DOLE 2012 Progress re Arangkada 2nd Assessment

8/14/2019 DOLE 2012 Progress re Arangkada 2nd Assessment

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DOLE 2012 Progress

With reference to the Arangkada 2nd Assessment Report

Of the Joint Foreign Chambers of the Philippines

Department of Labor and Employment2013


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DOLE 2012 Progress | Arangkada 2nd

Assessment 2

Contents

Abbreviations

Background

Part 1: On the area of growing too slow 5

Part 2: On becoming more competitive 8

Part 3: Big Winner Sectors 11

Part 4: General Business Environment 27

Acknowledgement


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Assessment 3

AbbreviationsADB - Asian Development Bank

ASEAN MRA Association of South East Asian Nations Mutual Recognition Arrangement

BOI Board of Inquiry

BPAP Business Processing Association of the Philippines

BPO Business Process Outsourcing

CCAP Contact Center Association of the Philippines

CCS Contact Center Services

DILG Department of Interior and Local Government

DO Department Order

DOLE Department of Labor and Employment

DOT-TIBFI Department of Tourism-Tourism Industry Board Foundation, Inc.

EIB Efficiency & Integrity Board

FCCCA Finishing Course for Call Center Agents

FGD focus group discussion

FINL Foreign Investment Negative List

GCAT Global Competitiveness Assessment Tool

GLS General Labor Standards

GPH Government of the Philippines

HRD Human Resource Development

ICT Information and Communication Technology

IEC Information, Education and Communication

ITWSP Industry Training for Work Scholarship Program

KEG Key Employment Generator

LMI Labor Market Information

LGU Local Government Unit

NGC Networks of Guidance Counselors

OFW Overseas Filipino Workers

OSH Occupational Safety and Health

PDP Philippine Development Plan

PESO Public Employment Services Office

PLLO Presidential Legislative Liaison Office

PJF Project JobsFit

PJN Phil JobNet

PQF Philippine Qualifications Framework

RFA Request for Assistance

RIA Regulatory Impact Assessment

RTD round table discussions

RTIPC Regional Tripartite Industry Peace Council

RTWPB Regional Tripartite Wage and Productivity Boards

SEnA Single Entry Approach Program

SOSL Skilled Occupation Shortage List

SpeED Speedy and Efficient Delivery of Labor Justice

TIPC Tripartite Industry Peace Council

TLE Technology and Livelihood Education

TR Training Regulations

TVET Technical Vocational Education and Training

TWSP Training for Work Scholarship Program

VCGP Voluntary Codes of Good Practices


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Assessment 4

Background

The DOLEs Response is a consolidated input of progress reports and updates

from among the DOLE bureaus, attached agencies, and services on the status of therecommendations pronounced in the Arangkada 2nd Assessment Report, which

particularly address labor and employment concerns. This response follows the

organization of the Arangkada 2nd Assessment Report focusing on recommendations

that cover issues within the mandate of the Department of Labor and Employment and

its attached agencies. The responses are categorized according to the domains identified

in the Arangkada 2ndAssessment Report. These domains include: (1) Growing Too Slow;

(2) Becoming More Competitive; (3) Big Winner Sectors; and (4) General Business

Environment.

The framework of responses is anchored within the directions of the Philippine

Development Plan (PDP), Labor and Employment Plan (LEP) and Decent Work Agenda

(DWA) focusing on employment, rights at work, social protection and social dialogue.

The responses further include governance to address recommendations specific to the

labor administration system. The collaborative efforts of the DOLE bureaus, attached

agencies and services have been realized through this progress report taking into

account the comparative information from previous DOLE progress reports, the forms

of consultation and discussions accomplished, the specific reform projects and

programs undertaken, and the supplementing department orders issued.

The DOLEs Response to the Arangkada 2ndAssessment Report correspondingly

reflects the 2012 progress of the deliverables which the Department has committed and

which is now being sustained. Likewise enunciated are specific responses which the

Department has set for itself in improving the conditions requiring more positive

outcomes in the Arangkada Assessment Report.


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Assessment 5

PART 1:On the area of growing

too slow


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Assessment 6

Recommendation No. 2 STEADYJob creation by the private sector should receive extremely high priority.

The private sector creates jobs in response to demand for its products and services.

Success at accelerating manufacturing and tourism sector growth and reforming thelong underperforming agribusiness sector could provide millions of new jobs.

2012 Progress:

DOLE conducted focused group discussion (FGDs), round table discussions(RTDs) and consultations involving industry leaders to get first-hand information on theneeds and manpower requirements of industries and establishments.

DOLE has identified regulations to be subjected to Regulatory Impact Assessmentin 2012. The purpose of the assessment is to review the regulations in relation to its

impact in government, business and community. The assessment is envisioned to comeup with recommendations that will amend or improve existing regulations to reduce theburden to business, thereby making it easier to put up business in the Philippines.

The re-engineered Phil-JobNet will serve as the main LMI portal that functions asthe hub of the DOLEs skills registry and HRD data warehouse. To date, more than100,000 vacancies are posted on the PJN. The DOLE Regional Offices and PublicEmployment Services Offices (PESO) continue to intensify their campaign amongcompanies, encouraging them to post their job vacancies and respond to the challengeof soliciting 1M available vacancies from accredited establishments. Job Fairs andIndustry-based Career Fairs are also being organized to target specific industries.

Recommendation No. 6 STEADYRemittances channeled into productive investments.

Financial education for OFWs and their families is needed. The Personal EquityRetirement Account law (RA 9505) that creates a new savings vehicle for OFWs has yetto be implemented four years after its signing.

2012 Progress:

The Financial Literacy Program under the Reintegration Program of OWWA isreported to have conducted a total of 458 trainings in-country for 18,240 participantsand 170 trainings overseas for 9,721 participants from January to December of 2012.

Financial Literacy is part of the capability building under the OWWA programFamily Support and Reintegration Services. The NCR regional office aims to conduct 10trainings this year with 60 participants per training, or a total of 600 OFWs anddependents financially literate to handle remittances with conscientiousness.

The OWWA RWO-NCR has intensified its campaign on financial literacy for theOFW beneficiaries for the first quarter of 2013 through a simple, comprehensive


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Assessment 7

standardized module to be drafted jointly by bank institutions that conduct the seminarwithin Metro Manila. Aggressive promotion on savings consciousness for the OFWbeneficiaries will not only address the lean months when remittances do not arrive ontime and for unexpected emergencies such as untimely repatriation but it will also helpprepare the OFW financially to integrate back to the mainstream most especially in

ensuring the familys future once the OFW decides to stay in the country for good.


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Assessment 8

PART 2:On becoming more

competitive


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Assessment 9

Recommendation No. 3 DECLINEDCreate a national psychology to improve international competitiveness ratings overall

and in specific critical areas. The president could report on the state of nationalcompetitiveness.

A heavy bureaucratic propensity to over regulate persists; sunset provisions on rules,red tape, and fees are rare. The president proclaimed Chinese New Year a non-workingholiday without public consultation; the Congress may make it a law. The negativeimpact of such policies on competitiveness is not fully taken into account.

2012 Progress:

Addressing the creation of a national psychology improving competitiveness,

ISTIV Productivity Awareness Program, as one of the NWPC core productivityprograms, is a values-driven human resource strategy for quality and productivity (Q &P) improvement that is rooted on the five ideal attributes of a productive individual. It isa management concept that recognizes the value of human resource in bringing aboutthe needed changes to improve productivity and enhance competitiveness among SMEs.

The Program has benefitted a total of 455 establishments and 6,632 managersand workers from 2010-12. To ensure effectiveness of the training program, continuousmonitoring and evaluation were conducted.

To increase awareness and marketability, the Program is promoted thru

dissemination of brochures, posters, posting in the website and advertisements duringlearning sessions.

In 2012, PNoy proclaimed Chinese New Year a non-working holiday as theholiday fell on a work day. In 2013, the DoLE undertook a successful coordinatedapproach with business groups, the PLLO and other executive departments, andlegislative committees in both Houses, to stop the passage of the bill declaring theChinese New Year a non-working holiday.

At the start of the 16th Congress in June 2013, when Congressional leadershipand Committees have been configured, the DoLE shall initiate a pro-active program tohelp shape/influence the Congress in passing measures that willinstitutionalize/legislate measures to promote business competitiveness and a levelplaying field conducive to achieving a balance between economic growth and socialprotection for labor.

The following steps shall be discussed for the consideration of the Secretary:

Constitute a lean multi-sectoral legislative study and advocacy group that willassess relevant pending bills that impact on competitiveness, identify key actorsin the legislative and conduct focused information campaign for or against

proposed legislative measures.For example, there were more than 100 local bills filed in the 15th


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Assessment 10

Congress that proposed non-working holidays for specific local governmentscommemoration of historic/cultural/religious events. Such bills were notprocessed by the Labor Committee but other Committees like the LocalGovernance Committee. The DoLE conducted two (2) briefings attended byCongressmen and Senators on why non-working holidays, other than those

prescribed by law should not be legislated nor proclaimed.A coordinated approach with other groups like Foreign Chambers will be

helpful in the identification and lobby works against such bills. The group canalso draft bills and congressional resolutions and identify sponsors andproponents of such measures.

Conduct briefings for Congress and Legislative technical staff on the subjectmatter.


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Assessment 11

PART 3:Big Winner Sectors


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Assessment 12

AGRIBUSINESS

Recommendation No. 15 STEADYRamp up agricultural education and training programs. Create a stronger agribusiness

development curriculum.While enrollment in these programs seems healthy, many graduates end up pursuingdifferent career paths after graduation. They do not appreciate the business potential ofthe industry outside of being an employee of a large agribusiness or food company inthe Philippines or overseas. Successful homegrown small to mid-sized agribusinessventures should be showcased by the government and these ventures should beencouraged to hire more graduates in order to professionalize management.

2012 Progress:

DA, DepEd and TESDA will be working for a stronger partnership in educationand development. This arrangement will focus on agri-business programs in schools,even non-TVET schools. Some of the initial next steps for this arrangement are asfollows:

1. To organize a tripartite working group to push the process.2. To identify one province per region where the needs are great and opportunities

are present.3. To get the LGU/provincial government on board.4. To organize provincial summits focused on education and employment issues.5. To co-design and implement the program of interventions.

Recommendation No. 16 IMPROVEDFarmer groups need support to establish strong cooperatives.

Work on this is being done by bigger cooperatives. Some assistance is needed forsmaller ones.

2012 Progress:

The DOLE Integrated Livelihood Program (DILP) managed by the Bureau ofWorkers with Special Concerns (BWSC) is the DOLEs contribution to the AquinoAdministrations national agenda of reducing poverty through the promotion oflivelihood and entrepreneurship and transforming them into community enterprisesthrough convergence of services. It envisions productive, gainful and secure communityemployment to disadvantaged and vulnerable workers in the informal economy. DILPalso endeavors to transform the Philippine society so that every Filipino can enjoy abetter and dignified quality of life, consistent with the national goals of inclusive growth,poverty alleviation and job creation.

The Program caters to the following:

Workers in informal economy engaged in small livelihood undertakings such


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Assessment 13

as farmers, fisher folks, ambulant vendors or peddlers, ambulant serviceproviders, vendors, tricycle or pedicab drivers and operators, among others.

Disadvantaged/ unemployed workers especially to specific group of workerswhich include the agricultural workers (farmers, fisher folks), youth (15-20)

years old), women, persons w/ disability, indigenous people (IPs), parents ofchild laborers, and the elderly;

Low-wage workers seeking to augment their income through the WorkersIncome Augmentation Program (WIN-AP);

Returning OFWs and OFW Family Circles members; and Displaced Workers due to economic crisis and natural calamities/ disasters

and armed conflicts through the DOLE Adjustment Measures Program (DOLE

AMP).

The DOLE, through its regional, provincial and field offices, provides thefollowing services:

Provision of productive resources in the form of equipment, raw materials,tools and jigs that can be used by the eligible beneficiaries;

Trainings, orientations and advisories on entrepreneurship development,business planning, productivity improvement, workers safety and health,and networking and business alliances;

Assistance in the establishment of common service facilities that will respondto the common needs of the beneficiaries and facilitate their access to moreproductive resources, low-cost inputs, wider market, and higher technology;and

Advocacy in setting-up of self-help mechanism for social security amonginformal workers utilizing the established common service facility.

One particular project under the DILP is the DOLE Kabuhayan (DK) Starter KITSProject, a livelihood formation strategy that is intended to bring about improved socio-economic well-being of workers in the informal economy, in groups/sectors withspecial concerns, and displaced wage workers (local and overseas) and their families.

The project will provide a livelihood starter KITS consisting of a package ofservices that will enable the target beneficiaries to start quickly a livelihoodundertaking and become self-employed. It aims to engage them in sustainable self-employment through easy to learn livelihood undertakings.

The project targets the poor and long-term unemployed especially those to thefollowing special sectors: out-of-school youths, women, parents of child laborers,Indigenous People (IPs), physically/occupationally disabled, urban poor, elderlypersons, landless farmers/fisher folks and other workers in the informal economy, anddisplaced wage (local and overseas) workers, OFW returnees and their dependents,

either individually or as groups.


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Assessment 14

The project has the following major service that the implementers shall provideto help the beneficiaries plan, set up, start operate their livelihood undertakings:

Short-period training on production skills with entrepreneurship andbusiness management

Self-instructional Learning Reference Materials (handbook/workbook) onProduction, Entrepreneurship and Business Management Skills

Provision of livelihood tools, equipment, material and inputs Provision of continuing business advisory and consultancy service at the

Community Micro-Business Incubation Center (CMBIC)

The beneficiaries will be required to enroll in Social Protection Service like SSS,

Philhealth and other alternative social protection schemes as soon as the businesscycles allow it.


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Assessment 15

BUSINESS PROCESS OUTSOURCING

Recommendation No. 1 STEADYStrengthen the industry with a robust legal framework, passing five key bills and

opposing legislation that harms the IT-BPO investment climate.The amendment to the Labor Code removing the restriction on women working at nightwas signed as RA 10151. Bills seeking to make Chinese New Year a non-workingholiday were filed in the House and Senate. The House approved it on 3rd reading, whilethe Senate approved it as a working holiday.

2012 Progress:

The BPO Industry, which accounts for close to 800,000 workers in the industry,has requested for representation in the TIPC, as provided for in the recently enacted law

on Tripartism. Given the importance of the BPO sector, the Secretary of Labor andEmployment may wish to consider the BPO request for representation.

Recommendation No. 3 IMPROVEDDraft and pass a Holiday Rationalization Act which restricts the total number of nationalnon-working holidays; Malacaang should continue to release no later than mid-yearthe schedule for the following calendar year of all national holidays.No bill for Holiday Rationalization was passed during the 15th Congress. However,there is a Department of Labor and Employment (DOLE) regulation called flexi-holidayarrangement allowing swapping of holidays (along the lines of Recommendation C),provided employees consent to the swap.

2012 Progress:

The DOLE issued Department Advisory No.02, Series of 2009 (Guidelines on theAdoption of Flexible Work Arrangements). One of the flexible work arrangements thatemployers can implement, after consultation with employees, is a flexi-holidaysschedule. Under the scheme, employees agree to avail the holidays at some other daysprovided there is no diminution of existing benefits as a result of such arrangement. The

purpose is to provide coping mechanisms and remedial measures in times of economicdifficulties and national emergencies. The adoption of such arrangement is consideredas a better alternative than the outright termination of the services of the employees ortotal closure of the establishment. Anchored on voluntary basis and conditions mutuallyacceptable to both the employer and the employees, it is recognized as beneficial interms of reduction of business costs and helps in saving jobs while maintainingcompetitiveness and productivity in industries.


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Assessment 16

Recommendation No. 12 COMPLETEDThe Task Force should also propose ways to modernize the Labor Code.

BPAPs Legislative Committee has successfully led many initiatives that have influencedpolicy-making and legislation to the benefit of the Philippine IT-BPO industry.

2012 Progress:

The Agreements during the DOLE-BPAP dialogue:

The Department of Labor and Employment engaged the Business ProcessingAssociation of the Philippines in a dialogue to surface safety and health concerns andissues affecting the industry and to forge a mutually acceptable plan of action to assistthe industry in enhancing their compliance with the OSH Standards.

Among the immediate plan of action include:

1. Stepping up of advocacy to ensure that all BPO establishments havefunctioning enterprise-level OSH committee and programs that willeffectively reduce risk of occupational illness and injuries throughcontinuing engagement of BPAP, CCAP and other BPO groups to committo adherence to provisions of GLS and OSHS through the forging of a codeof good practice.

2. Strategic inspection of BPOs to determine level of compliance to OSHS andidentify appropriate technical assistance that can be extended bygovernment to increase the capacity of BPOs to conform withrequirements of OSHS.

3. Promotion of Healthy Lifestyle Programs in the Workplace for BPOs thatwill implement practical and essential interventions in preventing andcontrolling prevalent lifestyle related issues such as smoking, physicalinactivity and alcohol consumption.

Recommendation No. 13 COMPLETED

Propose amendments to the Labor Code that make it easier for companies to reasonablyterminate employees and remove the prohibition on night work of women.

DOLE issued Department Order 18-A, or rules implementing contracting/subcontracting in the Labor Code, but excluded the IT-BPO industry from itsimplementation through Department Circular No. 1 series of 2012. A late 2012 meetingwith DOLE Secretary Rosalinda Dimapilis-Baldoz also yielded a commitment to partnerclosely toward resolving issues concerning the IT-BPO sector, a framework drafted byBPAP for IT-BPO industry self-regulation, and support for DOLEs programs. Regularmeetings with Secretary Baldoz and her team will be held in 2013.

2012 Progress:


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Assessment 17

In the forthcoming meeting of the DoLE with the BPO industry, particularly onthe issues of self-regulation and considering the lifting of the night work prohibition forwomen, the DoLE should stress the need for compliance by the BPO establishmentswith the safety net and protection provided by the repeal i.e., providing sleepingquarters, medical advice and assistance and transportation to accessible areas at night

to women workers. Compliance to social protection for women is an equally importantissue to self-regulation and labor standards enforcement.

Recommendation No. 14 STEADYIndustry and government should identify manpower requirement goals by sub-sector,function, and specialty.

DOST-ICTO and IT and BPO associations are working on the overall and sub-sector-specific manpower requirements. These efforts cover contact centers and customer

relations management, corporate services and multi-lingual BPO, engineering servicesoutsourcing, health information management outsourcing, software development andIT outsourcing, and creative services outsourcing and original content.

2012 Progress:

Client specific labor market Information, Education and Communication (IEC)materials have been developed and advocated, to provide timely and accurate signals onjobs and skills in demand and shortages, readily accessible to the public. 121 CareerPamphlets or Occupational Briefs on In-demand and Hard-to-fill occupations identifiedin DOLEs Project JobsFit (PJF).

Development of Industry Career Guides providing an in-depth look and analysison the 11 industries/sectors viability and potential which were identified by PJF as KeyEmployment Generators (KEGs), IT-BPO sector is one of the identified KEGs.

The expansion of Networks of Guidance Counselors (NGCs) in the 16 regionsnationwide, serve as the conduit of the DOLE in the conduct of career orientationcourses and in providing adequate LMI to enable students and jobseekers to makeinformed career choices.

As part of TESDAs role of strengthening industry partnerships and to gatherindustry-based information in skills requirements for the industry, the agency conductsregular consultation with the industry. These consultations result to identification ofpriority qualifications, identification of TRs for review and development of skillstraining programs specific to each industry.


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Assessment 18

Recommendation No. 15 IMPROVEDAdopt the National Competency Test at a regional (if not national) level.

In 2012, 3,000 graduating students were assessed with BPAPs Global CompetitivenessAssessment Tool (GCAT) bringing the total of GCAT-assessed students to 20,000. DOSTScience Education Institute (SEI) provided funding to assess 10,000 students andtesting will continue in 2013. BPAP has driven more awareness on GCAT as anassessment tool for work readiness and continues to work with the IT-BPO companiesto adopt GCAT for assessment or to prioritize the hiring of applicants with good GCATscores. BPAP also participated in the discussions of the National Basic EducationCompetency Assessment for Kindergarten to Grade 12.

2012 Progress:

TESDA has developed Training Regulations (TRs) for the IT-BPO industry andhas assessed 14,505 and certified 3,501 persons for 2012.

Qualifications Assessed Certified

Animation NCII 428 297

2D Animation NCIII 408 261

3D Animation NCIII 163 118

Contact Center Services No assessment tool yet

Medical Transcription NCII 2,251 1.391

Programming NCIV 10,051 806

Visual Graphics Design NCIII 1,204 628

2D Game Art Development NCIII Assessment Tool scheduled for validation

3D Game Art Development NCIII Assessment Tool scheduled for validation

Game Programming NCIII Assessment Tool scheduled for validation

Medical Coding and Billing NCII No assessment tool yet

Recommendation No. 20 IMPROVEDDevelop an affordable Internet cafe English-training program.

BPAP launched the Basic English Skills Training (BEST) e-learning tool, which was

piloted in May 2012 with teachers of four schools in Quezon. BEST has also been rolledout with a trainers training program developed by industry, Trainers Methodology Plus,and offered through Technical Education and Skills Development Authority TechnicalEducation and Skills Development Authority (TESDA). Another e-learning program, e-AdEPT (Electronic Advanced English Pre-employment Training) will be rolled out in2013.

2012 Progress:

The OWWA maintains the Information Technology Program:

- An information and communication technology (ICT) skills training, the11


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Assessment 20

assessed (36,726) but has the lowest certification rate (7.39%) among the IT sectorqualifications. Likewise, Programming NC IV will also be subject for review togetherwith the TRs on 2D Animation NC II, 3D Animation NC III and Visual Graphic Design.

TESDA and the IT-BPO industry is also exploring the option of the development

of industry assessors and putting up of a BPAP assessment center.

A total of P500 million was provided in 2011 for TESDAs Industry Training forWork Scholarship Program (ITWSP) implemented in partnership with the BusinessProcessing Association of the Philippines (BPAP) including member associations. It hasreported a 67.7% employment rate as of March 21, 2013 and a total of 65,033 personstrained.

Recommendation No. 24 STEADYDevelop a repatriation program for qualified Filipino talent overseas.BPAP participated in the OFW Summit sponsored by the Villar Foundation to attractOFWs and their families to consider the IT-BPO industry for employment. Some FilipinoAmerican (Fil-Am) executives and managers have come back to work in Philippine-based IT-BPO and GICs without a special program or incentives but due to marketforces. We have no information regarding the effectiveness of programs of otherorganizations.

2012 Progress:

Reintegration Services for Returning OFWs. The Philippines is adopting a fullcycle reintegration program which means that reintegration initiatives start from pre-departure of an OFW, reinforced on-site, and maximized upon return to the country.The reintegration program aims to mitigate the social costs of migration and ensure thatthe gains of migration benefit the OFWs. Reintegration planning will now be part of Pre-Departure Orientation Seminars (PDOS) and Post-Arrival Seminars (PAOS) with OFWspreparing their re-entry and exit plans. Upon return, they will be provided assistancewith local or overseas job search; self-employment or entrepreneurship; access tocredit/micro-finance; assessment of need for additional techno-skills training;counseling on business or savings mobilization schemes; and psycho-social counseling

for those with personal or family issues and challenges, preferably with support andcooperation of Family Circles (families of migrant workers organized by the OverseasWorkers Welfare Administration).

(The following information has been retrieved from:http://www.dole.gov.ph/files/First%20100%20Days%20with%20additonal%20reports%2014%20October%202010%2011am.pdf)


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Assessment 23

Workers hired and placed by contractors/subcontractors tocompanies/principals are considered as regular employees of the contractors. Assuch, they are entitled to all the rights and privileges afforded to them by theLabor Code, including minimum wage and general labor standards, occupationalsafety and health, right to security of tenure, right to self-organization and

collective bargaining.

Recommendation No. 13 IMPROVEDRationalize holidays.The Philippines continues to have one of the highest numbers of paid holidays inSoutheast Asia, twice as many as Vietnam. Proposals for new paid holidays continue tobe made. DOLE issued a policy brief proposing an increase in the number of paidholidays.

2012 Progress:

DOLE is consistently opposing proposed legislations on declaration of specialholidays.


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Assessment 24

TOURISM, MEDICAL TRAVEL, &

RETIREMENT

Recommendation No. 8 STEADYCorrect human resource competitive disadvantages.

DOT and ADB are working together to address this under a new ADB project facility.This is emphasized in the National Tourism Development Plan for 2011 to 2016. Thetechvoc training path of DepEd for high school students not advancing to college andTESDA training programs both emphasize training for tourism skill development.

2012 Progress:

In line with the PDP 2011-2016, TESDA has also identified the tourism industryas one of its priority sectors and has developed 17 Training Regulations:

1. Attractions and Theme Parks Operations NC II2. Bartending NC II3. Bread and Pastry Productions NC II4. Commercial Cooking NC III5. Commercial Cooking NC IV6. Events management Services NC III7. Food and Beverage Service NC II8. Food and Beverage Service NC III9. Food and Beverage Service NC IV10. Front Office Services NC II11. Housekeeping NC II12. Housekeeping NC III13. Housekeeping NC IV14. Travel Services NC II15. Tour Guiding Services NC II16. Tourism Promotion Services NC II17. Cookery NC II

The assessment and certification mandate of TESDA seeks to determine whether

the graduate or worker can perform to the standards expected in the workplace basedon defined standards. This ensures the productivity, quality and global competitivenessof the workers. In 2012, a total 280,435 persons were assessed and 247,104 werecertified in all the qualifications under the tourism sector.

Moreover, TESDA in partnership with the DOT-TIBFI is committed to thefollowing:

Comparability of CS/TR with the ASEAN Tourism Toolbox under theASEAN MRA for Tourism Professionals; and

Philippine Tourisms implementation of the ASEAN MRA and Phil.Trainers and Assessors Training


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Assessment 25

Recommendation No. 9 STEADYProvide technical and marketing training for LGU tourism officers; improve services oftourism workers.

Included in the National Tourism Development Plan for 2011 to 2016.

2012 Progress:

Hotel, restaurant and tourism are one of the identified KEGs. According to theBureau of Local Employment, ICG on HRT will be released this year.

As earlier mentioned, TESDA has developed the TRs and implements assessmentand certification to ensure the quality, productivity and global competitiveness of theworkers in a particular sector.

Another qualification that has a TR and also caters to the tourism industry isHilot (Wellness Massage) NCII. This qualification though under the health, social andother community development services sector finds its way and fills-in the needed skillsin the tourism industry, For 2012, TESDA has assessed 8,101 and certified 7,633 hilotwith a certification rate of 94%.

Recommendation No. 10 STEADY

Increase efforts to meet the manpower demand of hotels and restaurants; make localexamination standards for massage therapists appropriate to high school graduates.Included in the National Tourism Development Plan for 2011 to 2016.

2012 Progress:

The NWPC/RTWPBs, in coordination with the DILG and the DOT, will conductorientation workshops for LGU tourism officers on service quality. The NWPC willidentify priority regions where orientations will be initially conducted. There ishowever, continuous review and upgrading of training modules in accordance withindustry requirements and standards.

As earlier mentioned, TESDA has developed Training Regulations for the tourismindustry. It is also one of the priority section supported by the TWSP.


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Assessment 26

Recommendation No. 13 STEADYAllow more foreign dentists, doctors, medical technologists, nursing professionals,optometrists, physical therapists, and teachers to practice their professions.Discussions with PRC are moving toward more liberal approaches to the practice offoreign professionals, provided there is reciprocity.

2012 Progress:

The initial preparation of the Positive List of Occupations or Skilled OccupationShortage List (SOSL) for the Philippine Labor Market Test is a policy developmentinitiative aimed at facilitating the flow of foreign workers with critical skills and sendingappropriate labor market signals to education and training institutions and employersto expand training and supportive educational opportunities in the shortageoccupations. The positive list is targeted to be finalized within the year.

The limitations in the foreign equity participation (60/40) in education areinscribed in the Philippine Constitution. Foreign teachers and researchers may beallowed to work in the Philippines upon compliance with Alien Employment Permit andSpecial Permit to practice profession under section 7(j) of the PRC Modernization Act of2000.

At present, foreign professionals including doctors, dentists, medicaltechnologists, nurses, optometrists, physical therapists and teachers may be allowed topractice their professions under any of the two modes (2) modes: (1) Registration, withor without examination or (2) Special temporary Permit. A foreign national may beadmitted to the national licensure examination upon establishing prior reciprocityarrangement between his/her country of origin and the Philippines. On the other hand,Special Temporary Permits may be issued to foreign nationals, without need of provingexistence of reciprocity unless otherwise required by the pertinent professionalregulatory law.


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Assessment 27

PART 4:General Business

Environment


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Assessment 28

ENVIRONMENT & NATURAL RESOURCES

Recommendation No. 1 IMPROVEDEnvironment: Solid Waste. Implement the Solid Waste Management Act (RA 9003).

Build sanitary landfills to contain the future solid waste of the metropolis and clean upexisting dumpsites. Improve garbage collection and recycling. Establish clear rules andstandards that would allow modern incineration technologies. Amend the Clean Air Actto allow non-polluting clean incineration.

The 2011 fatal Baguio landfill disaster could be repeated. The Department ofEnvironment and Natural Resources (DENR) said that clean incineration, which isallowed under a SC decision, is being considered. The growing trend to prefer organicproduce offers an opportunity on increased composting, which provides fertilizer onorganic plants. SIMBY (Start In My Back Yard) must continuously be promoted toconfine solid waste generation at source-households and offices. Local garbage

collection must be analyzed; it has been observed that some LGUs benefit from thetrucking of garbage, hence no incentive to reduce waste.

2012 Progress:

In December 2012, the TESDA Board has approved the prioritization of threequalifications in the area of solid waste management for training regulationsdevelopment, to wit:

1. Site Foreman2. Spotter (Tumbalero)

3. Palero

These qualifications were identified in the industry consultations conducted byTESDA with partners-industry bodies and associations on the basis of the needs of theindustry/sector, nationwide application in terms of public interest/welfare,employment generation and investment opportunities; and the satisfaction of thecriteria for skills standardization and certification (i.e. requiring relatively long periodof education or training, performance of the competency affecting and endangeringpeoples lives and limbs, competency involving the handling of complex equipment,tools and supplies).

The prioritization of the above qualifications also complements theimplementation of the Solid Waste Management Act (RA 9003) as it wouldprofessionalize and upgrade the skills of the people involved in solid wastemanagement in the country.


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Assessment 29

BUSINESS COSTS

Recommendation No. 3 IMPROVEDIntroduce a more flexible minimum wage and/or piecework policy for distressed

industries; develop new industrial zones with infrastructure that offer lower minimumwage rates.

The two-tiered wage policy being introduced by DOLE (see Part 3: Labor:Recommendation D) is an important reform that over time, the Philippine minimumwage can be made more competitive, especially since minimum wages are rising inChina, Indonesia, Malaysia, and Thailand. Although there are millions of joblessFilipinos, GPH is not considering making exceptions to minimum wage. FDI in low laborcost export manufacturing has expanded in countries where labor and other businesscosts are lower than in the Philippines. Recommendations to create export zones withminimum wage holidays to attract investors, such as garment and footwear export

firms, have not been considered seriously by government despite their potential tocreate millions of jobs.

2012 Progress:

The NWPC, through its Regional Boards, conduct time and motion studies forenterprises with workers paid by results. The conduct of time and motion studiesinvolves a scientific method of standard- setting and requires participation ofrepresentatives of workers and management to ensure the accurate, fair and reasonablesetting of production standards.

Minimum wages in the Philippines are comparable with other Asian countries.Specifically, the daily minimum wages in Regions III (US$7.76), IV-A (US$8.07) and VII(US$7.04) are lower than those of China (US$7.74) (in the case of Region VII), Malaysia(US$9.80) and Thailand (US9.84).

The daily minimum wage in the country is highest in NCR at US$13.41, given theregions level of living and economic development. It is only the minimum wage in NCRwhich has remained outside the range of the minimum wages in the country atUS$5.36 in ARMM to US$8.07 in Region IV-A.


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Recommendation No. 3 IMPROVEDAbsolute moratorium on new non-working holidays; veto any legislation creating anynew non-working holidays; some non-working holidays should be changed to workingholidays.

Employers in the Philippines absorb the cost of more holidays and leave days for theirworkers than in competitor economies, raising the cost of doing business and makingthe Philippines less attractive to many of the companies relocating from China andmoving to Bangladesh, Cambodia, Indonesia, and Vietnam. The number of paid holidayshas stabilized, but there has been no effort to reduce them to get closer to the ASEANaverage of 15 days. The DOLE Institute for Labor Studies issued a special report in 2012that called for an end to more paid holidays. Rationalization of non-working holidaysremains a priority.

2012 Progress:

DOLE is consistently opposing proposed legislations on declaration of special holidays.

Recommendation No. 12 STEADYNew GPH rules and regulations should not be issued without approval of a centraloffice; contain a sunset provision.

The concept of sunset provisions and periodic re-justification of public sector rules,regulations, and fees have not been adopted in the Philippines. Stakeholders are notalways consulted by government agencies in their rule making. CSC could be

empowered to do more to comment on and review regulations through an EO.2012 Progress:

The ongoing Regulatory Impact Assessment pilot project to the Department ofLabor and Employment and other pilot agencies with the technical assistance of theAsian Development Bank paved the way for a new era of improving regulatory practicein Philippine government. With the objective of strengthening the business climate andimproving the competitiveness of the countrys economy, the pilot project introducesways to make regulations efficient while adopt best practice principles in developingthem.

The Department of Labor and Employment aims to engage not only theregulatory bodies under its supervision but also encourage all other regulatory officesthat render regulations and policies to propagate, among others, the use of theregulatory impact assessment tool (RIA) as well as the culture of a best practiceregulations across government. Engaging all the regulatory authorities and their keystakeholders will maximize the potentials of what the RIA process has to offer. Theadvocacy and communication plan of the RIA Pilot Project thus requires a componentthat will enable a wider reach of collaborators with regulation-making agencies. It is forthese reasons that the DOLE embarks on an initiative in creating a platform that gathers

a multi-stakeholder, inter-agency network of actors involved in regulations in thecountry.


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Assessment 31

FOREIGN EQUITY & PROFESSIONALSRecommendation No. 9 IMPROVEDEncourage PRC to relax its interpretation of reciprocity provisions.

The issuance of PRC Resolution 2012-668 on the Guidelines on the Practice of ForeignProfessionals in the Philippines is an explicit recognition of the reciprocity provisions ofexisting laws regulating the practice of professions. It serves as an invitation for foreignnationals to practice unrestricted professions in the Philippines. But PRC and GPH cando much more to publicize this policy.

2012 Progress:

Reciprocity requirement in the practice of profession is prescribed in theprofessional regulatory laws as well as in the PRC Modernization Act of 2000.


Recommendation No. 10 IMPROVEDFile bills to open the practice of professions now closed by law to foreign nationals. Bills regulating the practice of five professions (Criminology, Forestry, EnvironmentalPlanning, Pharmacy, Radio and X-Ray Technology) and amending existing laws toinclude a foreign reciprocity provision have advanced in Congress. The EnvironmentalPlanning bill was approved by Congress and will be transmitted to the President for hissignature. The bills on Criminology, Forestry, and Pharmacy, which were approved onThird Reading in Congress, are low hanging fruits which Arangkada will recommend forpassage at the first regular session of the 16th Congress.

2012 Progress:

This will require amendment of existing professional regulatory laws which isunder the Professional Regulatory Boards and the PRC.



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Assessment 32

To this date, there is an absolute ban on the entry of foreign players to at leastfive (5) regulated professions, namely: criminology, forestry, pharmacy, environmentalplanning and radio and x-ray technology. Nevertheless, the PRC has been constantlyengaged in the review of existing regulatory policies, particularly on the practice ofprofession by foreign nationals. The number of bills pending in Congress attests to the

Commissions ardent desire to update regulatory laws including the provisions relatingto the practice of profession by foreigners, Though admittedly, removal of theserestrictions and limitations will entail rigorous legal procedures.

Apart from the review of the regulatory laws on the practice of profession, theForeign Investment Negative List (FINL) has likewise been the recent subject ofscrutiny. While the Joint Foreign Chambers of Commerce is very articulate on the needto remove the practice of profession from FINL, the Commission holds that itsinclusion is not misleading or incongruent with those items included in the list. As theCommission has consistently pronounced, the 1987 Constitution itself has expressly

reserved the practice of profession to Filipino citizens. Corporate practice of profession,whenever allowed by the pertinent professional regulatory law, is likewise limited toFilipino citizens. Thus, inclusion of the same in the FINL finds sufficient bases in policyand law. Nevertheless, with the current trend towards liberalization, with theprofessional services not being exempt therefrom, the FINL itself will be undergoingmajor review that will surely have a phenomenal impact on the local labor andemployment situation.

Recommendation No. 12 IMPROVEDPhilippine diplomacy should seek increased opportunities for Philippine professionalsto work abroad.

We have no information to evaluate whether any increase in diplomatic efforts tobenefit Philippine professionals is underway. However, the Philippines is partnering inthe ASEAN program to allow cross-border practice for selected professions.

2012 Progress:

The recent initiatives of the Professional Regulation Commission have been

geared towards promoting and facilitating borderless practice for most of the regulatedprofessions, through the conclusion of mutual recognition arrangements andinternational, multilateral, and bilateral agreements. To mention a few, the Philippineshas been an active party to the various ASEAN MRAs; Asia-Pacific EconomicCooperation; Japan-Philippines Economic Partnership Agreement; and many otherbilateral agreements including ASEAN-Japan, ASEAN-India, ASEAN-Korean andAustralia-New Zealand ASEAN Free Trade Agreements.

In the ASEAN region alone, there are seven (7) mutual recognitionarrangements, which cover the engineering, nursing, medicine, dentistry, accountancy,surveying and architecture professions. With the conclusion of such MRAs, cross-borderpractice of covered professionals becomes less restrictive, in view of the mutualrecognition of substantial equivalencies of professionals standards and competencies


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Assessment 33

among the ASEAN Member States. The same is true with the recent institutionalizationof the Philippine Qualifications Framework, in relation to the ASEAN QualificationReference Framework. Through the PQF, alignment with international QualificationsFramework (AQRF) is facilitated for the purpose of enabling comparisons ofqualifications across countries that will support recognition of qualifications, facilitation

of lifelong learning, promotion and encouragement of credit transfer and learnermobility and the promotion of worker mobility.

On a wider scope and perspective, the Asia-Pacific Cooperation, of which thePhilippines is part of, has constantly pursued to establish an international benchmarkcompetence standard and a framework for the recognition of substantial equivalence ofthese standards and quality assurance systems. The registry of APEC engineers andarchitects are gradually gaining membership in the different APEC economies.


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Assessment 34

LABOR

Recommendation No. 1 STEADYModernize the 39-year old Labor Code to end the disadvantage it creates for the

Philippines with regional competitors.DOLE Secretary Baldoz issued AO 375 in August 2011, constituting a Tripartite LaborCode Reform Project. This ad hoc project team has not moved forward nor presented itsrecommendations to the Tripartite Industrial Peace Council (TIPC). In the past, therewere attempts by Congress to amend the 1974 Labor Code. No omnibus bill has beenfiled in Congress to effect a wholesale amendment. Several bills, however, were filedand some were passed to amend specific provisions of the outdated Labor Code,including 52 amendments made on the Labor Code over time. Two bills amending theLabor Code have passed this Congress and may be enacted: Strengthening Tripartismand Strengthening Conciliation-Mediation as a Voluntary Mode of Dispute Settlement

for all labor cases.

2012 Progress:

According to legislators in the 15th Congress involved in labor and employmentissues in both Houses, the doable approach to modernizing the Labor Code is toprioritize the reforms needed and based on consensus forged (tripartite), push forreforms on a piece meal or per book basis. As we head towards a presidential electionin 2016, labor code reforms may prove divisive amongst stakeholders and difficult topass. Thus, part of the strategy should be to provide matrix of reforms according to apolitical scanning that should be updated from the commencement of the 16th

Congress.

The Tripartite Labor Code Reform Project (AO No. 375, s 2011) is on-going andthe New Labor Code is targeted to be submitted during the opening of the 16thCongress. Between now and the opening in July 2013, the drafting and consultationprocess will be undertaken. Working Draft No. 1 of the codal provisions of the proposedNew Labor Code has been completed and was submitted in July 2012.

Working Draft No. 2 has been completed and was already presented to theSecretary. Meetings and consultations with the DOLE Technical Working Group and

other stakeholders are on-going to incorporate the Secretarys and other stakeholderscomments. Thereafter, the Working Draft will be discussed in the Small Tripartite Groupprior to the conduct of tripartite consultations at the regional and national levels.

TESDA participates as a member of the DOLE Inter-Agency Technical WorkingGroup on the Labor Code Review.

TESDA reiterated its position that Book II, Title II- National ManpowerDevelopment Program of the Labor Code was already superseded by RA 7796 or theTESDA Act of 1994. The TESDA Board had issued a Resolution No. 2007-30 emphasizingits position to treat the TESDA Law as a reference document and be treated

independently of the Labor Code Review.


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Assessment 35

Reforms are being undertaken in programs provided for in the Labor Code, suchas the Apprenticeship Program.

Recommendation No. 2 STEADYRationalize holidays to approach ASEAN average of 15 paid holidays a year.

While DOLE has been consistent with its position to maintain existing regular holidaysto 12, and special days to three, the Philippines continue to have more paid regular andspecial holidays than many of the ASEAN countries. Typical male employees today have34 paid leave days, excluding paid holidays that number more than 20 per year. Femaleemployees can avail of as many as 142 or 160 more paid leaves. (Data counts asemployed anyone working just a few hours a week.) There are pending billsincreasing maternity leaves from 60 to 120, days, with an optional additional 60 days

(HB 6128), 15 day paid leaves for victims of domestic violence (HB 5334), 14-day paidbereavement leaves (HB 3762), 15 day leaves for legitimate spouses of OFWs (HB2550), and several other bills granting more days off to employees for various reasons.More Philippine holidays and paid leave days will further reduce productivity andreduce the countrys global competitiveness. In 2012, DOLE issued a policy paper, whichit circulated to Congress, recommending that no additional non-working holidays beapproved.

2012 Progress:

DOLE is consistently opposing proposed legislations on declaration of specialholidays.

Recommendation No. 3 - COMPLETEDDevelop a highly positive and supportive public environment for the industry, informingthe media, public, and Congress of its contribution to the Philippine economy andcorrecting misperceptions. A special Task Force is needed.

DOLE Labor Advisory No. 2 series of 2009 allows flexible work arrangements, such ascompressed work week, reduction of working days, rotation of workers, forced leave,

broken time schedule, and flexi-holiday schedule. Perhaps better guidelines anddissemination can help in the full implementation of this Advisory. Also, on August 7,2012, DOLE issued Labor Advisory No. 1 series of 2012, together with question andanswer guidelines on the payment of wages and related issues on suspension of work todo calamities.

2012 Progress:

The DOLE issued Department Advisory No.02, Series of 2009 (Guidelines on theAdoption of Flexible Work Arrangements). One of the flexible work arrangements that

employers can implement, after consultation with employees, is a flexi-holidaysschedule. Under the scheme, employees agree to avail the holidays at some other days


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provided there is no diminution of existing benefits as a result of such arrangement. Thepurpose is to provide coping mechanisms and remedial measures in times of economicdifficulties and national emergencies. The adoption of such arrangement is consideredas a better alternative than the outright termination of the services of the employees ortotal closure of the establishment. Anchored on voluntary basis and conditions mutually

acceptable to both the employer and the employees, it is recognized as beneficial interms of reduction of business costs and helps in saving jobs while maintainingcompetitiveness and productivity in industries.

Likewise, the DOLE issued Labor Advisory No. 01, Series of 2012 (Payment ofWages Due to Cases of Suspension of Work in Calamity Stricken Areas Pursuant toPresidential Proclamation or Similar Issuances) which specified the conditions of thepayment of wages for employees in calamity-stricken areas promoting social protectionaddressing and alleviating the plight of workers in times of crisis.

The following issuances are uploaded in the official websites of the respectiveagencies of the DOLE who oversees the specific areas of concern:

Advisory No. 2, Series of 2009 may be retrieved from:http://www.bwc.dole.gov.ph/userfiles/file/DA%2002-09.pdf

Advisory No. 1, Series of 2012 may be retrieved from:http://www.nwpc.dole.gov.ph/pages/labor-advisory-no1-s2012.pdf

Recommendation No. 4 STEADYMake wage increases consistent with inflation and productivity.

The National Wages and Productivity Commission issued Resolution No. 2 series of2010, introducing a two-tiered wage system. The first tier consists of a mandatory floorwage, while the second tier is a voluntary productivity- or performance-based wagecomponent above the floor wage. Regional floor wage is the lowest wage for the mostvulnerable workersthe unskilled and new entrants to the labor market. Most recentpoverty threshold estimates are used as a major reference for determining the regionalfloor wage. The two-tiered wage system has first been implemented in Region IV-A on apilot basis. Regional Wage Boards should implement this system in all other regions ofthe country. In coordination with other government agencies and private companies,DOLE also pursues non-wage benefits to address specific needs of a target group ofworkers, particularly the minimum wage earners.

2012 Progress:

Under the two-tiered wage system, the Regional Boards consider povertythreshold (as indicator of needs of workers and their families), average wage (asindicator of employers capacity to pay) and the regions socioeconomic conditions suchas changes in the levels of prices (as indicated by inflation), employment, and the

regions economic growth (as indicated by the Gross Regional Domestic Product).Specifically, the Boards consider, along with the other criteria, the amount needed to
http://www.bwc.dole.gov.ph/userfiles/file/DA%2002-09.pdfhttp://www.bwc.dole.gov.ph/userfiles/file/DA%2002-09.pdf


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Assessment 37

restore the erosion in the purchasing power of workers in deciding on the amount ofwage adjustment.

The two-tiered wage system also aims to tighten the link between pay andproductivity by encouraging enterprises to adopt productivity incentives and gain-

sharing schemes. Enterprises are encouraged to set up or tap existing plant-level labormanagement mechanisms (e.g. LMCs) for the purpose of developing and implementingproductivity improvement programs and for formulating a system that would ensurethe fair and reasonable sharing of productivity gains. The Regional Boards have beendirected to issue advisories to guide enterprises in adopting productivity improvementand gain-sharing schemes

Recommendation No. 5 STEADYFurther narrow the skill-jobs mismatch by revising curricula and training. Ensure thatskills needed for the Seven Big Winner sectors are included in curricula. Increaseinteraction between TESDA and the private sector.Hundreds of thousands of jobs remain unfilled, while millions of Filipinos are jobless.Government, industry, the academe, and non-governmental organizations arecontinuing to address the issue by determining what is causing the mismatch. Thesestakeholders are refining a roadmap of Philippine education that can prepare futureentrants into the workplace to become more productive in their chosen careers andcontribute to nation-building and to a globally competitive Philippine economy.Meanwhile, DOLE chairs the Technical Working Group on Convergent Programs to

address job mismatch issues under the Human Development and Poverty ReductionCluster. Convergent programs include a K-12 modeling program for Grades 11 and 12,review of Higher Education and Training Curriculum, career guidance advocacy plan,skills registry system, and partnerships with various industry sectors.

2012 Progress:

The training regulations and curriculum by TESDA are developed based onstandards of the industry. This is to ensure that what TESDA develops is what theindustry requires, thus facilitates employment of TVET graduates. Industry experts areengaged in the specification of competency standards, training standards, assessment

tools and learning materials.

TESDAs conduct of regular industry consultation is part of the agencys role ofstrengthening industry partnerships and to gather industry-based information in skillsrequirements for the industry. The consultations result to identification of skillspriorities to guide TVET institutions in their program offerings.


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Assessment 38

Recommendation No.6 STEADYCreate millions of new jobs, many of higher quality, through increased investment.

There should be more pro-investment policies and less anti-employer laws, policies, andregulations in order to entice investments that create more employment. In the 2011Labor and Employment Plan, DOLE endorsed policy and program actions to removeimpediments to the creation and expansion of enterprises, and to identify positivereinforcing elements to business innovation and dynamism. However, much is stillexpected toward implementing these much-needed pro-investment, pro-employmentpolicies and legislations.

2012 Progress:

In aid of attracting foreign investments, the DOLE has substantially simplified theprocedures and reduced the documentary requirements in the issuance of employmentpermits. DOLE will be pilot testing within the year, the AEP Online Application System

to further simplify application process and eliminate personal contact of applicants andevaluators. (please refer to progress on Part I Recommendation 2)

Recommendation No. 7 DECLINEDDevelop a package of incentives to attract manufacturers relocating from China.

There should be more pro-investment policies and less anti-employer laws, policies, andregulations in order to entice investments that create more employment. In the 2011

Labor and Employment Plan, DOLE endorsed policy and program actions to removeimpediments to the creation and expansion of enterprises, and to identify positivereinforcing elements to business innovation and dynamism. However, much is stillexpected toward implementing these much-needed pro-investment, pro-employmentpolicies and legislations.

2012Progress:The DOLE recognizes its role in creating a hospitable environment and in

improving the investment climate in the Philippines through its efforts to address pro-investment policies and regulations. The Department has undertaken substantial

measures to ensure these are being realized. A monograph series entitled, AFramework for Promoting Decent Work by Integrating Employment in Industrial Policies

in the Philippines, which will be issued by the Institute for Labor Studies takescognizance of the formulation of an Industrial Policy framework in the efforts to boostthe manufacturing industry in the country. Likewise, the Regulatory Impact Assessmentproject currently examines regulations that may directly or indirectly impede influx ofinvestments in the country. Labor regulations are being assessed by takingconsiderations of the need for government action or intervention, policy objectivesaddressing problems and risks, options analysis assessing impacts to business andcommunity and key stakeholders consultations.


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Recommendation No. 8 STEADYMaintain the low level of labor disruption of business operations. Allow self-regulationof companies.Strengthening TIPC, the highest advisory body on labor in the executive branch,contributed to the reduction of work disruption. The preference of conciliation andmediation over arbitration as the mode of dispute settlement helped in reducing workdisruptions. DOLE also continues to cultivate a culture of voluntary compliance byreaching out to big companies to deal with their subcontractors legitimacy. Thisenhances fair and just treatment of workers by small employers, leading to more stableworking environments devoid of work issues that can cause disruptions in businessoperations.

2012 Progress:

Since 2010, DOLE has been promoting the concept of developing Voluntary

Codes of Good Practices (VCGPs) in all industries nationwide. The idea is to foster aculture of industry self-regulation, where labor and management freely set industryrules and standards in accordance with existing laws and regulations. As of December2012, a total of 81 VCGPs were developed in such industries as hotel and restaurant,mining, BPOs/ICTs, tourism, academe, hospital, rubber and banana plantation, fishing,shipbuilding, construction and other industries that are considered key employmentgenerators.

The exhaustive conciliation-mediation strategy such as team and 24/7 or tutokapproach adopted within the NCMB Regional Branches helped in maintaining theincidence of strikes at the single digit level and shorter strike duration. Further, theconvergence approach with DOLE, RTIPCs and LGUs in case management of critical andhigh-profile cases proved beneficial in the settlement of disputes. For 2012, only 3actual strikes were recorded. Strike duration is shorter with only 6 days for the periodJuly 2010 to December 2012 compared to 26 days for the period January 2008 to June30, 2010

The preference of conciliation-mediation over arbitration as the mode of disputesettlement helped in reducing work disruptions. This is primarily bolstered by theNCMB conciliator-mediators continuing efforts to explore every possible means toeffect amicable settlement in all the cases they handle.

The Single Entry Approach Program (SEnA) being implemented in all DOLEOffices also succeeded in dejudicializing the dispute settlement procedures therebyproviding better options to workers and employers in addressing workplace issues.Since its inception in 2010, there has been a sharp increase in the number of requestsfor assistance filed in the different offices and agencies of the Department. As ofDecember 31, 2012, the DOLE, through its regional offices, bureaus and attachedagencies has processed more than 66,930 RFAs, settling some 37,238 (56%), benefiting57,168 workers with P 1.6 B in restitution benefits. The compulsory hearing of smallmoney claims recorded drastic decline by 99% because of the SENA program or from4,485 in 2009 to only 61 in 2012. Similarly, compulsory arbitration cases filed at the

NLRC dropped by 3,598 or 11% in 2012 from 33,401 cases in 2009.


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The Project SpeED (Speedy and Efficient Delivery of Labor Justice) contributedalso to the reduction of work stoppages and case dockets. Project SpeED is among theDOLE reforms in labor arbitration and adjudication system pursuant to the 22-pointlabor and employment agenda of the President which calls for the restoration ofintegrity 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 officesof the DOLE including its Attached Agencies, at all levels of adjudication. By the end ofthe implementation of the project SpeED 5 as of December 31, 2012, 98% of the laborcases enrolled have been disposed of. The Offices and Agencies accomplishment are asfollows:

ECC 100% disposition of its commitments of 4 cases; BLR 99% disposition of its commitment of 68 cases;

NLRC 98% disposition of its commitments of 12,084 cases; NCMB 94% disposition of its commitments of 166 cases; BWC 98% disposition of its commitments of 3,927 cases; POEA 98% disposition of its commitments of 3,838 cases LS 100% disposition of its commitments of 227 cases.

Cases disposed totaled 19,930 for 98% disposition rate with an aggregate of 384cases still pending as of December 31, 2012.

By 2013, all pending cases at the various offices and attached agencies of theDepartment are expected to be resolved within the prescribed disposition period.

Recommendation No. 9 IMPROVEDImprove the speed and fairness of the adjudication of labor cases before the NationalLabor Relations Commission (NLRC).

The passage of the bill strengthening conciliation and mediation services would declogthe departments quasi-judicial arm and appropriate offices, prevent issues fromescalating into full-blown labor disputes, and reduce lawsuits, especially those on small

money matters.

2012 Progress:

Republic Act No. 10396 (An Act Strengthening Conciliation-Mediation as aVoluntary Mode of Dispute Settlement for All Labor Cases, Amending for this PurposeArticle 228 of Presidential Decree No. 442, As Amended, Otherwise Known as the LaborCode of the Philippines), enacted on 14 March 2013, is designed to unclog case docketsand speed up adjudication of labor cases before the NLRC. The law seeks to strengthenconciliation-mediation as a voluntary mode of dispute settlement for labor-related

cases, which provides that all issues arising from labor and employment shall be subjectto mandatory conciliation-mediation.


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Assessment 41

The law allows any or both parties involved in a dispute to pre-terminate theconciliation-mediation proceedings and request referral or endorsement to DOLEagency which has jurisdiction over the dispute. It provides that labor arbiter or theappropriate Department of Labor and Employment (DOLE) agency that has jurisdiction

over the dispute shall entertain only enforced or referred cases by the duly authorizedofficer.

Continuous implementation of the Project Speedy and Efficient Delivery ofLabor Justice (SpeED) and the Single-Entry Approach (SEnA);

Continuous monitoring of the Minimum Level of Performance (Quota System

on Case Disposition/Ageing) per En Banc Resolution No. 13-07, Series of 2007; Amendment of the 2011 NLRC Rules of Procedure per En Banc Resolution No.

11-12, Series of 2012, with the end view of streamlining the procedures and processes; Promulgation of the 2012 NLRC Sheriffs Manual on Execution ofJudgment per

En Banc Resolution No. 10-12, Series of 2012, with the end view of expediting theenforcement of decisions and streamlining the execution proceedings; Issuances of Administrative Orders, with the end view of streamlining and

expediting the resolution of cases, which include, among others, guidelines on thetreatment of frivolous appeals, petitions, and motions; guidelines on examination ofrecords on appeal; guidelines on the appearance of non-lawyers & special power ofattorneys; guidelines on service of summons, decisions, resolutions and orders;guidelines on transmittal of case records on appeal;

Creation of Board of Inquiry (BOI), to investigate administrative complaints

against Presidential appointees, and Administrative Complaints Committee (ACC), forrank-and-file employees;

Adoption of Efficiency & Integrity Board (EIB) Rules of Procedure; and Capacity-building programs (e.g. Values Enhancement Seminars, etc.)The Department has set for priority the recommendation of the bills for the 16th

Congress, those that address youth unemployment and unemployment in general andimproving labor market competitiveness.


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Assessment 42

LEGISLATION

Recommendation No. 2 IMPROVEDPrioritize bills that improve competitiveness, increase investment and revenue, and

create jobs; deter market-inimical bills.Deliberation on bills that improve competitiveness, increase investment and revenue,and create jobs moved faster in 2012. 15 business and economic reform laws wereenacted as of December 2012 and an additional 15 are to be transmitted to Malacaangfor President Aquinos signature. Many more were approved on Third Reading in onechamber and are pending in plenary in the other. These may still be passed in theremaining weeks of session of the 15th Congress. A number of market inimical bills,including declaration of new local nonworking holidays, mining-free zones, and extremepro-labor laws have advanced, especially in the House.

2012 Progress:

The DOLE Legislative Liaison Office (DLLO) oversees the Departmentslegislative agenda, including action on pending legislative bills on labor andemployment, and drafting of proposed bills. The priority legislative agenda of DOLE isanchored on the Philippine Development Plan and the Labor and Employment Planwhich hallmark the platforms of the 22-point labor and employment policy agenda ofthe President. The DLLO also recognizes the Legislative-Executive DevelopmentAdvisory Council (LEDAC) process where bills are enrolled, reviewed andrecommended to the President and to Congress. The LEDAC determines a commonlegislative agenda which determines the priority legislative agenda of the

administration and in part of the department. The Technical Committee on LegislativeMatters (TCLM) of the DOLE, on the other hand, is an internal review system that alsohelps determine the Departments priority bills.

The Department has set for priority the recommendation of the bills for the 16thCongress, those that address youth unemployment and unemployment in general andimproving labor market competitiveness and productivity.

Recommendation No. 9 IMPROVEDSimplify the present 45 laws regulating 46 professions to relax restrictions on foreignprofessionals and redefine reciprocity.

Most laws regulating professions contain a reciprocity provision. Only five(Environmental Planning, Criminology, Forestry, Pharmacy, and Radio and X-RayTechnology) out of 46 under PRC jurisdiction are restricted to Philippine nationals. A SCrule limits legal practice to Philippine nationals. PRC, consistent with laws regulatingprofessions, issued guidelines in the practice of profession of foreign nationals. Billsregulating the above professions, amending existing laws to include a foreignreciprocity provision, have advanced in Congress. The Environmental Planning bill wasapproved by Congress and will be transmitted to the president for his signature. The


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bills on Criminology, Forestry, and Pharmacy, which were approved on Third Reading inCongress, are low hanging fruits which Arangkada will recommend for passage at thefirst regular session of the 16th Congress. Once the Environmental Planning billbecomes law, only Criminology, Forestry, Pharmacy, Radio and X-Ray Technology, andLaw will be professions restricted solely to Filipinos.

2012 Progress:

Section 7(j) of RA 8981 or the PRC Modernization Act of 200 provides for theissuance of employment permit and special permit to practice profession in thePhilippines based on reciprocity.

To this date, there is an absolute ban on the entry of foreign players to at leastfive (5) regulated professions, namely: criminology, forestry, pharmacy, environmentalplanning and radio and x-ray technology. Nevertheless, the PRC has been constantly

engaged in the review of existing regulatory policies, particularly on the practice ofprofession by foreign nationals. The number of bills pending in Congress attests to theCommissions ardent desire to update regulatory laws including the provisions relatingto the practice of profession by foreigners, Though admittedly, removal of theserestrictions and limitations will entail rigorous legal procedures.

Apart from the review of the regulatory laws on the practice of profession, theForeign Investment Negative List (FINL) has likewise been the recent subject ofscrutiny. While the Joint Foreign Chambers of Commerce is very articulate on the needto remove the practice of profession from FINL, the Commission holds that itsinclusion is not misleading or incongruent with those items included in the list. As the

Commission has consistently pronounced, the 1987 Constitution itself has expresslyreserved the practice of profession to Filipino citizens. Corporate practice of profession,whenever allowed by the pertinent professional regulatory law, is likewise limited toFilipino citizens. Thus, inclusion of the same in the FINL finds sufficient bases in policyand law. Nevertheless, with the current trend towards liberalization, with theprofessional services not being exempt therefrom, the FINL itself will be undergoingmajor review that will surely have a phenomenal impact on the local labor andemployment situation.


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Assessment 44

MACROECONOMIC POLICY

Recommendation No. 17 IMPROVEDReduce the burden of government regulation on the private sector. Encourage the

executive branch and Congress to become smarter regulators in their writing andadministration of laws, protecting health and safety without slowing economic growthand job creation and avoiding undesirable effects on business costs, competition, andinnovation.

To balance government regulations and their impact is quite a difficult task, even in themost sophisticated developed economies. For instance, while authorities intend to makethe business climate as attractive and least expensive as possible, they also have to dealwith immediate fiscal needs, consumer concerns, etc. Furthermore, political interestsare too often not congruent with what the economy really requires. Efforts have startedat reforming government regulatory excess with the help of business-friendly officials at

CSC, DOH, DOT, DTI, NCC, the Food and Drug Administration (FDA), and elsewhere.

2012 Progress:

The ILS with the assistance of the Asian Development Bank has organizedseveral technical learning sessions on the Regulatory Impact Assessment (RIA) onGuidelines and Forms which essentially introduced the RIA framework to the concernedDOLE bureaus and attached agencies. The enrolling agencies (BLR and BLE) have beenable to submit their Preliminary Impact Assessments and are now finalizing theirRegulatory Impact Statements that will be subjected to a public consultation among theconcerned stakeholders.

The Department is one of the pilot agencies making use of the Regulatory ImpactAssessment (RIA) as a means to evaluate policies, whether existing or still beingformulated. Two (2) agencies of DOLE have enrolled programs/policies under RIA.

For the Bureau of Labor Relations (BLR), regulatory policies on termination ofemployment were enrolled. It identified the long process of termination of employmentas a hindrance to both employee and employer productivity. A Preliminary ImpactAssessment (PIA) is also done to assess possible regulatory options to reduce the issuessurrounding termination of employment. The following regulatory options are beingconsidered: (a) Strengthening the Single Entry Approach (SEnA) Program; (b)Extending probationary period from six (6) months to twelve (12) months; and (c)Exploring the possibility of unemployment insurance accounts. The first two regulatoryoptions are now undergoing further studies.

For the Bureau of Local Employment (BLE), private recruitment servicesregulation was enrolled. The policy objective is to review the regulatory framework onemployment services and adopt options for streamlining the cost for business andgovernment, and to propose a robust, competitive and effective system for privatesector participation in employment services, consistent with the objective of promotingemployability and mobility, as well as accessibility and affordability of employment

facilitation and intermediation services.


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Assessment 45

Recommendation No. 18 STEADYMaintain policy predictability and stability. Maintaining policies in a predictable andstable fashion creates a positive climate for investors, who prefer that unpredictablerisks are minimized.

Some years must pass before this recommendation can be evaluated. A long-term planand reduced corruption may help minimize the pattern of incoming elected officialsundoing the work of their predecessors.

2012 Progress:

The Department of Labor and Employment (DOLE), Department of Tourism(DOT) and Department of Finance (DOF) are piloting the institutionalization of aRegulatory Impact Assessment (RIA) system in the Philippine Government throughsupport and funding by the Asian Development Bank (ADB) under the StrengtheningInstitutions for an Improved Investment Climate program.

The RIA system targets the development of regulations in accordance withregulatory best practice principles, and therefore improvement in the quality of newregulations. The RIA system aims to deliver an improved regulatory environment forbusiness that is characterized by:

1. More transparency, rigor, accountability and consistency in the developmentand application of regulations; and

2. A focus on minimizing unnecessary and excessive regulation that diverts timeand money away from more productive pursuits.

An improved regulatory environment will lower regulatory compliance costs(red tape), foster more robust competition in the Philippine economy, and provideconfidence to the international community (e.g., aid organizations and corporateinvestors) and the Philippines community (e.g., local businesses and investors) toparticipate and invest in the necessary economic and social reform of the Philippines.This will benefit the welfare of the Filipino people.


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Assessment 46

EDUCATION

Recommendation No. 3 IMPROVEDEmpower teachers by constantly improving their quality and curriculum; apply

competency-based standards for teachers and provide more in-service training, whilemaintaining welfare and morale.

Teacher competence is a major reform area under the Basic Education Sector ReformAgenda ever since 2004. National competency standards are needed to improve thequality of teachers and teaching. The National Competency-Based Teacher Standardshave been developed by DepEd with pilot implementation starting with diagnosticsurveys undertaken in 2011 to 2012. In-service teacher training continues to bedelivered. The third and last tranche of the Third Salary Standardization Law wascompleted in 2011 with teachers now receiving at least 75% more in basic salaries peryear.

2012 Progress:

TESDA has developed the Trainers Methodology for TVET trainers. The trainersare required to be certified in the program that they are teaching and should also getcertification in TVET Trainers Methodology.

Moreover, TESDA is also implementing the Competency-Based Curriculum in allits programs. Competency-Based Curriculum specifies the knowledge, skills andattitudes needed to qualify students/trainees to industry performance standards. Thecurriculum covers the basic, common, and core competencies identified in the

competency standards developed through series of consultation and workshops withmicrofinance experts and adheres to the curriculum development process of TESDA.

Recommendation No. 9 STEADYUndertake a vigorous public campaign to emphasize the importance of Englishcompetency; encourage television and radio stations to use more English in theirprograms.

At the basic education level, English is an important subject taught from Grade 1 up

through end of high school. The official policy of DepEd, however, is not to use Englishas the medium of instruction for science and mathematics until Grade 4 onwards. Thispolicy is consistent with the United Nations Educational, Scientific and CulturalOrganization (UNESCO) research findings that very young children learn best in theirmother tongue before taking on a second language. There is widespread publicagreement that English proficiency is important. The drop in English quality in thecountry is in implementation or in the quality of instruction of and in English. This is anarea that requires more work and investment, especially at the teacher training stage.Television and radio use more Filipino or local languages as the language medium interms of programing hours. Where language suffers (both Filipino and English) is when

taglish or cod-switching (the mix of local language/dial

DOLE 2012 Progress re Arangkada 2nd Assessment

Documents

Transcript of DOLE 2012 Progress re Arangkada 2nd Assessment