Businessmen seek changes in 'archaic' labor code

MANILA, Philippines - The business sector will ask President Arroyo to amend the labor code in order to accommodate changes in the global economy and make the country more attractive as an investment destination for companies.

“Some of our labor laws are archaic and they do not take into consideration the changes that resulted from the globalization,“ Edgardo G. Lacson, president of the Employers Confederation of the Philippines (ECOP, said in a telephone interview.

For instance, he said that under the law women are not allowed to work past 12 midnight. This would make working for business process outsourcing (BPO) firms illegal for women. “This law would make many employers criminals,” Lacson noted.

According to him, there is a need to align the new laws with the present situation. This is because the laws were crafted before globalization.

Likewise, Lacson said that they would like to clarify the law on sub-contracting. He said that labor outsourcing is a form of sub contracting. Sub contracting is not allowed under the current law.

Also, Lacson said there is a need to reform the administration of labor justice. He said there is a need to fasttrack such a reform because long cases translate to losses for the company and the employees.

“There must be a 90-day deadline for the labor arbiters to settle dispute,” Lacson said. He noted that right now, the National Labor Rights Commission (NLRC) has too many backlogs and that labor cases can go on for years.

Lacson said the 1974 Labor Code must be amended because it is outdated and has lost its relevance.

“Policy reforms in the areas of contracting, subcontracting, outsourcing, unionization and collective bargaining, kinds of employment and other conditions of work are imperative and indispensable if we want employers to remain viable and competitive in a globalized world and enhance their capacity to create wealth for society and sustain and preserve jobs,” Lacson said.

Lacson said they will present their resolution at the conclusion of their two day conference to President Arroyo on Wednesday.

ECOP will hold its 31st National  Conference of Employers today and tomorrow at the Manila Hotel.