Maragtas S.V. AMANTE

Tripartism in Social Security:

Representation & Inclusion in Selected

ASEAN Countries

Presented at the Asian Conference of Globalization and Labor Administration: Cross-Border Labor Mobility, Social Security and Regional Integration

November 19-21, 2014, Manila, Philippines

No written or electronic reproduction of this document without the author’s permission

Outline of work in progress: • Tripartism in industrial relations & social security• ASEAN and regional economic integration • ASEAN demographics• Social security institutions in ASEAN• Case of contingent employees & supertemps• Filling the gaps

Tripartism in industrial relations & social security

“Process by which workers, employers and governments contribute to the settling of

workplace standards and social protection ” (Simpson, 1994)

Voluntary interaction and dialogue among representatives of the various

parties is vital for social and economic stability and progress.

Social contract & rational expectations

Hard work and good performance, including loyalty would be rewarded with job security, fair treatment, dignity and status. Loyalty with a firm comes with increasing tenure and “property rights” to a job.

Society expects that pay, and income in general should rise together with increasing productivity and prosperity.

Industrial relations and the socio-economic system: Convergence theory

Social system

IR: system of work rules

Economic system

Power or Political System

IR and the socio-economic system: greater convergence

Social system

IR: system of work rules

Economic system

Power or Political System

IR and the socio-economic system: ideal, complete convergence

Socio-economic & political system

IR: system of work rules

Social system asa whole

IR as subsystem

Industrial relations (IR) concern the processes and results of the employment relationship at the level of: the workplace,

the industry and society as a whole.

Figure 1: Industrial relations and the employment relationship

State (govt. agencies)

Industrial relations(labor relations: union & mgtrelations, collective bargaining)

Employment relationsEmployer-employee contractsWorkplace rules/regulationsWorkhours, compensationWorking conditions, etc.

Union

Worker

Enterprise(employers: managers

officers….)

Labor demand Labor supply

Figure 2. Industrial relations and the social system

Economic context Political context

Economic structure Political leaders

Income distribution Governance; laws

Labour force; prices Political system …

Taxes, capital flows; trade …

Industrial relations:

Work rules and processes

Collective bargaining

Labor laws, rules

Disputes settlement

Employment & social protection …

Socio-cultural context Environmental context

Social values Globalization

Cultural norms Economic integration

Education Geography …

History …

Technology

Sources of ideas in industrial relations:Descriptions of conditions of workReports on industrial conflict involving workers

& employers.

United Kingdom in 1890s: Sidney & Beatrice Webb Industrial democracy. First used the term “collective bargaining” in 1897. Context: industrial labor unrest.

Geopolitical context:Revolutionary movements in Europe.Socialist movements in many countries.In the US: New Deal as a response to socialist movements.Great Depression in the 1930s.World War I (1915-17), World War II (1940-45)Soviet Union (1917), PRoChina (1949), Vietnam (1975), etc.

ASEAN GDP growth:

5.1% in 2013 ASEAN GDP increased from US$2.3 trillion in

2012 to US$2.4 trillion in 2013

ASEAN per capita GDP reaching US$3,837 in 2013 from US$3,761 in 2012.

Highest per capita GDP: Singapore US$ 55,183

Brunei Darussalam: US$ 39,677

Indonesia was the biggest economy in ASEAN, with US$863 billion, followed by Thailand at US$388 billion and Malaysia with US$312 billion.

Source: www.asean.org

km2 thousand percent US$ 2/

US$ PPP 3/

2013 2013 2013 2013 2013

Brunei Darussalam 5,769 406.2 1.6 39,678.7 53,016.9

Cambodia 181,035 14,962.6 1.5 1,046.5 2,652.6

Indonesia 1,860,360 248,818.1 1.4 3,466.7 5,132.5

Lao PDR 236,800 6,644.0 2.0 1,505.4 3,127.2

Malaysia 330,290 29,948.0 1.5 10,420.5 17,540.5

Myanmar 676,577 61,573.8 1.0 916.1 1,834.7

Philippines 300,000 99,384.5 1.8 2,706.9 4,545.9

Singapore 715 5,399.2 1.6 55,183.3 65,063.5

Thailand 513,120 68,251.0 0.5 5,678.1 9,872.7

Viet Nam 330,951 89,708.9 1.1 1,908.6 4,026.1

ASEAN 4,435,617 625,096.3 1.3 3,837.1 6,135.7

Gross domestic product

per capita

at current pricesCountry

Total land

areaTotal population

1/

Annual

population

grow th1/

ASEAN basic indicators (2013) Source: www.asean.org

percent percent percent

2013 2013 2012

Brunei Darussalam -1.8 0.2 1.7

Cambodia 7.0 4.6 0.6

Indonesia 5.8 8.4 6.1

Lao PDR 8.2 6.9 1.9

Malaysia 4.7 3.2 3.0

Myanmar 7.5 4.9 4.0

Philippines 7.2 4.1 6.8

Singapore 3.9 1.5 2.8

Thailand 2.9 1.7 0.5

Viet Nam 5.4 6.0 3.2

Country

Grow th rate of

gross domestic

product

at constant prices

Inflation rate

(year-on-year

growth of CPI at

end o f

perio d )

Unemploymen

t rate2/

ASEAN basic indicators (2013) Source: www.asean.org

Income distribution in selected ASEAN countries

Philippines: demographic dividend of a

relatively young, skilled workforce!

MAJOR OCCUPATION GROUP AND NATURE OF EMPLOYMENT

2008 2010 2012

Percent

ALL OCCUPATIONS 29,927 31,877 33,454

Permanent Job/Business/Unpaid Family Work 24,187 25,463 25,641 76.6%

Short-term/Seasonal Job/Business/unpaid family work

4,895 5,651 6,575 19.7%

Worked for different employers on day to day or week to week basis 846 763 1,238 3.7%

Diversity in ASEAN’s 10 member countries

Republics with parliaments & judiciary Indonesia, Malaysia, Philippines,

Singapore, Thailand

Royal Kingdoms with constitutional monarchy: Thailand, Cambodia

Brunei Darussalam: Malay Muslim monarchy

Lao PDR: a people’s republic

Vietnam: socialist republic

Myanmar: military regime

Strengths

Better than nothing.

CLMV: only chance that employers, workers & government could talk on urgent issues.

Achieved common understanding of status of IR, labor in ASEAN.

Sharing of best

practices, experience.

Weaknesses

Lack of continuity.

Discussions are too general agenda

depends on the organizers / donors.

Follow up activities needed.

Participants need more preparation for

productive results.

Meetings are junkets.

Some strengths & weaknesses of

ASEAN social dialogue on IR

Both the ASEAN Charter of 2009 and the ASEAN Roadmap 2009-2015 do not explicitly mention social dialogue, but there is recognition of a “people oriented ASEAN, in which all sectors of society are encouraged to participate, and benefit from the process of regional integration … “.

Consultants provide expertise not currently available to the

organization and not needed on a permanent and continuing basis.

Contract workers often hired on a project basis. After the

project is complete, the organization has no further obligation to the individual.

Outsourcing process of contracting for services or products

with external vendors rather than producing them internally.

Offshoring hiring workers in foreign countries to perform

tasks previously done in the United States. Oftentimes, substantial cost savings can be realized because of the lower compensation rates in those countries.

Leasing typically involves a contract with a professional

employer organization (PEO).

How about social security for

contingent workers?Casual, probationary, project, pakyaw, job-order, seasonal workers.

Part-time workers -- flexibility is

maximized and the organization avoids liability for taxes and benefits. Part-time workers can be employees of the organization arrangement

might be somewhat permanent in nature and of limited flexibility, organizations often provide no or a limited range of benefits, resulting in cost savings.

Temporary workers Traditional temporary

workers are obtained from employment agencies that specialize in providing these types of workers. However, the employer can also hire temporary workers internally.

A.2 Human resource development (HRD) A.3. Promotion of decent work13. Strategic Objective: Incorporating decent work principles in ASEAN work culture, safety and health at work place and ensuring that the promotion of entrepreneurship becomes an integral part of ASEAN’s employment policy to achieve a forward-looking employment strategy. Actions:i. Enhance capacity of governments to monitor labor markets and human resource indicators, and design social impact policies;ii. Establish national skills frameworks as an incremental approach towards an ASEAN skills recognition framework;iii. Endeavour to build an ASEAN network of experts in industrial relations to assist in promoting sound industrial relations, industrial harmony, higher productivity and decent work by 2010; andiv. Implement the Plan of Action on National Occupational Safety and Health Frameworks for ASEAN as affirmed by the ASEAN-OSHNET.

ASEAN Roadmap on HRD &

decent work (Items A2 & A3 p70)

ASEAN Roadmap on HRD &

decent work (Items A2 & A3 p70)

Mention of “industrial relations” and “decent work” implies fundamental rights at work, as commonly understood.

Question: how will social dialogue pave this road to decent work in ASEAN? How to put muscle and teeth to the statement?

Recommendation: sectoral & industry dialogues with employers and government need to flesh out details, provide muscle and teeth.

ASEAN Framework Agreement

on Services (AFAS) : Goals Improve the efficiency and competitiveness,

diversity, production capacity, and supply and distribution of services of their services suppliers within and outside ASEAN;

Eliminate substantially restrictions to trade in services amongst ASEAN Member States; and to

Liberalise trade in services by expanding the depth and scope of liberalisation beyond those undertaken by ASEAN Member States under the General Agreement on Trade in Services (GATS) with the aim to realising a free trade area in services;

“Temps, casuals, part-timers, project workers, skills coop members, sub-contractors . . . ““Management consultants”“Just-in-time executives”

Many organizations have gained almost an unparalleled access to employee talent while keeping compensation & benefits at the barest minimum.

How about social security for

contingent workers, talents &

managers: key challenges

“A stable, prosperous and highly competitive region with equitable economic development, and reduced poverty, and economic disparities”, ASEAN Summit, Kuala

Lumpur, 1997.

ASEAN Community that is “…cohesive, economically integrated and socially responsible … “ Asean Charter 2009

“ASEAN = a region of peace, freedom and prosperity … ” (1967).

Conclusions

ASEAN member countries are enmeshed in a “noodle web” of bilateral and multilateral free trade agreements with East Asia countries (Japan, China, and Korea), India, Europe, the United States, Australia, and other countries.

Some of the FTAs deal

with labor exchange.

Conclusions

There are winners and losers in terms of net job gains, and unemployment. Workers can lose their jobs, either to imports or because factories move to cheap-labor countries.

Theory: lost jobs and lower wages in losing industries in losing countries are more than offset when countries specialize in their production, leading to more robust exports and lower prices on imported goods.

Credibility of the ASEAN

Charter is at stake!

“ . . . people oriented ASEAN, in which all sectors of society are encouraged to participate, and benefit from the process of regional integration with

decent work including social protection.“

Maraming salamat po.

Cám Ön anh/chÎ rÃt nhiŠu.

Kop khun khrap.

Sourm-or-kun.

Terima kasi.

Khop chai lai lai deu.

Chei-zu tin-bar-te.

Thank you very much.