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Date: April 2003

Ten-Year Ban on Laabor Strikes Proposed

A group of Filipino-Chinese businessmen has asked the Philippine government to impose a 10-year moratorium on labor strikes and in return promised to create three million jobs within the next 12 to 14 years.

The call quickly drew support from the Japanese Chamber of Commerce and Industry (JCCI), which has been complaining about the high cost of labor disputes in the country. The chamber is composed of 600 Japanese firms operating in the Philippines.

Militant labor organizations, however, dispelled the proposal as another ploy of the country's capitalists to take advantage of the poorer workers. The government is not expected to heed the call of the Federation of Filipino Chinese Chamber of Commerce and Industry (FFCCCI) anytime soon so as not to fuel the controversy.

According to FFCCCI president Robin Sy, many Filipino-Chinese businessmen are hesitant to expand their businesses for fear that labor strikes would add to their costs at a time when margins are thin.

For his part, JCCI president Ryukichi Kawaguchi described the proposal to impose a strike ban as a "good idea" and admitted that Japanese firms in the country see labor unrest as a major problem.
Operations of several of Japanese companies in the country have been halted by labor strikes since 2001. Among these companies are carmakers Toyota Motors Philippines Corp. and Nissan Motor Philippines Inc.

The chamber president said that because of labor problems, the Philippines constantly loses out to China in terms of attracting capital from Japan. Other problems cited were poor local infrastructure, peace and order, hazardous waste and taxation issues.

 


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