Labor Policy Compliance Presented by Alex V Avila

Labor Policy Compliance: Presented by: Alex V. Avila Assistant Secretary, DOLE 2 nd Quarter General Membership Meeting Philippine Exporters Confederation, Inc. 17 April 2018, Tent-Midas Hotel Updates & Issues

Presentation Outline Recent Labor Policies Wage Orders Compliance Landscape Towards Compliance

Recent DOLE Issuances Department Order No. 174 -17 • Rules Implementing Articles 106 to 109 of the Labor Code, as Amended • Issued on 16 March 2017 Department Order No. 178 -17 • Safety and Health Measures for Workers Who by the Nature of their Work Have to Stand at Work • Issued on 25 August 2017

Recent DOLE Issuances Department Order No. 183 -17 • Revised Rules on the Administration and Enforcement of Labor Laws Pursuant to Article 128 of the Labor Code, as Renumbered • Issued on 18 October 2017 Department Order No. 184 -17 • Safety and Health Measures for Workers Who, by the Nature of their Work, Have to Spend Long Hours Sitting • Issued on 18 October 2017

Comparative Daily Minimum Wage in ASEAN (in US$): March 2018 NCR- 9. 08 -9. 79 2. 72 CAR- 5. 16 -5. 73 I- 4. 89 -5. 93 3. 65 9. 64 -9. 96 II- 5. 73 -6. 50 III- 5. 05 -7. 26 IV-A- 5. 41 -7. 23 4. 87 - 5. 50 IV-B- 4. 95 -5. 73 V- 5. 35 -5. 54 5. 72 7. 92 – 8. 61 No MW policy VI- 5. 19 -6. 18 VII- 5. 50 -7. 00 VIII- 4. 68 -5. 45 No MW policy IX- 5. 41 -5. 66 X- 5. 81 -6. 46 XI- 6. 02 -6. 50 3. 25 to 8. 15 XII- 5. 20 -5. 64 XIII- 5. 73 ARMM-4. 87 -5. 07 Sources of data: Internet web page of respective countries and other press releases; *Oanda. com (FX currency converter) (Every Last working day of the month) 28 March 2018.

Compliance Landscape

2017 Labor Inspection Establishments Covered* Establishments Inspected* Compliant with Deficiencies 60, 732 24, 455 36, 277 54, 530 Target w/ GLS violations MW Compliance Rate - 85. 2% 28, 366 w/ OSHS violations 22, 555 Accomplishment *Data is generated from LLCS-MIS on 05 January 2018 (preliminary data)

Labor Inspection Outcomes (2017) 2, 397 3, 757 Effected Plant Level Correction Compliant Upon Inspection (GLS) Fully Implemented Action Plan 32, 366 General Labor Standards (GLS) 38, 177 Occupational Safety and Health Standards (OSHS) Compliant Upon Inspection *Data generated from LLCS-MIS

Top Violations Noted GLS OSHS Records Keeping Health Personnel (First Aider) Rules Implementing Articles 106 to 109 of the Labor Code Registration of Establishments Remittance of Pag-IBIG premiums HDMF Fund Law of 2009 (R. A. 9679 a/a) Administrative Reports on Health and Safety Minimum Wage Safety and Health Organization Remittance of Phil. Health premiums National Health Insurance Act of 1995 (R. A. 7875 a/a) Fire Protection Equipment/Facilities

TOP 3 GLS Compliance by Industry BOTTOM 3 ALL INDUSTRY Financial and Insurance Activities Transportation and storage Real Estate Activities Electricity, gas, steam Wholesale and retail trade Professional, scientific and technical Information and Communication Accommodation and Food Service Human Health and Social Work Manufacturing Education Agriculture, forestry and fishing Arts, entertainment and recreational Mining and quarrying Construction Contractor/Subcontractor - Janitorial Agency Water Supply, sewerage, waste 51. 47% Contractor/Subcontractor - Other service provider 37. 39% Administrative and Support Service Activities Contractor/Subcontractor - Security Agency 32. 86% 26. 79% 74. 16% 67. 78% 60. 77% 57. 83% 56. 82% 56. 56% 54. 77% 54. 58% 54. 32% 54. 03% 53. 33% 52. 21% 49. 73% 42. 31% 42. 03% 41. 51% 39. 13% *Data generated from LLCS-MIS

OSHS Compliance by Industry TOP 3 ALL INDUSTRY 61. 29% BOTTOM 3 Administrative and Support Service Activities 99. 79% Contractor/Subcontractor - Security Agency 80. 76% Contractor/Subcontractor - Janitorial Agency 77. 79% Contractor/Subcontractor - Other service provider 77. 16% Transportation and storage Financial and Insurance Activities Electricity, gas, steam Wholesale and retail trade Human Health and Social Work Agriculture, forestry and fishing Arts, entertainment and recreational Accommodation and Food Service Water Supply, sewerage, waste Construction Education Manufacturing Professional, scientific and technical Mining and quarrying Real Estate Activities Information and Communication 64. 60% 60. 05% 59. 22% 58. 49% 58. 32% 57. 73% 53. 46% 52. 60% 50. 72% 45. 80% 45. 05% 44. 08% 43. 24% 40. 38% 40. 00% 37. 56% *Data generated from LLCS-MIS

Inspected Establishments in 2017 by Employment Size [PERCENTAGE] 1, 636 Micro (1 -9) 17, 770 [PERCENTAGE] 41, 326 [PERCENTAGE] Small & Medium (10 -199) Large (200 & over)

Top Violations Noted Micro Establishments GLS OSHS Records Keeping Registration of Establishments Rules Implementing Articles 106 to 109 of the Labor Code First Aider Home Development Mutual Fund Law of 2009 (Coverage and Remittance) Administrative Reports on Health and Safety Minimum Wage Health Personnel National Health Insurance Act of 1995 Annual Work Accident / Illness Exposure Data Total No. of Inspected Establishments 41, 326 GLS Compliance Rate MW Compliance Rate - 87. 7% 59. 9% OSHS Compliance Rate 73. 0%

Top Violations Noted Small and Medium Establishments GLS OSHS Records Keeping Rules Implementing Articles 106 to 109 of the Labor Code First Aider Minimum Wage Health Personnel Remittance of Pag-IBIG premiums Administrative Reports on Health and Safety Regular Holiday Pay Safety Personnel Safety Officer Total No. of Inspected Establishments 17, 770 GLS Compliance Rate MW Compliance Rate - 83. 9% 49. 5% OSHS Compliance Rate 52. 5%

Top Violations Noted Large Establishments GLS OSHS Rules Implementing Articles 106 to 109 of the Labor Code Health Personnel Implementation of Family Welfare Program Administrative Reports on Health and Safety Presentation of contracts/service agreement Safety Personnel Minimum Wage First Aider Labor-only contracting Annual Work Accident / Illness Exposure Data Total No. of Inspected Establishments GLS Compliance Rate MW Compliance Rate - 88. 5% 49. 4% 1, 636 OSHS Compliance Rate 51. 0%

Regularization Campaign Voluntary Regularization Workers regularized as of 23 March 2018 59, 526 142, 318 Regular Inspection 82, 792

Salamat Po!