PhilippineCommissiononWomen Policy Brief No.

ExtendingSocialProtectionforWomenintheInformalSector: ENACTINGAMAGNACARTAOFWORKERSINTHEINFORMALECONOMY

Thispolicybriefprovidestherationaleandrecommendationsforupholdingtherightsofworkersintheinformaleconomy, majorityofwhomarewomen,throughtheenactmentofaMagnaCartaofWorkersintheInformalEconomy.

WHAT IS THE ISSUE? InformalemploymentinthePhilippineshasbeena wayoflifeformanyFilipinos.Manyworkerswholose theirjobstendtofindrefugeintheinformaleconomy, whichprovidesthemameansofeconomicsupport. Forlackofproductiveemploymentopportunities,the jobseekersareforcedtoseekshorttermortemporary employmentorcreateemploymentforthemselvesfor survivalorincomeaugmentation.1Tosomeextent, thisconditionmusthavehelpedkeeptheeconomy resilientaslaidoff/unemployedworkerseasilyshiftto smallscalehouseholdproductiontoearnaliving.2The NationalStatisticsOffice's2013LaborForceSurvey resultsshowthatworkersintheinformaleconomy reached16.088million,or42.53percentofthe countrysworkingpopulationof37.819million workers.3 Thegrowthoftheinformalemploymentcanbe attributedtothelargeportionthathascomefrom womeninselfemployment.Thefeminizationof povertyanddiscriminationmeanthatthemost vulnerableandmarginalizedgroupstendtoendupin theinformaleconomy.Womenaremorelikelyto moveinandoutofthelaborforcebecausetheyare morelikelytoberequiredtobalancethedemandsof domesticandchildrearingactivitieswiththeirincome generatingactivities.4Giventheroletobalance productiveandreproductivework,womendecideto toleratesmallincome,poorworkingenvironment,and evenexploitativeworkarrangements,normally experiencedwhileworkingintheinformaleconomy.
1

Pastrana,CleofeS.TheInformalSectorandNonRegular EmploymentinthePhilippines,2009 2 Domingo,EstrellaV.MeasuringtheNonObservedEconomy (NOE):ThePhilippinesexperience,2004 3 NationalStatisticsOffice.LaborForceSurvey,2013 4 WomensLegalBureau.ResearchintheConsistencyofNational LegislationonWomenandChildrenwithMajorInternational HumanRightsCovenantsSignedbythePhilippineGovernment, 2008

WHY IS THE ISSUE IMPORTANT? Contrarytotheusualnotion,theworkersinthe informaleconomyareproductiveandcontributea significantshareinthecountryseconomy.The informalsectorin2006accountedfor61percentof theGrossDomesticProduct(GDP)ofthePhilippines, representingalmostP4billionincome.5 However,workersintheinformalsectordonot receivesufficientsocialprotectionandbenefits,and theirinvisibilityinthecountryseconomycauseslack ofaccesstoeconomicopportunities.Specifically, womenintheinformaleconomyarevulnerableto variousformsofexploitation.Theyareathighriskin timesofillness,disability,workinjury,maternity, unemploymentandoldage. Mostwomenintheinformaleconomyarealso underservedbygovernmentfinancialinstitutions, mainlybecausethecostofdeliveryishigherthanthe capacityofwomentomeetthestringent requirements.Thelackofaccesstoproductive resourcesisoftencharacterizedbypoorinfrastructure ascommunicationfacilities,transportandpoor farm/factorytomarketroads. Womenarealsoexposedtoworkingenvironmentnot protectedbyhealthandsafetystandards.Poor workingconditionsmakethemvulnerableto occupationalhealthandsafetyhazards. Thelackofrepresentationingovernanceanddecision makingstructuresisalsoapressingissuethatwomen intheinformaleconomyface.Theyareusually excludedorunderrepresentedinthedecisionmaking processes,andtheylackopportunitiestohaveavoice incraftingpoliciesorprograms.WhileNGOssuchas AllianceforWorkersintheInformalEconomyor
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NationalStatisticalCoordinationBoard(2006).Informal EmploymentandInformalSectorDataCollection:Strategy,Tool andAdvocacy,2007

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MagnaCartaforInformalSectorAllianceadvocatefor theneedsoftheinformalsector,thespecificneedsof womeninthissectorhastoberepresentedthrough policyinterventions.

WHAT ARE THE EXISTING LAWS OR POLICY ISSUANCES RELATED TO THE ISSUE?

marketproducersofservices.Laborrelations, wheretheyexist,arebasedoncasual employment,kinshiporpersonalandsocial relationsratherthanformalorcontractual arrangements.6 R.A.10606ortheNationalHealthInsuranceActof 2013ensuresPhilhealthcoverageforallFilipinos, includingmembersoftheinformaleconomy.Section5 ofthesaidActmandatestheenrolmentofmembersin theinformaleconomytoavailofhealthbenefitswith theassistanceofthefinancialarrangementsprovided byPhilhealth.Thelawalsoallocatedaseatinthe BoardofDirectorsofPhilhealthforapermanent representativefrommembersintheinformal economy.
WHAT ARE THE EXPERIENCES OF OTHER COUNTRIES IN ADDRESSING THE ISSUE?

The1987PhilippineConstitutionmandatestheState toensurethewelfareofallworkers.ArticleII,Section 9declaresthatTheStateshallpromoteajustand dynamicsocialorderthatwillensuretheprosperity andindependenceofthenationandfreethepeople frompovertythroughpoliciesthatprovideadequate socialservices,promotefullemployment,arising standardofliving,andanimprovedqualityoflifefor all. R.A.8425ortheSocialReformandPovertyAlleviation Actisthefirstnationallegislationtorecognizethe informalsector,throughitsinclusionasoneofthe basicsectors.Itdefinesworkersintheinformalsector aspoorindividualswhooperatebusinessesthatare verysmallinscaleandarenotregisteredwithany nationalgovernmentagency,andtotheworkersin suchenterpriseswhoselltheirservicesinexchangefor subsistencelevelwagesorotherformsof compensation. Adoptingthedefinitionsformulatedbythe15th InternationalConferenceofLaborStatisticians,the DelhiGroupandtheILOUNDPProject,theNational StatisticsCoordinationBoard,throughResolutionNo. 15Seriesof2002,releasedtheofficialdefinitionofthe informalsector: Theinformalsectorconsistsofunitsengaged intheproductionofgoodsandserviceswiththe primaryobjectiveofgeneratingemploymentand incomestothepersonsconcernedinorderto earnaliving.Theseunitstypicallyoperateata lowleveloforganization,withlittleorno divisionbetweenlabourandcapitalasfactorsof production.Itconsistsofhousehold unincorporatedenterprisesthataremarketand nonmarketproducersofgoodsaswellas

InIndia,theNationalCommissiononLabourhasbeen workingondeveloping,implementingandenforcing nationallaborlegislationfortheinformalsector.The Commissiondecidedtorecognizeinformalworkers andtoformulateandumbrellalegislationforthe sector.7 ArecentexamplefromKenyaisthattheNairobiCity Council(NCC)hasstartedtoregisterallstreethawkers inNairobiandwhethertheyhavepaidtheirfeestothe NCC.Themajorachievementofthisregistrationisthat thesetradershavesomewheretoturniftheyare harassedbytheNCCorothercivilservants.8 In1996,theShanghaiMunicipalGovernmentinChina initiatedaschemeofinformallabourorganisations comprisedbyindividualventuresorsmallfirms.The MunicipalGovernmenthasissuedspecialprotective measuresandpoliciessuchassocialinsurance, trainingopportunitiesforemployersandemployeesof theinformaleconomy,preferentialtaxpolicies,risk insurance andcreditsupportwiththeCity
6 7

http://www.nscb.gov.ph/resolutions/2002/15_1.asp WIEGO.APolicyResponsetotheInformalEconomy,2001 8 Becker,KristinaF.TheInformalEconomy,2004

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EmploymentPromotionFundasguarantoraswellasa providerofvoluntarysupportfromexperts.9 WHAT ARE THE CONSIDERATIONS IN ADDRESSING THIS ISSUE IN THE COUNTRY?
Promoting womens rights and gender equality Genderplaysakeyroleintheinformaleconomy, whichabsorbswomenwhohavebeenamongthefirst tobedisplacedfromformalwork,especiallyinthe garmentsindustry,asglobalizationprogressed.10 Inequalitybetweenmenandalsowomen encompasseshumancapitalandeconomic opportunities. Theunderlyingissueonwhymorewomenareinthe informalsectorstillliesontheunequalaccessofmen andwomentoopportunitiesandresources.Inour culture,theroleofawomantobetheilawng tahanan(lightofthehousehold)reflectshowshecan besacrificialtofulfillhermultipleburdensandsettle forlowandunstableearningsjusttoensurethe welfareofthefamily.Laborsegmentationisalsofound intheinformaleconomy,aswomenaremostlyhome workersorunpaidfamilyworkerswhilemenare informalwageworkersoremployers.11

presentCovenantrecognizetherightofeveryoneto socialsecurity,includingsocialinsurance. ItisalsoinconsonancewiththeMillennium DevelopmentGoaloferadicatingextremepovertyand hunger,onetargetofwhichistoachievefulland productiveemploymentanddecentworkforall, includingwomenandyoungpeopleby2015.

Alignment with National Priorities Upholdingtherightsofworkersintheinformal economyisinconsonancewiththePhilippinePlanfor GenderResponsiveDevelopment(19952025)which identified(asastrategytoaddresstheissuesinthe informalsector)thepursuanceofstrictandeffective enforcementofnewlawscoveringtheinformalsector toimprovetheworkingconditionsoffemalehome workersandtouplifttheirlivingconditions. Itisalsoinpursuancewiththegovernments16point agendawhichincludeitem13,fromalackofconcern forgenderdisparitiesandshortfall,tothepromotionof equalgenderopportunityinallspheresofpublic policiesandprograms.anditem2Froma governmentthatmerelyconjureseconomicgrowth statisticsthatourpeopleknowtobeunrealtoa governmentthatprioritizesjobsthatempowerthe peopleandprovidethemwithopportunitiestorise abovepoverty.

Becauseoftheexistinggendergapinwageand benefitsofworkersintheinformaleconomy,itis necessarytoaddressitbyensuringalegislationthat willprovideequalaccesstosocialprotectionforboth menandwomen. Responding to International Commitments TheenactmentofaMagnaCartaofWorkersinthe InformalEconomywouldbeconsistentwiththe InternationalConventiononEconomic,Socialand CulturalRights(ICESCR)whichthePhilippine governmentratifiedin1974.Specifically,Article9of theICESCRstatesthatTheStatePartiestothe
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TheenactmentofaMagnaCartaofWorkersinthe InformalEconomywasalsoidentifiedaspriority legislativemeasureasintheSocialDevelopment ChapterofthePhilippineDevelopmentPlan.

POLICY RECOMMENDATION Thebigmajorityofworkersintheinformalsectorwho aremostlywomenarenotcoveredbytheLaborCode andotherlegislationthatcouldprotecttheirrights. ThePhilippineCommissiononWomen(PCW)pushes fortheenactmentofalawthatprovidesforthe protectionandempowermentoftheFilipinowomenin theinformalsector.PCWadvocatesforthepassageof theMagnaCartaofWorkersintheInformalEconomy (MACWIE)that: 1. Promotesthetotalwellbeingofall workersintheinformaleconomyand ensurestheirhumandignity,economic

HowellJ.,GoodPracticeStudyinShanghaionEmployment ServicesfortheInformalEconomy,2002 10 Ofreneo,RosalindaP.EconomicandReproductiveJusticeinthe ContextofWomenintheInformalEconomy,2010. 11 Chen, Martha et.al. Mainstreaming Informal Employment and Gender in Poverty Reduction A Handbook for Policymakers and OtherStakeholders,2004

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advancementandaccesstojusticeby providingtimelyservicesincludingsocial, political,economicandlegal; 2. Recognizes,promotes,protectsandfulfills therightsofeveryworkerintheinformal sectorincludingtherighttoself organization,decentwork,justand humaneworkingconditions,andaccessto socialprotection; Recognizestherolesandcontributionsof workersintheinformaleconomyand makethemvisibleinthenationalandlocal statistics; Developsandenhancestheir entrepreneurialskillsandcapabilitiesto becomemoreproductiveandselfreliant citizenstherebyensuringparticipationin mainstreameconomicactivities; Promotesgenderequityandequalityand protectwomenworkersintheinformal economyagainstgenderbased discrimination,exploitationandabuse;to advancewomenssocial,economic, political,andreproductiverights;and improvetheiraccesstosocialprotection andparticipationindecisionmaking bodies;

3.

TheMACWIEcanbeacomprehensivelegislationthat addressestheneedsoftheworkersintheinformal economy,andensuresthattheyenjoytherightsthat workersintheformaleconomyhave. MACWIErecognizestheneedtopromotegender equityandequalityandtheprotectionofwomen workersintheinformaleconomyagainstgender baseddiscrimination.Itrespondstotheneedsand issuesofwomenintheinformaleconomyasit providesfinancialassistancetowomenledlivelihood initiatives;enhancesparticipationofwomenin decisionmakingprocesses;developssex disaggregateddatabase;andprovideswomenfriendly policiesandstandards.
CONCLUSION Womenworktwothirdsoftheworldsworkinghours, producehalfoftheworldsfood,yetearnonly10 percentoftheworldsincomeandownlessthan1 percentoftheworldsproperty.12Addressingthe conditionsofwomenintheinformaleconomy contributestopovertyreduction,improvinglivesofa largeportionoftheworkingpopulationinthe Philippines.Whenlivingandworkingconditionsof femaleinformalworkersimprove,sodoestheir productivity,whichleadstoincreasedincome, contributestooveralleconomicgrowth,andreduces povertyinthelongterm.13Itishopedthatour legislatorswillfinallypassalawthatwillpromote, protectandupholdtherightsofinformalsector workersthroughtheMagnaCartaofWorkersinthe InformalEconomy.

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PCWPolicyBriefsaimtostimulateinformeddiscourseandguidepolicyactionsonissuesconcerningthe empowermentofwomenandpromotionofgenderequality.
OFFICEOFTHEPRESIDENT

PhilippineCommissiononWomen 1145J.P.LaurelStreet,SanMiguel,1005Manila http://www.pcw.gov.ph|pdad@pcw.gov.ph|+6327358918

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MessagefromNaviPillay,UNHighCommissionerforHuman Rights,HumanRightsDay2009 13 Bertulfo,Lota.Womenandtheinformaleconomy,2011

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