DOLE, foreign chambers team up to craft industry self-regulation policies

MANILA, Philippines - In a bid to lure more investments into the country and generate more employment, the government is now moving to ease regulations on commercial establishments.

Labor Secretary Rosalinda Baldoz said the government has already initiated the implementation of new policies allowing “industry self-regulation.”

This, as the Department of Labor and Employment (DOLE) forged an agreement yesterday with the Joint Foreign Chambers of the Philippines (JFC) for the drafting of a so-called “code of conduct” for foreign and locally-owned commercial firms.

“This code of conduct would allow industry self-regulation that eventually lead to lesser government intervention as well as lesser labor disputes that could disrupt company operations,” Baldoz pointed out.

Under the agreement, DOLE and the JFC will hold business dialogues, formulate practical guides as well as formulate advisory on industry self-regulation.

Baldoz said seven sectors – agribusiness, business process outsourcing, creative industries, infrastructure, manufacturing and logistics, mining and tourism – have been identified as those with the greatest potential to generate employment in the coming years.

“DOLE and JFC will hold partnership in governance forum series to highlight best practices in the seven sectors and outline the areas of cooperation,” Baldoz pointed out.

Hubert D’Aboville, president of the European Chamber of Commerce of the Philippines said JFC and DOLE would hopefully be able to address pressing issues in five weeks and then start drafting the code of conduct.

The 700-member JFC employs about one million Filipino workers and is therefore capable to assess the situation of foreign-owned companies operating here.

According to Baldoz, the drafting of a code of conduct for commercial establishments is part of the reforms that President Aquino intends to implement during his term.

Baldoz said upon his assumption to office President Aquino pushed for the implementation of new programs that would encourage more foreign investors to putup businesses here and thus help generate local employment.

Aside from other factors, Baldoz previously admitted that the country’s numerous regulations discourage investors from setting up shop in the Philippines.

But with the partnership with the JFC, Baldoz expressed confidence that the government would be able to resolve the problem and help create more jobs.

Baldoz said they expect the drafting of the code of conduct to be completed by the end of the year and the government to enforce the industry self-regulation policy by January 2011.