DTI, DOLE to form crack units to solve labor rows

Following a series of labor disputes in several major Japanese firms operating in the country, Trade and Industry Secretary Manuel Roxas II gave assurance yesterday of a "quick response to future labor problems that may affect various industries."

Several major Japanese firms led by Japanese car giant Toyota Motors Philippines Inc. (TMPC) have threatened to pull out due to "rising labor activism."

Roxas said the Department of Trade and Industry (DTI) and the Department of Labor and Employment (DOLE) are forming a reaction team to quickly respond to any brewing labor problem and prevent it from escalating into a full-blown labor dispute.

The formation of a quick reaction team is apparently an offshoot of the labor problem plaguing at least four local car manufacturers led by TMPC, Honda Cars Philippines Inc., Mitsubishi Motors Philippines Corp., and Nissan Motor Co.

The prolonged labor dispute at Toyota, for instance, is creating a problem for the government in the face of the complementation scheme agreed upon under the ASEAN Free Trade Agreement (AFTA).

ASEAN car manufacturers, under AFTA, had agreed that each country will concentrate in producing one model under the complementation scheme and that model will be sold in other countries in the region.

If a labor dispute hits a car manufacturer in one country and production is adversely affected, the company’s supply situation in other member countries will be automatically affected.

The AFTA agreement also indicates that if a labor situation becomes untenable, the car manufacturer can easily decide to pull out its stakes and transfer its production to other neighboring countries covered by the agreement.

Government sources admitted that in such a scenario, ASEAN countries are "pressured" into providing a "more hospitable" environment for the multinational firms.

Labor officials are reportedly concerned that the Japanese firms’ labor problems would be similar to a previous major dispute at Nestle Philippines which resulted in major dislocation.

Earlier, Labor Undersecretary Arturo Brion said the government is expecting an increase in the number of strikes due to deadlocks in CBA negotiations.