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

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 No MW policy 3.65 4.87- 5.50 NCR- 9.08-9.79 CAR- 5.16-5.73 I- 4.89-5.93 II- 5.73-6.50 III- 5.05-7.26 IV-A- 5.41-7.23 IV-B- 4.95-5.73 V- 5.35-5.54 VI- 5.19-6.18 VII- 5.50-7.00 VIII- 4.68-5.45 IX- 5.41-5.66 X- 5.81-6.46 XI- 6.02-6.50 XII- 5.20-5.64 XIII- 5.73 ARMM-4.87-5.07 9.64-9.96 2.72 7.92 – 8.61 5.72 3.25 to 8.15 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

*Data is generated from LLCS-MIS on 05 January 2018 (preliminary data) 2017 Labor Inspection Establishments Covered* w/ GLS violations MW Compliance Rate - 85.2% 28,366 w/ OSHS violations 22,555 *Data is generated from LLCS-MIS on 05 January 2018 (preliminary data)

*Data generated from LLCS-MIS Labor Inspection Outcomes (2017) *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 PhilHealth premiums National Health Insurance Act of 1995 (R.A. 7875 a/a) Fire Protection Equipment/Facilities

*Data generated from LLCS-MIS GLS Compliance by Industry ALL INDUSTRY 51.47% Financial and Insurance Activities 74.16% Transportation and storage 67.78% Real Estate Activities 60.77% Electricity, gas, steam 57.83% Wholesale and retail trade 56.82% Professional, scientific and technical 56.56% Information and Communication 54.77% Accommodation and Food Service 54.58% Human Health and Social Work 54.32% Manufacturing 54.03% Education 53.33% Agriculture, forestry and fishing 52.21% Arts, entertainment and recreational 49.73% Mining and quarrying 42.31% Construction 42.03% Contractor/Subcontractor - Janitorial Agency 41.51% Water Supply, sewerage, waste 39.13% Contractor/Subcontractor - Other service provider 37.39% Administrative and Support Service Activities 32.86% Contractor/Subcontractor - Security Agency 26.79% TOP 3 BOTTOM 3 *Data generated from LLCS-MIS

*Data generated from LLCS-MIS OSHS Compliance by Industry ALL INDUSTRY 61.29% 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 64.60% Financial and Insurance Activities 60.05% Electricity, gas, steam 59.22% Wholesale and retail trade 58.49% Human Health and Social Work 58.32% Agriculture, forestry and fishing 57.73% Arts, entertainment and recreational 53.46% Accommodation and Food Service 52.60% Water Supply, sewerage, waste 50.72% Construction 45.80% Education 45.05% Manufacturing 44.08% Professional, scientific and technical 43.24% Mining and quarrying 40.38% Real Estate Activities 40.00% Information and Communication 37.56% TOP 3 BOTTOM 3 *Data generated from LLCS-MIS

Inspected Establishments in 2017 by Employment Size 41,326 1,636 17,770

Top Violations Noted GLS OSHS Micro Establishments 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 GLS Compliance Rate MW Compliance Rate - 87.7% 59.9% OSHS Compliance Rate 73.0% Total No. of Inspected Establishments 41,326

Top Violations Noted GLS OSHS Small and Medium Establishments Records Keeping First Aider Rules Implementing Articles 106 to 109 of the Labor Code Safety Officer Minimum Wage Health Personnel Remittance of Pag-IBIG premiums Administrative Reports on Health and Safety Regular Holiday Pay Safety Personnel GLS Compliance Rate MW Compliance Rate - 83.9% 49.5% OSHS Compliance Rate 52.5% Total No. of Inspected Establishments 17,770

Top Violations Noted GLS OSHS Large Establishments 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 GLS Compliance Rate MW Compliance Rate - 88.5% 49.4% OSHS Compliance Rate 51.0% Total No. of Inspected Establishments 1,636

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

Salamat Po!