Post-Martial Law Amendments to Labor

Towards the end of the martial law, the country suffered severe debt, graft, and corruption. Inflation and unemployment rates were high and the economy was declining, during which the country shifted from economic unionism, which focused on enterprise bargaining and legislative lobbying, to political unionism, which is direct political work and action. 1986 marked a period of insurgency wherein anti-Marcos forces united to topple the Marcos regime due to the heightening labor unrest and alleged regime violence and electoral fraud.

Following this, Cory Aquino became president and abolished the militancy of the trade union movement. Her administration produced a temporary “Code of Industrial Harmony” which corrected the supposed oppressive labor laws during the Marcos administration. Certification elections for unions reduced their requirements and strikes were easier to call and were less hindered, receiving criticism from employers for being too pro-union. Some amendatory laws included Republic Act No. 6715 or the Herrera-Veloso Law, which broadened the scope of grievances and extended the jurisdiction of voluntary arbitrators, and Republic Act No. 6727, or the Wage Rationalization Act, which further expanded this jurisdiction. They also established a labor center with the KMU known as the Labor Advisory Consultative Council (LACC). Trade union activity and the labor movement shifted back to economic unionism during the presidency of Fidel Ramos in 1992. Political unionism was institutionalized through the appointment of labor sector representatives in congress and the creation of more tripartite bodies. The Philippine economy moved to trade liberalization and globalization after the World Bank-IMF structural adjustment programs post-Marcos presidents initiated. This, along with labor exportation systemized by the labor code, defined the Philippine economy moving forward.