The Effects of Globalization and Economic Restructuring on Philippine Labor Policies and the Responses of the Actors of the Philippine Industrial Relations System1
Abstract
The Philippine labor policies and standards are based on international labor standards (ILS). With the present intensification of globalization and the resulting economic restructuring, there are agitations from certain groups that these high labor standards need to be liberalized since the country is experiencing “jobless growth” in the formal industrial sector and the use of capital intensive work processes is being encouraged in the face of very high unemployment and underemployment rates of 10.8% and 17.6% respectively.
This paper argues against the suggestions of liberalizing labor policies and standards which may lead to the race to the bottom lowering of wages, benefits and working conditions among workers in the underdeveloped and developing countries as their comparative advantage and the possible retaliation of developed countries through the imposition of their high labor standards as a trade protectionist device in order to protect the jobs of their local labor force earning high wages and benefits.
The major actors of the Philippine IR system- government, employers, trade unions and civil society groups- have responded to the said imbalance between high labor standards in the face of high unemployment and underemployment rates.
This paper advocates the retention of Philippine labor policies based on international labor standards as the correct path in the attainment of economic growth and development that will result in social equity and decent work.
Globalization Trends in Asia
Globalization was more intense in Asia, particularly East Asia which contributed to the fast growth of the region today.
Globalization in Asia is characterized by the increasing participation of foreign capital, including small and medium scale investors from the NICs (Taiwan, So. Korea, Singapore, Malaysia, China, etc.) in the enterprises of the developing economies including infrastructure and energy development projects which were previously
The Philippine labor policies and standards are based on international labor standards (ILS). With the present intensification of globalization and the resulting economic restructuring, there are agitations from certain groups that these high labor standards need to be liberalized since the country is experiencing “jobless growth” in the formal industrial sector and the use of capital intensive work processes is being encouraged in the face of very high unemployment and underemployment rates of 10.8% and 17.6% respectively.
This paper argues against the suggestions of liberalizing labor policies and standards which may lead to the race to the bottom lowering of wages, benefits and working conditions among workers in the underdeveloped and developing countries as their comparative advantage and the possible retaliation of developed countries through the imposition of their high labor standards as a trade protectionist device in order to protect the jobs of their local labor force earning high wages and benefits.
The major actors of the Philippine IR system- government, employers, trade unions and civil society groups- have responded to the said imbalance between high labor standards in the face of high unemployment and underemployment rates.
This paper advocates the retention of Philippine labor policies based on international labor standards as the correct path in the attainment of economic growth and development that will result in social equity and decent work.
Globalization Trends in Asia
Globalization was more intense in Asia, particularly East Asia which contributed to the fast growth of the region today.
Globalization in Asia is characterized by the increasing participation of foreign capital, including small and medium scale investors from the NICs (Taiwan, So. Korea, Singapore, Malaysia, China, etc.) in the enterprises of the developing economies including infrastructure and energy development projects which were previously
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