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Philippines (Tony Salvador) |
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1. The features of globalization in other countries
Comparison with Australia
Similarities:
Workers are being asked to compete against each other, thus leading to retrenchment. For
example, the employees of Mondragon, the former exclusive distributor
of NIKE in the country, spun off different corporations, and the former co-workers then
had to compete against each other. Similarly, the workers from different factories of
Nestle in Australia had to compete against each other.
Cost-cutting, reduction of workforce, contractualization, labor management councils,
business councils.
Difference:
Comparison with India
Similarities:
There is also a sever economic crisis in the Philippines. However, the government does not
cut the budget, not because we can afford not to. It is simply
because there nothing to cut anymore, the budget being the barest minimum.
Like in India, the government also privatizes state corporations. Our government also has
no money for infrastructure.
The government has also passed the "attrition law" which basically provides that
government workers who retire or resign will no longer be
replaced by new employees. Moreover, the government is the number employer of casuals,
with many serving for more than a decade as casuals.
The government is also reducing subsidies on food items.
Difference:
We have no study on the pay of government workers vis-a-vis those in the private sector.
But based on anecdotes, we are of the impression that
unlike in India, government workers often receive less than those in big private
companies, but often more than those small business entities.
2. What conclusions can you draw from all the reports on how globalization
is being experienced in other countries?
Management has devised a strategy to weaken or totally eradicate workers solidarity.
Instead of unions, they want management-controlled
labor-management councils.
There are a lot of common experiences among India, Australia, and the Philippines in terms
of developments in the economy as well as their effects on workers rights.
3. How does you government try to attract foreign investments and TNCs?
The government basically adopts the main features of globalization such as deregulation,
privatization, and trade liberalization.
The government has also created in the 70s export processing zones where there is an
unwritten rule against unionization. There is widespread
violation of basic labor rights and standards in these zones.
Our board of investments give tax breaks to foreigners coming in.
The President has formed a Presidential Task Force on Labor Policy tasked to amend the
labor code and introduce investment-friendly, job-creating
policies. While the government refuse to comment, sources say that a wide-ranging
exemption to the minimum wage is being sought.
The president also wanted to ban strikes.
The government also gave tacit approval to the no moratorium on CBA benefits for employees
of the PAL. Now a lot employers are invoking this.
The government is implementing SAPs which translates into privatization, deregulation and
liberalization in trade and investment.
4. What are the implications of these policies for workers and trade
unions?
Increasing job insecurity, elimination of regular positions, casualization and
contractualization, freeze in wage hikes or insignificant increases.
Local unions and the trade union movement in general are getting weaker and weaker. There
is marked increase in economic hardship.
To make up for tax breaks given to corporations and also corporate taxes uncollected
because of corruption, the government aggressively collects
taxes from salary and wage earners, and value-added taxes.
Government reduces whatever little subsidies there are on food (sugar, rice, corn).
5. What are the main features of structural adjustment programs in your
country?
Investment liberalization: Within Asean the Philippines is the only country vehemently
opposed to any form of restraints on capital movement.
It is quite strange considering that even neo-liberal Western economists who were
previously all for investment liberalization are now calling for
restraints. During the APEC meeting in Kuala Kumpur, we were the only country which
seconded the opposition of the US to any form of restraints on
capital movement.
Trade liberalization: The Philippines is a signatory to the GATT and a
member of the WTO. Among APEC nations, our government is the most supportive of further
trade liberalization.
The government is also hell-bent on privatizing power generation, transmission and
distribution.
In order to earn more dollars, the government encourages manufacturing for export and also
the exportation of agricultural products.
There is also inadequate spending in health, housing, and education.
6. Strategies and tactics of trade unions in negotiating SAPs
Trade unions should coordinate and hold sessions on economic issues with the end in view
of having a united stand on SAP. A good start is the
different ITSs; another is the different regional NGO-TU groupings such as IFWEA. There
are also a few in Asia.
However, the unions should also start at the national level through consultations with
different trade unions and trade union centers.
Trade unions should strengthen their mass base through more aggressive organizing.
Workers should organize under one trade union center.
Answers to questions posed from Australia:
1. Experience with respect to business councils.
We have the Philippine Chamber of Commerce, which also pushes for pro-business policies. However, the adversary of trade unions in the Philippines is the Employers Confederation of the Philippines. This is the group which is shamelessly pushing for more labor flexibility, inspite of the fact that employers actually can get away with anything as far as labor relations is concerned. It is currently calling for a wage freeze, purportedly to allow businesses to recover from the crisis.
2. With respect to Nestle, we will have to ask our contacts. But in general, they are highly paid compared to other workers in Philippines.
Nestle bought Magnolia Ice Cream, which is used to be owned by San Miguel Corporation. Magnolia used to dominate the market for decades and decades. San Miguel Corporation is the maker of San Miguel Beer, which used to be monopoly. Among the other Nestle products in the Philippines are milk, both for adults and babies, Cerelac (baby cereals), and MILO (chocolate milk powder).
They have lots of competition here, mostly also MNCs who likewise manufacture their products here. Lately, they are having tough competition also from imported products. They also have some minor competition from local brands.
3. Warner Lambert is one of those manufacturers moving out of the Philippines allegedly because labor cost is very high compared to other countries. There are a number of big MNCs pulling out their manufacturing in the Philippines, but they say that they will continue to sell their products (made abroad) in the Philippines.
They make numerous medicines. They have lots of competition here in the Philippines. Among their competitors is Abbot Laboratories, yet another MNC on the way out.
Like Nestle, the employees get much more than those in domestic firms. But just like Nestle, they get much less than their colleagues in rich countries.
Both Nestle and Warner import their materials.
For lack of time, we were not able to answer the questions from our friends in India.
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