GROUP WORK 1 : FORMALIZING THE INFORMAL ECONOMY, THE TRADE UNION STRATEGIES. Galadari Hotel, Colombo, Sri Lanka, May 7-8, 2012

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1 GROUP WORK 1 : FORMALIZING THE INFORMAL ECONOMY, THE TRADE UNION STRATEGIES Galadari Hotel, Colombo, Sri Lanka, May 7-8, 2012 SUSANITA G. TESIORNA TUCP ITUC ADELINE G. COLARINA F F W 1

2 10/31/2013 MEASURES BY THE GOVERNMENT TO PROMOTE : A. ON RECOGNITION : a. RA 8425: National Anti-Poverty Commission where all types of workers are represented b. Local Government Code /Local Sectoral Representations c. Amended RA 7875 on Phil Health Insurance to include now informal sector representation to the committee d. NEDA Board Reso. No. 3, series of 2002 creating Sub-Committee for the Informal Sector under the Social Development Council e. Registration/accreditation with government agencies f. Annual celebration of Informal Sector Day led by Dept 2

3 10/31/2013 MEASURES BY THE GOVERNMENT TO PROMOTE B. ON PROTECTION AND SUPPORT : a. SSS Law and improved access b. Universal Coverage on health Insurance c. Mandatory membership to PAGIBIG (housing programs and provident fund) d. Phil Development Plan mainstreamed issue of informal sector under the chapters on labor, women, human rights, human development services 3

4 10/31/2013 MEASURES BY THE GOVERNMENT TO PROMOTE B. ON PROTECTION AND SUPPORT : e. Magna Carta of Women / increased access to Maternity Protection among others f. Laws to improve access to productive resources such as RA 9178 or the BMBE Law, Cooperative Development Law, Microfinance industry, RA 7192, RA 7882, RA 4

5 10/31/2013 B. On protection and Support : g. Country Program for the Informal Sector : Capacity Building of Local Government Institutionalizing Programs and Policies for the Informal Sector h. Labor and Employment Program i. Sustainable Livelihood Program-DSWD, DA,, DAR, DOST, DTI, CDA, DOTC, DOE for the E-trike, TESDA j. National Convergence Program on Social Protection Floor for the Informal Sector 5

6 10/31/2013 ON PROTECTION AND SUPPORT : C. On rights at work : 1. DOLE DO NO. 5 on Industrial Homework > Endorsement by Private Sector and TU s > Research conducted on industrial homeworkers 2. RA 6685 employment of construction workers in local infrastructure projects 3. OSH mainstreamed to Phil Development Plan and conduct of TOT on 5S and 6

7 10/31/2013 UPDATES ON LABOR AND SOCIAL LEGISLATIONS ON PROTECTION : 1. RA 9710 of 2010 An Act Providing for the Magna Carta of Women 2. RA The Expanded Breastfeeding Promotion Act of Agri-Agra Reform Credit Act 4. RA 9590 Barangay Kabuhayan Act 7

8 SOCIAL PROTECTION IS KEY TO ACHIEVING SUSTAINABLE, INCLUSIVE GROWTH Equalize access to development opportunities Formulate and implement effective and responsive social safety nets Employment Rights at Work Social Protection Social Dialogue Increased Coverage, Expanded Benefits, Improved Access to Social Protection Mechanisms and Safe Work for ALL

9 ENHANCED SOCIAL PROTECTION OPERATIONAL FRAMEWORK AND STRATEGY OF THE PHILIPPINES: PROTECTING THE VULNERABLE SOCIAL PROTECTION POOR Income fall below the poverty threshold VULNERABLE When confronted by risk that, if currently non-poor, will fall below the poverty line, or if currently poor, will remain in poverty MARGINALIZED For reasons of poverty, geographical inaccessibility, culture, gender etc. have not benefitted from education, health, employment and other opportunities

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11 PHILIPPINE LABOR MARKET: WHO, WHERE AND WHY ARE THEY VULNERABLE? 2011 Labor Force Survey Working Age Population M Labor Force M Not in the Labor Force M Employed M Unemployed M Wage and Salary M Employers in Family Operated Farm/Business M Self-Employed M Unpaid Family Workers M

12 10/31/2013 STATISTICAL INFORMATION : FOR SOCIAL PROTECTION INTERVENTION PRIORITY 2011 Labor Force Survey Working Age Population M Labor Force M Not in the Labor Force M Employed M Unemployed M Wage and Salary M Employers in Family Operated Farm/Business M Self-Employed M Unpaid Family Workers M 12

13 10/31/2013 MDG Employment Indicators GOAL Indicators Baseline Year Full and productive employment, and decent work for all achieved (including women and young people) Growth rate of Labor productivity (GDP per person employed ) Baselin e Value Target (2016) Signal % Increase 0.7% 5.4% Employment-topopulation ratio % Increase 60.1% 59.7% Working poverty rate Proportion of selfemployed and unpaid family workers to total employment Share of women in wage employment in the non-agricultural sector % Decrease % Decrease 41.1% 39.7% % Increase 41.8% 13

14 SELF-EMPLOYED AND UNPAID FAMILY WORKERS Proportion of self-employed and unpaid family workers declining but still accounts for a significant portion of the total employed 18,000 16,000 14,000 12,000 Number of Self-Employed and Unpaid Family Workers, ,015 (41.7%) 15,300 (41.1%) 10,858 10,994 10/31/ ,000 8,000 6,000 self- employed unpaid family workers 4,000 2, ,157 4, Source: DOLE-ILS 14

15 10/31/2013 SELF-EMPLOYED AND UNPAID FAMILY WORKERS Five occupational groups are more vulnerable than others Number of Self-Employed and Unpaid Family Workers by Major Occupation, 2011 Others 880 T Laborers and Unskilled Workers M Plant and Machine Operators and Assemblers 408 T Farmers, forestry workers and fishermen M Service workers and shop market sales workers M Managing prorietors M Source: DOLE-ILS 15

16 SELF-EMPLOYED AND UNPAID FAMILY WORKERS Underemployment across the Five Selected Occupational Groups, /31/2013 Of the total self-employed and unpaid family workers in the five selected occupation groups, 2.5 M are underemployed 537,783 2,007,146 Worked less than 40 hours Worked more than 40 hours 16

17 SOCIAL PROTECTION FLOOR GUARANTEES All residents have access to essential health care All children enjoy income security through transfers in cash or kind for access to nutrition, education and care All those in active age groups who cannot earn sufficient income enjoy a basic income security (particularly in case of sickness, unemployment, maternity, disability) All residents in old age have income security through pensions or transfers in kind

18 SPF Guarantee 1: Access to Essential Health Care Achieve universal health coverage under the National Health Insurance Program or Phil- Health by 2016 Status of Coverage 2010 = 74% 2011 = 82%

19 SPF Guarantee 2: Income security for children to access education, health and nutrition Pantawid Pamilyang Pilipino Program (4Ps) covering about 3.8M of the target 5.2M eligible poor households National Convergence Plan Against Child Labor in the Philippines - HELP-ME (Health, Education, Livelihood and Protection, plus Monitoring and Evaluation) aiming to cover 893,000 child laborers in hazardous work

20 SPF Guarantee 3: Income Security for Economically Active Working Population SSS Coverage for Self-Employed Status of Active Paying Members 2010 = 690T 2011 = 687T

21 SPF Guarantee 3: Income Security for Economically Active Working Population DOLE Livelihood Programs 2010 = 93, = 94, = 84,140 CBEP (including DOLE) 2011 = 1.238M 2012 = 1.438M

22 SPF Guarantee 3: Income Security for Economically Active Working Population Training, Entrepreneurship and Skills Development 2010 = 131, = 167, = 307,221 Job Search Assistance/Placement 2011 = 1.4 M

23 Way Forward Expansion of existing SSS, Phil-HEALTH and PAG-IBIG Coverage for the informal sector by requiring membership in these social security programs of all government livelihood grants and subsidies Provide budget allocation ( ) for the 2.5 M underemployed self-employed and unpaid family workers (USU) and 350T CCT graduates for skills training (TESDA), livelihood (CBEP agencies) and labor market information (DOLE), prevention, advocacy, training and research on safety and health (ECC/OSHC)

24 10/31/2013 SP PRIORITY: SELF-EMPLOYED AND UNPAID FAMILY WORKERS Almost half only reached the elementary level 24

25 10/31/2013 THE EVOLUTION, THE MAINSTREAMING ISP (Informal Sector Coalition of the Phils.) (Type of membership : Multi Sector and Youth of 420 organizations) TUCP-ITUC ALLWIE/S (Alliance of Workers in the Informal Economy/Sector) (Type of membership: 2023 Community IS leaders and 28 organizations) ISWAP (Informal Sector Workers Association of the Phils.) PLTIU (Phil. Land Transport Industry Union) 25

26 WAY FORWARD BY TU S TO FORMALIZE INFORMAL ECONOMY : 1. Organize group enterprise development or the centersatellite system of production for 2. Push for the passage into law the Magna Carta of Workers in the Informal Economy 3. Organize those in sash factories, sub-contracting arrangement and retrenched workers as group enterprise 4. Policy Development towards revocation of PD 442 on contractualization 5. More capacity building for local government units 6. Relax bureaucratic procedures in registration 7. Industry union according to subsectors 10/31/