The Philippines could lose some $500 million in export sales if local companies fail to comply with existing labor laws, the Department of Labor and Employment (DOLE) yesterday warned.
By Mayen Jaymalin, The Philippine Star
Posted at 05/06/2015 7:43 AM
MANILA – The Philippines could lose some $500 million in export sales if local companies fail to comply with existing labor laws, the Department of Labor and Employment (DOLE) yesterday warned.
Labor Secretary Rosalinda Baldoz stressed the need for local producers to comply with labor regulations in order for the country to remain competitive and lure more foreign buyers.
Baldoz was informed by the Foreign Buyers Association of the Philippines (FOBAP) that foreign buyers are looking at other Asean countries and will not buy from the Philippines if goods are not produced from socially compliant companies.
“FOBAP sees that the country could lose $500 million in export sales for non-compliance with labor laws and social practices of local producers,” Baldoz said.
Baldoz said local producers must observe basic human rights, no child labor policy, labor and management agreement practice, correct wages to remain in business.
Since last year, Baldoz said, the DOLE has been implementing the Labor Laws Compliance System (LLCS) to encourage local companies nationwide to comply with regulations.
More foreigners are expected to come and buy local products as a result of the Asean 2015 integration.
Last week, FOBAP forged an agreement with DOLE to ensure that export companies are fully compliant with regulations and that the export industry is ready and capable for the ASEAN integration.
FOBAP said compliace with labor laws is an important requirement for foreign buyers.