Labor-management pact

Published on 8/S1 of the November 29, 2006 issue of the BusinessWorld

A newly formed labor-capital alliance will seek ways to address various problems hounding businesses, including widespread smuggling which is pressuring several businesses to close shop year after year. Fair Trade Alliance lead convenor Wigberto Tañada noted the manufacturing sector loses about P175 billion a year to smuggling, which includes the proliferation of ukay-ukay shops. He said this is the first order of the day, after labor groups and the Federation of Philippine Industries (FPI) signed their joint communiqué yesterday. The joint communiqué aims to improve employee-employer relations in a bid to boost labor productivity, benefiting both firms and their workers. FPI labor and productivity committee head Wilson Tiu said the groups will “put flesh” into the communiqué on December 8. The communiqué states that the “labor and capital agree to undertake concerted action to harmonize macroeconomic goals and state policies with the goals and activities of the major labor and industry organizations.”


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