The Philippine Constitution stipulates that workers have the right to collective bargaining through unions. The Philippine Labor Code also contains provisions to encourage and protect such negotiations, including arbitration and mediation, to resolve labor disputes. Upon completion of negotiations, both parties form a Collective Bargaining Agreement (CBA). As of 2009, there were 274 registered CBAs in the Philippines, primarily categorized into two types: economic and non-economic agreements. Economic CBAs are directly related to workers' wages and benefits, while non-economic CBAs involve union rights and various non-cash benefits. Understanding these labor systems is undoubtedly essential for those coming to the Philippines for investment.
I. Economic Collective Bargaining Agreements
(I) Wage Increases
Among the 274 CBAs, 214 (78.1%) involve wage increase issues, including increases in basic wages, daily wages, and monthly salaries.
1. Daily Wage Increases. The minimum daily wage increase varies significantly by industry, ranging from 3 to 37 pesos (manufacturing and water, electricity, and gas supply), while the maximum daily wage increase is fixed between 35 and 461.54 pesos (real estate, leasing, business activities, and manufacturing).
2. Monthly Salary Increases. The minimum monthly salary increase varies significantly by industry, ranging from 30 to 3,600 pesos (storage, transportation, communications, and real estate, leasing, and business activities), while the maximum monthly salary increase is fixed between 1,000 and 10,000 pesos (hotels, catering, and manufacturing).
3. Basic Wage Increases. Negotiations requesting basic wage increases are relatively fewer than those for daily and monthly salary increases. By industry, the manufacturing sector only requested a 4% increase, while the water, electricity, and gas supply industry requested a 100% increase.
(II) Benefits
1. Medical. Includes hospitalization assistance, medical expenses, pharmaceutical reimbursement, and health funds (see Appendix 1).
2. Death Benefits. Includes pension and funeral expenses for the death of an employee or their family members (see Appendix 2).
3. Maternity. Maternity benefits provided to female workers include subsidies for normal delivery, cesarean section, miscarriage, and home birth; for male workers, only paternity subsidies are provided (see Appendix 3).
4. One-time Benefits. There are 10 CBAs in the manufacturing sector providing one-time benefits, with amounts ranging from 2,500 to 83,000 pesos.
5. Loans. Loan benefits are intended to address the financial difficulties of workers' families. Emergency loans are the most common form, with each worker eligible for loans ranging from 2,000 to 500,000 pesos. Education loans range from 1,000 to 300,000 pesos. CBAs also include forms such as disaster loans (5,000 to 500,000 pesos), salary advances (500 to 20,000 pesos), and salary loans (1,000 to 50,000 pesos) (see Appendix 4).
II. Non-Economic Collective Bargaining Agreements
(I) Union Rights
Among the 274 CBAs, 258 (94.2%) involve union rights; among them, 79.6% of the agreements contain clauses on union rights. The most important clause is that unions can recruit members, and workers can make union membership a condition for continued employment. Some clauses ensure the rights of workers to self-manage and engage in collective bargaining.
(II) Employment Rights
Although the Philippine Constitution guarantees workers' employment rights, 50.4% of CBAs contain clauses regarding termination, meaning employers may terminate workers for just cause. These reasons include: reorganization, mergers, joint ventures, dissolution, technological changes, losses, recession, and uncontrollable factors that prevent the enterprise from operating normally. CBAs also stipulate workers' rights to fill vacancies, including: first, promotion of existing employees; second, priority hiring for relatives of retired employees if they meet qualifications; and third, re-hiring of terminated personnel. Some agreements also stipulate that workers have the right to participate in skills training, and workers recommended by the union may be given priority for vacancies.
(III) Union Privileges
The greatest privilege of a union is leave of absence, allowing workers to leave the factory to participate in corresponding activities organized by the union. Other privileges include the right to access information and assistance in organizing Labor Day celebrations (requiring financial support and the distribution of T-shirts).
(IV) Leave Benefits
Most CBAs stipulate that workers have the right to leave, including work leave, sick leave, union leave, marriage leave, and maternity leave. Some agreements also allow workers to take leave for funerals, birthdays, and emergencies.
(V) Medical Benefits
A considerable number of CBAs stipulate that the following medical benefits be provided to workers: dental services, annual physical examinations, and hospitalization assistance. Some agreements stipulate the provision of medical expenses, eye care services, and pharmaceutical reimbursement.
(VI) Resignation/Retirement Benefits
The Labor Code stipulates that if an employee reaches retirement age, retirement may be considered. Some CBAs stipulate that retirees can enjoy retirement benefits, and those who resign voluntarily should also enjoy corresponding benefits.
(VII) Health Promotion Programs
Health promotion programs provided by employers to employees include: holding family planning seminars, conducting health and safety education, purchasing accident and life insurance, and providing worker skills training.
(VIII) Supplementary Benefits
Some CBAs also stipulate that employers provide employees with uniform allowances, loyalty awards, Christmas gift packages, etc.
Introduction to the Special Investor's Resident Visa (SIRV) in the Philippines 2012-03-12
The Board of Investments (BOI) of the Philippines is a national agency authorized to approve the Special Investor's Resident Visa (SIRV) issued by the Bureau of Immigration. Legitimate citizens of our country and their family members can apply for this visa, which grants you multiple entry privileges, permanent residency, and tax-exempt benefits. In fact, once you hold an SIRV, you can permanently reside in the Philippines.
Qualifications for applying for the Special Investor's Resident Visa:
* All foreign citizens (except citizens of countries without diplomatic relations with the Philippines and those restricted by the Department of Foreign Affairs) can participate in this program.
* The applicant's spouse and children (unmarried and under 21 years of age).
* Bank deposit requirement--The applicant needs to wire transfer or use a bank draft to open an account in a bank designated by the Philippine Board of Investments and deposit USD 75,000.
* Philippine Board of Investments application form (provided by us).
* Valid passport (with at least six months of validity) and a legal entry visa.
Timeframe for applying for the Special Investor's Resident Visa:
Applicants must enter the Philippines with a tourist visa to submit the above documents and deposit the aforementioned funds to us. After the documents and funds are completely verified without errors at http://flbym.533.com/, we will process the temporary resident visa for the applicant within 30 working days. The permanent resident visa will be issued after six months.
After the procedures are completed, you or your entire family will receive the SIRV special resident visa and all certificates issued by the Philippine Bureau of Immigration, becoming overseas Chinese. You and your family can freely enter and exit the Philippines, and your children can study there.
All the above documents and visas can be notarized by the Office of the President of the Philippines and the Department of Foreign Affairs, and authenticated by the Embassy of our country in the Philippines.
After ten years, you can apply for naturalization to become a Philippine citizen.
Investment report requirements:
As a holder of a Special Investor's Resident Visa, as long as the investment exists, the holder has the right to reside in the Philippines. To this end, they should submit an annual report in the prescribed format to prove that the investment is still within the Philippines. If the aforementioned foreigner withdraws the investment from the Philippines, their Special Investor's Resident Visa will be automatically terminated.
* Notarized certificate of no criminal record (for persons over 16 years old, valid for 6 months).
* Notarized health certificate (valid for 6 months).
* Notarized marriage certificate (valid for 6 months), if the spouse is joining.
* Notarized birth certificate of child(ren), if unmarried children under 21 years old who are still dependent on their parents are joining.
* 1x1 and 2x2 inch photos with a white background (6 copies each).
* Business name registration and other investment proof.
Note: The above notarized documents must be in both Chinese and English, in duplicate, and must be sent to the Provincial Foreign Affairs Office or the Ministry of Foreign Affairs for authentication before being sent to the Philippine Consulate in China for authentication.
