House Bill Nos. 154, 326, 664, 987, 1352, and 1651 are currently pending deliberation before the House Committee on Labor and Employment which all cover the “Magna Carta of Workers in the Informal Sector.” This Act seeks to promote the total well-being of all workers in the informal sector. ECOP submitted its position paper on the House Bills.
In its position paper, ECOP recognized that the “deepening” dualism in the labor market situation in the country. The formal sector continues to shrink as the informal sector continues to increase which may greatly affect creation of wealth and employment and in the Philippine economy in general. In addition, workers in the informal economy are not given access to social protection benefits since they are not given due representation.
ECOP noted that the bills confuse informal employment with the entrepreneur or the self-employed. Vendors, sari-sari stores, operators of PUVs, workers of Barangay Micro Business Enterprises, and other micro enterprises are establishments with formal registration and should not be categorized as part of the informal sector.
Also, ECOP saw no logical justification for the need for accreditation since it is better to give them the opportunity to go into formal arrangements, reduce the fees for registration, decrease the documentary requirements, provide access for financial and market opportunities.
The Bills push for LGUs negotiating with private property owners for the possible use of their properties as informal workers’ workplace, as well as the provision of accessible and affordable medical care and reproductive health services, and low-cost housing. ECOP noted that employers in the informal economy may not be able provide them with these and that private property should not be subjected to the use of informal workers, under the coercion of LGUs.
The Bills also give preference and exclusivity to marginalized fisherfolk and allied workers in the use of municipal waters and beach fronts. However, ECOP reiterated that depriving others of their usage is violative of the Philippine Constitution.
A proposed Informal Economy Development Authority was also brought up with which ECOP believed would only duplicate the work being done by several existing government agencies. What is needed is a comprehensive program that will support informal enterprises to graduate from being grassroots and informal and enter the mainstream formal economy.
To this end, ECOP also reiterated its position that sanctions for non-compliance by employers of prescriptions declared as unlawful should be limited to civil liability as imposition of imprisonment is cause for the employer to lose his business and his employees to lose their jobs.