MANILA, Philippines - Workers in the country’s banking system want a tripartite industry body to convene and address the “serious impact” of the law allowing the full entry of foreign banks in the country and the upcoming ASEAN Economic Community (AEC).
The National Union of Bank Employees (NUBE) headed by Jose P. Umali Jr. said the Banking Industry Tripartite Council (BITC) should meet with the Bankers Association of the Philippines (BAP), the Chamber of Thrift Banks (CTB), and the Rural Bankers Association of the Philippines (RBAP) to address the concerns of bank employees on Republic Act 10641 and the Asean integration.
Labor Secretary Rosalinda Baldoz and Bangko Sentral ng Pilipinas (BSP) Governor Armando Tetangco Jr. are the BITC chair and co-chair, respectively. Umali is vice chair for Labor of the BITC.
The labor representative voiced concern that these two game-changing developments are likely to intensify competition, encourage new mergers and consolidations, realign the market positions of various banks, promote new banking technology and products, among others.
“All of thee developments are bound to have an impact on the organization of the banking industry and on the way work is carried out,” Umali said in a statement.
Both employers and employees will have to bear the brunt and confront the challenge of smooth adjustments brought about by the changing environment, he added.
He noted that, in the past, when President Fidel V. Ramos liberalized the banking industry by allowing 10 foreign banks to do business in the Philippines under the 60:40 ownership in favor of Filipinos, some adjustments became divisive, even disastrous, because there was a failure of communications and absence of consultation and dialogue.
“There was no focus on how to make adjustments smooth and win-win for all concerned. It is in this context that NUBE is calling for the conduct of social dialogue within the banking industry,” he added.