In 2024, the Institute for Labor Studies conducted a study titled, "Benchmarking of Company Practices in Labor Standards Compliance and Labor-Management Relations." The study was established in accordance with the thrust of the Philippine government to address the outcomes of the High-Level Tripartite Mission to mitigate labor and human rights violations. This initial study was intended to document company practices related to the management of labor rights risks, and to determine similar challenges that companies encounter in putting government policies related to labor into practice. The stakeholders of the Benchmarking Study were management and the Philippine Economic Zone Authority locators.
After the Benchmarking Study was completed, another research project was pursued to further validate the benchmarking results from that study, which included the perspectives of organized and unorganized workers in multinational enterprises. The research revealed that workers generally have high levels of satisfaction with their companies’ compliance with labor standards and mitigation of labor and human rights risks, especially in areas such as entitlement to paid leaves, prevention of child labor, and provision of mandated social security benefits, among others. On labor relations and grievance mechanisms, workers acknowledge that policies and practices are in place but need proper and consistent implementation, particularly on aspects such as the right to self-organize, adequacy of grievance mechanisms, and inclusive facilities for all workers. Despite overall positive perceptions on these aspects, challenges on worker involvement in policymaking, power imbalances in grievance processes, and barriers in organizing persist, underscoring the need to revisit and review company practices which should be tailored per sector, company size, and/or union presence to ensure worker protection and harmonious labor-management relations.
In alignment with the 2024 Benchmarking Study, the study identified applicable recommendations to strengthen labor standards and labor-management relations in the Philippines, focusing on reinforcing protection against anti-union practices, enhancing accessibility and fairness to grievance mechanisms, and to broaden scope of educational initiatives for the unorganized sectors. The study likewise recommended strengthening institutional mechanisms such as Labor-Management Councils and Committee on Decorum and Investigation, forming partnerships to promote beyond and above compliance practices, and advancing recognition systems in developing criteria that uphold business and human rights. These strategies aim to empower workers, ensure collective rights, and encourage a collaborative and transparent workplace environments that support meaningful participation and organizational fairness.
Keywords: Labor Standards Compliance, Labor-Management Relations, High-Level Tripartite Mission (HLTM), Labor Rights Risks, Grievance Mechanisms
Principal Authors: Lyra Cosette B. Dayego | Jan Danielle R. Bondad
Contributors: Joyce Anne S. Lumactud | Jun Karlo T. Laroza | Marcos S. Ursua | Joanne Camille P. Bejarin