Industry) and other related OSH issuances; Organize safety and health committees in our respective companies and in every project site and recognize the importance of the role of each member in the committee to be as vital as their role in the construction operation; Manage the safe execution of the construction operation and the welfare of the workers thru our Safety Personnel and to monitor compliance with industry's regulatory requirements and the construction safety and health program specific to the project. Ensure attendance of workers to the one-day safety awareness orientation prior to their first day of duty, as per Section 12, D.O. No. 1: Adhere to the OSH training requirements for site management staff and encourage accreditation of safety practitioners and advocates among staff personnel; Establish comprehensive Personal Protective Equipment Program and properly manage the efficient selection, issuance and control, maintenance and disposal in accordance with the Rule 1080 of the Occupational Safety Health Standards. All persons inside the construction site shall be provided with approved and appropriate or specialized PPE stipulated under Personal Protective Equipment Annex of the D.0. No. 13; Control fall hazards by using only tested and approved working platform and methodology. Relative to this, no worker shall be allowed to work at heights with substandard a Voluntary Code of Good Practices inthe Construction Industy (TTC-Consinuction RO 7)working platform and structure, unsafe access system, without complete fall protection (fall restrain and/or fall arrest system), and without the supervision of a competent person; 2.1.8 Provide emergency occupational personnel, welfare facilities, medicines and equipment; 2.1.9 Ensure that all heavy equipment being used in the construction are tested and certified, operated by qualified personnel with appropriate certification from Technical Educational and skills Development Authority (TESDA), and third party institutions accredited by DOLE-BWC; 2.1.10 Make sure that during the duration of the construction project, all reportorial requirements to DOLE are being completed and submitted monthly on time; 2.1.11 We shall ensure that submission and implementation of DOLE approved Construction Safety and Health Programs as a requirement in the issuance of Building Permit by the Office of the Building Official is pursuant to the MOA-JAO. 2.2. We commit to perform our obligations under the Social Security System, PAG-IBIG, Employees Compensation Commission and Philhealth to enable our employees to avail of their benefits in the event of contingency. 2.3. We shall ascertain that only contractors, including subcontractors and specialty contractors, licensed in terms of RA 4566 by the Philippine Contractors Accreditation Board (PCAB) shall be allowed to engage in any construction/project. 24 We shall ascertain that only qualified professionals with valid licenses, certificates of registration and/or special permits issued by the Professional Regulation i? ‘Voluntary Gode of Good Precces inthe Construction Industry ((TC-Constucion RO 7)Commission (PRC) shall be allowed to undertake the full time inspection and supervision of the construction work as required by Section 308 of P.D. 1096. 3. Labor-Management Relations 3.1. We respect the workers’ twin constitutional rights to self-organization and collective bargaining and shall refrain from interfering in the exercise of the same in the industry; at the same time, on the part of the workers, we shall exercise utmost restraint in dectaring or staging any strike or work slowdown or other forms of work stoppages until we have exhausted all available voluntary modes of dispute settlement, including conciliation-mediation and voluntary arbitration. 3.2 We will adopt the voluntary modes of dispute settlement and we commit to using these modes in the settlement of disputes that may arise in the industry through the Single Entry Approach (SENA). 3.3. We consider labor education as critical to a better understanding of effective labor-management relations and for this reason shall make ourselves available for labor education opportunities provided by the Department of Labor and Employment and other government agencies. 34 We shall dedicate ourselves to the principles of tripartism and social dialogue and in using the mechanism of the Industry Tripartite Council - Construction (ITC - Construction) in Region 7 to address various economic, social and labor issues affecting the industry as a whole and in identifying labor governance area that needs reform. 3.5 We view Labor-Management Cooperation as essential to the success in advancing industrial relations and shall cooperate with the Department of Labor and Employment (DOLE) and its attached agencies in the introduction of the concept and practice of Labor Management Cooperation in the Construction Industry in Region 7. | Ps | \Voluntary Code of Good Practices in the Construction Indust ('TO-Consiructon RO 7)3.6 We shall organize and strengthen Labor and Management Council for documentation of emerging good practices in labor management relations, human resource development, occupational safety and health, and related fields. 3.7 We shall implement transparency on work rules and regulations in the industry through regular orientations, distribution of personnel manuals and published guidelines. 3.8 We shall exhaust all possible mechanisms, remedies and strategies in set disputes and shall adopt the alternative modes of dispute settlement. 3.9 We shall observe proper venue to ventilate personal grievances against colleagues or officials, and endeavor to discuss the same before the Labor-Management Council (LMC) or Grievance Machinery. 3.10 We shall cooperate in advancing a culture of voluntary compliance with labor laws together with members of the supply chain through the Incentivizing Compliance Program. 4. Employment Security We recognize and value Philippine labor laws on security of tenure, as well as procedural and substantive due process in the termination or dismissal of employees, and for this purpose, we shall adhere with the following principles: 41 That the workers’ security of tenure is guaranteed by the Constitution and the Labor Code. Under the security of tenure guarantee, our employees will only be terminated from his/her employment for substantial cause and after due process. For a valid termination by the employer the dismissal on substantial grounds must be for a just cause as provided in Article 282, or for any of the authorized causes under Article 283 of the Labor Code; EI ‘Voluntary Gade of Good Precices inthe Construction Industry (TO-Constucion RO 7)4.2 In termination proceedings of employees for just cause under Article 282, procedural due process consists of the twin requirements of notice and hearing. The employees will be furnished with two written notices before the termination of employment can be effected: (1) the first apprises the employee of the particular acts or omissions for which his dismissal is sought, while giving the employee a chance to be heard; and (2) the second informs the employee of the employer's decision about the case in issue; 43 In termination proceedings of employees for authorized cause under Article 283, procedural due process consists of the following requisites: (1) written notice served on both the employees and the DOLE at least one month pi r to the intended date of termination of employment; (2) payment of separation pay or otherwise as provided under Article 283 of the Labor Code; and (3) good faith on the part of the employer. If the authorized cause is retrenchment, the employer needs to show good faith in exercising its prerogative to retrench by using fair and reasonable criteria in ascertaining who would be retrenched or retained. If the cause is redundancy, the good faith should be shown by the employer in using fair and reasonable criteria in ascertaining what positions are to be declared redundant and accordingly abolished. For purposes of this Code, retrenchment is defined as the termination of employment initiated by the employer through no fault of and without prejudice to the employees. It is resorted to during periods of business recession, industrial depression, seasonal fluctuations, or during lulls occasioned by lack of orders, shortage of materials, conversion of the plant to a new production program, or automation. It is a management prerogative resorted to avoid or minimize business losses. On the other hand, redundancy exists when the service capability of the workforce is in excess of what is reasonably needed to meet the demands of the enterprise. A redundant position is one rendered superfluous by any number of factors, such as over hiring of workers, decreased volume of business, dropping of a particular product line previously manufactured by the company, or phasing out of a service activity previously undertaken by the business. Under these a] ‘Voluntary Code of Good Prectioes inthe Construction Industy (TC-Constuation RO 7)conditions, the employer has no legal obligation to keep in its payroll more ‘employees than are necessary for the operation of its business. 44 In the case of probationary employees, added to the just causes for severing employment under Article 282 is his failure to qualify as a regular employee in accordance with reasonable standards made known by the employer to the employee at the time of his engagement. Further, we abide by the law that a probationary employee who is allowed to work beyond his probationary period of employment of at least six (6) months shall be considered a regular employee. 45 Inthe case of project, fixed-period, casual and seasonal employment, we adhere with the Labor Code provision and implementing rules and regulations of the same, as well as the applicable jurisprudence, in the termination of employment of these types of employees. We recognize that the due process requirement in the case of these types of employees are different, considering that in the case of project employees, where termination is brought about by the completion of the project or any phase thereof, due process is complied with even if no prior notice of termination is served; secondly, in the case of fixed-period employees, no prior notice of termination is likewise required, it being a case of expiration of the term of the contract; thirdly, in the case of seasonal employees, where the work to be performed is seasonal in nature and the employment is for the duration of the season, no prior notice of termination is likewise required; and, lastly, in the case of casual employment, where the job, work, or service to be performed is merely incidental to the nature of business of the employer, and such job, work, or service is for a definite period made known to the employee at the time of his engagement, no prior notice is likewise required. 46 Without prejudice to our exercise of well-established management prerogatives in the running of the enterprise including the power to discipline and severe the employment relationship, we shall apply the law and jurisprudence on substantive and procedural due process, and consider Es \olunary Code of Good Practices inthe Consiuton Industry (TTC-Consiuction RO7)all surrounding circumstances of the case, including the length of service of the employee, his disciplinary record and other personal circumstances. Where the offense is not serious, graduated, less severe penalties shall be imposed, and always after the employee has undergone coaching and counseling. 5. Social Protection 5.1 We shall collaborate with national and local government in improving the supply and quality of our skilled workers, involve ourselves actively in any government program and initiative aimed at making the labor market more efficient and improving the quality of the region's labor pool, including but not limited to participating in skills registration, jobs fair, labor market surveys and other government-initiated activities. 5.2 We shall collaborate with government training authorities in implementation. of training programs to promote employment and improve the quality of the labor pool, produce and sponsor second-liners through our developmental programs not limited to scholarship, trainings and other human resource and community development programs and for employers to allocate a reasonable amount from the annual gross budget for staff development; 5.3 Encourage income augmentation programs and skills training but not limited to retirement planning, budget management and thrift-savings mobilization: 5.4 Campaign among our employees for savings consciousness and wise investment decisions so they may enjoy a degree of financial independence; 5.5 We shall register job vacancies and other construction-related professionals to the Philjobnet in order to provide the unemployed with opportunities to work in the construction industry. a ‘Voluntary Code of Good Pracces inthe Construction Industy(TC-Constucion RO 7)5.6 We shall commit to issue the certificate of employment and/or endorsement letter to separated workers in the construction industry. 6. Social Dialogue 6.1. We recognize the imperative of labor law reforms and the need to identify unique industry practices which should find their way into the statute books, and we commit to use the mechanism of the Industry Tripartite Council (ITC) to introduce and disseminate labor law reforms and proposed labor legislation. 6.2. We dedicate ourselves to the principle of tripartism and social dialogue and to using the mechanism of the Industry Tripartite Council for Construction in Region 7, to address various economic, social and labor issues affecting the industry as a whole. 7. Productivity Incentives Programs 7.1. We shall initiate productivity incentive and performance-based schemes where both management and employees shall commit to continuous productivity improvement as our moral and social obligation to ourselves and our stakeholders. 7.2. We shall cooperate and coordinate with the Regional Tripartite Wages and Productivity Board's (RTWPB) policies and programs towards enhancing the productivity and quality of our services. 8. Anti-graft and corrupt practices In support of DOLE reforms and in ensuring openness, transparency and adherence to the principle of good governance, we are committed to ethically abide by the provisions of RA 3019 otherwise known as the “Anti Graft and Corrupt Practices Act’. ed Voluntary Code of Good Practices inthe Construction Industry ('TC- Construction RO 7)Specifically, we denounce the following corrupt pra sof any public officer whi declared to be unlawful, to wit: 8.1. Directly or indirectly requesting or receiving any gift, present, share, percentage, or benefit, for himself or for any other person, in connection with any contract or transaction between the Government and any other part, wherein the public officer in his official capacity has to intervene under the law; 8.2 Accepting or having any member of his family accept employment in a private enterprise which has pending official business with him during the pendency thereof or within one year after its termination; 83 Knowingly approving or granting any license, permit, privilege or benefit in favor of any person not qualified for or not legally entitled to such license, permit, privilege or advantage, or of a mere representative or dummy of one who is not so qualified or entitled; 84 Divulging valuable information of a confidential character, acquired by his office or by him on account of his official position to unauthorized persons, or releasing such information in advance of its authorized release date. We also conform to the requirement of timely submission of a true detailed and sworn statement of assets and liabilities, including a statement of the amounts and sources of his income, the amounts of his personal and family expenses and the amount of income taxes paid for the next preceding calendar year. Consistent with the foregoing terms, we corroborate to the provisions of Republic Act No. 6713 or the “Code of Conduct and Ethical Standards for Public Officials and Employees, To Uphold The Time-honored Principle Of public Office Being A Public Trust, Granting Incentives and Rewards for Exemplary Service, Enumerating Prohibited Acts And Transactions And Providing Penalties For Violations Thereof And For Other Purposes” which imparts similar mandates on: Ea Voluntary Code of Good Pasties inthe Construction Industry (TC-Constuction RO 7)1. Commitment to public interest 2. Professionalism 3. Justness and Sincerity 4, Political Neutrality 5, Responsiveness to the public 6. Nationalism and patriotism 7. Commitment to democracy 8, Simple living 9, Prohibited acts and transactions (ie. financial and material interest, outside employment and other activities related thereto, disclosure and/or misuse of confidential information) 10. Solicitation or acceptance of gifts 11. Declaration and disclosure (i.e. statements of assets, liabilities, and net worth/financial disclosure, identification and disclosure of relatives, accessibility of documents) PROGRAM PARTNERS We, in the government agencies - DOLE and its attached agencies (BWC, OSHC, BLR, NCMB, TESDA, PRC), with DILG, DPWH, DTI-CMDF, PCAB, and other Local Government Units (LGUs) as well as DOLE-RO 7 construction industry private sector partners, CCA, PCA Cebu Chapter, shall establish collaboration and partnership, sharing a common roadmap to provide the industry the support and commitment to achieve the objectives of this Code. a] \Voluntary Code of Good Practices in the Construction Industry ('TC-Constrution RO 7)MONITORING AND IMPLEMENTATION While we recognize that the monitoring of compliance should be through self-regulation, we agree to adopt a monitoring mechanism that would document our compliance to the salient provisions of this Code. The monitoring shall be aligned with the set performance measures which hope to make the members become fully compliant with the agreed indicators. The members commit to submit the following periodic reportorial requirements, such as: 1. Checklist indicating compliance with core labor standards, productivity, additional non-wage benefits such as, but not limited to incentives, rewards and recognitions, which shall be submitted on a quarterly basis; 2. Accident/Illness Exposure Report, which shall be submitted annually; and 3, Safety Committee Report (annual) 4, LMC Organization and Monitoring Report (annually) For monitoring purposes, the council shall render an update of its implementation during the Industry Tripartite Council - Construction (ITC - Construction) and Regional Tripartite Industry Peace Council (RTIPC) quarterly meetings. The Industry Tripartite Council - Construction (ITC - Construction) shall, though consultation and consensus, continuously formulate strategies and initiatives to enable the signatories to achieve the objectives laid down in this Code. IN WITNESS WHEREOF, we have hereunto affixed our signatures this 16" day of April 16, at Cebu City, Philippines. ital \olunary Code of Good Practices inthe Constucton Indust (TC Construction RO7)ROSALINDA DIMAPILIS-BALDOZ Secretary Department of Labor and Employment CRISPIN A. SORIANO, JR. Vice-Chairperson for Labor Sector ITC - Construction LEVI NOEL T. LAS MARIAS -Chgifperson for Mana ITC - Construction Vic Ba ‘Voluntary Gade of Good Practices inthe Construction Industry (TO-Constucion RO 7)MAKATI DEVELOPMENT CORP. (MDC) MONOLITH CONSTRUCTION & WENNIE JAY P. ELMEDOLAN ___ DEVELOPMENT CORP. JUANITA A. SUMALINOG PROBUILDERS INC. ‘CEBU CONTRACTORS PETER PAUL DY, JR. |ASSOCIATION/PLD OG yA LEVI NOEL T. LAS MARIAS ICONSTRUCTION IDAKAY CONSTRUCTION & ROBERTO S. DELOSSANTOS ever opMENT CORPORATION (CRISPIN A. SORIANO, JR. CONSTRUCTION WORKERS | SOLIDARITY a MAKATI DEVELOPMENT Alte ( RUNY M. ROSALES CORPORATION (MDC) Le | CHAM S.GOMEZ PROBUILDERS INC. offi — CEBU CONTRACTORS AILEEN O. AGRAVANTE ASSOCIATION/PLD CONSTRUCTION MALOU P. BIA BIAO BUILDERS DIR. ADOR G. CANLAS DPWH 7 it DIR. ANANIAS M. VILLACORTA DILG 7 DIR. ASTERIA C. CABERTE DTI? DIR. ROSANNA M. URDANETA _TESDA7 fe: DIR. EDMUND T. MIRASOL ENGR. REY ESTILLORE (Ree MS. GRACE G. CARREON PO fiinZ Ea ‘Voluntary Gode of Good Practice in the Constuction Industry ('TC-Constection RO 7)