Labor group blames gov't policies for record-high 17.77% unemployment rate in April

Labor group Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) on Friday hit the government for the record-high unemployment rate recorded in April, the first full month of enhanced community quarantine to contain COVID-19 spread.

Results of the Philippine Statistics Authority’s latest Labor Force Survey showed that the unemployment rate rose to 17.7%, equivalent to 7.3 unemployed Filipinos in April.

While ALU-TUCP recognized that the main factor for the recent additional unemployment is the quarantine lockdown and shutdown of business establishments imposed by the government to manage and control COVID-19, it said that “the other factor that causes this high unemployment rate is caused by the government itself.”

“These are the DTI (Department of Trade and Industry) and the DOLE (Department of Labor and Employment) policies—crafting and implementation—particularly, that's causing this underemployment and unemployment,” ALU-TUCP spokesperson Alan Tanjusay said.

Tanjusay cited the DOLE’s Department Order No. 213 and Labor Advisory No. 17 as “making it harder for workers to return to work and to keep working.”

“These policies issued by the DOLE are oppressive and very disadvantageous to workers,” he said.

It is the DOLE's LA No. 17 allows voluntary reduction of wage and benefits of employees during the quarantine period, according to the labor group.

“While the DO No. 213 suspended labor inspections and allowed abuses and non-compliance to wage and safety and health standards. It also suspended labor litigations and suspended due process mechanisms to hear, mediate and conciliate grievances and abuses of employees,” according to Tanjusay.

The said DOLE issuances, however, were issued in May, when the government began relaxing strict quarantine measures gradually.

In a separate statement, the DOLE stated that it expected the results of the Labor Force Survey “given that the health crisis has crippled most of our economic activities.”

“With the imposition of community quarantine, hundreds of thousands of establishments resorted to temporary closures or flexible work arrangements as evidenced by millions of workers affected both in the formal, informal and overseas sectors,” it said.

“The lockdown during the community quarantine from March to May, which is supposed to be the period for job hunting of our fresh graduates, has put the labor force in a standstill as two-thirds of the economy is shut down,” it added.

ALU-TUCP also slammed the DTI for the cancellation of the deferment of rents and ordered micro and small business to pay the rents and arrears immediately forcing businesses to lay off more employees to be able to pay the rent.

The DTI, however, issued a memorandum circular giving a 30-day grace period in the payment for both commercial and residential rents, which will start from the day of the lifting of community quarantine, reopening of business, and return to work of tenants. 

“Another major cause of the current high unemployment is the ineptitude of DOTr (Department of Transportation) and MMDA (Metropolitan Manila Development Authority),” Tanjusay said.

“Inadequate public transportation, lack of and poor anticipation of return to work scenario—just like what happened starting last Monday—is causing a lot of jobs, job opportunities, wage deductions and  additional stress to workers,” he added.

Some commuters struggled to go to work on Monday due to the limited capacity of public transport in Metro Manila, which transitioned from modified enhanced community quarantine to GCQ, allowing more businesses to open and employees to get back to work

To recall, the Transportation department said public transportation would resume under GCQ in two phases.

“The way forward is to genuinely consult labor and business groups in the drafting, implementation and monitoring of policies and programs for the country to recover from the economic and health crisis,” Tanjusay said. --KBK, GMA News