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Philippines (Tony Salvador) |
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1. Instruments of globalization in other countries
Similarities:
Our government is also vigorously implementing its privatization program by selling important and strategic state assets, These include utilities that have been traditional owned by the state not only in the Philippines but also in other countries, such as water and petroleum. The government is also selling the Manila Hotel, which is considered a national treasure. Also up for sale is the National Power Corporation, as the government wants to privatize the generation, transmission, and distribution of electric power.
These reduction in the productive assets of the state will make it even more incapable of raising funds to finance its operations.
Difference:
The Philippines is going a step farther by trying to sell even state hospitals, with obvious detrimental effects to those who could hardly afford our astronomical hospital bills.
The government even privatized a huge tract of land formerly used as a military camp.
The government assiduously privatizes not only in compliance with the IMF / WB but also because there are vested interests in government and private persons who can influence government who benefit from the sale of government assets.
Effect on one of the workers organizations we work with: The structural adjustment program has also affected the urban poor because the government itself is a party to a land dispute over a land which is being occupied by the urban poor. If the government had enough money, it would not have to fight over a small piece of land and could sell the same to the urban poor under our Community Mortgage Program, where the urban poor pays for the land to the government over a period of 25 years.
The government has also deregulated petroleum, energy, and telecommunication. But as far as telephone services are concerned, we are of the opinion that it has worked to the advantage of consumers because we used to have an atrociously inefficient monopoly which overcharges its clients. But at the same time, deregulation has also resulted in the loss of jobs.
As far as deregulation is concerned, it has also worked for the advantage of the workers since communication is now faster primarily due to the increase in phones. But of course, deregulation has also led to loss of jobs as the former monopoly was driven out of its complacency and had to initiate cost-cutting measures. As always, capitalists always try to save on labor cost first by the simple expedient of eliminating jobs. Moreover, deregulation has forced the former monopoly to introduce new technology, which again led to reduction in the workforce.
2. The effects of globalization on workers and trade unions.
How have the workers in your country experienced the issues outlined in the reading.
Free trade has brought about closures of businesses, loss of jobs, labor flexibility, and subcontracting. All of these translate into the weakening of trade unions due to reduced membership and the difficulty in organizing. Even though most of them are aware of the oppression that they are suffering and some are cognizant of the fact that unions can fight for labor rights, workers won’t join unions since they are too scared to lose their jobs. Because of job insecurity because workers see that it is really very easy for management to bust the union and dismiss its officers and members, most workers would think of their own welfare and that of their family first, before ever considering joining a union. As far as most workers are concerned the issue is survival for them and their family, even if they had to forego of their constitutional right to join a union.
When we submit our CBA proposals to the management, management always say that they want CBA moratorium, following the lead of Philippine Airlines.
In what other ways have trade unions and workers been affected by the SAP in your country? Think about the effects in the workplace, community, and society as a whole.
Prices of prime commodities fluctuate, but usually are on the way up. As far as the workers are concerned price controls are useless because the government cannot enforce them.
What other effects of globalization have workers and trade unions experienced at the local and national level?
Because of poverty and the lack of sense of belonging to a family, a community, a nation, there is a rise in criminality, anti-social behavior, prostitution, and under-education. Despite the fact that prostitution is illegal, the government tacitly tolerates places of ill-refute, and merely asks for health certificates and other bureaucratic requirements.
Some of participants in our study circle were of the impression that the government is cutting the budget on social security and health. However, the government has not actually cut the budget on health simply because the budget is woefully insufficient in the first place. As far as social security is concerned, the government actually has no budget for social security and all of the funds for social security administered by the social security system actually comes from the contributions of the employees and the employers. However, our SSS benefits are inadequate even for the most basic of our needs.
Some participants are also of the opinion that the government is not implementing labor standards so that the Philippines can compete in the international market. Others opine though that with or without globalization, the government can hardly enforce labor standard due to corruption and insufficiency of resources.
The insufficient funds for health and social security as well as the non-implementation of labor standards adversely affect the family as it has to shoulder most of the cost, and would have to scrape from the little that they have. Thus, the poor get poorer, and the rich get richer.
How have the workers and trade unions been affected by the operation of TNCs in your country?
In order to attract more TNCs, the government is using its power in order to make labor organizing even more difficulty. Specifically, it is doing nothing to stop unlawful casualization and contractualization of labor. Worse, it even issued in 1997 new rules further recognizing the right of employers to subcontract certain types of jobs. Our Supreme Court has also come up with ridiculous decisions that make union organizing even more difficult, even as our labor relations system is very legalistic that there are countless ways by which to thwart organizing efforts. We feel that all of these efforts are actually directed to weakening the labor movement with the end in view of attracting foreign investors. Thus, the number of workers in the TU movement is getting lower and lower.
In the recent weeks, we have seen in the newspapers reports of big TNCs moving out of the country, with concomitant loss of jobs. Among the reasons given are graft and corruption, inadequate infrastructure, high cost of power, and alleged high labor costs.
Coupled with calls for the review of the labor code by the president through a presidential commission for the review of labor policy – one of the tasks of which is the possible exemption to the minimum wage – we see these new of TNC pull out as part of an effort to further emasculate the labor movement and reduce labor standards even further.
The government is biased in favor of TNCs to the detriment of local investors.
The only good thing that is coming out of all of these issues on globalization and TNCs is that the different labor groups are trying to come together in order to fight globalization.
3. Answers to questions from our friends:
Compensation of Nestle Employees (Australia):
As of today (March 31, 1999), the peso US dollar exchange rate is P 38.775
The entry rate for rank-and-file employees is P 8,000 – 9,000 per month. Senior R&F earn up to P 30,000 – 35,000.
Other benefits:
Casualisation and contractualisation (Pakistan)
We are trying to reccruit even the casuals and the contractuals. We are very active in engaging the government, both at the executive branch and the legistlative branch. WE submitted a position paper and an alternative set of rules on subcontracting and we attended government and non government for a where we reiterated our position.
We also attend congressional hearings. Our bill on the right to security of tenure was sponsored by a congressman and is currently pending in Congress. We shall submit another position paper and alternative bill after the holy week break.
Korea
Has your country experienced the IMF bail-out or the Structural Adjustment Program? If yes, how about it?
As far as we can remember, we have always been under the IMF conditionalities, and we have been implementing the SAP for more than a decade now. The SAP is discussed in this report as well as in the 2nd and the 3rd.
How about your wage level? Satisfied or not?
The minimum wage in the national capital region is P 198 or less than US$ 5 (P38.775 : US$ 1), which is impossible to live on. At the same time, a lot of employers are not even paying this amount.
How about social safety net in your country? Stable or not?
Our safety net is the family, and not the government, which do not have a safety net to speak of.
India
Imports: Almost everything, primarily due to liberalization. Moreover, a lot of the things we export have very high import contents.
Exports: Electronics is the number one export, a huge percentage of which is semiconductors. Next is garments; we also export copra.
Imports are subjected to tariffs which are getting lower and lower because of our commitment to the GATT/WTO and also to APEC.
Among the incentives to exports is that they are given a one-year exemption whenever there is a minimum wage increase.
Electric utilities, water has been privatised. Transport has always been private, except for an unsuccessful attempt during the Marcos era.
They see these as instruments of capitalists and rich nations in order to oppress poor nations. But by and large, we are not very well versed on the workings of these organizations. However, as we have explained in our reports, we are being adversely affected by SAP.
New forms of labor organizations, new strategies in organizing, more resources for organizing and education. Equally important is international solidarity.
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