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DE RUEHML #2343/01 1920857
ZNR UUUUU ZZH
O 110857Z JUL 07
FM AMEMBASSY MANILA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7359
INFO RUEHC/DEPT OF LABOR WASHDC IMMEDIATE
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UNCLAS SECTION 01 OF 16 MANILA 002343 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR DRL - MITTELHAUSER 
STATE ALSO FOR EAP/MTS, EAP/RSP 
LABOR FOR ILAB - HALEY 
STATE PASS TO USAID FOR ANE 
 
E.O. 12958: N/A 
TAGS: ELAB PHUM RP
SUBJECT: PHILIPPINES: FOREIGN LABOR TRENDS REPORT 
 
REF: STATE 40337 
 
¶1. (U) MissionQs Foreign Labor Trends Report 
follows below.  Per reftel guidance, the 
report is divided into four sections: I) 
Summary; II) Foreign Investment Potential; 
III) Directory of Labor Contacts; and IV) 
Key Sources.  Points of contact on labor 
issues are Labor Attache Mario Fernandez 
(FerndandezMA2@state.gov) and Political 
Officer Barry Fullerton 
(FullertonTB@state.gov). 
 
¶2. (U) Foreign Labor Trends Report - 
Philippines 
 
¶I. SUMMARY 
 
The Philippines, with a population of 87 
million, is a democratic republic based on 
the U.S. model.  The 1987 Constitution 
reestablished a presidential system of 
government with a bicameral legislature, an 
independent judiciary, and a multiparty 
system. The present administration of 
President Gloria Macapagal Arroyo is 
generally pro-business and highly supportive 
of foreign investment.  Corruption and 
threats from several terrorist groups remain 
major challenges. 
 
The Philippine economy remained resilient in 
2006 despite escalating world fuel costs, 
unfavorable weather conditions, and an 
unsuccessful attempt to impeach the 
President.  In 2006, GDP registered a modest 
growth of 5.4 percent, while net Foreign 
Direct Investment (FDI) increased to about 
US$2.3 billion.  The economic growth under a 
generally stable macroeconomic condition 
contributed to the improvement of the 
Philippine labor market. 
 
More than 30 percent of the population lived 
below the poverty line, with the Autonomous 
Region in Muslim Mindanao (ARMM) the most 
marginalized area.  The Administration has 
pledged to continue its efforts to attack 
poverty, crumbling infrastructure, declining 
education systems, trade and investment 
barriers, and terrorist attacks, with 
increasing success in recent years. 
 
¶A. Government Institutions 
 
The Constitution provides for the protection 
of labor and the promotion of equal 
employment opportunities for all citizens. 
It also guarantees the rights of workers to 
self-organization, collective bargaining and 
negotiations, and to strike in accordance 
with the law.  The 1974 Labor Code, as 
amended, consolidated the labor and social 
laws to provide protection to labor groups, 
promote employment and human resources 
development, and ensure industrial peace. 
 
The Department of Labor and Employment 
(DOLE) is the lead government agency 
handling the implementation of the 
provisions of the Labor Code and the 
coordination of government policies and 
programs on labor.  The DOLE has 16 regional 
offices and six bureaus.  DOLE's Bureau of 
Labor Employment and Statistics (BLES) 
consolidates and analyzes labor and 
employment statistics for the government. 
Thirty four (34) Philippine Overseas Labor 
Offices administer and enforce DOLE's 
programs and polices for overseas Filipino 
workers (OFWs). 
 
Other agencies within DOLEQs purview 
include: 
--- National Conciliation and Mediation 
Board (NCMB), which settles labor disputes 
 
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through conciliation and preventive 
mediation; 
--- National Labor Relations Commission 
(NLRC), which litigates compulsory 
arbitration cases; 
--- National Wages and Productivity 
Commission (NWPC), which sets wages and 
improves productivity consistent with 
national development plans.  There are 16 
Regional Tripartite Wages and Productivity 
Boards to determine minimum wage and other 
allowances for workers in the respective 
regions; 
--- Overseas Workers Welfare Administration 
(OWWA), which extends social, welfare, and 
other assistance to OFWs and their 
dependents; 
--- Philippine Overseas Employment 
Administration (POEA), which supervises the 
deployment of OFWs and regulates private 
sector participation in recruitment and 
overseas placement; and, 
--- Technical Education and Skills 
Development Authority (TESDA), which 
provides skills training and retraining of 
workers to produce a globally competitive 
labor force. 
 
¶B. Trade Unions and Organizations 
 
Trade union activity in the country dates 
back to the Spanish occupation over a 
century ago.  The first large unions 
represented workers in industries of the 
period, including munitions manufacturing, 
stevedoring, and commercial printing. 
 
Current laws provide employees both in the 
private sector and in government-owned or 
controlled corporations the rights to 
organize and bargain collectively, along 
with a similar right for most government 
workers, with the exception of the military 
and the police.  In 2006, 139 registered 
labor federations and some 15,000 private 
sector unions represented approximately 1.59 
million individuals, 6 percent of the 
countryQs 26.4 million private-sector 
workers.  Nearly 300,000 public sector 
employees belonged to 1,617 unions in 2006, 
up from 1,556 in 2005. 
 
The Trade Union Congress of the Philippines 
(TUCP) is an affiliate of the American 
Federation of Labor-Congress of Industrial 
Organizations (AFL-CIO) through the 
International Confederation of Free Trade 
Unions (ICFTU).  The TUCP worked closely 
with AFL-CIOQs Solidarity Center on labor 
education programs and anti-trafficking in 
persons initiatives.  The "Pambansang Diwa 
ng Manggagawang Pilipino (PDMP)" or 
"National Consciousness of Filipino Workers" 
is a TUCP offshoot, and includes port, 
seamen, and public service unions among its 
affiliates.  Although the PDMP does not have 
international affiliates, many of its 
constituent unions are members of relevant 
International Trade Secretariats (ITSs). 
 
The Federation of Free Workers (FFW) emerged 
in the early 1950s under the influence of a 
labor education program at the Ateneo 
University of Manila.  It is an affiliate of 
the World Confederation of Labor (WCL) and 
with the WCLQs Brotherhood of Asian Trade 
Unions.  The Trade Union of the Philippines 
and Allied Services (TUPAS) is an affiliate 
of the World Federation of Trade Unions 
(WFTU) and actively participates in 
tripartite (government, business, and labor) 
bodies. 
 
The "Kilusang Mayo Uno (KMU)" or "May 1 
Movement," a leftist oriented labor center 
formed in 1980, allegedly retains close ties 
 
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with the Communist Party of the Philippines. 
The KMU is openly political, projecting 
itself as a proponent of "genuine, militant, 
and nationalist unionism."  It has members 
working in the agricultural, manufacturing, 
services, and transportation sectors.  The 
National Confederation of Labor (NCL) 
leaders broke formal ties with the KMU in 
1992-93 to form a confederation loosely 
aligned with populist reform movements. 
NCLQs affiliates include many farm and 
textile worker unions. 
 
The Alliance of Progressive Labor (APL) 
represents a left-of-center grouping whose 
leaders are aligned with Akbayan, a social 
democratic reform movement. APL has 
supported Akbayan's bid to win 
Constitutionally-mandated "party-list" seats 
(representing marginalized groups) in 
Congress since 1998.  Hotel and restaurant 
worker unions are among its key local 
affiliates. 
 
The "Kapatiran ng mga Pangulo ng Unyon sa 
Pilipinas (KPUP)" or "Brotherhood of Union 
Presidents in the Philippines," began 
operations in 1996 as an organization of 
local union presidents from both independent 
unions and those affiliated with the major 
confederations.  The KPUPQs stated goal is 
to facilitate the consultation of leaders at 
the local level by providing support 
services and a venue.  KPUP leaders also 
cite a goal of using the organization to 
encourage more unity in the Philippine labor 
movement.  KPUP local leaders pledge respect 
for other unionsQ pickets, and cooperate 
across confederation lines. 
 
The "Bukluran Ng Manggagawang Pilipino" 
(BMP) or "Union of Filipino Workers," is 
another splinter group of the KMU, and is 
active within the KPUP.  This group 
occasionally forms tactical alliances with 
large and small local unions.  Prominent 
among these are the unions representing 
workers in the major electrical-power- 
distribution firm, Meralco, and some unions 
in the power-generation sector. 
 
In 2000, the TUCP, FFW, TUPAS, APL, and the 
Alliance of Free Workers (AFW) formed the 
"Labor Solidarity Movement" to fight 
perceived anti-labor policies of then- 
President Estrada and, later supported the 
successful calls for Estrada's ouster.  The 
APL subsequently withdrew from the LSM, 
while the newer Philippine Organization of 
Labor Unions (POLU) joined the LSM.  Now 
composed of all-moderate labor centers, the 
LSM advocates for fair labor policies and 
meets with President Arroyo on labor-related 
issues, including wage increases. 
 
Three international organizations are 
currently involved with labor issues in the 
Philippines.  The Manila office of the 
American Center for International Labor 
Solidarity (ACILS) works closely with TUCP 
to foster a democratic trade union movement. 
The Friedrich-Ebert-Stiftung works with 
numerous labor groups in promoting worker 
rights and labor standards.  The Konrad 
Adenauer Foundation continues to underwrite 
seminars on labor-related topics.  Various 
international trade federations (ITFs) also 
sustain programs to strengthen health and 
safety practices in certain industries, 
including mining and construction.  Other 
ITFs focus on improving unionsQ organizing 
strategies in labor-intensive industries 
like export garment production. 
 
¶C. Labor Standards and Worker Rights 
 
 
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The Right of Association 
 
The law provides that workers, including 
most public sector employees, with the 
exception of the military and police, may 
freely associate and form and join unions. 
The law also provides workers the right to 
strike once they have demonstrated just 
cause and exhausted all methods of outside 
arbitration and mediation.  Trade unions are 
independent of the government.  Generally, 
trade unions are free of partisan control 
although some have direct political 
affiliations.  Unions also have the right to 
form or join federations or other labor 
groups. 
 
In practice, the management of some 
businesses and industries uses extralegal 
methods to prevent the formation of unions. 
Labor law applies uniformly throughout the 
country, including the Special Economic 
Zones (SEZs); however, local political 
leaders and officials who govern the SEZs 
have in some cases attempted to frustrate 
union organizing efforts by maintaining 
union-free or strike-free policies.  A 
conflict over interpretation of the SEZ 
law's provisions for labor inspection 
created further obstacles to the enforcement 
of workers' rights to organize.  Labor 
groups alleged that some companies in the 
SEZs have occasionally used frivolous 
lawsuits as a means of harassing union 
leaders.  Some firms also continued to hire 
employees on a contractual basis.  By law, a 
contract employee does not have the same 
rights as a permanent worker, and unions do 
not usually accept them as members.  There 
are regulations regarding the length of time 
an employer can keep an employee on a 
contractual basis before the employer must 
hire the employee permanently, but 
enforcement of these regulations is poor. 
 
The Right to Organize and Bargain 
Collectively 
 
The law protects collective bargaining, 
which is widespread.  The law stipulates 
that a company must bargain with organized 
unions that comply with Labor Code 
procedures.  The union must provide a strike 
notice, respect a mandatory cooling-off 
period, obtain the approval of a majority of 
its members, and exhaust all means of 
conciliation before calling a strike.  The 
National Conciliation and Mediation Board 
(NCMB) reported only 12 strikes in 2006, 
less than half the number reported in 2005. 
Some of this success was due to the active 
role of the NCMB in mediating disputes and 
averting strikes, particularly in high- 
profile multinational cases.  Many companies 
have also adopted the use of Labor 
Management Councils within their 
establishments to resolve grievances and 
labor disputes.  The Labor Code applies 
uniformly throughout the country and in the 
SEZs.  However, only 1.2 percent of the 
workforce, or approximately 313,000 workers, 
worked under collective bargaining 
agreements.  Some workers have reported 
receiving retaliation for involvement in 
union organizing. 
 
Prohibition of Forced or Compulsory Labor 
 
The law prohibits forced labor, including 
forced and compulsory labor by children. 
Despite the governmentQs efforts, there are 
occasional reports of forced and compulsory 
labor, particularly involving children, 
mainly in prostitution, drug trafficking, 
and other illegal sectors of the economy. 
In countries throughout the world, 
 
MANILA 00002343  005 OF 016 
 
 
unscrupulous recruiters exploited a 
significant number of Filipino workers.  The 
Philippine government, however, has one of 
the most effective systems of recruitment, 
deployment, and assistance for its overseas 
workers.  Unlike many other countries that 
have high recruitment fees bordering on 
indentured servitude or bonded labor, the 
Philippines has a reasonable recruitment 
fee. 
 
Prohibition of Child Labor and Minimum Age 
for Employment 
 
The law prohibits the employment of children 
under the age of 15, except under the direct 
and sole responsibility of parents or 
guardians, or in cases in which employment 
in cinema, theater, radio, or television is 
essential to the production.  The law allows 
employment of those between the ages of 15 
and 18 for such hours and periods of the day 
as the DOLE Secretary determines but forbids 
the employment of persons younger than 18 
years of age in hazardous or dangerous work. 
The law also stipulates that children may 
not work more than 20 hours per week, or 
more than four hours a day, and may not work 
at night.  However, enforcement of the laws 
is spotty.  The government estimated there 
were 4 million working children aged 5 to 17 
years, and more than half of these children 
were exposed to hazardous working 
conditions.  Children work in quarries, 
mines, ports, and fishing boats, which the 
law defines as among the worst forms of 
child labor. 
 
The government treats incidents of child 
labor as criminal cases.  However, such 
cases seldom resulted in the prosecution and 
conviction of employers. Most are settled 
out of court with the childQs parents.  The 
law imposes stiffer penalties on employers 
and parents engaged in support of the worst 
forms of child labor.  In 2006, DOLE ordered 
the closure of three establishments 
apparently engaged in prostitution of 
minors.  Since 1995, there have been only 
four convictions for violating the child 
labor law. Government, industry groups, and 
non-governmental organizations (NGOs) 
implemented programs to prevent the 
engagement of children in exploitative 
labor. 
 
The U.S. Department of Labor supports 
several child labor projects in the 
Philippines: the ILO International Program 
on the Elimination of Child Labor (IPEC) 
"Philippine Time-Bound Program"; World 
Vision's "ABK Education Initiative"; and, 
Winrock International's "Community-based 
Innovations to Combat Child Labor through 
Education" (CIRCLE) project. 
 
Discrimination in Employment 
 
By law, women have the same worker rights 
and protections as men. Unemployment for 
women was lower (7.6 percent) than men (8.2 
percent) in 2006.  However, womenQs 
salaries, particularly in top executive and 
managerial positions, were generally lower 
than that of their male counterparts.  More 
women than men enter secondary and higher 
education.  The National Commission on the 
Role of Filipino Women, composed of 10 
government officials and 10 NGO leaders 
appointed by the President, acts as an 
oversight body to press for effective 
implementation of programs benefiting women. 
 
The law provides for equal physical access 
for persons with disabilities (estimated to 
be 10 percent of the population) to all 
 
MANILA 00002343  006 OF 016 
 
 
public buildings and establishments and for 
"the rehabilitation, self-development, and 
self-reliance of disabled (physical and 
mental) persons and their integration into 
the mainstream of society."  The DOLE's 
Bureau of Local Employment (BLE) maintains 
registers of persons with disabilities, 
indicating their skills and abilities.  BLE 
monitors private and public places of 
employment for violations of labor standards 
regarding persons with disabilities and 
promotes the establishment of cooperatives 
and self-employment projects for them. 
 
Despite laws and special programs to protect 
the rights of and to assist indigenous 
peoples, the remoteness of the areas that 
these groups inhabit and cultural bias often 
prevent their full integration into society. 
Many indigenous children suffered from lack 
of basic services, health, and education. 
 
The labor laws protect foreign workers in 
the country.  Foreign workers must obtain 
work permits and may not engage in certain 
occupations.  Typically their work 
conditions were better than those of 
Philippine citizens. 
 
Minimum Wage 
 
The first minimum wage standards were put 
into effect in the 1950s. Tripartite wage 
boards set minimum rates in each of the 
countryQs 16 administrative regions.  In 
establishing different regional wage levels, 
the regional wage boards consider regional 
factors such as local prices and rates of 
inflation, the need to attract investment, 
and the economic stability of the region. 
The highest minimum wage rates were in the 
National Capital Region, where the minimum 
daily wage for nonagricultural workers was 
USD $7.60 (PHP 350).  The lowest minimum 
wages were in the Autonomous Region in 
Muslim Mindanao, where the daily 
agricultural wage was USD $4.35 (PHP 200). 
The regional wage boards approved increases 
between US$0.18 to US$0.45 to the minimum 
wage in 2005, and the same increase in 2006. 
Many workers, especially in the informal 
sector, worked below the minimum wage set 
for their region. 
 
Hours Worked 
 
The standard workweek is 48 hours for most 
categories of industrial workers and 40 
hours for government workers, with an eight- 
hour per day limit.  The government mandates 
an overtime rate of 125 percent of the 
hourly rate on ordinary days and 130 percent 
on rest days and holidays.  There is no 
limit on the number of overtime hours that 
an employer may require, but the law 
stipulates at least one full day of rest 
each week for workers. 
 
Occupational Safety and Health 
 
The law provides for a comprehensive set of 
occupational safety and health standards. 
Enforcement of these laws, however, is 
incomplete.  There are continuing reports of 
dangerous working environments, occupational 
safety accidents and deaths, and exposure to 
toxic substances that can lead to long-term 
damage.  DOLE's Occupational Safety and 
Health Center (OSHC) has primary 
responsibility for policy formulation and 
review of occupational safety and health 
regulations and standards, but has few 
inspectors nationwide. 
 
In 2005, the DOLE Secretary ordered a 
nationwide program on tuberculosis (TB) 
 
MANILA 00002343  007 OF 016 
 
 
prevention and control in the workplace. 
The order required all private companies to 
include TB prevention and treatment as part 
of the companiesQ social policies. 
 
¶D. Social Safety Net 
 
There is no statutory unemployment insurance 
and some firms do not comply with the 
requirement of a half-month severance pay 
for each year of service. The unemployed 
often turn to the informal sector Q- 
notably, agriculture, vending, personal 
services, or home-based workshops -- in 
order to earn income to meet basic needs. 
To assist the jobless in establishing micro- 
enterprise businesses, various government 
agencies operated low-interest loan 
programs.  Additionally, TESDA provided re- 
training for laid off workers by placing 
them in 6-month apprenticeship programs that 
pay 75 percent of the minimum rate. 
 
The Social Security System (SSS) offered a 
viable retirement fund for many workers, 
with both employers and employees making 
contributions. The SSS offered a limited 
program for low-interest, short-term loans 
of up to US$ 250 for recently unemployed 
workers with sufficient SSS credits. 
 
Since the 1970s, Philippine government 
agencies and a flourishing recruitment 
industry have helped the jobless to seek 
work abroad.  Exporting labor not only frees 
up jobs within the country, but also results 
in the repatriation of funds that often 
assist unemployed and elderly family 
members. 
 
¶E. Overseas Filipino Workers 
 
The Philippines is second only to Mexico in 
the number of its citizens who work abroad, 
with more than 8 million overseas Filipino 
workers (OFWs) -- about 10 percent of the 
population and 20 percent of the workforce Q 
- around the world.  More than 20 percent of 
the estimated 1.2 million seafarers in the 
world are from the Philippines.  The US$12.8 
billion in annual remittances of OFWs, more 
than half of which originate in the United 
States, was a key factor in the 5.9 percent 
growth of GNP and 5.6 percent increase in 
consumer spending in 2006.  Remittances from 
OFWs continued to be a major source of 
foreign exchange and capital for creating 
small businesses. 
 
The Philippine Overseas Employment Agency 
(POEA) is responsible for registering 
domestic recruiters and keeping track of 
Filipino workers overseas.  The POEA works 
with the governments of many receiving 
countries to protect the rights of its 
overseas workers. The government also 
provided assistance through its diplomatic 
missions in countries with substantial 
numbers of migrant workers. 
 
At the 12th Summit of the Association of 
Southeast Asian Nations in Cebu in January 
2007, the ten member states under the 
chairmanship of Philippine President Gloria 
Macapagal Arroyo adopted an "ASEAN 
Declaration on the Protection and Promotion 
of the Rights of Migrant Workers" to promote 
the "full potential and dignity" of these 
workers and their family members and to 
provide legal and social protections and 
assistance. 
 
¶F. Combating Trafficking in Persons 
 
A comprehensive 2003 anti-trafficking law 
(Republic Act 9208) defines several 
 
MANILA 00002343  008 OF 016 
 
 
activities related to trafficking in persons 
as illegal and imposes stiff penalties of up 
to life imprisonment for convicted 
offenders.  Nonetheless, the Philippines 
remains a source, transit, and destination 
country for internationally trafficked 
persons for the purposes of sexual 
exploitation and forced labor.  Internal 
trafficking also remains a serious problem, 
primarily from rural areas such as the 
Visayas and Mindanao to urban areas for 
forced labor as domestic workers and factory 
workers, and in the drug trade, and for 
sexual exploitation.  Traffickers also 
targeted the many persons seeking overseas 
employment.  Most recruits were girls and 
young women ages 13 to 30 from poor farming 
communities.  The traffickers generally 
included private employment recruiters and 
their partners in organized crime. Many 
recruiters targeted persons from their own 
hometowns. 
 
In 2005, Philippine courts convicted four 
traffickers and sentenced them to life 
imprisonment under the 2003 anti-trafficking 
law.  In 2007, a court convicted yet another 
individual under this law and also sentenced 
the defendant to life imprisonment.  There 
are currently at least 117 trials now 
underway under this act or other 
trafficking-related laws, with another 122 
cases in the preliminary investigation 
phase.  The government is actively opposed 
to trafficking in persons, but individual 
and groups of customs officials, border 
guards, local police, and immigration 
officers reportedly have received bribes 
from traffickers or otherwise assisted in 
their operations. Corruption and 
inefficiencies in the judicial system 
hampered the government's ability 
effectively and swiftly to prosecute 
trafficking cases.  Government agencies and 
numerous NGOs have undertaken numerous 
public awareness activities to curb 
trafficking, conducted capacity building 
activities for law enforcement officials, 
and provided protective services to victims 
of trafficking.  POEA conducted pre- 
employment orientation seminars to departing 
OFWs, informing them the dangers of 
trafficking and illegal recruitment in 
exploitative working conditions. 
 
II. FOREIGN INVESTMENT POTENTIAL 
 
Net foreign direct investment (FDI) inflows 
increased to $2.35 billion in 2006, nearly 
double the 2005 level.  A generally healthy 
financial and macro-economic structure, a 
highly trainable, English-speaking 
workforce, and a wealth of natural resources 
contribute to the confidence of 
multinational corporations to conduct 
business operations in the Philippines.  The 
workforce is suitable for manufacturing and 
service enterprises and is also capable of 
learning the skills necessary for technical 
jobs, such as the staffing of international 
call centers.  The Philippines is the 
largest copper producer in Southeast Asia 
and one of the top 10 gold producers in the 
world.  In December 2004, the Supreme Court 
upheld the constitutionality of the 1995 
Mining Act, which allowed up to 100% 
foreign-owned companies to invest in large- 
scale exploration, development, and 
utilization of minerals, oil, and gas. 
 
The 1991 Foreign Investment Act (FIA) 
contains two "negative lists" that outline 
areas in which foreign investment is 
restricted or limited, which the government 
normally updates every two years.  The 
restrictions stem from a constitutional 
 
MANILA 00002343  009 OF 016 
 
 
provision -- Section 10 of Article XII -- 
that permits Congress to reserve to 
Philippine citizens certain areas of 
investment.  The most recent update of the 
Regular Foreign Investment Negative List was 
through an executive order on December 20, 
¶2006.  Many investors view these 
restrictions as a significant factor 
limiting foreign investment, especially 
compared with other Asian economies. 
Waivers are not available under the Foreign 
Investment Negative List. 
 
In an effort to attract more FDI, the 
Government relaxed taxation of foreign 
investment and provided greater investment 
security by strengthening banking and 
securities regulations.  The President also 
appointed envoys to promote trade and 
foreign investment and eased restrictions on 
the ownership of banks and insurance 
companies by foreign entities.  Other 
government efforts to promote the economy 
included new retail and e-commerce trade 
laws.  The service sector continued to be a 
key driver of economic growth.  The 
sustained expansion of this sector was 
largely due to the growth of the 
telecommunications industry and new 
investments in call centers, business 
processing outsourcing, and software 
development. 
 
The Government began privatization of the 
power sector with the enactment of the 
Electric Power Industry Reform Act (EPIRA) 
in June 2001.  The law directed the newly- 
created Power Sector Assets and Liabilities 
Management Corporation (PSALM) to sell 70 
percent of the government-owned National 
Power Corporation's (NPC) income-generating 
assets within three years.  This move also 
opened the power industry for participation 
by foreign investors. However, as of August 
2006, the NPC only managed to sell six small 
hydroelectric power units. 
 
High levels of corruption, weak but 
improving protection of intellectual 
property rights, the slow pace of energy 
sector reform, the need for further fiscal 
reforms to boost infrastructure and social 
services, and occasional political 
volatility remained barriers to achieving 
the country's true investment potential. 
 
Special Economic Zones 
 
Special economic zones (SEZs) played a key 
role in attracting new investors to the 
country.  Within these zones, investors 
enjoy tax incentives for new plant 
investment, low corporate income tax rates, 
and direct access to governmental 
administrative services.  In 2006, the 
number had expanded to 111 SEZs and more 
were in the planning or development stages. 
 
These zones were instrumental in creating 
new jobs, but Philippine labor leaders have 
complained about sometimes poor working 
conditions and argued that some local SEZ 
administrators have inhibited the emergence 
of unions. 
 
The SEZs typically have their own labor 
centers to assist investors in recruiting 
staff, mediating disputes, and coordinating 
with the DOLE and other government agencies. 
Issues of jurisdiction in the zones, 
combined with unclear legislation, sometimes 
caused confusion over which national labor 
laws applied and which agency had 
enforcement responsibility.  SEZ officials 
have claimed that the enabling legislation 
gives them primary authority to regulate 
 
MANILA 00002343  010 OF 016 
 
 
labor conditions, while in some cases 
national labor authorities feel obligated to 
step in.  Generally, foreign firms entering 
the SEZ sign a contract in which they commit 
to use SEZ labor in exchange for the 
services that the labor office provides. 
Some foreign firms, seeking to avoid 
dependence on these labor centers for job 
referrals, recruited workers through more 
direct means. 
 
Bilateral and Multilateral Agreements 
 
Since the Philippine governmentQs overseas 
employment program began in 1974, the 
Philippines has forged bilateral labor 
agreements with Norway, the United Kingdom, 
Papua New Guinea, South Korea, Taiwan, 
Switzerland, Libya, Jordan, Qatar, Iraq, 
Kuwait, the Commonwealth of Northern 
Marianas Islands, Spain, Canada, and the 
United Arab Emirates, all labor-receiving 
economies.  These bilateral labor agreements 
broadly focus on the terms and conditions of 
labor recruitment and special hiring 
arrangements, as well as labor standards and 
practices. 
 
In 2003, the Philippines signed a labor 
agreement with Indonesia, a labor-sending 
country.  This was the first successful 
attempt of the Philippines to promote and 
protect the welfare rights of migrant 
workers of labor-sending countries within 
the ASEAN region. 
 
The Philippines is a charter member of the 
World Trade Organization (WTO). In 1992, the 
Philippines signed the ASEAN Framework of 
Agreement on Enhancing Economic Cooperation, 
which established a common preferential 
tariff.  The Philippines is also a member of 
the Asia Pacific Economic Cooperation (APEC) 
forum and an active participant at the Asia- 
Europe Meeting (ASEM). 
 
In September 2006, the Philippines and Japan 
signed a bilateral trade agreement, the 
Japan-Philippines Economic Partnership 
Agreement (JPEPA).  This is the PhilippinesQ 
first bilateral trade agreement.  While 
still pending Philippine Senate 
ratification, the agreement provides for 
elimination or reduction of tariffs on 
agricultural and industrial products within 
the next 10 years. 
 
The Philippines has bilateral investment 
agreements with forty countries.  The 
general provisions of these agreements 
include: the promotion and reciprocal 
protection of investments; 
nondiscrimination; the free transfer of 
capital, payments and earnings; freedom from 
expropriation and nationalization; and, 
recognition of the principle of subrogation. 
The Philippines signed a trade and 
investment framework agreement with the 
United States in 1989, establishing a 
consultative mechanism for the expansion of 
trade and investment flows between the two 
countries. 
 
 
III. DIRECTORY OF LABOR CONTACTS 
 
Country code: +63; Area code: 2 (metro 
Manila) 
 
¶A. GOVERNMENT CONTACTS 
 
Department of Labor and Employment (DOLE) 
DOLE Executive Building, 7th Floor 
Intramuros, Manila 
Phone: 527-3000 loc. 701 to 704 and 706 
Fax: 527-2121/2131/5523 
 
MANILA 00002343  011 OF 016 
 
 
Website: http://www.dole.gov.ph 
 
E-mail: osec@dole.gov.ph 
Secretary: Arturo P. Brion 
 
SIPDIS 
 
Undersecretary for Employment, Promotion & 
Manpower Development: Danilo P. Cruz. 
Phone: 527-3000 loc. 713, 715, and 523-3633; 
Fax: 527-3566 
E-mail: usecdpc@yahoo.com 
 
Undersecretary for Labor Relations: 
Luzviminda G. Padilla 
Phone: 527-3000 loc. 710 to 712 and 527- 
2124; Fax: 527-3462 
 
E-mail: wpw@dole.gov.ph 
 
Undersecretary for Social Protection and 
Legislative Affairs: Ramon C. Lagman 
Phone: 527-3000 loc. 717; E-mail: 
rcl@dole.gov.ph 
 
 
Undersecretary for Policy, Programs, and 
International Affairs: (vacant) 
Tel: 527-3000 loc. 731; Fax: 527-5947 
 
E-mail: useclr@dole.gov.ph 
 
Bureau of Labor and Employment Statistics 
(BLES) 
DOLE Executive Building, 3rd Floor 
Intramuros, Manila 
Phone: 527-3000 loc. 314 & 315; Fax: 527- 
5506 
Website: http://www.bles.dole.gov.ph 
Director: Criselda R. Sy 
 
Information and Publication Service 
DOLE Executive Building, 6th Floor 
Intramuros, Manila 
Phone: 527-3000 loc. 624 / 625; Fax: 527- 
3446 
Director: Jay T. Julian 
 
International Labor Affairs Service 
DOLE Executive Building, Ground Floor 
Intramuros, Manila 
Phone: 527-3000 loc. 102 / 103; Fax: 527- 
3505/2132 
Director: Merliza M. Makinano 
 
National Conciliation & Mediation Board 
DOLE Executive Building, Ground Floor 
Intramuros, Manila 
Phone: 527-3467; Fax: 527-3421 
Website: http://ncmbco.brinkster.net/ 
Executive Director: Reynaldo R. Ubaldo 
Deputy Executive Director: Eleuterio S. 
Cojuanco 
 
National Labor Relations Commission 
PPSTA Building, 7th Floor 
Banaue Avenue cor P. Florentino Street, 
Quezon Avenue 
Quezon City 
Website: http://www.nlrc.dole.gov.ph/ 
Phone: 711-1500 / 711-1557; Telefax: 711- 
1554 
Chairman: Gerardo Benjamin C. Nograles 
 
Occupational Safety and Health Center 
OSHC Complex 
North Avenue cor Science Road 
Diliman, Quezon City 
Website: http://www.oshc.dole.gov.ph/ 
Phone: 929-6036 to 39 (trunkline); 928-6690; 
Fax: 929-6030 
Executive Director: Dr. Dulce P. Estrella- 
Gust 
 
Overseas Workers Welfare Administration 
OWADEC Building 
Gil Puyat Avenue cor F.B. Harrison Street 
Pasay City 
 
MANILA 00002343  012 OF 016 
 
 
Website: http://www.owwa.gov.ph/ 
Phone: 891-7601 loc. 5401 / 8340148; Fax: 
833-0187 
Administrator: Marianito Roque 
Deputy Administrator: Noriel P. Devanadera 
 
Philippine Overseas Employment 
Administration 
POEA Building 
Ortigas Avenue corner EDSA 
Mandaluyong City 
Website: http://www.poea.gov.ph 
Phone: 722-1163 / 722-1159 / 722-3665; Fax: 
724-3724 
Administrator: Rosalinda D. Baldoz 
 
Philippine Economic Zone Authority 
Roxas Boulevard corner San Luis Street 
Pasay City, Metro Manila, Philippines 
Phone: 511-3432 / 3454 / 3455; Fax: 551-3449 
/ 891-6380 
Administrator: Lilia B. de Lima 
Email: dglbl@peza.gov.ph 
 
Institute for Labor Studies 
DOLE Executive Building, 5th Floor 
Gen. Luna Street 
Intramuros, Manila 
Phone: 527-3456; Fax: 527-3448 
 
OIC-Executive Director: Ma. Luisa Gigette S. 
Imperial 
 
¶B. EMPLOYERSQ ORGANIZATIONS 
 
Employers Confederation of the Philippines 
ECC Building, 4th Floor 
355 Senator Gil Puyat Avenue 
Makati City 
Website: http://www.ecop.org.ph/ 
Phone: 890-4845 / 4847 / 899-0411; Fax: 895- 
8526 
E-Mail: ecop@philonline.com 
 
Director-General: Vicente Leogardo Jr. 
 
Transunion Group of Companies 
Union Ajinomoto Building, 2nd Floor 
331 Senator Gil J. Puyat Avenue 
Makati City 
Phone: 890-6344 / 896-4791 / 895-6081 loc. 
253 / 257 / 259 
President: Miguel B. Varela 
 
Philippine Chamber of Commerce and 
Industries 
3/F Employees Compensation Commission Bldg. 
 
355 Gil Puyat Avenue, Makati City 
Website: 
http://portal.philippinechamber.com/ 
 
Phone: 896-4549 to 53; Fax: 899-1727 
 
Director: Sammy Lim 
 
¶C. LABOR UNIONS 
 
Alliance of Filipino Workers 
1840 E. Rodriguez Sr. Avenue 
Cubao, Quezon City 
Phone: 410-8652; Fax: 410-9737 
 
National Director: Angelito P. Calderon 
 
Alliance of Progressive Labor 
102 Scout De Guia Street, Brgy. Sacred Heart 
 
Quezon City 
 
Tel: 927-6991 / 924-2295; Fax: 927-6709 
 
E-Mail: mail@apl.org.ph 
Convenor: Daniel Edralin 
 
Bukluran Ng Manggagawang Philipino 
 
MANILA 00002343  013 OF 016 
 
 
47 Masikap St. Teachers Village, Pinyahan 
Quezon City 
Tel: 925-0884 / 259-8174 
 
E-mail: bmp_national@edsamail.com.ph 
 
Federation of Free Workers** 
1943 Taft Avenue 
Malate, Manila 
Phone:  521-9435 / 521-9464; Fax: 400-6656 
National President: Allan Montano 
 
Kilusang Mayo Uno 
Balai Obrero Foundation 
63 Narra Street, Barangay Claro 
1102 Quezon City 
Phone: 421-0986; Fax: 421-0768 
National Chairman: Elmer Labog 
 
National Confederation of Labor 
Jiao Building, Room 206 
#2 Timog Avenue, Quezon City 
Phone: 373-1844 
General Secretary: Bayani Diwa 
President: Ernesto Arellano 
 
Pambansang Diwa Ng Manggagawang Philipino 
PTGWO Bldg. Corner Roberto Oca and Boston 
Sts. 
South Harbor, Port Area, Manila 
Phone: 527-2441 / 43; Fax: 527-2445 
National President: Roberto M. Oca, Jr. 
 
Trade Union Congress of the Philippines 
Masaya and Maharlika Streets 
Diliman, Quezon City 
Website: http://www.tucp-ph.org 
Phone: 922-2575 to 79 / 922-3199; Fax: 
924.7553 
General Secretary: Ernesto F. Herrera 
President: Democrito Mendoza 
 
Trade Union of the Philippines & Allied 
Service** 
401 Lamaha Building, Legaspi St. 
Intramuros, Manila 
Phone: 527-1304; Fax: 527-1306 
Secretary General: Vladimir R. Tupaz 
 
SIPDIS 
 
**Component of Labor Advisory Consultative 
Council in the Tripartite Industrial Peace 
Council 
 
Airline Pilots Association of the 
Philippines 
Andrews Avenue 
Pasay City 
Phone: 831-5381; Fax: 854-9901 
President: Capt. Elmer Peqa 
 
All Workers Alliance Trade Unions 
Room 300 (I-B) Delta Building 
Quezon Avenue cor. West Avenue 
Quezon City 
Telefax: 411-0789 
President: Temistocles S. Dejon, Jr. 
 
Associated Marine Officers & SeamenQs Union 
of the Philippines 
SeamenQs Center Building 
Cabildo cor Sta. Potenciana Streets 
Intramuros, Manila 
Website: http://www.amosup.org/ 
Phone: 527-8491 to 98 loc. 103; Fax: 527- 
3534, 527-3538 
Email: s_center@amosup.org, 
capt_oca@amosup.org 
President: Gregorio Oca 
 
Bank Insurance Finance Unions 
PNB Cubao Branch Compound cor. Aurora Blvd. 
 
Araneta Center, Cubao, Quezon City 
 
Telefax: 912-2378 
General Secretary: Jose Umali, Jr. 
 
MANILA 00002343  014 OF 016 
 
 
 
Confederation of Filipino Workers 
LBBI Building 2/F 
Remedios St. cor. Taft Avenue 
Malate, Manila 
Telefax: 854-8580; 825-8873 (residence) 
President: Efren Aranzamendez 
 
Confederation of Labor & Allied Social 
Service 
Don Santiago Building, Room 509 
1344 Taft Avenue 
Ermita, Manila 
Phone: 302-5417; Telefax: 524-0415 
National President: Monaliza Langub 
 
Metropolitan Waterworks and Sewerage 
System/Kaisahan at Kapatiran Ng Mga 
Manggagawa at Kawani sa MWSS 
MWSS Katipunan Road 
Balara, Quezon City 
Phone: 920-5521/5526; Local 3096/3041 
Vicente Elepante, West Zone (Local 
3457/3430) 
Eduardo Guacela, KMKK - Ayala East Zone 
Ruben Diaz, Benpres 
 
National Association of Trade Unions 
San Luis Terraces Building, Suite 404 
T.M. Kalaw Street 
Ermita, Manila 
Telefax: 528-1251 
National President: Filemon G. Tercero 
 
National Congress of Unions in the Sugar 
Industry of the Philippines 
Security Bank Centre, Unit 1403-A 
6776 Ayala Avenue, Makati City 
Phone: 892-7618 / 892-3376 / 843-7284; Fax: 
892-7618 / 843-7284 
National President: Zoilo V. Dela Cruz, Jr. 
 
National Federation of Labor 
Jiao Building, Room 308 
#2 Timog Avenue 
Quezon City 
Telefax: 373-1844 
President: Atty. Ernesto R. Arellano 
General Secretary: Armand Alforque 
 
National Mines and Allied Workers Union 
Unit 201-A Dunville Condominium 
Castilla cor Valencia Streets 
New Manila, Quezon City 
Phone: 726-5070/ 727-9257; Telefax: 726-5070 
National President: Atty. Roberto A. Padilla 
National Vice President: Benjamin P. 
Basquinas 
 
National Union of Bank Employees 
PNB Cubao Branch Compound cor. Aurora Blvd. 
 
Araneta Center Cubao 
 
Telefax: 912-2378 
General Secretary: Jose Umali, Jr. 
 
National Union of Workers in Hotel, 
Restaurant, and Allied Industries 
2125 Del Mundo Building 
Taft Avenue 
Malate, Manila 
Telefax: 536-2883 / 523-2886 
President: Nestor Cabada 
 
Philippine Transport and General Workers 
Organization 
Cecilleville Building, Rooms 1203-1211 
Quezon Avenue, Quezon City 
Telefax: 374-0199 
President: Victorino F. Balais 
 
Philippine Airlines Employees Association 
1763 Tomas Claudio Street 
Baclaran, Paranaque City 
Phone: 851-1002; Telefax: 851-1490 
 
MANILA 00002343  015 OF 016 
 
 
President: Alexander Barrientos 
 
Philippine Long Distance Workers Union 
22 Libertad Street 
Mandaluyong City 
Phone: 531-3715 / 531-0786; Fax: 531-3748 
President: Pedro Pinlac 
 
Port Workers Union of the Philippines 
PTGWO Bldg. Corner Roberto Oca and Boston 
Sts. 
South Harbor, Port Area, Manila 
Phone: 527-2441 / 43; Fax: 527-2445 
National President: Roberto M. Oca, Jr. 
 
Public Sector Labor Integrative Center 
TUP, Ayala Boulevard 
Ermita, Manila 
Phone: 302-7750 local 303 
President: Marilyn Ignacio 
 
¶D. OTHERS 
 
International Labor Organization 
19th Floor, Yuchengco Tower RCBC Towers 
 
Ayala Avenue, Makati City 
 
Phone: 580-9900; Fax: 5809999 
 
Sub-Regional Director: Linda Wirth 
 
American Center for International Labor 
Solidarity 
Zeta II Building, Room 76 
191 Salcedo Street, Legaspi Village 
Makati City, Philippines 
Phone: (632) 840-5383 
Fax: 812-9669 
Email: solcen@info.gov.ph 
 
Country Program Director: Rudy Porter 
 
Director for Programs: Judy Geronimo 
 
IV. KEY SOURCES 
 
U.S. Department of State 
(http://www.state.gov) 
- Country Background Notes: Philippines 
(http://www.state.gov/p/eap/ci/rp/) 
- Country Report on Human Rights Practices: 
Philippines 
(http://www.state.gov/g/drl/rls/hrrpt/2006/7 
8788.htm) 
- Trafficking in Persons Report 
(http://www.state.gov/g/tip/rls/tiprpt/2007/ 
) 
 
U.S. Department of Labor 
(http://www.dol.gov) 
- 2005 Findings on the Worst Forms of Child 
Labor 
(http://www.dol.gov/ilab/media/reports/iclp/ 
main.htm) 
 
U.S. Department of Commerce 
(http://www.commerce.gov) 
- Country Commercial Guides 
(http://www.buyusainfo.net) 
 
Bangko Sentral ng Pilipinas 
(http://www.bsp.gov.ph) 
 
Philippine Department of Labor and 
Employment, Bureau of Labor Employment and 
Statistics (http://www.bles.dole.gov.ph) 
 
Philippine Department of Labor and 
Employment, Bureau of Labor Relations 
(http://www.blr.dole.gov.ph) 
 
Philippine National Conciliation and 
Mediation Board 
(http://ncmbco.brinkster.net) 
 
 
MANILA 00002343  016 OF 016 
 
 
Philippine National Statistical Coordination 
Board (http://www.nscb.gov.ph) 
 
Philippine National Statistics Office 
(http://www.census.gov.ph) 
 
Philippine Economic Zone Authority 
(http://www.peza.gov.ph) 
 
KENNEY