Employers act to make RP competitive

The Employers Confederation of the Philippines (ECOP) is proposing at least three major reforms that the government should push to improve the country’s productivity and competitiveness.

In a paper to be presented to the government during the two-day Employers Summit on Employment and Industrial Relations next week, ECOP cited the need for industrial upgrading and creating an active labor market and proactive industrial relations as a primary reform agenda.

Second, ECOP also urged more education and training towards full employment. Third, ECOP proposes revving up micro-small-medium enterprises (MSMEs) for job creation.

ECOP elaborated that in terms of industrial upgrading, it is the task of both industry and government to insure that obstacles to competitiveness be removed.

The Philippines, ECOP pointed out, has been ranked No. 52 in the World Competitiveness Report with investors complaining about the country’s feudalistic political culture, problems in investment rules and regulations, weak institutions, bad infrastructures, security problems and runaway fiscal deficits.

Competitiveness, thus, ECOP stressed, requires continuous upgrading.

Upgrading, ECOP elaborated, involves not only technology, but also skills, know-how, management and relating with one another in the process of work.

In short, ECOP said, more investments should be made on human resources development at the industry level.

Finally, ECOP said, if government is really serious in job creation, it should put more effort to strengthen the MSMEs which constitute virtually 99 percent of all enterprises in the country.

Reports indicate, ECOP warned, that there were job losses as high as 300,000 last years in this sub-sector.

Many of the SMEs suffer from limited access to technology and credit, as well as weakening markets due to the flood of cheaper imports.