MANILA, Philippines — President Rodrigo Duterte has signed the government’s pandemic employment recovery plan without approving a key proposal: a P24-billion wage subsidy to save 1 million workers from joblessness.
Executive Order No. 140, a copy of which was released by Malacañang on Tuesday, officially adopted the National Employment Recovery Strategy (NERS) that was formulated last year.
It also institutionalized the 20-agency NERS Task Force formally organized in February and chaired by the Department of Trade and Industry, that would implement the labor market recovery strategy this year up to 2022.
According to the Department of Labor and Employment (Dole), EO 140 will “strengthen” the implementation of the eight-point employment recovery agenda.
The top proposal of the NERS Task Force, however, called for a P24-billion program to retain 1 million workers through a monthly subsidy of P8,000 over three months.
No wage subsidy
Although the Bayanihan 3 emergency measure approved by the House of Representatives on June 1 provided for a wage subsidy, it was not among the Legislative Executive Development Advisory Council’s priority bills, the Dole said.
But it added that the matter would likely be resolved during the task force’s next assembly.
The President said that NERS would create a policy environment to encourage the generation of more employment opportunities with improved access to livelihood and and training programs.
Labor displacements
It was also expected to improve the employability, wellness and productivity of workers on top of the maximization of opportunities in the labor market under the new normal.
At the same time, it would provide support to existing and emerging businesses, and the security and preservation of employment.
Mr. Duterte earlier noted the economic effects of the pandemic on micro, small and medium enterprises and labor markets. He said that automation measures adopted by some companies to cope with lockdowns and quarantine restrictions would also likely result in further labor displacements.
Action plan
The NERS Task Force shall formulate, promote and oversee the implementation of the NERS action plan, taking into consideration the changes in the labor market caused by the pandemic and the “fast” adoption of new technologies.
It will also evaluate the action plan every three months to determine its effectiveness and recommend measures to address gaps in the implementation.
NERS was approved on Feb. 22 by the President, who ordered the drafting of an EO to institutionalize the jobs recovery plan. He was expected to sign the EO during the Job Summit on May 1.