The Institute, through the DOLE Technical Support and Secretariat Group on the review of the Labor Code, spearheaded the preparation of a proposed framework for the new Labor Code.  Because the present Labor Code is no longer responsive to the emerging needs of the present environment, the paper presents policy directions that are hinged on the requirements of global competition and socio-economic developments.  The paper also took note of other labor and employment concerns such as informalization of the labor force, flexibilization of work processes, growing overseas employment opportunities, declining union growth and coverage of collective bargaining agreements, alternative forms of dispute settlement, gender and development, child labor, harmonization of work and family responsibilities, and decent work.

Among the specific proposals in the area of employment is the provision on Employment Agreement.  It is meant to give employers and workers a free hand in developing the terms and conditions of employment in an era where different employment configurations are constantly emerging. This is aligned with the Department’s thrust toward the empowerment of all types of workers and preventing their being exploited by employers. The paper suggests that all types of workers (formal and informal) would be better protected and be able to secure better work arrangements if they have individual contracts where terms and conditions of employment are specifically provided to guide both the employer and the worker. 

The paper also proposes a provision on Terms of Employment or Labor Standards, wherein the core minimum standards would be tailor-fitted to protect workers in the new economy, in the flexible market, and in new types of employment or new forms of jobs such as subcontracting, outsourcing, casual and temporary work.

Further, the paper calls for the inclusion of a new book in the Labor Code that emphasizes the following:

• Establishment of more democratic, participatory and cooperative labor relation mechanisms.

• Shift of the nature of labor-management relationship from adversarial and legalistic to one founded on Filipino values such as bayanihan, pakikipagtulungan, pakikipag-kapwa, and damayan.

• Shift of a mode of labor administration from reactive to anticipatory, preventive and developmental approach.

• Provision of a framework of relationships in both the unorganized and the organized sectors.

• Promotion of voluntary modes of settling disputes, which is more aligned with the Filipino psyche.

• Expediting the process of dispute settlement, providing plant-level grievance machinery and emphasizing conciliation and mediation.

With these proposals, the paper recommends that the proposed new book on Labor Relations should contain the following chapters: Chapter I - Labor Management Relations at the Workplace; Chapter II - Unionism and Collective Bargaining; Chapter III – Tripartism; Chapter IV             - Organization of Informal Sector; and Chapter V - Dispute Settlement.