Getting Employed Fast - Precarious Employment Patterns

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LIST OF CONTENTS
INTRODUCTION……………………………………………………………………………………...
PART I: Overview of the Metals and Engineering Industry Employment Situation in the
Sector………………………………………………………………………………………….
PART II: Precarious Work and the Labour Movement……………………………………..........
Narrowing down the focus, widening the view: Precarious work
in perspective………………………………………………………………………………..
Debates on the meaning and coverage of precarious work…………………………….
What is precarious work?..............................................................................................
Types of Precarious employment arrangements…………………………………………
PART III: Factors that Lead to and Affect ―Precarious‖ Forms of Employment………............
Neoliberal globalization: A strain of capitalism that infringes upon workers‘
Rights…………………………………………………………………………………............
Global Financial Crisis: An excuse to degrade workers‘ rights………………………….
PART IV: The Philippine Metalworkers‘ Alliance (PMA)…………………………………………
PART V: Presentation of Data (PMA-Level)………………………………………………………
Methodology………………………………………………………………………………….
Data from selected PMA affiliates.................................................................................
PART VI: Conclusion………………………………………………………………………………..
The Challenge for Trade Unionists, Activists and Researchers…………………………
Best practices and possible strategies to combat the problem of precarious
work……………………………………………………………………………………………
LIST OF FIGURES
Figure 1. Structure of the Philippine metals and engineering industry………………………….
Figure 2. Selected data on precarious work as perceived by trade unions…………………….
Figure 3. Sectors affected by precarious forms of employment………………………………...
Figure 4. Employers‘ practices to shed/exclude workers from their permanent
workforce……………………………………………………………………………………...
Figure 5. Contractors‘ and subcontractors‘ practices to shed/exclude workers
from their permanent workforce……………………………………………………...........
Figure 6. Percentage of union responses to the issue of employers‘ shifting from
directly hiring temporary workers to hiring them through agencies or
brokers………………………………………………………………………………………...
Figure 7. Groups of workers affected by precarious employment……………………………...
Figure 8. Areas in and extent to which employers evade their obligations to
precarious workers…………………………………………………………………………..
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Figure 9. Neoliberal Globalization at a Glance……………………………………………………
Figure 10. PMA‘s Organizational Structure………………………………………………............
Figures 11 and 12. Data on unionized cable, electrical and iron and steel
companies‘ branches, graphed according to the proportion of each
category of workers in relation to their overall count………………………….................
Figures 13 and 14. Data on unionized automotive industry corporations, graphed
according to the proportion of each category of workers in relation to their
overall count..................................................................................................................
Figures 15, 16 and 17. Comparative data on regular workers, union members and
temporary workers in eight (8) unionized establishments……………………................
Figure 18. Comparative data on regular workers, union members and temporary
workers in eight (8) unionized establishments (in consolidated form)………………….
LIST OF TABLES
Table 1. Employment in the Metal Working Sector……………………………………................
Table 2. Data on the global economic crisis‘ effect on the Philippine labor force……………...
Table 3. Key macroeconomic indicators for 2007, 2008, and 1Q and 2Q 2009……………….
Table 4. List of subjects for this study………………………………………………………………
Table 5. Types and numbers of workers in a cable company‘s two unionized
branches………………………………………………………………………………………
Table 6. Data on unionized automotive industry corporations…………………………………...
REFERCENCES……………………………………………………………………………..............
APPENDIX................................................................................................................................
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INTRODUCTION
Of the many sectors that compose the main fabric of the Philippine
manufacturing industry, the metals and engineering sector has gained considerable
significance both in the domestic and international scenes. It can be attributed to the
growing number of issues that confront the sector as the years pass. These days, the
sector has to face yet another long-term concern that could dictate how it will tread the
economic way through its rising labor component: intensifying labor flexibility and
the proliferation of so-called “precarious jobs”.
The paper aimed to study and explore the incidence of precarious work in the
metalworking industry using case studies on selected affiliates of the Philippine
Metalworkers‘ Alliance (PMA). Accordingly, this paper shall conduct the following:
1.To define “precarious work” and apply the concept in the metalworking sector;
2.To distinguish between types of precarious work arrangements in the metalworking sector;
3.To clarify the contextual factors that lead to the prevalence of precarious forms of employment
in the metalworking sector;
4.To present data on the extent of precarious work in the metalworking industry based on
secondary sources;
5.To present data on precarious employment patterns in selected affiliates of the Philippine
Metalworkers’ Alliance (PMA);
6.To identify the immediate effects of precarious work arrangements on the metalworking sector,
its labor force and the organized workers around it; and
7.To discuss various ways to address this problem.
Initially, the definition of precarious work provided by Benedicto Ernesto R.
Bitonio Jr. (no date) in his paper entitled Labor Flexibility and Workers‘ Representation
in the Philippines is explored1
. In Bitonio‘s paper, he stated that the term precarious
work tends to be associated with the term flexible employment, especially of the low
road type. Flexible employment is regarded as the opposite of regular employment. The
concept of non-regular work in the Philippines is the same as flexible employment
defined in the current international literature, i.e., any form of employment that is not full-
time employment for an indefinite duration (Bitonio citing Ozaki‘s work entitled
Negotiating Flexibility - 1999). In his paper, he uses the terms non-regular work, non-
regular employment and flexible employment interchangeably. The categories of flexible
employment that he identified include part-time, contractual, casual and agency-hired
workers. Aside from these, there are other known forms of flexible employment
practices in the Philippines which include multi-skilling and multi-tasking, commission
paid work, tele-working, shift-based work, and subcontracting.
Although Bitonio‘s work can be considered as a comprehensive study on flexible
employment in the Philippines, the exuberance of other related literatures and articles
on precarious work over the globe suggests that drawing alternative ideas and findings
on other foreign researches and written discussions is imperative. Thus, besides the
categories identified above, other forms of precarious employment as well as other
significations of the concept can also be seen in various literatures and are backed by
primary data or resource person accounts, some of which are cited in various parts of
1
An initial version of Bitonio’s paper was presented at the International Industrial Relations Association 5th Asian
Regional Congress Industrial Relations, Seoul, Korea, June 22-26, 2004.

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this paper (see for instance the references section). International workers‘ federations,
IMF and IUF for example, provide different although related meanings and categories of
precarious work especially when the term is applied on a global scale. Through time,
the term has been pitted against newer concepts apart from regular work or standard
employment. One such concept is the so-called ―decent work‖ which evolved into a
global campaign battlecry among trade unionists, labor activists and policymakers
around the world. Precarious work has thus begun to take on a wider meaning and runs
a great risk of becoming a mere ―hot air.‖
PART I: Overview of the Metals and Engineering Industry
The Metals and Engineering Industry has to do with the transformation of raw
metals into products via the form that they take as intermediate inputs used in the
production processes of various industries, or finished products such as machineries,
that are utilized in other production activities. Its forward linkage or intermediary value in
manufacturing to most industries serves as one reason for its significance in the
economy. The sector‘s influence on other industries is a crucial determinant of
economic progress, thus the industry becomes a usual object of the state‘s industrial
policies.
As a group of different production units in the field of metallurgy, the metals and
engineering industry has a broad range of production activities.2
Three main divisions in
the industry exist, namely: the iron and steel industry, metal engineering industry, and
the non-ferrous metal industry. The iron and steel industry, basically, involves the
extraction of metallic elements from ores, although it is also engaged in other metal
transformation processes such as casting, rolling, sheet-making, and wire products
manufacturing. The metal engineering industry is the sector that deals with a more
complex production system of transforming raw metals into sophisticated machines and
equipments while the non-ferrous metal industry facilitates the production of materials
using metals such as aluminum and copper.
Based on existing studies and industrial classifications such as the ones done by
the Department of Science and Technology under the Metals Industry Research and
Development Center (DOST-MIRDC) and the Department of Labor and Employment
under the Bureau of Labor and Employment Statistics (DOLE-BLES), there are other
sub-sectors under the metal engineering industry. One such sector found at the second
stage of the metal engineering process is the metal casting sector. This sector is
involved in activities such as pattern-making, casting, die-casting, and founding.
Another sector, the metal working sector includes the following sub-sectors: tool, die
and mold making, steel forging, machining, press forming, steel fabrication, welding,
and machine assembly. These activities are often found in the tertiary level of metal
engineering, except for the machine assembly which belongs to the last stage. In 1979,
the MIRDC disaggregated the metal working sector according to the type of output
being produced. The groupings that were made corresponded to the industries, which
serve as the recipients of the metalworking products. The 20 groups that were formed
are presented as follows:
2
Source: Metals Industry Research and Development Center. [2003]. The Philippine Metal Casting Industry.
Department of Science and Technology. The Metals Industry Research and Development Center of the Department
of Science and Technology is the leading institution that handles research and development in the metals and
engineering industry. It provides services to firms in the metals industry to enhance their competitiveness.

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1. Agricultural machinery and equipment
2. Power-generating machinery
3. Civil engineering, mining and contractors’ plants and equipment
4. Textile and leather machineries
5. Printing and bookbinding machineries
6. Sawmill, logging and wood-processing machineries
7. Food-processing machineries
8. Chemical-processing machineries
9. Machine tools
10. Heavy engineering machinery
11. Mechanical/material-handling machinery and equipment
12. Office machinery and equipment
13. Communications equipment
14. Electrical machinery and equipment
15. Appliances
16. Transport machinery and equipment
17. Medical, professional, scientific and controlling instruments, clocks and watches
18. Manufacture of metal products
19. Miscellaneous machineries and mechanical appliances
20. Service industry
The metal finishing sector, mostly based on chemical engineering, is involved in
finishing activities such as metallic and organic coating. It belongs to the fourth stage of
metal engineering.3
The Philippines has varying degrees of specialization per activity in the metals
and engineering industry. For example, the country has an edge in most of the activities
in metalworking. In fact, except for the machine assembly activity, which is under-
developed, the state of the sector is good enough to engage in competition abroad. The
same is true for the metal finishing sector where the technology utilized is almost state-
of-the-art. On the other hand, the laggards in the industry can be found in the metal
casting sector, the smelting sector, and as mentioned, the assembly activities. Also, the
lack of a domestic steel industry, which is not reliant on imported steel and other related
materials, to provide the metal industry with a backbone serves as one of the
weaknesses of the Philippine metal industry.
3
DOST identified smelting as the first process; metal casting as the second; metalworking as the third; metal
finishing, fourth; and assembly, which is a subsector of metal working, as the last stage. The metal working sector
may hence be considered a downstream sector in the metals and engineering industry

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Figure 1. Structure of the Philippine metals and engineering industry
Source: Metals Industry Research and Development Center. [2003]. The Philippine Metal Casting Industry.
Department of Science and Technology.
Employment Situation in the Sector
In 2008, the metal and engineering industries produced an estimated 1.051
million employment. Employment in the sector grew at an average of 1.1 percent from
years 2006 to 2008. From 2005 to 2008, around 34 percent of the total employment in
the sector came from the service industry group in the form of sale, maintenance, and
repair of motor vehicles and motorcycles. The manufacture of appliances and
communication equipment came in as the second biggest source of employment in the
sector with a share of around 27 percent. Fabrication of metal products ranked third in
terms of contribution to total employment. It has an estimated share of 14 percent.
Table 1. Employment in the Metal Working Sector
Employment In thousands 2005 2006 2007 2008
Basic Metals 49 47 49 46
Fabricated Metal Products, except Machinery and Equipment 151 140 135 144
Machinery and Equipment, NEC 68 64 70 64
Office, Accounting and Computing Machinery 10 15 15 14
Electrical Machinery and Apparatus, NEC 51 51 49 46
Radio, Television and Communication Equipment and Apparatus 255 257 298 292
Medical, Precision and Optical Instruments, Watches and Clocks 19 18 20 18
Motor Vehicles, Trailers and Semi-Trailers 32 31 29 31
Other Transport Equipment 24 24 27 40
Sale, Maintenance and Repair of Motor Vehicles and Motorcycles, Retail Sale 360 343 336 356
TOTAL 1019 990 1028 1051
Source: Philippine Industry Yearbook of Labor Statistics.
In 2006, 98 percent of the total establishments engaged in metal working
activities are micro, small, and medium enterprises. These firms employ a number of

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workers ranging from 1 to 199. Large enterprises, which employ more than 200
workers, comprise only 2 percent of the total establishments in the sector. Majority of
these firms can be found in Metro Manila, Cebu, and in Davao, although there are also
a number of metal companies in other parts of the country.
In July 2008, around 2.33 percent of workers in the metal working sector earn
monthly compensation between 3,000 to 5,999 pesos. An average of 7.43 percent of
the workers has monthly earnings of at least 24,000 pesos.4
PART II: Precarious Work and the Labour Movement
Narrowing down the focus, widening the view: Precarious work in perspective
Many studies, less formal articles and papers that focus on the concept of
precarious work have been generated. They range from international publications to
local documents that have domestic and global significance (see the reference section
as well as the citations in open and close parentheses and footnotes on particular parts
of this paper). Even so, this paper relied mostly on a select body of texts from allied
international organizations such as the International Labour Organization (ILO),
International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and
Allied Workers‘ Associations (IUF), International Metalworkers‘ Federation (IMF), and
International Federation of Chemical, Energy, Mine and General Workers' Unions
(ICEM).
Debates on the meaning and coverage of precarious work
In some studies and researches, scholars use varying terms to denote the
opposite of standard, normal or regular employment that pertain to precariousness. As a
matter of review, we can distinguish between the following terms and their respective
usages5
:
1. Non-standard employment – ILO refers to the term as the opposite of standard
employment which is characterized by full-time employment, stability or security of
tenure, standard wage and benefits, government regulation (through laws, international
conventions and agency/department orders), promotion, regularization, and clear-cut
control or supervision by the employer at the workplace. The ILO identifies various
types of non-standard work as fee-based contracts, work performed at home, part-time
work and jobs that involve a non-traditional schedule. Kalleberg (2000) includes the
following as forms of non-standard work: part-time work, temporary help agency and
contract company employment, short-term and contingent work, and independent
contracting. In his review of non-standard work relations, Kalleberg presents alternative
terms that denote the opposite of standard or normal work such as ―alternative work
arrangements‖, ―non-traditional employment relations‖, ―flexible staffing arrangements‖,
―flexible working practices‖, ―atypical employment‖, ―vagrant or peripheral employment‖,
―precarious employment‖, ―disposable work‖, ―new forms of employment‖, and
―contingent work‖. Nonetheless, “while not all non-standard work is precarious, all
4
Source: Philippine Industry Yearbook of Labor Statistics (descriptions are based on the table presented above).
5
Some researchers argue that the terms are synonymous while some claim that they are not (see for instance the
literature reviews written by Kalleberg, 2000 and Leiva, 2000).

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precarious work is non-standard (because standard work is secure and stable)”
(Leiva, 2000 citing Guerra 1994, p.14).
2. Flexible or non-regular work or employment – (especially of the ―low-road‖ type)
the concept of non-regular work in the Philippines is similar to flexible employment
defined in the current international literature, i.e., any form of employment that is not full-
time employment for an indefinite duration (Bitonio, n.d. citing Ozaki 1999, p. 6). The
long list includes contractual, homebased, outsourced, part-time, subcontracted, and
temporary employment. The common feature of such arrangements is their divergence
from full-time and permanent careers, which have been taken as the standard of regular
employment. Under the Philippine Labor Code or Presidential Decree 442, there is
regular employment when the employee has been engaged to perform activities usually
―necessary or desirable‖ in the usual business or trade of the employer. ―Some types of
flexibility generate greater precariousness than others, particularly those types of
flexibility that lead to deregulation‖ (Leiva, 2000 citing Guerra 1995, p 14). ―Although
flexible employment is often classified as either of the high road or low road variety, the
social policy discourse in the Philippines tends to be more concerned with low road
flexibility. Thus, flexible employment tends to be associated with precarious or
vulnerable employment which ‗offer low pay, unsocial hours, poor working conditions,
poor promotion prospects and minimal job training‘‖ (Bitonio, n.d., pp. 4-5 quoting
Felstead and Jewson, 1999, p. 7).
What is precarious work?
Precarious work can be seen as part of a wider global trend, whether in
conceptual or actual terms. For instance, the conceptual paper ―Defining and measuring
informal employment‖ written by Ralf Hussmanns of the International Labour Office‘s
(ILO) Bureau of Statistics, describes precarious working conditions as part of the
―informalisation of labour or employment‖ and thus forms part of the aptly coined term
―informal employment‖ that is comparable to the jobs in the informal sector. Hussmanns
posits, ―the concept of informal employment is considered to be relevant not only for
developing and transition countries, but also for developed countries, for many of which
the concept of the informal sector is of limited relevance.‖ In actual terms, the ICEM,
IMF and IUF point to the phenomenon as becoming more prevalent globally especially
in regions where relatively developing countries abound like Asia and Africa.
Nevertheless, precarious employment is not just a third-world phenomenon because
even highly industrialized countries like the United Kingdom of Great Britain, the United
States of America, Canada, Germany and Japan, in fact, have their share of its global
incidence in various forms6
.
Based on various literatures, precarious work refers to forms of work
characterized by non-standard, atypical and short-term employment contracts; limited or
no social benefits and statutory entitlements; high degrees of job insecurity; low
employment tenure; low wages; irregular and flexible hours of work; multi-tasking;
undefined or blurred employer-employee relationship; and high risks of occupational
injury and disease. From a worker‘s point of view, precarious work is related to
6
See for instance Evans and Gibb (2009), ICEM – IMF Survey on Contract and Agency Labour / Precarious work,
and the International Metalworkers’ Federation (IMF) Survey on Changing Employment Practices and Precarious
Work.

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uncertain, unstable and risky employment7
. Precarious work is the result of the abused
hire-and-fire practices by employers (now often relegated to ―management prerogatives‖
by many decisions of the Philippine Supreme Court) designed to limit or reduce their
permanent workforce who receive additional benefits by virtue of their years of service
and collective bargaining agreements, to increase their flexibility (in terms of working
hours and wages) and to shift risks onto workers. Existing mostly in rank and file
employment items, these jobs are typically temporary, casual, insecure and contingent.
Workers in these kinds of employment arrangements are usually not covered by labor
laws, collective bargaining agreements or negotiations, insurance, allowances and
social security systems. A survey of related literature suggests that the term ―precarious
work‖ has been taken to denote so many things and encompasses quite a huge bracket
of types and meanings to the extent that it loses analytical and practical relevance as a
concept for study.
In various articles, ―precarious work‖ has been regarded as the opposite of
standard employment. The ILO describes the standard employment relationship in
these terms: The traditional pattern of the employment relationship, or standard
employment relationship, has for many years been that of full time work, under a
contract of employment for unlimited duration, with a single employer, and protected
against unjustified dismissal.8
A discussion of precarious work thus begins with the introduction of its converse
with reference to the rights afforded to workers in international conventions regarding
standard employment. The Freedom at Work Campaign Toolkit (2009) for instance
states:
The ILO works with governments, workers and employers of member states to create
decent work standards around the world. The ILO has authored a set of conventions that
explicitly state the rights that are guaranteed to all workers. Two of the organization‘s four
core labor conventions concern union rights. Convention 87 on Freedom of Association
and Protection of the Right to Organize, and Convention 98 on the Right to Organize and
Collective Bargaining were ratified in 1948 and 1949, respectively, and stand alongside
conventions on child labor and discrimination in significance. While the ILO remains an
important standard-setting body, it has no punitive sanctioning power to ensure the
protection of workers‘ rights to organize and collectively bargain. As a result, most
countries around the world have ratified Conventions 87 and 98 but continue to violate
their provisions in practice.
The Universal Declaration of Human Rights Article 23 also provides:
(1) Everyone has the right to work, to free choice of employment, to just and
favorable conditions of work and to protection against unemployment.
(2) Everyone, without any discrimination, has the right to equal pay for equal
work.
(3) Everyone who works has the right to just and favorable remuneration
ensuring for himself and his family an existence worthy of human dignity, and
supplemented, if necessary, by other means of social protection.
7
See for instance Evans and Gibb, 2009; Leiva 2000; IUF Organizing tool for unionists; Freedom at Work toolkit;
Bitonio, no date; Kalleberg, 2000; IMF and IUF documents on precarious work;
8
Taken from the IUF submission to the UN Special Representative on Business and Human Rights Professor John
Ruggie titled “Precarious Work: Undermining Human Rights.”

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(4) Everyone has the right to form and to join trade unions for the protection of
his interests.
In the Philippines, as anywhere else where the general signification of the term
applies, (standard) employment refers to the kinds of services that a worker renders or
performs for his/her employer. It can be classified according to legalistic precepts such
as the following labor rights or entitlements: ―self-organization‖, ―collective bargaining
and negotiations‖, ―peaceful concerted activities‖, including the right to strike in
accordance with the law, ―security of tenure‖, ―humane conditions of work‖, ―living
wage‖, ―social protection or security‖, and ―participation in policy and decision-making
processes‖ affecting workers‘ rights and benefits as may be provided by law. In the
Labor Code of the Philippines or Presidential Decree 442, employment is defined in
Articles 280 and 281 based on its nature such that:
the provisions of written agreement to the contrary notwithstanding and regardless of the
oral agreement of the parties, an employment shall be deemed to be regular where the
employee has been engaged to perform activities which are usually necessary or
desirable in the usual business or trade of the employer, except where the employment
has been fixed for a specific project or undertaking the completion or termination of
which has been determined at the time of the engagement of the employee or where the
work or service to be performed is seasonal in nature and the employment is for the
duration of the season. Otherwise, an employment shall be deemed to be casual if it is
not covered by the preceding paragraph: Provided, That any employee who has rendered
at least one year of service, whether such service is continuous or broken, shall be
considered a regular employee with respect to the activity in which he is employed and
his employment shall continue while such activity exists. Probationary employment shall
not exceed six (6) months from the date the employee started working, unless it is
covered by an apprenticeship agreement stipulating a longer period. The services of an
employee who has been engaged on a probationary basis may be terminated for a just
cause or when he fails to qualify as a regular employee in accordance with reasonable
standards made known by the employer to the employee at the time of his engagement.
An employee who is allowed to work after a probationary period shall be considered a
regular employee (emphasis added by the author).
The different kinds of employees as identified in various Labor Code provisions
and its subsequent amendatory laws are thus the following:9
1. Regular employee – any person who attains employment in any of the three (3)
ways, to wit:
a. by nature of work: the employee has been engaged to perform activities which are
usually necessary or desirable in the usual business or trade of the employer.
b. by period of service: the employee has rendered at least one year of service, whether
such service is continuous or broken, with respect to the activity in which he is
employed and his employment shall continue while such activity exists.
c. by probationary employment: the employee is allowed to work after a probationary
period.
9
Labor Code of the Philippines (Presidential Decree 442); Chan Robles Virtual Law Library 2010 Pre-Week Bar
Exam Notes on Labor Law accessed through
http://www.chanrobles.com/laborlaw/2010_laborlaw_preweek_barnotes.php

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2. Project employee – a person whose employment has been fixed for a specific
project or undertaking the completion or termination of which has been determined at
the time of the engagement of the employee.
3. Seasonal employee – a person whose work or service to be performed is seasonal
in nature and the employment is for the duration of the season (only).
4. Casual employee – a person who is engaged to perform a job, work or service which
is merely incidental to the business of the employer, and such job, work or service is for
a definite period made known to the employee at the time of engagement; provided, that
any such employee who has rendered at least one (1) year of service, whether such
service is continuous or not, shall be considered a regular employee with respect to the
activity in which he is employed and his employment shall continue while such activity
exists.
5. Probationary employee (or probee) – a worker on trial by an employer during which
the employer determines his/her qualification for regular employment.
6. Fixed-term employee – a person whose contracts are not limited to those by nature,
seasonal or for specific projects with pre-determined dates of completion provided
under the Labor Code. They also include contracts to which the parties, by free choice,
have assigned a specific date of termination.
7. Part-time employee – is a person engaged in a single, regular or voluntary form of
employment with hours of work substantially shorter than those considered normal in
the establishment.
8. Agency-hired or contractual workers – any person canvassed, recruited, enlisted,
contracted, transported, utilized, hired or procured by a private, fee-charging
employment agency or any other private recruitment entity. Methods for recruiting these
workers include referrals, contract services, promising or advertising for employment,
locally or abroad, whether for profit or not, as long as any person or entity which, in any
manner, offers or promises for a fee, employment to two or more persons shall be
deemed engaged in recruitment and placement.
9. “Special workers”
a. Apprentice – anyone who undergoes "apprenticeship", which means any training on
the job involving apprenticeable occupations and trades as may be approved by the
Secretary of the Department of Labor and Employment. Apprenticeable occupation
means any trade, form of employment or occupation which requires more than three (3)
months of practical training on the job supplemented by related theoretical instruction.
An "apprentice" is a worker who is covered by a written apprenticeship agreement with
an employer.
An apprentice should:
 Be at least fifteen (15) years of age, provided those who are at least fifteen (15)
years of age but less than eighteen (18) may be eligible for apprenticeship only in
non-hazardous occupation;
 Be physically fit for the occupation in which he desires to be trained;
 Possess vocational aptitude and capacity for the particular occupation as
established through appropriate tests; and
 Possess that ability to comprehend and follow oral and written instructions.
Important principles related to apprenticeship:
 Apprentices become regular employees if program is not approved by DOLE;

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 Ratio of theoretical instructions and on-the-job training - 100 hours of theoretical
instructions for every 2,000 hours of practical training on-the-job;
 The period of apprenticeship shall not exceed six months. Apprenticeship
agreements providing for wage rates below the legal minimum wage, which in no
case shall start below 75 percent of the applicable minimum wage, may be
entered into only in accordance with apprenticeship programs duly approved by
the Secretary of Labor and Employment;
 Only employers in the highly technical industries may employ apprentices and
only in apprenticeable occupations approved by the Secretary of Labor and
Employment;
 An additional deduction from taxable income of one-half (1/2) of the value of
labor training expenses incurred for developing the productivity and efficiency of
apprentices shall be granted to the person or enterprise organizing an
apprenticeship program provided that such program is duly recognized by the
Department of Labor and Employment: Provided, further, that such deduction
shall not exceed ten (10%) percent of direct labor wage: and provided, finally,
that the person or enterprise who wishes to avail himself or itself of this incentive
should pay his apprentices the minimum wage;
 The Secretary of Labor and Employment may authorize the hiring of apprentices
without compensation whose training on the job is required by the school or
training program curriculum or as requisite for graduation or board examination.
b. Learner – a person hired as trainee in industrial occupations which are non-
apprenticeable and which may be learned through practical training on the job for a
period not exceeding three (3) months, whether or not such practical training is
supplemented by theoretical instructions
Pre-requisites before learners may be validly employed:
 When no experienced workers are available;
 The employment of learners is necessary to prevent curtailment of employment
opportunities; and
 The employment does not create unfair competition in terms of labor costs or
impair or lower working standards.
Important principles related to learnership:
 The wage rate of learners is 75% of the statutory minimum wage.
 Any employer desiring to employ learners shall enter into a learnership
agreement with them, which agreement shall include:
 The names and addresses of the learners;
 The duration of the learnership period, which shall not exceed three (3)
months;
 The wages or salary rates of the learners which shall begin at not less
than seventy-five percent (75%) of the applicable minimum wage; and
 A commitment to employ the learners if they so desire, as regular
employees upon completion of the learnership. All learners who have
been allowed or suffered to work during the first two (2) months shall be
deemed regular employees if training is terminated by the employer before

14
the end of the stipulated period through no fault of the learners. The
learnership agreement shall be subject to inspection by the Secretary of
Labor and Employment or his duly authorized representative.
 Learners employed in piece or incentive-rate jobs during the training
period shall be paid in full for the work done.
Based on the definitions alone, a person, group of persons or any other entity
can have the opportunity to hire irregular laborers. For instance, the law provides for the
exception from the meaning of employment such services that are ―purely casual‖, not
for the purpose of occupation or business of the employer, and performed by temporary
and other employees which may be excluded by regulation of government agencies
concerned. Certain forms of irregular employment can thus be derived when employers
deviate from, infringe upon or violate such precepts. Forms of precarious employment
can include the following.
Types of Precarious employment arrangements10
:
The purpose of outlining these types of precarious employment is to indicate a
phenomenon that pertains to the increasingly widespread use of indirect, precarious
employment relations to weaken trade union organization and bargaining power in the
metals and engineering industry in the same way that it is experienced and
acknowledged in the food and beverage industry. Of these types of precarious
employment, the italicized ones can be found in some PMA affiliates:
 Outsourcing, contracting-out or subcontracting
 Casualization
 Contractualization
 Direct hire on temporary labor contracts for fixed or limited term or fixed task, contingent
or fixed-term contracts leading to the creation of a large pool of permanently 'temporary'
employees
 Use of manpower agencies
 Use of “cooperatives” where contractual workers are pooled into one single entity to
manage themselves (in the case of AsiaPro for instance)
 Bogus personal labor contracts or “self-employment” and independent contractors
 Abusive use of seasonal, project-based and probationary employment and traineeships or
disguised employment training contracts (with little or no pay)
 On call/daily hire
 Illegal or involuntary part-time work
 Home-working
 Commission-based work
 Some part-time work
 Own-account workers
 Telecommuting
―All other forms of employment specified in the [Philippine Labor] Code, such as
casual employment, employment for a fixed period, and employment under a
subcontracting arrangement, are non-regular‖ (Bitonio n.d., p. 3). Employers in the
Philippines are not allowed to stipulate in the employment contract that work is non-
10
More types of precarious work were identified by the IUF in its organizing manuals and documents. The IMF also
has its own versions. In various sections of this paper, other references have also been cited. Most of them provide
related lists of precarious employment types including corresponding definitions and characteristics of each.

15
regular when it is actually ―necessary or desirable‖ to their usual business (as stated in
the laws as well). However, business establishments have found ways to adopt and
implement their own forms of employment, regardless of the legal rule, because
irregular, non-standard, and thus precarious work arrangements, ―afford them greater
flexibility in controlling labor costs and in fixing the duration of work, and are perceived
to pose less legal obstacles and costs in employment termination [such as severance or
separation pay]‖ (Bitonio n.d., p. 3). It is notable that the Labor Code does not expressly
include the terms ―contractual‖ and ―agency-hired‖ workers as kinds of workers in terms
of their employment relations with their employers. They can merely be derived from the
definition of ―recruitment and placement‖ as well as ―recruitment agency‖. Contractual
workers by definition, according to Bitonio, are those whose employment has been
fixed for a specific project or undertaking the completion or termination of which had
been determined at the time of engagement while agency-hired workers are those
who are deployed by an employer to another employer in order to provide the latter, for
a certain period, with specific services. Agency hiring is a specific form of contracting
and is a legally recognized arrangement provided it does not constitute labor-only
contracting.
Some decisions of the Supreme Court of the Philippines can also relate to
precarious work in specific cases such as labor-only contracting. A quick assumption
can be made that under the conditions of a labor-only contracting, workers who are
under the supervision of a service contractor, (vis-à-vis a principal employer), who does
not have substantial capitalization or investment in the form of tools, equipment,
machineries, work premises and other materials to qualify it as an independent
contractor, can be thought of as possibly engaging in precarious work. In labor-
only contracting, the statute creates an employer-employee relationship for a
comprehensive purpose: to prevent a circumvention of labor laws. The contractor is
considered merely an agent of the principal employer and the latter is responsible to the
employees of the labor-only contractor (LOC) as if such employees had been directly
employed by the principal employer.11
If the workers were not treated in the same way
that the principal employer treats its direct employees, then these contractual workers
can be regarded superficially as precarious workers basically because there is an
apparent intent to prevent workers from exercising their labor rights such as the rights to
self-organize, bargain and negotiate collectively, have security of tenure, and work
under humane conditions. Labor-only contracting exists if a labor-only contractor (e.g.
SAPS) has no substantial capital or investment and the workers it recruited are
performing activities which are directly related to the principal business of a principal
employer (e.g. Procter and Gamble Philippines, Inc.).12
Otherwise, an independent and
legitimate form of service contracting-out or outsourcing can be observed where
someone claiming to be an independent contractor has contracted to do the work
according to his own methods and without being subject to the control of the employer,
except only as to the results of the work.13
For purposes of this research, superficial
indications of an illegitimate labor-only contracting are listed as follows:
11
SAN MIGUEL CORPORATION, petitioner, vs. PROSPERO A. ABALLA, et. al. [G.R. No. 149011. June 28,
2005]
12
ALIVIADO v. PROCTER & GAMBLE PHILS., INC., and PROMM-GEM INC. G.R. No. 160506 (March 9,
2010)
13
G.R. No. 149011. June 28, 2005

16
 A contractor does not have substantial capitalization or investment in the form of
tools, equipment, machineries, work premises and other materials;
 The lot, building, machineries and all other working tools utilized by employees in
carrying out their tasks are owned and provided by another employer other than
their direct employer or contractor;
 The office of the contractor is found within the confines of a property owned by
officers of the principal employment company or their relatives; and
 The work assigned to the employees of a contractor forms an integral part of
manufacturing and processing operations, business or trade of the principal
employer or is directly related to them (regardless of whether it is written in the
job description provided by either employer or not).
The problem is that the above-mentioned alternative types of work are liable to
deterioration in job quality, since while normal, regular or standard work is regulated by
labor legislation and conventions, which tend to play a protective role, new modes
generally emerge in a context where labor markets are being made more flexible, where
labor regulations are being dismantled or attenuated, and where efforts are being made
to reduce labor costs. ―From labor‘s standpoint, employers resort to flexible employment
arrangements to circumvent various labor regulations, such as minimum wages, various
non-wage benefits and other labor standards, including the right of workers to unionize,
that increase labor cost‖ (Esguerra and Canales, n. d., p. 4). Other studies and reports
further show that there is a possible growth in ―flexicurity-based‖ policies in response to
the global economic crisis whereby business firms are becoming more prone to offer
workers certain degree of economic and social protection in exchange for the flexibility,
if not deregulation, of the labor market. For instance, the Asian Development Bank
(ADB) has been very much willing to adopt unemployment insurance schemes in
countries that the institution regards as having ―rigid‖ labor laws and labor market
policies such as some Latin American and Asian countries including the Philippines.14
However, some degree of flexibility in the labor market always offers grim prospects for
re-employment among temporary and irregular workers especially in the event that they
become displaced. For one, new employment opportunities still require that they have
sufficient experience to be hired, passed several aptitude and physical tests and
medical exams, submitted proper application requirements, and underwent appropriate
training, all of which more often than not incur added expenses. Thus, workers in
precarious conditions are not only becoming more prone to poverty and insufficient
income while at work relative to regular workers, they also have the tendency to allot
funds, and acquire loans in extreme conditions, repeatedly, just to complete similar re-
employment requirements. Worse, agency-hired workers suffer from wage cuts by their
placement agencies, which make them even more vulnerable to exorbitant fees and
wage deductions. In some instances, several workers in industrial zones and
processing plants face the difficulty of getting back at their employers when they file
cases involving back-wages and other violations because of the lack of proof to
establish an employer-employee relationship. Based on experience in trade union
14
Esguerra and Canales (no date) pose questions about labor market reforms which include the compromise
between labor flexibility and workers’ social security. On several occasions, labor leaders such as those of the
Alliance of Progressive Labor (APL), in the Philippines can directly see how developmental lending institutions or
banks like the World Bank and ADB are pushing for greater labor flexibility in exchange for increased social
protection as workers’ safety nets in times of labor disputes and retrenchments.

17
organizing, some employers were said to be refusing to enlist and document their fee-
based workers in an effort to evade any future legal actions and responsibilities. They
do it by not giving their workers pay slips, identification cards or personal data sheets.
“In the absence of applicable regulations, non-standard work [thus] becomes
precarious work” (Leiva, 2000, pp. 12-13).
To date, a small amount of studies made by significant organizations that have to
do with the metalworking sector has been released. In an effort to have a
comprehensive definition of the concept ―precarious work‖, the author identified
international publications that can be of a wider significance in the local analysis of
precarious work. Of these documents, the ICEM – IMF Survey on Contract and Agency
Labour/Precarious Work merits special attention. Based on the survey, the two
organizations were able to prove that precarious work is still growing and that rising
precarious work indicates that ―many companies that have begun rehiring are doing so
with fixed-term or temporary workers (emphasis added by the author).‖15
The following pie graphs show some of the results of the survey on Contract and
Agency Labour/Precarious Work that was jointly conducted by the ICEM and IMF. The
numbered items are the questions that were asked in order to get some idea from trade
unionists about the incidence of precarious work in their countries. The data proves the
claim made by many trade union leaders in the Philippines and in other countries that
precarious employment conditions have been on the rise during the past decade.
Figure 2. Selected data on precarious work as perceived by trade unions
1. Has the share of precarious work (PW) / contract and agency labour (CAL) in
your sector(s) in your country increased over the last year? If so, by how much?
2. Has the wage and benefits gap between direct, permanently employed workers
and contract and agency workers / precarious workers grown or decreased as a
result of the global crisis in your sector(s) in your country?
3. Is your union taking measures to avoid an increase in precarious work / CAL
once the global economy picks up again?
4. Does your union have more contract and agency labour workers / precarious
workers as members than it did last year?
15
Furthermore, in the press release by ICEM from which the quoted text comes from, the survey that was jointly
initiated by ICEM and IMF concluded that “contract and agency labour shows a continuing increase in the number
of workers employed on precarious contracts. The results demonstrate the need to continue to fight against the rise
of precarious work.” The multilingual survey had 252 respondents who were ICEM and IMF affiliates. Responses
were received from all regions – 'Africa, Asia, and Europe account for about one third of all responses and a further
eight per cent of replies came from the Americas. The detailed visual representation of all the results is available at a
link to the article in the IMF website.

18
5. Geographic distribution of the respondents
Source: ICEM – IMF Survey on Contract and Agency Labour / Precarious work
Sectors affected and new irregular employment practices
Figure 3. Sectors affected by precarious forms of employment
Source: International Metalworkers’ Federation Survey on Changing Employment Practices and Precarious Work
(No Date).
Each of the industries comprising the metalworking sector has been affected by
changing employment practices. The electrical and electronic industry was identified
most frequently among unions as relatively more affected by precarious work, with 58
per cent of the replies indicating this. The automotive industry was the second most
frequently cited, with half the respondents citing it. Steel/nonferrous industry was
identified by 40 per cent of the unions, mechanical engineering by a third of the
respondents, shipbuilding industries by 29 per cent and aerospace by 11 per cent.

19
Figure 4. Employers’ practices to shed/exclude workers
from their permanent workforce
(No Date).
Figure 5. Contractors’ and subcontractors’ practices to shed/exclude
workers from their permanent workforce
(No Date).
The practices that were identified by the respondents as most extensively used
by principal companies to shed and/or exclude workers are as expected: Two out of
three (2/3) unions responding said that companies in their country were shifting from
directly employing temporary workers to hiring them through agencies or brokers. The
following data also show the other sides of the story. They range from a) the groups of
workers affected by precarious employment; b) areas where employers evade their
obligations to workers; c) collective bargaining agreement objectives of the unions as
regards the issue of precarious work; d) legislative objectives of union responses in the

20
countries considered; e) the obstacles to organizing precarious workers; to f) the actions
that are important to union strategies in the countries.
Figure 6. Percentage of union responses to the issue of employers’ shifting from
directly hiring temporary workers to hiring them through agencies or brokers
(No Date).
Figure 7. Groups of workers affected by precarious employment
(No Date).

21
Figure 8. Areas in and extent to which employers evade
their obligations to precarious workers
(No Date).
International workers‘ organizations like the IUF, IMF, ICEM and even the ILO
are already aware of the continuing prevalence of precarious employment despite the
improvements in production and job generation facilities and newly crafted and adopted
labor conventions. The IUF had already acknowledged the fact that ―precarious work
affects us all‖ and initiated a campaign to combat this phenomenon worldwide. The IMF
General Secretary even raised the alarm about the devastating effect of precarious
work on even the most fundamental of workers‘ rights, such as the rights to join a union
and to bargain collectively, at a forum held at the headquarters of the International
Labour Office on 3 October 2008. Held together with the members of the ILO
secretariat, the meeting had the theme ―Towards Social Justice: applying labour
standards to precarious workers‖ and was co-sponsored by the ILO Bureau of Workers‘
Activities (ACTRAV). In that meeting, representatives of Global Unions presented the
effects of precarious work on many sectors and on workers‘ rights. They called on the
ILO to address the growing problem that undermines the very basis of international
labor standards, the employer-employee relationship.16
However, other core labor
principles and standards such as, inter alia, job security, trade union strength,
collective bargaining, freedom of association, and social security, are also being
eroded as a result of the above-mentioned developments.
In its simplest form, precarious work can thus be characterized by the following
features: instability, insecurity, flexibility and income insufficiency. Some of the
effects of precarious employment on workers include a) less job security; b) vulnerability
to income shocks; and c) loss of entitlements associated with regular employment.
16
Further details of the “Precarious Work Affects Us All” campaign are available on the websites of IUF, IMF and
other international workers’ organizations and solidarity networks.

22
PART III: Factors that Lead to and Affect “Precarious” Forms of Employment
This paper frames the discussion on precarious employment by means of
situating ―precarious work‖ in the context of: 1) stronger neo-liberal globalization
policies that governments and multinational corporations pursue; 2) the
immediate aftermath of the global financial crisis; 3) growing complexity in
migration patterns; and 4) deepening economic or trade integration among
countries and supranational entities. Of these contextual factors, the first and the
second, which have the greatest impact on labor and employment in our country‘s
metalworking and engineering sector, shall be described. It is high time to suggest that
the organized Philippine metalworking sector make sense of precarious employment to
prevent the worst forms of labor commoditization and deregulation.
Neoliberal globalization: A strain of capitalism that infringes upon workers’ rights
Neoliberal Globalization or NLG traces its roots to neoliberalism, a brand of
capitalism that favors the integration of supposedly ―free‖ markets. Its immediate effect
on workers has always been through its impact on labor markets and trade union
strength. Viajar thus qualifies, ―the current strain of globalization can be characterized
as neo-liberal and in effect diminishes trade union strength‖ (Viajar 2008, p.9).
Neo-liberalism refers to the liberal economic framework that allows the market to
freely dictate the terms of economic relations in production, trade and finance. In this
context, what we mean by globalization is largely economic in terms, that is, trade,
finance and capital barriers are becoming looser and almost narrow thus resulting in the
internationalization of national economies to form what is called the ―global economy.‖
In the process of interlocking trade and production, where different products and inputs
are being made, distributed and assembled in many different countries, trade union
strength can be seen to shrink through the decrease in most manufacturing companies‘
reliance on highly-skilled workers in the production line. This is because of the business
firms‘ preference for cheap labor in various underdeveloped and developing countries,
where governments are forced to lower their taxes and relax established labor laws in
order to attract trade and investments (Viajar 2008, p.9). To address market
uncertainties and competition, business firms, especially TNCs, usually resort to cost-
efficient production, labor flexibility and network productions. As such, labor flexibility
tends to be associated with the unregulated hire-and-fire policies of firms by which
workers are not allowed to form and join unions, limited benefits are available and
security of tenure is virtually more often the exception rather than the rule. This fact is
further aggravated by the recent efforts exerted by developmental aid institutions and
banks (like the World Bank) which pose juicy offers (such as unemployment insurance
policy) in exchange for neo-liberal economic policies (such as flexibilization of labor and
relaxation of labor laws and policies).17
17
Statements are based on the firsthand encounter of the main author with trade union activists and leaders as well
as his personal reflections.

23
Figure 9. Neoliberal Globalization, GFC and GEC at a Glance
Other factors
e.g. inflation
TNC subsidiaries and
exporters (including
manufacturing companies
and service providers)
reduce production costs,
including labor costs,
relocate production in
low-wage countries, and
outsource certain
production processes
Reduction of outputs &
contraction of markets
available to firms due to
reduced consumption
Global Financial Crisis
(financial institutions
like banks and insurance
companies declared
bankruptcy)
Governments bail out
financial institutions,
subsidize basic social
services even more and
pump prime the economy
(through government
expenditures mostly on
infrastructures and fiscal
incentives and monetary
reforms)
Global Economic Crisis
(Reduction of capital
and investments results
in recession or global
economic slowdown)
Huge transnational and
local business firms and
capitalists reduce costs and
ask for government aid
Unemployment (abroad)
results in reduced OFW
remittances & consumption
Rise in precarious
employment or temporary
work arrangements
Greater informalization of
labor, services and
production
Neoliberal Globalization
Domestic Unemployment –
coupled with the decline in
domestic (private) spending
Relaxation of labor laws
which could result in the
“deregulation” of labor
Mass defaults on insurance and housing loans
(mortgage)

24
What trade union leaders still think of protecting first and foremost is their relative
strength in the tripartite model of labor relations where the government is supposed to
regulate the business of private entities and employers and protect the rights of
workers. Although it seems simplistic at first glance, trade union leaders and workers
are actually beset by a dilemma with which they are forced to choose between two
equally undesirable options: a) oppose rampant irregularization or non-standardization
of work arrangements but give reasons for foreign investors and companies to
repatriate and relocate their businesses abroad or b) allow a certain degree of such
processes but eventually become outnumbered by temporary and part-time workers.
Even so, the traditional strength that trade unions usually protect from capitalist
infringement still refers to the following factors (Viajar 2008):
(a) density of mobilizable membership;
(b) capability to negotiate and bargain workers’ rights and benefits; and
(c) capacity to influence political-economic policies at various levels: at the shopfloor,
industry, national and international levels
The immediate effect of production restructuring due to business competition on
trade union strength has been related to reduced organizing capacity since irregular or
non-standard workers do not usually have the right and even the desire to join labor
formations. ―When jobs are sub-contracted out by firms to small production units, trade
unions over-extend themselves in organizing small units due to its limited resources‖
and as a result, ―decreasing trade union membership and influence in the national and
global political economy contribute in limiting union resources to strengthen themselves‖
(Viajar 2008, p. 9). The first trade union resource that is affected is the prospect of
accumulating funds in the form of union dues. The inability and difficulty to widen
membership contributes to unions‘ having lower mobilizable force needed to carry out
collective actions to bargain with employers and push through workers‘ political and
economic rights. Viajar argues further that those trade unions that rely heavily on the
concept of its membership as only the regular wage-earners are vulnerable to the
restructuring of the production processes brought by neo-liberal globalization.
IUF-affiliated unions around the world have already acknowledged ―the deliberate
application of precarious work relationships to restrict workers' ability to organize at the
workplace and challenge insecurity and unsafe working conditions through trade union
organization and collective bargaining‖ as undermining human rights18
. By creating a
contingent network of indirect employment relationships, employers evade their
responsibility for industrial relations and restrict the size of the collective bargaining unit
or eliminate it completely. Similarly, Global Unions claimed, ―the expansion of temporary
agency labour, together with other forms of temporary, casual and precarious
employment, has been promoted by international organisations like the World Bank, the
IMF and the OECD as ‗labour market flexibility‘.‖ This results in a general erosion of
workers' ability to exercise their rights to join trade unions and bargain collectively with
their employers, thereby posing a major challenge and threat to the labor movement.19
18
See for instance the IUF submission to the UN Special Representative on Business and Human Rights Professor
John Ruggie titled “Precarious Work: Undermining Human Rights.”
19
From the news article 15-06-2010 “Global Unions Agree Joint Principles on Temporary Labour Agencies”
accessed through http://cms.iuf.org/?q=node/413 and Global Union Principles on Temporary Work Agencies.

25
Trade unionism in the period of neo-liberal globalization is thus bound to decline
unless unions themselves and the labor sector as a whole fight back. Relying on
government institutions and the courts does not always seem to be a good idea.
Irregular forms of employment can thrive where social forces such as the government,
including even huge religious denominations to some extent, prevent their members
from forming or joining unions in their respective workplaces, like in the case of Iglesia
ni Cristo and Jehova‘s Witnesses (see for instance G.R. No. L-26097 - November 29,
1977 and G.R. No. L-25246 - September 12, 1974), regardless of whether the law
prohibits such an act or not. (This aspect of trade union repression is not discussed,
however, in this paper). Nevertheless, in the context of neoliberal globalization, the
legality of alternative forms of employment does not guarantee the workers’ job
security, stability, social protection, income sufficiency and well-being. The fact is
that even the Labor Code of the Philippines allows certain degree of labor flexibility and
employment of irregular workers who are often in precarious employment arrangements
and abused in their workplaces.
Based on union manuals and other documents produced and distributed by the
Labor Education and Research Network (LEARN) and Alliance of Progressive Labor
(APL), for instance Resbak: Unyonismo ng Manggagawang Pilipino (Fighting Back:
Social Movement Unionism), neoliberal globalization comprises the following factors:
new markets, new materials, new players, and new policies; all of which satisfy the
capitalist urge to recover and reduce production (including land, labor, capital, and
taxes), opportunity, transaction and other trading costs and maximize profits. Under
neoliberal globalization, NLG agents such as International Financial Institutions (IFIs –
World Bank, Asian Development Bank, International Monetary Fund), World Trade
Organization (WTO), Transnational Corporations (TNCs), regional blocs (European
Union, NAFTA, AFTA and APEC) and developed countries set ―conditionalities‖ that
seek to change, reduce or remove national laws, policies and norms that supposedly
hinder ―free trade.‖ The three broad policies pursued by these actors are liberalization
(of trade and capital), deregulation and privatization, conveniently referred to as LDP
among trade unionists and labor activists. Neoliberal globalization, in its widest sense, is
said to stem from TNCs‘ surplus or overproduction relative to markets and consumers
and excessive capital accumulation. Its adverse effects on labor include 1) labor
flexibility and undervaluation, 2) income inequality, 3) weakening of labor unions, 4)
violation of established workers‘ rights and 5) migration out of necessity. In various
reports coming from different organizations, including the Philippine Exporters
Confederation, Inc. (PHILEXPORT), the Labor department of the government has
warned employers against certain forms of precarious employment such as contracting
out and subcontracting that result from business firms‘ desire to satisfy their profit-
motive. It has acknowledged that an increasing number of business establishments in
the country opt to subcontract part of their work to minimize administrative and labor
costs and meet seasonal demand surge and tight deadlines.20
Global Financial Crisis: An excuse to degrade workers’ rights
It is not only the OFWs, traders, exporters, among other sectors who are affected
by the global financial crisis (GFC) that started in 2008. Seen as a reality even by many
20
See for instance http://www.philexport.ph/archives/pnf112709.html

26
trade unionists, labor activists and researchers, the GFC affected employment levels,
and thus workers, around the world through its impact on the real economy. The real
economy, in terms of manufacturing and production outputs and processes such as
trade (pertaining to export and import of goods and services), tumbled down thereby
affecting significant sectors of the Philippine economy.
As can be recalled, on September 15, 2008 the global investment bank Lehman
Brothers filed for bankruptcy protection to the federal government of the United States
of America, ―sending shock waves across the international financial system‖ that ―was
soon followed by other bankruptcies, bailouts and takeovers of financial institutions in
the US and Europe‖ (Yap, Reyes, and Cuenca, 2009, pp. 2-3). Many other economic
powerhouses such as Japan, Germany, and Asian Tigers Hong Kong and Singapore
were soon declared to be in recession. However, when the National Bureau of
Economic Research announced on December 1, 2008 that the US economy was in
recession since December 2007, it started a major global spiral of economic downturns
with viral bail-outs, recovery or stimulus packages, or structural adjustment programs
initiated by governments on the edge of almost every recessionary shout-out. Various
studies and reports point to the subprime mortgage crisis, which began to be seen in
August 2007 as the main cause of these events.21
In recent decades, the use of precarious forms of employment, mostly in terms of
tying up with temporary agencies to supply manpower, has spread all over the world,
infecting even sectors and occupations that had previously been dependent on directly
employed workers such as airline and logistics companies, banking sector, food and
beverage, among others. The practice has become rampant that even global unions
reacted with such a blast, especially in the immediate aftermath of the global financial
crisis. In the 32nd IMF World Congress on 24-28 May 2009 held in Gothenburg,
Sweden, the IMF adopted Item 12 and Resolution 4 on ―Precarious employment in the
economic crisis‖ which noted that “workers in precarious employment throughout the
world have been hit first and hit hardest by the fallout from the financial crisis [since one]
of the first responses by companies has been to reduce temporary employment.‖ Thus,
not only do temporary workers on fixed-term contracts, agency-hired and non-
permanent employees typically receive lower pay and fewer benefits, they are also the
ones who have been the first to lose their jobs. Many companies simply terminated their
contracts with temporary agencies so that the workers did not receive the minimum
compensation or social benefits that they would have received as direct employees.22
The document further states:
The employment status of these workers has in most cases meant that they are ineligible
for any type of severance payments or do not qualify for unemployment benefits. Special
arrangements designed to protect employees during the period of the crisis, including
short-time working, placement assistance, income support and retraining schemes apply
only to the regular workforce - precarious workers are completely unprotected. All over
the world, precarious workers are suffering the consequences of companies shifting their
risk to workers by abusing temporary and agency employment in lieu of permanent and
direct employment. Companies must not be allowed to continue to exploit inadequate
legal frameworks that enable them to use workers in precarious employment as a buffer
against the impacts of the financial crisis. Nor should they be allowed to use the crisis as
21
For a more detailed discussion on the nature, causes and effects of the recent global financial and economic crises,
Yap, et al., (2009) provides a list of various sources on these phenomena.
22
From the News article 15-06-2010 “Global Unions Agree Joint Principles on Temporary Labour Agencies”
accessed through http://cms.iuf.org/?q=node/413.

27
a justification to expand their use of precarious work. As the crisis deepens, massive jobs
losses among those in regular employment will not be avoided. Unemployment is
increasing all over the world. There is a real danger that permanent jobs lost during the
crisis will never be reinstated, but will instead be replaced by various forms of precarious
employment.
In various reports and studies, the Philippines has had a share of the ill effects of
the GFC and the ensuing global economic crisis (GEC) on labor and employment. For
one, massive repatriation of OFWs resulted from the failure of foreign employers to
cover their growing expenses in the midst of rising production costs, reduction in capital,
contraction of markets as well as the failure of governments to subsidize and bail out
properly their public and private banks and industries. In Australia, for instance, the
slump in mining and manufacturing sectors caused the displacement of overseas
contract workers in 2009 and other similar scenarios can be seen in other countries‘
major industrial sectors hardest hit both by the GFC and GEC. As a result, OFW
remittances decreased and disrupted the local consumption patterns of OFW
dependents in the Philippines. Locally, workers lose their jobs because of company
closures, retrenchment and redundancy. Precarious forms of employment such as
flexible and contractual labor also proliferated as a result of both the employers‘ desire
to minimize labor costs and the workers‘ need to land jobs regardless of their quality. In
other reports, certain euphemisms emerged because of companies‘ efforts to justify and
conceal their contingency measures to mitigate the effects of economic losses, prevent
bankruptcy and, ultimately, avoid legal actions. Such terms that are used to denote and
replace the term ―lay-off‖ include the following:
1. downsizing
2. involuntary separation
3. letting go
4. re-engineering
5. restructuring
6. streamlining
Reports from the National Statistical and Coordination Board (NSCB) and
Department of Labor and Employment (DOLE) present the following data, which show
the extent of the global economic crisis‘ effect on the Philippine labor force (in adapted
and tabulated form):
Table 2. Data on the global economic crisis’ effect on the Philippine labor force
Indicator Value (number or percentage)
1. Workers displaced since October 2009 100,000
2. Average compensation of a worker in the manufacturing
sector slightly grew in the first quarter by
0.8 percent
3. Drop in the number of employees in manufacturing 12 percent
4. In October 2008, the global downturn took its toll on a
total of
109,429 workers
5. The value and volume of manufacturing in May both
dropped by (the value of manufacturing output has been
contracting since December 2008)
13 percent year-on-year
6. Workers affected (confined to the export sector,
particularly in the garments, electronic products and motor
vehicles)
109,429
7. Permanently displaced workers 11,574

28
8. Workers temporarily laid off 38,806
9. Workers who underwent flexible working arrangements
like reduced work days or hours or pay
59,149
Source: National Statistical and Coordination Board (NSCB) and Department of Labor and Employment
(DOLE)
In May last year, the year-on-year decline in value was attributed to decreases in
output from 17 out of the 20 major sectors of the country, particularly in basic metals,
beverages, footwear and wearing apparel, furniture and fixtures, leather products, paper
and paper products, petroleum products — all of which fell by at least 30 percent
according to a report from NSCB. Furthermore, the drop in production volume was
attributed to the decrease in 18 of the major sectors, with those from leather products,
beverages, furniture and fixtures, and footwear and wearing apparel falling by at least a
third. This is despite the claims held by some economists and government agencies
(NEDA for instance) that the Philippine economy exhibited positive patterns of growth in
the past years. In fact, according to the chapter on labor of the Medium-Term Philippine
Development Plan (MTDPT) 2004-2010, ―Unemployment remained persistently high in
2001-2003, averaging 11.3 percent over this period.‖ Furthermore, the labor situationer
states:
Despite the modest growth in GDP for the same period, growth was not enough to
produce ample employment opportunities for the Filipinos as the country‘s rapid increase
in population during the 60s to the 90s resulted in a large increase in the working age
population. The labor force also expanded by an average of 3.78 percent or about 1.752
million compared to the net jobs generation of 1.058 million.
Table 3. Key macroeconomic indicators for 2007, 2008, and 1Q and 2Q 2009
In the table above, it can be seen that the manufacturing industry exhibited
negative growth rates in the first and second quarters of 2009. The GDP growth rate
also went from a significant rise of 7.1 percent in 2007 to 3.8, 0.6 and 1.5 percent in
2008, 1Q2009 and 2Q2009, respectively. The decline in GDP can be attributed to the
sharp fall in personal consumption, manufacturing and exports in various periods. OFW
Notes: 1) All figures are growth rates in percent unless otherwise indicated; variables are based on constant
prices except for remittances, exports and imports
2) 2Q2009 inflation data refers to April-August period average
Source: Adapted from Yap, et al. 2009 p. 40.

29
remittances can also be seen to have fallen in 2Q2009 after attaining a 19.8 growth rate
in 1Q2009. As a result of the financial crisis, capital for investment still remained at the
negative side of the number line even when the government increased spending on
infrastructures as can be seen in the rapid rise in public construction in 2Q2009 at 29.9
percent and a drop in inflation from 9.3 and 6.9 percent in 2008 and 1Q2009
respectively to 2.0 percent in 2Q2009.
Indeed, as seen everywhere, economic ―globalization has had a variety of
consequences for employment including changes in labour market structure, making
way for new ‗non-standard‘ (or ‗atypical‘) forms of employment…[which] are often
associated with low-quality [jobs], to such an extent that the concepts ‗non-standard
forms of employment‘ and ‗precarious employment‘ are used as synonymous
expressions‖ (Leiva, 2000, p. 7).
PART IV: The Philippine Metalworkers’ Alliance (PMA)23
On July 2010, delegates representing the Philippine Metalworkers‘ Alliance
(PMA) took part in an international metalworkers‘ union‘s conference. On track for its
2010 thrust to expand its horizon, PMA has started entertaining proposed dialogues
with international partners, including the International Metalworkers‘ Federation (IMF)
and Japan Automobile Workers Union (JAWU). PMA sent delegates to the global
union‘s international meeting this year entitled ―Organizing and Building Strong National
Union Structures‖ held in Bangkok, Thailand on 13-15 July 2010. The significance of the
event was clear as it was conducted on the basis of reinforcing national union
formations and exploring ways on how IMF can play a supporting role in this effort. IMF
is keen to develop new strategies when it comes to approaching local unions. The
institution expects to widen its reach to cover significantly women, precarious and non-
manual workers.
PMA started as a broad alliance of automotive, iron and steel, fabrication,
electronics, electrical, and other metal-related sub-sectors. It was formally organized on
November 9, 2003 after a series of consultations and alternative forums that started in
2002. In 2008, PMA acquired its status of being a full-fledged workers‘ federation. It now
has over six thousand members although many workers are still in the process of
membership and possible inclusion in the federation. Since the officers participated in
the IMF‘s discussion, they, together with their constituents, have become more
concerned with the welfare of their co-workers in the metals and engineering industry.
23
Most of the information written in this part of the paper came from the organizational profile of PMA as presented
and discussed by trade union organizers and leaders (may not be named because of security reasons).

30
Figure 10. PMA’s Organizational Structure
PMA
Automotive Iron & Steel Electronics Electrical
Fabrication Mining Ship & Heavy Equip’t Aerospace
AUTOMOTIVE
Assembly Parts Maker
Dealership/
Sales
Transport Sector,
Repair & Maintenance
IRON & STEEL
Smelting Foundry
Steel Bars & Sheet
Production
Dealership/
Sales
ELECTRONICS
Parts Maker,
Supplier
Sales, Service and
End-Users
Electronics, Appliances
and Computers Assembly
and Sub-Assembly
ELECTRICAL
Cable Wire
Production
Parts Maker
& Supplier
Sales, Service and
End-Users
Repair &
Maintenance
FABRICATION
Building and
Construction
Steel By-Products
Fabrication and Assembly
Steel Fabricated
Sales and Service
MINING
Quarrying, Earthmovers
And Surveyors
Raw Materials
Production (Sintering)
By-Products
Sales
SHIP & HEAVY EQUIPMENT
Ship Building
Heavy Equipment and
Machinery Assembly
Operation, Repair,
Maintenance, Sales and
Service
AEROSPACE
Assembly Operation
Repair and
Maintenance
Sales and
Service
PMA
CONGRESS
Council of Leaders
(Represented by each Union)
National Executive
Board Secretariat
Standing Committees
Membership, Collective Bargaining
Ethics, Education & Research
Welfare, Gender Concerns, Networking
Political & Legislative Activities
Source: Philippine Metalworkers’ Alliance brochure and slide presentation on organizational profile (2010).
PMA serves as the subject of this research, representing the metals and
engineering industry as a whole. As of February 2010, PMA has a total membership of
26 affiliates (in terms of unions) and 6,392 members (in terms of persons) and 9
auxiliary members (in terms of unions) and 4,711 members (in terms of persons). Of
these numbers, only a handful of respondents were able to answer a small survey to
help ascertain the incidence of precarious work in their workplaces. Eight (8) unions
managed to send in the responses before the finalization of this paper.

31
PART V: Presentation of Data (PMA-Level)
The data covers eight (8) unions in the following sectors of the Philippine
Metalworkers‘ Alliance (PMA): a) cable and electrical (PCCEU – Sky Cable – Rizal,
PCCEU-Calabarzon, PEWU); b) automotive sector (TAPLU, MMWU-P, TMPCLO,
IPCWU); and c) iron and steel (AFCAISSU).
Table 4. List of subjects for this study
1. Pilipino Cable Corporation Employees’ Union (PCCWU – RIZAL)
2. Pilipino Cable Corporation Employees’ Union (PCCEU – CALABARZON)
3. Toyota Auto Parts Philippines, Inc. Labor Union – AIWA (TAPLU)
4. Aichi Forging Corporation of Asia Inc. Supervisory & Salaried Union (AFCAISSU)
5. Mitsubishi Motor Workers’ Union- Philippines – AIWA (MMWU-P)
6. Toyota Motors Philippines Corporation Labor Organization – AIWA (TMPCLO)
7. Isuzu Philippines Corporation Workers’ Union (IPCWU- AIWA)
8. PKI-Employees’ Welfare Union – Independent (PEWU)
Methodology
The data collection method of the research was based largely on both the
interview and questionnaire-types surveys conducted in close intervals in local union
chapters. Union leaders and officers were asked to accomplish a questionnaire and
respond to particular questions that were intended to come up with statistical data on
union membership, employment (standard, regular or otherwise), and labor force,
among other information and issues.
Data from selected PMA affiliates
The following data are the results of the survey conducted with trade union
leaders and officers in order to assess the level and incidence of precarious
employment in their working environment or companies. Other numerical data related to
the following tables and graphs that contain condensed numerical values can be found
in the appendix to this paper. Most of the tables presented herein provide the basic and
actual types and numbers of workers according to the official records of the unions in
the companies (or chapters) considered for this study. The computed proportions,
including their corresponding graphs, are derived from the calculations made by the
author of this paper.
Based on the data for the cable sector, the PCCEU-Rizal in particular, it can be
seen that of the totally employed (31), 29 workers or 93.55 percent are regular workers
who are at the same time members of the union. In PCCEU-Calabarzon, 45 workers or
75 percent of the total manpower (60) are regularly employed and union members both
at the same time. Although they cannot be taken to represent the entirety of the cable
sector, the incidence of precarious or temporary work arrangement in this sector, as
represented in this case by the two local chapters of PMA, is lower (35.48 % and 11.66
% in PCCEU – Rizal and PCCEU – Calabarzon, respectively) relative to regular
employment.

32
Table 5. Types and numbers of workers in a cable company’s
two unionized branches
Type of worker (only rank and file and production
workers if possible to distinguish)
PCC (Sky) - Rizal
PCCEU-
Calabarzon
Total Manpower 31 60
(Total manpower plus the OJT) 31 60
Regular workers 29 45
Union members 29 45
Contractual workers (or fixed-term workers) 1 0
Agency-hired workers 0 7
On the Job Trainees (OJT) 0 0
Other non-regular workers not classified 10 0
Total of Temporary workers 11 7
Source: Trade union data and official list of members
Figures 11 and 12. Data on unionized cable, electrical and iron and steel
companies’ branches, graphed according to the proportion of each
category of workers in relation to their overall count
Figure 11
Figures 12

33
The data for workers in the automotive sector show different results in terms of
the ratio between the regular workers and union members, regular workers and
temporary workers and union members and temporary workers. Whereas in the case of
TAPLU and TMPCLO, the union members register only fifty (50) percent and below of
the total workforce of the corporations, MMWU-P and IPCWU recorded seventy-five
(75) and ninety-six (96) percent, respectively (see the table containing other numerical
data in the Appendix to this paper).
Table 6. Data on unionized automotive industry corporations
Type of worker (only rank and file and
production workers if possible to distinguish)
TAPLU MMWU-P TMPCLO IPCWU
Total Manpower 1411 800 1250 535
Total manpower plus the OJT 1650 800 1783 540
Regular workers 842 600 750 520
Union members 628 585 694 348
Contractual workers (or fixed-term workers) 0 0 150 15
Agency-hired workers 328 0 0 0
On the Job Trainees (OJT) 239 0 533 5
Other non-regular workers not classified 0 49 0 0
Total of Temporary workers 567 49 683 20
Figures 13 and 14. Data on unionized automotive industry corporations, graphed
according to the proportion of each category of workers
in relation to their overall count
Figure 13

34
Figure 14
The following graphs present comparative data on the numbers of regular workers,
union members and temporary workers in eight (8) unionized establishments
considered for this study. The graphs show that the eight establishments exhibit
different levels of variability. However, it can be noticed that there is an apparent
relationship among the three major variables tested in this study, i.e., regular
membership, union density and incidence of temporary employment.
Figures 15, 16 and 17. Comparative data on regular workers, union members and
temporary workers in eight (8) unionized establishments
Figure 15

35
Figure 16
Figure 17
Figure 18. Comparative data on regular workers, union members and temporary
workers in eight (8) unionized establishments (in consolidated form)

36
PART VI: Conclusion
“More regular workers, more union members.
More temporary workers, less union members”
- Data
The initial conclusion of this paper is consistent with the commonsensical view
held by trade union leaders and activists.24
Based on the data processed and presented
in Figure 18, the number of union members varies directly with the number of
regular workers, that is, the higher is the number of regular workers, so the higher the
number of union members goes. The converse is still under consideration here.
Although there can be a direct correlation (or a slight association) between the number
of regular workers and union members, the claim that ―the more union members a
company has, the higher is the number of its regular workers‖ cannot be directly or
immediately taken as true. This claim is subject to another procedural and strategic
intervention by union members themselves. For example, when the unions in the
automotive sector succeeded in convincing their employers to allow casual workers and
other qualified ―temporary‖ workers to undergo formal regularization, they are in effect
increasing the number of regular workers while at the same time trying to maintain the
present count of their membership. The first case is, so far, the only confirmed claim
since regular workers are indeed entitled to join and form unions, whereas union
members do not necessarily have the obligation to expand their ranks. All other things
held constant, it is therefore logical to think that when the number of regular workers in
a particular working environment is considerably high, then the number of union
members would also be high. However, it is largely the prerogative of the union whether
or not to help other workers attain regularization and thus become members of the
union.
Another important point for consideration is the apparent tendency of precarious
or temporary workers to equal or even outnumber union members in cases where the
number of regular workers is less than or equal to fifty (50) percent of the total
manpower of the companies subject to this study (see for instance the data for TAPLU,
PEWU, TMPCLO, and AFCAISSU). This apparent pattern also tells something about
the incidence of precarious forms of employment in the metalworking industry that is
partly associated, in theory and propaganda terms, with the weakened capacity of
unions to organize non-regular or contractual workers. In this study, the claim held by
trade union leaders and activists can no longer be dismissed as mere bookish
statements commonly used and abused as propaganda shout-outs.
The Challenge for Trade Unionists, Activists and Researchers
24
These views are based on the discussions with APL leaders, PMA officers and affiliate union leaders. Most of
them, who refused to be named in this paper, believe that temporary work arrangements, through contractual and
agency-hired employment in particular, are undermining the efforts of the unions within their workplaces. They also
find it difficult to help temporary workers because of their hesitation to cooperate with union members for fear of
being sacked. Despite this, they still believe that with increasing numbers of regular employment, the density of
union membership will also grow since only those regular workers are allowed to formally join and form a union in
the proper sense of the term.

37
As far as the data is concerned, trade union leaders in the metalworking sector are
facing tough situations with regard to new employment patterns. The Council of Leaders
of the PMA, in fact, is in dire need of help in terms of research, data and ideas as raised
and requested during the presentation of the initial draft of this research study. They
understand that they have to encourage more workers to attain regularization and to
avoid the employment of temporary workers as much as possible. They also agreed
with the following points that were raised during the presentation:
1. There is a need to collect additional data to make the research more ―scientific‖.
Research involves the presentation and analysis of data, not just logic and mere
opinions;
2. Based on the data presented above, lower numbers of regular workers relative to
the total work force and temporary workers are associated with lower numbers of
union members;
3. Lesser union density would most likely mean less mobilizable force, less union
dues, and ultimately lower labor strength and bargaining power vis-à-vis the
employers. The data needed to qualify or quantify this assertion include the
amount of collected union dues, concluded CBAs, and number and types of
benefits provided by the employers given the initial number of union members
compared with the size of temporary workers;
4. If union members continue to allow themselves to be outnumbered by temporary
workers in the long-run, most probably, the size of their membership will
decrease;
5. The definition of "manpower" should be changed to cover trainees and
apprentices – this is in order to graph appropriately the composition of the
workforce in the establishments who basically perform work that are deemed to
be "necessary and desirable" in the usual business of the employer(s); and
6. There is a need to conduct a trend-type (or interval-based) data analysis in order
to keep track of the developments in the metalworking sector as regards
precarious work. The following should also be monitored continuously and more
seriously (yearly at most):
• Number of regular workers;
• Number of temporary workers (contractual, casual, agency-hired, OJT, apprentice,
“cooperative” workers, among others according to the unions’ classifications);
• Benefits afforded to these temporary workers;
• Outsourcing companies or manpower agencies, either legitimate or not; and
• Ratio of regular workers to temporary workers (this is optional).
Best practices and possible strategies to combat the problem of precarious work
Apart from delving deep into the actual records of the unions and asking their
representatives about certain issues surrounding the concept of precarious work, the
researchers also wanted to know the best feasible practices that can be done to

38
address the problem of precarious work. These practices include the following, in
specific terms:
• Basic refusal to hire temporary or “precarious” workers through collective bargaining
agreement (CBA) negotiations and discussions with employers;
• Inclusion of closed shop or union shop provision in CBAs;
• Placing “recalls” provision in CBAs, whereby the hiring of former union members and
regular workers shall be required of the employers;
• Identification of LOCs or labor only contractors and filing cases or class suits against
them; and
• Lobbying for and espousing the “Security of Tenure Bill”
In the automotive sector, unions have developed certain ways to cope with the
proliferation of precarious jobs. For instance, the Mitsubishi Motors Workers‘ Union
(MMWU), in its efforts to avoid abusive employment of workers in a precarious manner,
continues to conclude judiciously and successfully Collective Bargaining Agreements
(CBAs) with the management of Mitsubishi Motors Philippines. The union‘s discussion
agenda include the basic refusal to hire contractual workers in the production line. They
oppose the company‘s prerogative to hire fixed-term workers although the management
was able to do away with it by outsourcing some services to other small companies, be
it in accordance with the law or otherwise. Outsourcing is the main problem that the
Mitsubishi union faces. As for the regular workers, they have certain CBA provisions
that luckily translate into reality. They have the so-called union shop (alternatively
referred to us ―closed shop‖) through which probationary employees can have the
opportunity to become regular workers and thus, union members. Under this scheme,
newly hired workers will be given the chance to arrange with the union the terms of their
future membership in the union. They definitely have the right to be part of the
bargaining unit and avail of the benefits that accrue to their membership in that unit.
As regards those workers who happen to be ―retrenched‖, although with valid
reasons or just cause, but can still be classified as precarious workers, MMWU-P has a
CBA provision that could address the adverse effects of retrenchment on union
members. This is the so-called ―recalls‖ provision, which allows union members and
regular workers who underwent retrenchment to be rehired the moment the corporation
recovers from its economic losses. This provision does so much in preventing the
management from hiring precarious workers and from tolerating precarious work
arrangements in other companies. Clearly enough, the initiative should come from the
unions themselves as from the companies. The recall directive has gone a long way in
giving union members that second chance to practice their expertise and be
compensated adequately in return. Seen in another light, this provision can be a
preventive measure to contractualization or short-term employment schemes basically
because the company is obliged to hire only those who have rendered quality service
with a considerable duration and amount of work. And clear enough, most union
members and regular workers have done so in the duration of their previous work.
Obviously, by allowing only these kinds of workers to be hired again, the union as well
as the management through an effectively implemented CBA, can lessen, if not totally
thwart, the oftentimes-abused capacity of the company to hire contractual or

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