Social Partnership Models: Challenges to IR Actors

1. Social Partnership Models: Challenges to IR Actors Dean Jorge V. Sibal UP SOLAIR

2. The Emerging New IR Models • Instead of the race to the bottom wage strategy via contractualization, many pro-active employers and labor groups have utilized high road IR interventions that enhance competitiveness and productivity side-by-side with decent work through more participative rather than adversarial employer-labor relationship.

3. HRD employee participation as coping up mechanisms • This functional form of flexibility is HRD-driven employer-labor social partnership. • The focus is on employee participation and skill formation (Kuruvilla & Erickson, 2000).

4. Basic Model of Social Partnership

5. Philippine adjustment measures • Domestic firms cope with structural, social, and economic changes of globalization thru: • investment in HRD (53.3%) • improvement in quality of products and services (79.8%) (1999 DOLE Industrial Relations at the Workplace Survey)

6. Social Partnership Mechanismsin the Philippines 1. Suggestion scheme, meeting, task force 2. Consultation- OSH Committee, SDWT, QC, LMC 3. Collective Bargaining, Collective Negotiation 4. Gain-sharing- Employee Coop & Enterprise, Profit Sharing, ESOP 5. Work Council, Employee representation in the governing board

7. worker participation in decision making

8. Philippine Case Studies

9. Labor-Management Cooperation Practices in Unionized Workplaces a. Central Azucarera Don Pedro, Inc., Nasugbu, Batangas b. Mabuhay Vinyl Corporation, Iligan City c. Energizer Philippines, Mandaue, Cebu d. Del Monte Philippines, Inc., Bukidnon

10. Employee Consultation CB Employee Co-management EE Rep.

11. Practices in Non-Manufacturing Unionized Workplaces • Bank of Philippine Islands, Makati City • GMA Network, Inc., Quezon City • Manila Electric Company, Pasig City • University of the Philippines, Quezon City • SM Shoe Mart, Manila

12. Employee Consultation CB Employee Co-management EE Rep. Com pany QC LMC CBA Coop Enterprise ESOP ERGB

13. Practices in Unionized Workplaces in the Regions • Holcim Philippines, Inc., La Union • Holcim Philippines, Inc., Lugait, Misamis Oriental • Philippine Associated Smelting Corporation, Isabel, Leyte • Coca Cola Bottlers Phils.-Ilocos Plant, Ilocos Norte

14. Employee Consultation CB Employee Co-management EE Rep. Com pany QC LMC CBA Coop Enterprise ESOP ERGB

15. Practices in Non-Unionized Workplaces • Ford Motor Company Philippines, Sta. Rosa, Laguna • Moog Control Corp., Baguio City • SPI Technologies, Inc., Paranaque City • United Laboratories, Inc., Mandaluyong City

16. Employee Consultation CB Employee Co-management EE Rep. Com pany QC LMC CBA Coop Enterprise ESOP ERGB

17. Key Finding

18. Facing liberalization, top Philippine enterprises competed through the high road approach adjustment by technology retooling and re-skilling characterized by decent work and social partnership. • Those that utilized the low road approach (race to the bottom wage rate contractualization) eventually gave in to low wage-production in other Asian countries like China.

19. Summary & Recommendations

20. Challenges to the IR Actors • The country has numerous successful practices and experiences on employer-labor social partnership.

21. The benefits from social partnership are clear- • Increased productivity; • Industrial peace- no strike and no lock out, minimal to zero grievances, minimal union-initiated labor cases; speedy collective bargaining negotiations, etc.; • Better communications between labor and management; and • Above industry compensation and benefits.

22. Policy Recommendations • While social employer-labor partnership is fast being implemented in large Philippine enterprises as shown in this paper, there is need to cascade these good practices to the smaller firms that employs the bigger bulk of the labor force.

23. Policy Recommendations 2. Employer initiatives in promoting good practices of corporate social responsibility (CSR) should be supported not only by their employees but also by other stakeholders. This was illustrated in both unionized and non-unionized establishments shown in this paper. Another example of this initiative is SM’s “Big Brother, Small Brother” partnership in job preservation and job creation.

24. Policy Recommendations 3. The various social accords among employers, trade unions and government like the “Social Accord for Industrial Peace and Stability” signed in October 4, 2004 by ECOP, trade union federations (TUCP, FFW and TUPAS) and DOLE should be transformed into concrete activities, projects and programs and not limited to contract signing and publicity events.

25. Policy Recommendations 4. The operations of the Tripartite Industrial Peace Council (TIPC) should be expanded to provincial, city, municipality, barangay and industry levels.

26. Policy Recommendations 5. Trade union organizing and collective bargaining through RA No. 9481 should be supported by the social partners. As illustrated in the case studies, employers and trade union cooperation contributes to productivity and decent work. For those who opted for non-unionized form of social partnership, alternative interventions featured in this paper has resulted to the same outcomes- industry productivity, labor empowerment and improved working conditions.

27. Policy Recommendations 6. The campaign of the IR actors for patronage of locally-made products following Philippine quality standards and the campaign against smuggling are effective mechanisms for job creation and job preservation. This is another area ripe for social partnership interventions.

28. Policy Recommendations 7. The voluntary adoption of ESOP in Philippine enterprises can be refiled at the Philippine Congress now that the success of ESOP’s experiences in the country especially on PAL has shown very positive results.

29. Policy Recommendations 8. Employee representation in the governing boards of government corporations like those at the University of the Philippines and tripartite representation at the GSIS, SSS, ECC, OWWA, etc. should be expanded to other state corporations, and possibly encouraged for adoption in private enterprises.

30. Policy Recommendations 10. Voluntary compliance with the Philippine Quality Award Act (under RA No. 9013) should be given more incentives by the social actors. The PQA standards should be divided into various categories similar to the ISO standards (ISO 9000, 14,000, etc.). The social actors especially the civil society should campaign for patronage of PQA complaint enterprises.

31. Policy Recommendations 10. Philippine retailers like SM should also champion compliance to all Philippine standards like DO No. 57-04 for labor standards, PS standards of DTI for electrical products, BFAD standards for food and drugs, ban in selling pirated DVDs and CDs of local films and music and other smuggled products.

32. Policy Recommendations 11. The Securities and Exchange Commission should encourage elected employee representatives as possible occupants of the 2 seats allotted for independent directors for publicly-listed firms.

33. Policy Recommendations 12. Social partnership should also be expanded among principals and subcontactors and suppliers. Big enterprises should extend educational and technical assistance to subcontractors and suppliers to enable them to comply with local and international quality standards in exchange for continuous patronage of their products and services.

34. Thank You