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Presented at the DLSU Research Congress 2017

De La Salle University, Manila, Philippines


June 20 to 22, 2017

Assessing Potential Impact of ASEAN Integration to Philippine Labor


Force: A Call for Review of Labor Laws on Pre-Employment and Human
Resource Development
Roy G. Aguba1, Dr. Jocelyn P. Cruz*,1, Mark Lawrence C. Guzman1, Francis Louise M. Mangahas1 ,
and Jennifer C. Realon1
1 De La Salle University - Manila

*Corresponding Author: jocelyn.cruz@dlsu.edu.ph

Abstract: The ASEAN integration is set to bring significant changes in the labor landscape of
the Southeast Asia region. With the creation of the ASEAN Economic Community (AEC) that
primarily aimed to make the region an alternative capable player in the global market by
creating a single production base; the skilled labor mobility and its effect to the labor force of
ASEAN state members is becoming a top concern1. This is particularly relevant for a third
world country like the Philippines, which has bigger compromise and risks to assume in the
integration compared to the more economically progressive members. This paper explores one
potential measure to address and manage the impact of ASEAN integration to the Philippine
labor force – the initiatives on strengthening and aligning its domestic laws on overseas and
migrant workers. Using descriptive research method, this paper examines existing labor laws
of the Philippines; and compares them to other ASEAN members. The comparison affirms the
inherent differences in domestic labor laws among its members which poses a threat to the
success rate of AEC. The question of how the states are willing to compromise its sovereignty
to achieve the concept of a borderless community of nations comes in. However, this paper
upholds that the Philippine government must first review, and amend if its sees fit its
domestic labor laws on overseas and migrant employment to ensure the protection and welfare
of its workers in the ASEAN integration.

Key Words: ASEAN Integration; Overseas Worker; Migrant Worker; Labor Laws; Employment

1. Introduction heart of the integration, embodies ASEAN’s goal to


The recent changes in the global market, improve the economic conditions of its member-states
characterized by easier availability and exchange of and be strong force in the competitive global market.
goods and services, interconnectedness of people, and Through the creation of a single market and
wider access to knowledge and information, moved production base, the AEC envisions ASEAN to be
countries around the world to capitalize on their “more dynamic and competitive with new
labor force to maximize the economic benefits of mechanisms and measures to strengthen the
globalization. The concept of a borderless community implementation of its existing economic initiatives”.
influenced the strengthening of regional integrations This vision is embodied in the blueprint of
such as the Association of Southeast Nation or AEC, outlining the five core elements of an ASEAN
“ASEAN”. The ASEAN’s structure as a regional single market and production goods: the 1.) free flow
integration is founded in the creation of three of goods, 2.) free flow of services, 3.) free flow of
communities representing the association’s goals and investment, and 4.) the free flow of skilled labor. The
visions, which are 1) the ASEAN Political-Security free flow of skilled labor is one of the major
Community (ASPC), 2) the ASEAN Socio-Cultural machineries of ASEAN to promote a wider scale of
community (ASC) and 3) the ASEAN Economic economic advancement in its member-states. To
Community (AEC). The AEC, which is said to be the allow better mobility of workers across the region,
ASEAN is working on better facilitation of issuance
Presented at the DLSU Research Congress 2017
De La Salle University, Manila, Philippines
June 20 to 22, 2017

of visas and employment passes for ASEAN Philippines and select ASEAN member-states, which
professionals and skilled workers, and among others, herein served as the sample, to the potential impact
develop their core competencies and qualifications as of the ASEAN integration to its member-states as
required by the service sectors. In long-term established by several studies. In this paper, meta-
perspective, ASEAN is also set to strengthen the analysis was performed by analysing and integrating
research capabilities of each ASEAN state-member together the findings on select scholarly materials
in terms of promoting skills, job placements, and and publications that tackled the potential impact,
developing labor market information networks both beneficial and adverse, of the ASEAN
among the state-members. integration to the member-states of the organization.
Despite the promising future that ASEAN The integrated findings were then examined vis-à-vis
integration holds, several criticisms are arising the differences in labor laws in the said key areas of
concerning its adverse effects in the labor force of the sampled states.
some of the member-states. The worsening of 3. RESULTS AND DISCUSSION
inequalities among the member-states, which The countries used for comparison with the
translates to the persistent job insecurity and Philippines are Singapore, Indonesia and Thailand.
worker’s right violations present mostly in These three countries, together with the Philippines,
developing countries, is becoming a top concern. This are the first founding members of the ASEAN back in
manifests in reported cases of racial discrimination, its establishment in 1967. The selected member-
abuse, and substandard work conditions being states are good reference for the comparison, as all of
offered to workers in some of the employing ASEAN them are the original proponents of goals of the
countries. The Philippines and other developing association. In would be interesting and meaningful
countries that are part of ASEAN, which labor force to review how these countries have so far been
are generally less equipped to exploit the committed to the principles of the association in
opportunities offered by economic integration and are terms of their legislations. In addition, the current
more prone to job insecurity and violation compared economic statures of the selected states, with
to their developed counterparts. This begs the Singapore termed as one of the fastest growing
question on how a country should prepare before countries in the global scene, would provide a good
embracing the concept of the free flow of labor. contrast to the developing countries like the
2. METHODOLOGY Philippines and the other two states. The comparison
This paper explored what could be a viable were limited to labor laws on pre-employment and
measure for the Philippines to prepare for the human resource development, particularly on three
envisioned mobility of its labor force with the ASEAN above mentioned key areas, and does not cover the
integration – a sound law on pre-employment and other areas of laws and legislation that could be
human resource development that are aligned and on potentially needed to be reviewed.
par with the other ASEAN members. This paper 3.1 Philippine Labor Laws vis-à-vis Other
specifically looked into two (2) key areas of the labor ASEAN Members
laws under the said books, examined the applicable
As mentioned, the comparison will be
provisions, and compared them with the applicable
limited to the two (2) key areas of labor laws on pre-
laws in selected other ASEAN member-states. This is
employment and human resource development. This
to conduct a simple benchmarking and even at
paper acknowledges the differences in legislation
surface level immediately identify what areas of the
system of the member-states and the varying legal
said Philippine laws must be aligned with the other
philosophies behind the respective labor laws that
member-states, and what are pointers that the
will be covered. Hence, the findings and analysis of
country can take to improve its domestic labor laws
this paper were drawn in general context.
and be at par the former.
The key areas which will be the focus of this
3.1.1 Protection of Migrant Workers
The examination of the labor laws of the
paper are as follows: (1) Protection of Migrant
Philippines vis-à-vis Singapore, Thailand, and
Workers, (2) Job competency, training, and skills
Indonesia’s suggests that the Philippines has the
development
most comprehensive provisions on law when it comes
A qualitative method of research using
to protection of migrant workers. The Philippine
meta-analysis technique was used to determine the
Labor Code (1974) (as amended by Department of
relationship of the difference in labor laws of the
Presented at the DLSU Research Congress 2017
De La Salle University, Manila, Philippines
June 20 to 22, 2017

Labor and Employment’s (DOLE) Department an exact definition of illegal recruitment and a strict
Orders) and the subsequent R.A. No. 8042 or list of acts that would constitute the same. Their
Migrant Workers and Overseas Filipinos Act (1995) existing labor laws, instead, provide penalties for
provided extensive provisions of laws and policies for violations on the laws governing private recruitment,
overseas employment, and among others, which penalties, similar to the Philippines, include
establishment of higher standard of protection and revocation of license to recruit, imprisonment, and
promotion of welfare of migrant workers. fines that also vary depending on different factors.
The Chapter II of the The Book 1 “Pre- While it can be said that both the labor laws of the
employment” of the Philippine Labor Code provides Philippines and the other three member-states are
the laws for regulations on recruitment and anchored on the same principles of regulating the
placement activities for private recruitment agencies. placement of their respective workers, the
It includes the requirements for license for private Philippines’ provisions on illegal recruitment is a
agencies, grounds for revocation of the same, and list manifestation of strong commitment of the country to
of practices in relation to recruitment that any entity protect its workers. This is particularly evident in
are prohibited to conduct in terms of recruitment inclusion of the prohibition of “recruitment or
including overseas workers. In comparison, the three placement of workers in jobs harmful to public health
member-states also have their own extensive or morality or to the dignity of the Republic of the
provisions on their laws covering requirements for Philippines” as part of the acts constituting illegal
private recruitment. For example, Thailand’s recruitment. In effect, the provision criminalizes the
Employment and Job-Seeker Protection Act (1985) serious disregard of any individual or entity, whether
provides the obligations of private recruiters for licensed to recruit or not, to the security and welfare
engaging overseas employment, the technical of Filipino workers when working overseas. The D.O.
requirements for acquiring license to recruit, and 141-14 further enumerated anti-illegal recruitment
other procedural matters pertaining recruitment. programs that DOLE shall adopt and implement to
Chapter VII of the said act also provides the support the country’s migrant workers.
penalties and sanctions of the private recruiters for It can be observed with the comparison,
violations of laws on recruitment. Singapore also however, that laws of the member-states are
have similar provisions, which includes list of preventive by nature on the part of a sending
prohibited acts for the private recruiters, such as member-state, making its enforceability in the
engagement of unlicensed persons, furnishing false receiving member-states questionable. The varying
information, and directly and indirectly charging and labor laws, particularly covering foreign workers,
receiving fees above the government prescribed . might be an issue as to the question whether the
However, one area that the Philippine labor migrant workers will be truly protected as intended
law seems to be ahead among the other member- by their state of origin. This is the reason why the
states is the inclusion of provisions on illegal Philippines included in its R.A. No. 8042 provisions
recruitment. The Philippine Labor Code defines that serve as requisites on receiving states for
illegal recruitment as “any act of canvassing, private recruitment agencies in placing Filipino
enlisting, contracting, transporting, utilizing, hiring, workers.
procuring workers and includes referring, contact In relation to this, Thailand’s local laws
services, promising or advertising for employment protecting the rights of foreign workers from other
abroad, whether for profit or not, when undertaken countries are rather lacking. Thailand’s Working of
by a non-license or non-holder of authority Alien Act (2008) mainly provides procedural rules for
contemplated under the Labor Code of the private recruitment bodies and government agencies
Philippines”. In addition to this definition, the in engaging foreign workers. The act provides the
prohibited practices for private recruitment agencies regulation in engagement of aliens as to working
as enumerated by the Labor Code were further area, period, and type or nature of work, the
consolidated in DOLE’s Department Order No. 141- requirements for the aliens to obtain work permit,
14 as the acts constituting illegal recruitment. The and the obligations of employers in engaging the
acts are expressly enumerated, and are attached aliens for employment. However, it can be observed
with corresponding penalties that vary depending on that the current labor laws of the state are more
gravity of the committed act. In comparison, the geared towards restrictions on the entry and
three member-states in their labor laws do not have deployment of foreign workers from other countries,
Presented at the DLSU Research Congress 2017
De La Salle University, Manila, Philippines
June 20 to 22, 2017

and less on protection of the latter to be aided by the creating a Single European Labor Market. Academics
country as a receiving state. Similarly, Singapore’s and policy makers hold that EU has not achieved its
Employment of Foreign Manpower Act (2009) focuses goal of free labor across Europe due to, among other
on requirement of work pass for foreign workers (or reasons, inherent barriers on language and culture.
the employers intending to engage them), grounds for In conjunction with the insufficiency of labor
termination of work pass, and offences, with and laws protecting the rights of foreign workers on the
corresponding penalties, that foreign workers may part of receiving states, the issue on employment
commit during their employment. While it is related discrimination may continue to increase with
understandable that the member-states will at all the materialization of the ASEAN integration.
time priority the protection of interest of its own According to Deputy Administrator for POEA
workers, the lack of provisions on protection of Carmelita Dimzon, Filipino migrant workers
foreign workers from the receiving states are evident experience higher rate of employment-related
and is worth of thorough assessment by ASEAN. violations and discriminations, and below-standard
3.1.2 Protection of Migrant Workers labor conditions which usually involve “confiscation
Despite ASEAN member-states’ of passports and other travel and employment
resemblances in culture and tradition, each has documents by the employers, non-payment, partial
peculiarities and differences in traits that may pose payment, or withholding of salaries, unilateral
certain concerns, especially in the work place. The reduction of wages, illegal deductions from pay slips,
said differences could directly affect the behavior of substandard living and working conditions, denied
the members of an organization, hence potentially access to compatriots and friends, denied access to
causing tensions among employees of different races. medical and health services, and many others” . This
For example, Filipinos are known for its inclination may partly be due to the negative stigma on Filipino
to put a premium on peace: they tend to avoid workers to be only suited for blue-collar works such
conflict whenever possible and settle issues in a as being household keepers, domestic helpers, and
non-confrontational manner. This trait, when taken other manual laborers. This form of discrimination
to workplace world does not always yield positive can be attributed to the persistent trait of colonial
impact, especially considering that a big portion of mentality, particularly in third-world countries such
the modern workforce in the Philippines is already as the Philippines, that is existent even in workplace.
racially diverse. This is already apparent with the Defined as “the perception of ethnic and cultural
growing BPO industry in the Philippines, where inferiority and a form of internalized racial
most of the top management of the companies is oppression”, colonial mentality is a trait deemed born
comprised of foreigners. Since most BPO companies out of the oppressed countries’ history of colonialism.
are based on western business setting, BPO This mentality has its tendency to affect
employees are required to adapt a more diverse work employment, as employers in receiving states might
culture. This cultural diversity is expected to grow develop a preference over foreign applicants from
more with the labor mobility of ASEAN integration. more developed countries due to the perceived notion
Language and communication are that they are superior as to qualification and skills
considered crucial in resolution of conflicts, and compared to their counter-parts. It might affect not
barriers on the same may produce issues once the only recruitment, but may also influence post-
labor force of the member-states becomes more employment aspects, such as safety and motivation
racially diverse due to the integration. To date, the in the workplace.
Philippines remain to be the top English speaker in Job-related discriminations may also arise
Asia. While this might sound as a huge advantage in when member-states demonstrates an overtly strong
the international market, this does not necessarily preference for its local constituents over foreign
true in the ASEAN region, due to the fact that workers. It is understandable, however, that states
ASEAN countries in dominant market position, like would innately prioritize the welfare of its own
Singapore, are more likely not inclined in adopting people, more than any international commitment.
English as the primary language for day-to-day work This manifests in the state policies of some countries,
operations. The possibilities of these phenomena are including the three member-states being compared,
not new as the European Union (EU), often touted as which set quotas in employing foreign workers to
the model for regional integrations of the ASEAN, protect its locals from the influx of foreign workers
experienced the same set of issues with its concept of
Presented at the DLSU Research Congress 2017
De La Salle University, Manila, Philippines
June 20 to 22, 2017

who can take a big portion of employment which intends to loosen the regulations in entry and
opportunities in their labor market. movement of skilled workers of ASEAN across the
Table 1. Foreign Worker Quota in Select ASEAN region. Moreover, there is an apparent insufficiency
Member-states when it comes to labor laws concerning race-related
Philippines Indonesia Singapore Thailand discrimination in the four member-states. For
example, the Philippines, to date, do not have an
S Pass Holder
explicit labor law that prohibits discrimination on
= 10:1
10:1
PRC Permit
the account of race and ethnicity. While the
n/a Long term Philippine Labor Code provides in the state policy
Holders= 22:1 4:1
work permits that the State shall ensure equal work opportunities
Malaysian/NAS
=1:1
Work Permit regardless of sex, race or creed, no implementing rule
holders= 1:1 and regulation has been enacted that specifically
In the case of Indonesia, its government set tackles prohibitions and corresponding violations on
a ratio of 10:1, where employers are required to hire racial discrimination as to workplace, and that the
10 local workers for every one (1) foreign worker said state policy is understood to cover Filipinos and
hired. In 2015, however, by the virtue of its does not extend to foreign workers. To date, the anti-
Amendment Foreign Worker Regulation 16, discrimination laws that are enforced are DOLE’s
Indonesia already revoked the said quota, and now Department Order No. 170, otherwise known as the
imposes 1:1 ratio, at least for long term work “Anti-Age Discrimination in Employment Act”, and
permits. Thailand similarly provides a foreign in some respect, the Republic Act No. 9710, otherwise
employment quota of four (4) local workers for every known as the “Magna Carta of Women”. The Senate
1 foreigner employed. Bill No. 2814 entitled “Anti-Ethnic or Racial Profiling
On the other hand, Singapore imposes more Act of 2011” however is pending in the Philippine
extensive quota requirements, which are based on congress that seeks, among others, to prohibit
the qualification and certification of foreign workers discrimination on employment against a person on
desired to be employed. This regulation is based on the ground of ethnicity, race or religious beliefs,
continuing problem of the country due to the rapid which covers recruitment, terms and conditions of
influx of foreign and non-resident workers who are employment, and dismissal . Unfortunately, similar
composing a major portion of its labor force. In 2015, to other domestic laws, the laws, including the said
the number of foreign workers in Singapore is at pending bill, were not structured to cover foreign
1,378,300, which makes up the 38% of the country’s workers. This similar in the case of the other
total labor force. Such ratio is reportedly putting member-states which have incorporated in their
strain on jobs, housing infrastructure, and even respective state policies equal job opportunities for
causing racial tensions due to fear among the all of its citizens, but are elusive as to protection of
residents on continuous dilution of the Singaporean foreign workers from potential race-related
national identity . Meanwhile, the Philippines to discrimination in their jurisdictions as receiving
date, does not impose a local-per-foreign worker states.
employment ratio. Its labor code, instead, provides a 3.1.3 Training and Skill Development
requirement that employment permit for a non- Another area in Philippine labor laws that
resident alien or to the applicant employer may be should be revisited in relation to the ASEAN
issued after determining n that there is no available integration are the provisions on the training and
person in the country who is competent, able and skills development that the government provides to
willing at the time of application to perform the its workers, especially to those that are gearing to
services for which the alien is desired. capitalize on the labor movement in the region. The
The concept of foreign employment quota Book 2 of the Philippine Labor Code entitled “Human
should be thoroughly reviewed by the member-states Resource Development” provides the objective of the
of ASEAN, especially with their commitment for the state to develop its human resources by establishing
integration. While, as mentioned, it is training centres, and formulate plans and programs
understandable that the member-states will to utilize the country’s manpower, and promote
prioritize the security and welfare of their own labor employment and accelerate economic and social
force, these kinds of restrictions might go against the growth . This includes the formulation of long term
concept of free-flow of labor envisioned by AEC, national manpower plan and the establishment of
Presented at the DLSU Research Congress 2017
De La Salle University, Manila, Philippines
June 20 to 22, 2017

skill standards specific to the different industries. Also similar to the policy of the Philippines,
The law also provides, to support its national Indonesia’s labor law provides for the establishment
manpower plan, the administration of training of manpower policy and development of manpower
programs, assistance to employers in designing planning. This manpower planning shall be in macro
training schemes for their employees, and regulation and micro-scale, and shall be used in formulating
of other training and skill development programs to policies, strategies and implementation of
ensure the conformity of the same with national sustainable manpower development plan. Indonesian
development programs. labor law focuses on job training that is directed to
Born out from the said national manpower instil, enhance, and develop job competence of its
plan is the establishment of Technical Education and citizens. To further operationalize its objectives,
Skills Development Authority (TESDA) to support Indonesia launched the Technological and
the training and skill development of Filipino Professional Skills Development Sector Project in
workers and make them competitive both in the local 1996 that run until 2005. It was based on the
and international market. Significantly, TESDA’s rationale that in order to make the workforce strong
priorities are anchored on a bigger social and competitive by strengthening the role of higher
responsibility which is to be a partner for combatting technical education in augmenting their skills. The
poverty especially in the provincial regions of the program was referred to be successful with actions,
Philippines. In similar respect, Thailand’s Skill which among others, have improved the teaching and
Development Promotion Act (2002) focuses on “pre- learning environment of several educational
employment training”, which is aimed to ready institutions by upgrading physical capacities,
workers in the work they are to assume, and “skill reforming accreditation system, strengthening staff
upgrading training” which is aimed to enable development, and raising quality of study programs .
workers to further knowledge and skills as they One of key learnings with the project is the positive
continue with their employment. Both may be impact is “institutionalizing linkages between
administered by the government, employers, or a educational entities and industries nationally and at
“training provider” who is an authorized person or the higher education institution”, which was
entity who arranges training activities in accordance incorporated to the renewed government's
with the curriculum and regulating rules by the commitment to strengthen and reform the education
country’s minister-in-charge. Some of the strong sector as reflected in the sector's increasing share in
points of the act are the comprehensive rights and budget allocation .
benefits of training providers as incentive to their Singapore also has one of the most
contribution to national skill development. Similar comprehensive programs when it comes to training
with the Philippines, Thailand’s government and skills development. Its program called
provides income tax exemption on the percentage of SkillsFuture is “a national movement to provide
training expenses, assistance and consultations in Singaporeans with the opportunities to develop their
providing training, skill standard testing, and fullest potential throughout life, regardless of their
curriculum development, plus additional premiums starting points. Through this movement, the skills,
such as exemptions on VAT and import duty for tools passion and contributions of every individual will
and machinery bought for training purposes, drive Singapore's next phase of development towards
deductions on utility charges in the amount of two an advanced economy and inclusive society”.
times of the training costs, and other privileges Spearheaded by Singapore’s Ministry of Manpower,
prescribed by their ministry. This is a good scheme to SkillsFuture vision is to help all components of the
entice private entities to engage to contribute to the labor market, regardless of age, attain skill mastery
skill development in the country’s labor force. In to help them achieve or advance with their careers in
addition, the act also provides the setting of skill a long-term perspective. This vision is anchored in
standards across various trades, where in which any four key thrusts, which are to 1.) Help individuals
person who desires to have his/her skills be certified make well-informed choices in education, training
may just simply apply to a regulating committee. The and careers, 2.) Develop an integrated high-quality
technical procedures in the certification of skill system of education and training that responds to
standard and issuance of the certificate shall be constantly evolving needs, 3.) Promote employer
administered by the said regulating committee. recognition and career development based on skills
Presented at the DLSU Research Congress 2017
De La Salle University, Manila, Philippines
June 20 to 22, 2017

and mastery, and 4.) Foster a culture that supports skill mismatch has the tendency to worsen job
and celebrates lifelong learning. insecurity among the workers of the developing
3.2 Job Insecurity and Stiffer Employment countries. Skilled workers from developing countries
Competition with ASEAN Integration such as the Philippines are likely to be less equipped
to exploit or maximize the opportunities offered by
Despite what seems to be abundance in law,
the economic integration. They can also be more
policies and programs of the ASEAN member-states,
prone to job insecurity and violation of their rights as
unemployment and underemployment remains to be
workers. This is due to the fact that the trainings
two of the biggest problems in developing countries
and skill enhancements offered by the government in
like the Philippines. According to the Labor Force
developed countries such as Singapore are
Survey conducted by Philippines’ National Statistics
significantly more advanced compared to the likes of
Office (NSO), as of April 2015, almost 50% of the
the Philippines, Thailand, and Indonesia.
unemployed population in the country is in age group
The difference in economic status apparently
of 15 to 24 or the “young workers”. Furthermore, 22%
influences the focus on quality and implementation
of the said unemployed population are college
of the above mentioned government initiatives to
graduates, 13% are college undergraduates and 33%
prepare for the looming phase of globalization. It
are high-school graduates. Underemployment is also
would be logical to assume that first-world countries
high at 17.8%. One of the cited causes of the said
have the edge in facilities and budget to fully
employment and underemployment is the skill-
operationalize their programs and machineries. As a
mismatch among the young workers and new
result, upon the realization of the free-flow of labor in
graduates. Skills mismatch refers to various types of
ASEAN, it would be difficult for skilled workers from
imbalances between skills offered and skills needed
developing countries, especially in the low and semi-
in the world of work. Skill mismatch has a direct
skilled category, to compete with those from
relation to the rate of employment, as the labor
developed ones.
market functions to provide the signals and the
IBON International, an international NGO
mechanisms by which workers seeking to maximize
that cooperates with social movements all over the
their utility can be matched to employers trying to
world, in their paper entitled ASEAN Community
maximize profits. If the labor force cannot provide
2015: Integration for Whom raised an important
the demands of the employers to as to skills and
question as to who is the true beneficiary of the
qualifications to carry out their business, then
ASEAN integration. According to the research, “the
employment rate would suffer, which would create
regional integration, as long as it follows the same
an impact to the economy in a macro-level. Skill
old logic of the neoliberal model of development, is
mismatch, however, is not a problem exclusive to
likely to worsen problems brought by the uneven and
third-world countries like the Philippines, but even
inequitable economic growth in Asia and will more
countries with most developed economies experience
likely create new problems, especially for the poor
the same, mainly due to the changing landscape of
and marginalized” . It upholds that putting states of
the global and local labor market. Underemployment
different economic status in equilibrium through
in Singapore, while not rampant compared to other
integration will merely reinforce unequal
Asian countries, nonetheless still exists. As of 2015,
relationships, as countries with higher levels of
3.4% of the country’s labor force is underemployed.
economic development and thus higher levels of
The existence of underemployment are said to be
technology and infrastructure will be able to
caused by the country’s economy demanding
maintain their upper-hand position; that those
specialized roles that require work experience and
countries with systems, infrastructures, and
set of skills that are not necessarily taught in school,
industries already in place will reap the benefits of
making it harder for entry-level graduates to find
the economic integration. Analysts have already
work . In effect, some workers resort to low-skilled
inquired the position of the first world countries in
positions or part-time jobs.
the ASEAN which are said to be the real
What is alarming, however, is level of
beneficiaries in the economic aspect of the
preparedness of the Philippines in allowing its
integration. The tendency is for the more powerful
workers to be mobilized across ASEAN given the
countries to possess the greater influence in decision
current internal state of its labor force which suffers
makings and policy/program developments.
from employment issues due to skill mismatch. This
Presented at the DLSU Research Congress 2017
De La Salle University, Manila, Philippines
June 20 to 22, 2017

3.3 The ASEAN Declaration on the architecture for global markets”. In the looming face
Protection and Promotion of the Rights of of globalization, it is but just wise for a state, more a
member of an international association such as
Migrant Workers ASEAN, to revisit its laws to align with other
In the light of the discussed potential issues members and ensure conformity to the goals of the
of ASEAN integration, ASEAN has already taken the organization.
first major step in ensuring the protection and The comparison of the labor laws of the
welfare of the migrant workers that are set to be selected member states in the key areas namely
mobilized across the region. During the 12th ASEAN protection of migrant workers and training and skills
Summit conducted on January 13, 2007 in Cebu, development enabled this paper to arrive with the
Philippines, the member-states of ASEAN ratified following main findings:
the convention otherwise known as the ASEAN 1. Protection of Migrant Workers.
Declaration on the Protection and Promotion of the There is an existing difference in the
Rights of Migrant Workers which aims to domestic laws of the ASEAN member-states that
“strengthen the political, economic and social pillars need to be harmonized with each other. The following
of the ASEAN Community by promoting the full are significant observations of this study in this
potential and dignity of migrant workers in a climate respect:
of freedom, equity, and stability in accordance with a. The lack of legal provisions of some of the
the laws, regulations, and policies of respective member-states, and/or lack of a convention
ASEAN member-states” . The convention is anchored that universally defines the act of illegal
in the principle of cooperation between the receiving recruitment and the corresponding penalties
and sending states to take into account the would make it difficult for the state-members
fundamental rights and dignity of migrant workers to frame their internal policies to strengthen
and their family members, and closely cooperate to their measures in protecting their people when
resolve the cases of migrant workers. However, this intending to work overseas.
is provided that the application by the receiving b. The lack of legal provisions on the domestic
states of their laws, regulations and policies will not laws of the member-states pertaining racial
be undermined. discrimination as to employment would
The convention further enumerates the produce myriad of issues when the workforce
obligations of the receiving states which, among of the member-states begins to become more
others, covers promotion of human rights and diversified.
upholding the welfare and dignity of foreign workers, c. In relation to the above, foreign employment
access to resources such as through trainings and quotas could also be in conflict with the
education, and adequate access to legal and judicial concept of labor mobility as envisioned by
system of receiving states for those who may be AEC. However, this aspect cannot be loosely
victims of abuse and discrimination. It also provides interfered by the ASEAN as the exercise of
the obligations of the sending states such as, among sovereignty of the member-states over their
others, the establishment of system, policies, and internal affairs is concerned.
mechanisms to ensure the protection of their people, d. In general, there is an apparent insufficiency
particularly against recruitment malpractices. of laws covering the rights of foreign workers
on the part of receiving states. However,
4. CONCLUSIONS ASEAN’s Declaration on the Protection and
Even an immediate review of the labor laws Promotion of the Rights of Migrant Workers in
of the Philippines and the selected member-states, some extent already addressed this concern.
particularly in areas of protection of migrant workers 2. Training and Skill Development
and the training and skill development of the same, As to legislation, not much of substantial
would show that there are significant differences differences are observed; the main differences
that need to reconciled. Given the inexorable however, may lie on implementing rules and
changes brought by globalization, scholars have regulations, and implementation of the laws through
posited that standardization of domestic laws is not programs. Nevertheless, some of the take away from
only a way to promote sound economies across the this study concerning this area are:
globe but also serves as “the vehicle for building legal a. There is a potential worsening of job insecurity
Presented at the DLSU Research Congress 2017
De La Salle University, Manila, Philippines
June 20 to 22, 2017

among workers once the free flow of labor Indonesia which focused on strengthening the link
begins to fully materialize, mainly due to the between academe and industries.
different capacity of the member-states to 5. The Philippines and the whole ASEAN, in
equip its workforce with necessary conjunction to their obligations to promote the
qualifications and skills. The issue of welfare of the migrant workers, must work on
unemployment and underemployment is still developing a common skill accreditation system
persistent in the Philippines and most-likely where the qualifications of workers will be credited
in other member-states of ASEAN which may across the region, regardless of their state of origin.
be attributed to skill mismatch.
b. All of the member-states in comparison have
provisions on setting of skill standard in their
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Presented at the DLSU Research Congress 2017
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