This document provides a summary of the impact of globalization on trade unionism in the Philippines. It begins with an introduction to globalization and its effects in the Philippines, including job losses and companies using it to bust unions. It then discusses the Philippine trade unions and their role in advocating for workers' rights. The main impacts of globalization on trade unions are discussed as increased militancy from unions in response to issues like lack of living wages, and weakened unions due to policies that shrink the base for organizing. Positive approaches for trade unions are forming new strategies and global solidarity. The document analyzes the issues using the Dunlopian model of actors (state, employers, unions) and their interactions in globalization.

1. 1
THE IMPACT OF GLOBALIZATION ON TRADE UNIONISM
IN THE PHILIPPINES
A Term Paper in IR 201
(Introduction to Industrial Relations)
Presented to
Dr. BACH M. MACARAYA
School of Labor and Industrial Relations, University of the Philippines
Diliman, Quezon City
In partial fulfillment of the requirements in
IR 201 First Semester
Academic Year 1999-2000
By
JAIME E. NOBLE, JR.
IR 201 / 1:00-4:00 p.m., Saturday
October 15, 1999

2. 2
Table of Contents
Page
I. Introduction 1
II. Abstract 2
III. The Philippines in the Midst of Globalization 4
Table 1 6
IV. The Philippine Trade Union 7
Table 2 8
V. The Impact of Globalization on Trade Unionism 9
VI. Positive Approaches of the Philippine Trade Unions 13
VII. Globalization Actors: The Dunlopian Model 14
VIII. Conclusion and Afterthoughts 18
Bibliography 21
I. Introduction
Globalization is a reality to almost all countries. It can be considered
as the biggest challenge facing the Philippine trade unions at present.
Others call it a phenomenon. Because of rising trend of unequal income
distribution, the poorer segments of society in terms of income status
became more vulnerable to the ill effects of globalization.
To address the outcome of globalization issues, various countries
resulted to different structural adjustment as instigated by IMF-WB. This

3. 3
has brought massive displacement of workers because various labor
flexibilizations adopted by different enterprises. Such labor flexibilization
schemes are the reason for the very small percentage of unionized
employees and the beleaguered state of the Philippine trade unions.
Workers around the world organize in the form of trade unions to
obtain and defend their rights. For it is only through union that workers
can effectively air their grievances and demands. Trade union in a way
serves as an indication of the progress and extent of participation of
workers in running and shaping the direction of industries1
. However,
unemployment and series of structural adjustments brought about by these
phenomena deters efforts to organize the working class.
In the Philippines, instead of the having deadline of full
liberalization 2010, the government has reset to year 2004 as the country’s
deadline that is much earlier than the deadline for developed economies.2
Consequently, the country has one of the most liberal economic policies in
the region that is already quite advanced in the implementation of
liberalization.
The paper begins with the Philippine scenario in the midst of
globalization. Followed by, closer look at the country's trade union and it's
respond to the challenge of globalization. This is followed by positive
approaches of the Philippine trade unions. Moreover, an analysis on
globalization actors in the context of Dunlopian model was presented.
Finally, the paper ends by setting out the conclusions and then
afterthoughts are drawn.
1 Ibon Databank Philippines, “Trade Unionism”, Ibon Facts and Figures, Manila: Ibon
Databank Philippines, Vol.11, No.8, April 1988, pp. 2.
2 Antonio Tujan, “Globalization and Labor: The Philippine Case”, Institute of Political Economy
Journal, Manila: IPE, No.15, March 1998, pp. 3.

4. 4
II. Abstract
Globalization is the biggest challenge facing the Philippine trade
unions at present. Workers around the world organize in the form of trade
unions to obtain and defend their rights. For it is only through union that
workers can effectively air their grievances and demands. This paper is a
closer look at the country’s trade union in the midst of global competition.
It provides positive approaches of the Philippine trade unions as a
responds to the challenge of globalization.
The subject has become a major element affecting economic policy.
In the Philippines, the most obvious consequences to labor and trade
unions have been the downsizing of some companies to reduce their labor
cost. Sad to say, some companies are using globalization to bust unions.
The impact of globalization on trade unionism includes; first,
increase trade union militancy. It can be noted that one of trade union's
responds is to increase wages; second, is weakened trade unions.
Globalization policies and the apparent adverse effects of the economy
have politicized and mobilized the workers to conduct collective action to
demand economic concessions to improve workers conditions; third, is the
declining trade union membership.
In all these adjustments, the base for union organizing dramatically
shrank. Thus, we need a positive approach of the Philippine trade unions.
These are the following; 1) Forming new trade union strategy. To play
trade union's roles more effectively, they should address with boldness and
seriousness other pressing issues.
2) Forming a global solidarity among trade unions. We can notice that the
Philippine trade unions are singing different tunes. Trade unions

5. 5
specifically the Philippines should speak one voice and reflect on to these
pressing issues.
On analysis of these issues, the author uses the Dunlopian model. In
globalization, the state trade unions, and employer's group are the
important players. It is often suggested that the bargaining power of the
trade unions in general and workers in particular will diminish in an
increasing globalized world. Trade unions exist to protect the livelihood
and interests of a worker. Certainly, trade union movement does not
oppose technological change and various adjustments. Unfortunately, the
Philippine trade unions choose solely on increasing wages instead of these
programs. The presence of an agent on worker's behalf specifically the
trade union may create an atmosphere that it will benefit not only the
management but also the workers.
Trade Unions are indeed the only voice of the front-line workers in
the Philippines. The Government should encourage employees to join
union with the goal of improving quality of work life. In fact, promotion of
trade union is mandated in the labor code. There are many
misunderstandings among the three actors (state, employers, union) about
what really the best action in response to globalization. Thus, the
government is expected to act accordingly.

6. 6
III. The Philippines in the Midst of Globalization
Let me start by identifying various concepts pertaining to
globalization. Globalization means; first, trade liberalization and
consequential growth in trade relations within the region and with
countries beyond it; second, intensified flows of capital; and third, greater
mobility of workers across borders. The term sometimes presented as the
preferred alternative to regionalism.
Globalization has become a major element affecting economic policy.
It encompasses wide-ranging moves towards trade liberalization, including
removal of non-tariff barriers and leveling of tariff rates, more freedom for
capital movement across national borders, and advances in
communications and methods of quality control. All this turns the world in
global factory. 3
Globalization is not really a phenomenon. It is a pretentious term for
what we have fought against for many years which is the foreign control of
our economy, in short economic imperialism. Nevertheless, the new term is
enticing, because it promises so many things that would make heaven on
earth. Yet, when we look when we look at the actual consequences of
globalization, it is just the opposite.
Just look at the crisis we are suffering in Asia. Asian countries are
supposed to be dragons, tigers, and cubs. Now no Asian country, not even
Japan and China were spared of currency crisis, food crisis, energy crisis
and employment crisis. In the Philippines alone, land conversion of fertile
lands into golf courses and industrial complexes has reduced the lands for
3International Labor Orgasnization & Japan Institute of Labor, Globalization With Equity:
Policies for Growth, Bangkok: ILO Regional Office for Asia and the Pacific, 1998, pp. 1.

7. 7
the cultivation of staple food. Likewise, there were adverse effects on soil
fertility because of massive use of fertilizers. The Philippines now imports
rice, whereas it used to provide sufficiently in the past.
So, are we saying that no one is benefiting from globalization? Of
course not! However, the question is who benefit from it? The upper class
who have the capital. The basic sectors of the society are not only excluded
but are negatively affected.
Globalization is generally perceived in Third World as an
instrument of suppression and exploitation by the industrialized
countries.4
Thus, Renato Constatino5
termed it as imperialism. It has
successfully "macdonaldized" or "cocalized" the world. This implies
rapidly increasing global integration, with far-reaching implication on
economy of countries and its trade unions.
In the Philippines, the most obvious consequences to labor and trade
unions have been the downsizing of some companies to reduce their labor
cost. Likewise, cost-cutting measures and productivity schemes was
adopted to improve the global competitiveness of the company. These
consequences have dislocated workers and their families. Because of
downsizing, unemployment was dramatically increased and those who are
retained are assuming heavier workloads.
Sad to say, some companies are using globalization to bust unions.
Other plant closures are not the result of bankruptcies, as their owner's
claim, but are a common strategy for union busting and to get rid of old
workers earning high salary. The company will close it's manufacturing
4 Bach Macaraya, Rene Ofreneo, “Structural Adjustments & Industrial Relations: The Philippine
Experience”, Philippine Labor Review, Manila: ILMS, Vol. 16 No. 1, January-June 1992, , pp.
25.
5 Renato Constatino, a nationalist writer.

8. 8
plant but will eventually reopen to another place with new contractual
workers with a very low pay.
Table 1
ESTABLISHMENT RESORTING TO PERMANENT CLOSURE OR RETRENCHMENT
AND WORKERS DISPLACED BY INDUSTRY
INDUSTRY NUMBER DISPLACED WORKER
Agriculture, Fishery, & Forestry 20 386
Industrial 213 7,039
Mining & Quarrying 8 203
Manufacturing 172 5,999
Electricity, Gas, & Water 5 285
Construction 28 552
Services 382 5,803
Wholesale & Retail Trade 136 1,525
Transport & Storage 37 666
Finance, Insurance, Real Estate 129 2,513
Community, Social, Personal 80 1,099
TOTAL 615 13,228
Source: Department of Labor and Employment
The Philippines finally came out of recession by the end of 1998, registering
positive 1.2 growth rate for the first quarter of 1999. The conditions are
comfortable for business to operate based on macroeconomic figures but
investments are slow in coming. Investors are still cautious while bankers
remain conservative in lending. In reality, despite signs of recovery

9. 9
industry is left in doldrums.6
There were 3,072 establishments in 1998 that
resorted to closure, retrenchment, and rotation that affected 155,198
workers. From January to March 1999, there have been 615 establishments
in the same predicament affecting 13,228 workers. Most of the workers are
in manufacturing and CBA covered.
IV. The Philippine Trade Unions
The monopoly of skills is a primary weapon of the trade unions in
their quest to improve their membership. Through such monopoly of skills,
the threat of the use of strike becomes real. 7
This becomes a major
negotiating advantage of the trade unions in asking for such political rights
as “union shop” or “closed shop.” However, with deskilling the degree of
effectiveness of such negotiating advantage has been considerably reduced.
The Filipino working class constitutes the largest segments of the
society. We saw what mass organized expression could accomplish. The
Philippine working class played a major role in bringing down the Marcos
despotic regime. Similarly, trade unions as the representations of working
class organization are expected to play a major role in accumulation wealth
by high productivity as well as equitable distribution of wealth through the
process of collective bargaining. 8
6 Rosario Guzman, “The Economy Midyear 1999: Crisis Amidst Growth”, Ibon Midyear 1999
Briefing. Manila: Ibon Databank Philippines, pp. 15.
7 Bach Macaraya, “Where to, Trade Unions?”, Philippine Labor Review, Manila: ILMS, Vol. 14
No. 1, January-June 1990, pp. 39.
8 Ibid., pp. 31.

10. 10
There exist other groups with different programs and organizing
direction wherein the trade union can collaborate with to fight for social
justice. Concerted action therefore is difficult.9
Table 2
LIST OF LABOR UNIONS IN THE PHILIPPINES10
Kilusang Mayo Uno (KMU) Member Organizations:
ADLO - Association of Democratic Labor Organization
ANGLO - Alliance of Nationalist and Genuine Labor Organization
DFA - Drug, Food and Allied Industries Workers Alliance
IBM - Ilaw at Buklod ng Manggagawa
NAFLU - National Federation of Labor Unions
NFL - National Federation of Labor
NFSW - National Federation of Sugar Workers
GLOHRAIN - Genuine Labor Organization in Hotel, Restaurant, and Allied
Industries
OLALIA - Organized Labor Association in Line Industries and Agriculture
SPFL - Southern Philippines Federation of Labor
ULGWP - United Lumber and General Workers of the Philippines
9 Ibon Databank Philippines, “Trade Unionism”, Ibon Facts and Figures, Manila: Ibon
Databank Philippines, Vol.11, No.8. April 1988, pp. 8.
10 Ibon Databank Philippines, “Trade Unionism”, Ibon Facts and Figures, Manila: Ibon
Databank Philippines, Vol.11, No.8. April 1988, pp. 8.

11. 11
World Federation of Trade Unions in the Philippines Member Organizations:
Katipunan Member Organizations:
UIF - Union de Impressores de Filipinas
AMA - Aniban ng Mangagawa sa Agricultura
KAMPIL - Kaisahan ng Manggagawang Filipino
KMKM - Kalipunan ng malayang Kapisanang Manggagawa
LAND - Labor Alliance for National Development
NATUA - National Trade Union in Airline Industry
NATU - BATE - National Association of Trade Union (Bate’s Faction)
PAFLU - AYROSO - Philippine Association of Free Labor Unions (Ayroso
Faction)
TUPAS - Trade Union of the Philipppines and Allied Services
Samahang Demokratiko ng Manggagawa (SDM)
Federation of Free Workers (FFW)
Lakas ng Manggagawa Labor Center (LMLC) Member Organizations:
GATCORD - Garment, Textiles, Cordage, & Allied Workers of the Philippines
KAMADA - Kapisanan ng mga Manggagawa sa Daungan
KAMAO - Kristiyanong Alyansa ng Makabayabang Obrero
NATAW - National Alliance of Teachers and Allied Workers
NUHWRAIN - National Union of Workers in Hotel and Allied Industries
MEWA - Meralco Employees Workers Association
Pambansang Demokratikong Manggagawa sa Pilipinas (PMMP Diaz) Member
Organizations:
PSSLU - Philippine Social Security Labor Union
PLAC - Philippine Labor Alliance Council
Confederation of Free Workers (CFW, Aranza Mendez Faction)
Trade Union Congress of the Philippines (TUCP)
ALU - Associated Labor Union
PTGWO - Philippine Transport and General Workers Organization (Diaz faction)
NCFO - National Confederation of Farmers Organization

12. 12
V. The Impact of Globalization on Trade Unionism
A. Increase Trade Union Militancy
The most apparent impacts of globalization on trade unionism are
the series of chain reaction that can be trace its roots from labor
flexibilization. The government adopted various repressive policies
because of its commitment of lowering the tariff, implement full
liberalization. These have sparked trade unions aggressive opposition. By
teaming up with other sectoral groups, trade unions formed a broader
front from which they could launch their collective action against full
liberalization.11
It can be noted that one of trade union's responds is to increase
wages. The absence of a living wage, or consistently depressed wage below
the already low cost of living standards in the Philippines is the source for
monopoly of capitals huge profits. Besides depressed minimum wage
standards, additional profits are made because the majority of the
enterprise did not implement the minimum wage.12
Companies are legally able to evade the minimum wage law by
hiring workers on piece rate basis or hiring workers as trainees or
apprentices. Some, industries also apply for exemptions based on
distressed status.13
Furthermore, companies also flaunt the law by hiring
contractuals who are afraid to complain of being paid less than level
mandated by law.
11 Philippe Lim, “Structural Adjustment in the Philippines & Their Effects”, Philippine Labor
Review, Manila: ILMS, Vol. 16 No. 1, January-June 1992, , pp. 19.
12 Antonio Tujan, “Globalization and Labor: The Philippine Case”, Institute of Political Economy
Journal, Manila: IPE, No.15, March 1998, pp. 18.
13Ibid., pp. 18.

13. 13
B. Weakened Trade Unions
There has been a major change in the balance of power, both
internationally and in the individual countries, in favor of the First World.
This can be seen in the collapsed of commodity prices of raw materials,
partly because of the weakened bargaining power of the trade unions in
the third world countries.14
While the Developed countries are hugely
benefited from this trend, developing country as the Philippines is unable
to shift its gears towards the challenge of global competition because the
control lies in the hand of the first world countries.
Labor participation rates rose significantly, particularly among
women that increased from 43.7 percent in 1982 to 48.3 percent in 1984.
More women were forced to work by the crisis to meet family survival
needs.15
The effect globalization on agriculture tended to have negative
outcome. These allegedly reflected in such policies as regulated pricing,
government control of trade, export taxes, export quotas, export levies
which tended to depress agricultural sector contributing to worsening of
incomes among rural households where the incidents of poverty were
extremely high.16
Globalization policies and the apparent adverse effects of the
economy have politicized and mobilized the workers to conduct collective
action to demand economic concessions to improve workers conditions.
Under Dunlopian theory of industrial relations, trade unions are given an
active role to strengthen and to ensure more equitable income distribution
14 A. Singh, “Labor Markets and Structural Adjustments: A Global View”, G. Standing and V.
Tokman, Eds., Towards Social Adjustments, Geneva: ILO.
15 Philippe Lim, “Structural Adjustment in the Philippines & Their Effects”, Philippine Labor
Review, Manila: ILMS, Vol. 16 No. 1, January-June 1992, , pp. 15.
16 Cornea, Giovanni, etal, Adjustment with a Human Face, Quezon City: Clarendon Press,
1987,

14. 14
within the continuum. Unfortunately, the policy of this theory treated as a
counter of the state as evidenced by its policy.
C. Declining Trade Union Membership
One of the obvious reason is the decline of mass production
capitalism, which gave birth to a mass of blue-collar and, later, a mass of
white-collar workers. Capitalism re-invented itself by adopting new
technologies, and new ways of organizing business such as having a core-
periphery business arrangement, lean-and-mean operation, subcontracting
some marginal jobs to other providers, entering to supplier arrangements,
networking and so on.17
In all these adjustments, the base for union
organizing dramatically decreased.
With the effects of globalization and the changing nature of global
economy, employment in manufacturing has been declining while service
sector employment has been increasing. However, union membership in
the service sector even in the developed countries is relatively low because
proliferation of small and micro enterprises where unionism is not viable.
Likewise, because of the low pay and marginal nature of jobs in some
service sector enterprises were resulting to high employee turnover.18
These instances prevent the organization of employees. Thus, it is a high
time for trade union to modify itself.
Another instances wherein trade unionism unsuitable is the rising
labor flexibility measures and reorganization. Under globalization,
17 Rene Ofreneo, Trade unionism in the next wave of globalization: Reflections on union
strategies in the new era, Quezon City: UP School of Labor and Industrial Relations, 1999. pp.
4.
18 Rene Ofreneo, Trade unionism in the next wave of globalization: Reflections on union
strategies in the new era, Quezon City: UP School of Labor and Industrial Relations, 1999. pp.
1.

15. 15
employers have been adopting all kinds of cost-cutting and productivity
enhancement measures to get ahead of the competition. Very often, such
effort lead to subvert job security and the usual outcome is the reduction of
work force and the net effect of such adjustments is fear among workers.19
Because of the increase load of work, employees who are not
unionized are unable to entertain the introduction of union among their
companies.20
Therefore, labor organizing and collective bargaining have
become extremely difficult.
VI. Positive Approaches of the Philippine Trade Unions
A) Forming new Trade Union Strategy
There is a need to study how unions can sustain with greater
effectiveness, traditional roles given by globalization forces lined up
against the trade union movement are somewhat irrelevant already. To
19 Ibid., pp. 2.
20 Ibid., pp. 3.

16. 16
play these roles more effectively, trade unions should address with
boldness and seriousness other pressing issues.
The main issues for trade union struggle includes; first, living wages;
second, end to flexible hiring and other unfair labor practices; third,
amendments of the labor code to realized the workers rights to strike fully
the law somewhat favored the capitalist. The greatest disservice of Herrera
Law is its criminalization of the strike, limiting issues that strike can be
legally called, creating a long difficult process.
B. Forming a Global Solidarity among Trade Unions
We can notice on Table 2 that the Philippine trade unions are singing
in different tunes. Of course, conflict is inherent in any country like ours. It
is healthy in a sense, if it creates a balance of opinions to pursue trade
union's operations and goals. However, when the situation calls for
cohesive effort trade unions should act collectively and establish solidarity
with other sectors of the society.
We can say that globalization has managed to transform the global
economy into one economic unit. Transnational corporations now
routinely declare that their plans are based on the “global strategy”. Under
globalization, the world has become a global village.21
This therefore is a
wake up call for the trade unions to act as one facing the realities in a
progressive approach to address the challenge. Trade unions specifically
the Philippines should speak in one voice and reflect on to these pressing
issues.
VII. Globalization Actors: The Dunlopian Model
21 Rene Ofreneo, Trade unionism in the next wave of globalization: Reflections on union
strategies in the new era, Quezon City: UP School of Labor and Industrial Relations, 1999. pp.
5.

17. 17
This chapter seeks to present new ways of thinking about the
Philippine globalization experiences in the context of Dunlopian model of
Industrial Relations systems.
The Dunlopian model on Industrial relations recognizes tripartism
as the cornerstone of sound, progressive and equitable industrial
relationships. It embodies the notion of social partners. The state as
industrial partner acts as a regulator, moderator, conciliator, and arbiter. It
involves three groups of actors; first, the workers and their organizations;
second, management22
and their organization; and third, the state
specifically the Philippine government. These actors are bonded by
common ideology. 23
Clearly, sets of ideas and belief are commonly held by
the actor that helps to bind or integrate the system together as an entity.
Consequently, the ideology defines the role of each actor that holds toward
the place and function of the others in the system.
In other words, it is shared understandings among the three actors.
However, economic constraints may impinge on each actor because the
product market may vary in the degree and character of competition. Thus,
the actors should be adaptive to market and budgetary constraints.
The relative distribution of power among the actors in the larger
society tends to a degree to be reflected within the industrial relations
systems; their prestige, position, and access to the ultimate of authority.24
22 In this chapter the word “management was translation of a word used as capitalist and
employer.
23 John T. Dunlop, Industrial Relations Sytems, USA: Southern Illinois University Press,
1958, pp. 17.
24 Ibid., pp. 11.

18. 18
These and many other features of workplace are significant to the type of
managerial and worker hierarchies and government agencies that arise.25
It is often suggested that the bargaining power of the trade unions in
general and workers in particular will diminish in an increasing globalized
world. Using Dunlopian model, issues related to these assumptions need
to be understood clearly by the State, the Employer, and the Union to avoid
misconceptions that encourage ill-conceive measures such as the
suppression of trade unions what is happening right before our very eyes.
As we can see our unions struggle every day for recognition and for
their right to exist at a particular workplace or establishment of whatever
kind. Unfortunately, the exercise by the workers of their right to associate
freely with one another is always challenge by the employer as if the effort
to assert that right could properly be addressed as the subject of a contest.
The workers who attempt to form or join a union are faced with squarely
with the employer and its advisers. Here, the employer mounts campaign
propaganda such as team building, company loyalty, pre-employment
pleas of loyalty to the employer, and often intimidation and coercion. In
respond, the union and its advisers mount a counter indoctrination to
offset the employer's subterfuge and to attract new adherents to the union
cause and to at least minimized any intimidation or coercion. In the end,
the inevitable result of the struggles is the maintenance of a climate in
which cooperation is difficult and productivity is upset.
Again, the author of this paper wants to reiterate that trade unions
exist to protect the livelihood and interests of a worker. Therefore, it safe to
say that those matters that do not touch a worker directly, a union can not
and will not challenge. However, when management decisions or state
decisions affect workers directly a union will intervene.
25 Ibid., pp. 11.

19. 19
Certainly, trade union movement does not oppose technological
change and various adjustments. There can be no turning back to a
shortsighted policy of limiting progress. The answer to these changes lies
in smoothing its transition and cushioning the shocks that attend it. This
means that the employer should provide reasonable severance pay in case
of retrenchment, retraining, and multi-skilling of worker, and
reorganization of work schedules to accommodate other workers. These
are the social cost that the industry will have to bear in order to avoid
wasting of human resources.
For the government, let me emphasized that only when industry has
failed to accept social responsibility has labor, along with people as a
whole, turned to government for help. There are always dangers that a
concentration of power to one of these actors may sacrifice individual
freedoms. In fact, the heavy hand of the government siding on capitalist
has suffocated the trade unions in general and the worker particular.
The Dunlopian paradigm presupposes that the government has an
obligation to help people do what they can not do for themselves. The state
should address the problems being caused by globalization through
policies that provide social safety nets, and non-bias arena in the field of
Philippine Industrial relations. Until government actions (not merely by
words) demonstrate that the country is very sincere furnishing impartial
playing field, we can attain equal distribution of wealth resulting from
investment and therefore a healthy economy.
The government has an essential role in adapting raw forces of
supply and demand. Here, consultation will enable the adjustments of
policies concerning economic and labor matters to have programs that are
more meaningful. Judgments on the part of the state should be made about
minimum income levels, welfare support systems, and protection of basic

20. 20
standards of work, of safety and hygiene. Thus, facilitate the achievement
by the government with the cooperation of employers and workers for
economic and social development.
Again, author of this paper still believes that the government alone
should not be called upon to provide complete social security. The
inadequacies of the government system give trade unionist to press for
realistic security through private health, welfare, and pension plans.
Unfortunately, the Philippine trade unions choose solely on increasing
wages instead of these programs. We should bear in mind that collective
bargaining, and not government musts ultimately provide the necessary
protection against the deficiencies of the system.
The government as an actor in industrial relation, should strengthen
grievance and arbitrary procedures and promote stability of the workforce
that worker's productivity. In many job's workers are better informed than
management on how to improve productivity. The presence of an agent on
worker's behalf specifically the trade union may create an atmosphere that
it will benefit not only the management but also the workers. Thus, trade
unionism should be encourage and not to be curtailed because unionized
firms tended to train their workers more which enhance flexibility and
efficiency to addressed global competition.
Trade Unions are indeed the only voice of the front-line workers in
the Philippines. The Government should encourage employees to join
union with the goal of improving quality of work life. In fact, promotion of
trade union is mandated in the labor code. Suppression of worker's rights
creates atmosphere of confrontation that adversely affects the perception of
political stability and harmony that are crucial determinant investments in

21. 21
the long run.26
Thus, the government should start reviewing its current
programs in promoting trade unionism to attune it to the changing times.
Job security is best achieved by being given the requisite skills and
then doing a good job, so that you are in demand, and not by mandating
tenure because, globalization is global competition. It is achieve by
attracting investment to create massive need for labor. There are many
misunderstandings among the three actors (state, employers, union) about
what really the best action in response to globalization. One critical area in
which change should occur is in the labor environment. The governing
laws that are mandated in the labor code are not attuned to the current
labor situation.
Furthermore, a number of issues should be resolve to make the
country globally competitive. In addition, the challenge of the three actors,
more importantly the state. The state should come up with policies and
programs that will advance the interest of both labor and management.
Likewise, management must lead a positive a positive transformation
process in productivity and labor reforms if the overall competitiveness of
a business is to be maintained or increased.
VIII. Conclusion and Afterthoughts
Globalization succeeds or fails in certain countries. It succeeds on
developed countries as goods from them can easily compete globally. In
contrast, developing countries like the Philippines, globalization was a
failure and resulting from social injustices.
26 Bach Macaraya, “Where to, Trade Unions?”, Philippine Labor Review, Manila: ILMS, Vol. 14
No. 1, January-June 1990, pp. 47.

22. 22
The interplay of various actors as Dunlopian model emphasized has
complicated the globalization trend. Each actor had diverse interest to
protect. Thus, vulnerable groups specifically the poor were at the receiving
end of bad performance of the actors.
As hindsight, the economic hardship being brought by anti-labor
policies as result of globalization impinged renewed militancy of the
worker. It also a reality that unless we unchain ourselves from the bondage
of American colonialism government efforts to transform the Philippines
itself from NIChood.
It is apparent that the Philippine economic recovery was consumer
led. Capitalism will not work without labors that are themselves consumer
at the same time. Accordingly, we have to redirect our politics, economy,
and society towards a new development strategy.
As a strategy, it is important to note specifically for the government
that globalization has improved the opportunity for a special kind of return
migration of skilled labor.27
Here, we can look upon the Chinese return
migration as a model. Chinese28
nationals used to work in as engineers and
programmers in the West. Until recently, they decided to go back to launch
their software firms and high tech companies that has emerge as a major
exporter of these products to the industrial countries. There is a distinct
possibility for the skilled migrant Filipinos in the United States to do the
same once economic reforms make it profitable for them to do so.29
This
will have propelling positive effects on investment and employment.
27 Azizur Khan, Philippines: Employment in Globalizing and Liberalizing World, Bangkok:ILO
Regional Office for Asia and the Pacific, 1997, pp. 68.
28 Chinese from Mainland China and Chinese from Taiwan.
29 Azizur Khan, Philippines: Employment in Globalizing and Liberalizing World, Bangkok:ILO
Regional Office for Asia and the Pacific, 1997, pp. 68.

23. 23
For the trade unions, muscle flexing seems to be the only way
workers can be noticed. Nevertheless, the question is how many muscles
are available to be flexed. Various protests have been initiated by militant
trade unions up to the present, but the state seems to be deaf when it is the
issue on wage increase. They assume that other firm might cease in its
operation because such increase in wage will make them more vulnerable
to financial collapse or might follow what the transnational corporation did
recently. Personally, I found the argument very weak. Because the
government was not even sure that cost of labor was the inducing factor
for these incidents. In fact, Dr. Bello30
emphasized that the main reason for
the relocation was the country's instability and extreme economic asunder
as manifested by the country’s dual economy asunder. Unfortunately, the
government can not notice that from the past to the present workers still
continue to one of the economy’s sacrificial lambs.
Finally, the Philippines should avoid the temptation to curb the right
of the workers to organize freely in the false belief that this would help
promote international competitiveness and encourage foreign investments.
In fact, free trade unions can help productivity in a variety of ways. The
presence of free and healthy unions helps to counter the adverse effects of
globalization in the guise of humanitarian and environmental concerns.
30 Professor University of the Philippines School of Economics. Emphasized during an
interview with Abs-Cbn.

24. 24
Bibliography
A. Singh. “Labor Markets and Structural Adjustments: A Global View”. G.
Standing and V. Tokman. Eds., Towards Social Adjustments.
Geneva: ILO.
Antonio Tujan. “Globalization and Labor: The Philippine Case”. Institute of
Political Economy Journal. Manila: IPE. No.15 March 1998.

25. 25
Azizur Khan. Philippines: Employment in Globalizing and Liberalizing World.
Bangkok: ILO Regional Office for Asia and the Pacific. 1997.
Bach Macaraya, Rene Ofreneo. “Structural Adjustments & Industrial
Relations: The Philippine Experience”. Philippine Labor Review.
Manila: ILMS. Vol. 16 No. 1, January-June 1992.
Cornea, Giovanni, etal. Adjustment with a Human Face. Quezon City:
Clarendon Press. 1987.
Ibon Databank Philippines. “Trade Unionism”. Ibon Facts and Figures.
Manila: Ibon Databank Philippines. Vol.11, No.8. April 1988.
Ibon Databank Philippines. Ibon Midyear 1999 Briefing. Manila: Ibon
Databank Philippines.
International Labor Organization & Japan Institute of Labor. Globalization
With Equity:Policies for Growth. Bangkok:: ILO Regional Office for
Asia and the Pacific. 1998.
John T. Dunlop. Industrial Relations Sytems. USA: Southern Illinois
University Press. 1958.
Philippe Lim. “Structural Adjustment in the Philippines & Their Effects”.
Philippine Labor Review. Manila: ILMS. Vol. 16 No. 1. January-June
1992.
COMMENTS