OFF THE BEATEN PATH
Following the recent wave of national pride, a fitting postscript would be to examine the realities of our informal workers and the gig economy. The state, akin to a parental figure by virtue of parens patriae, is endowed with the responsibility to nurture the well-being of all Filipinos. That scope necessarily includes those who contribute to the national progress through less conventional avenues.
There is never a wrong time to address the plight of our informal workers. Guided by the International Labor Organization’s broad definition of informal economy as referring to “all economic activities by workers and economic units that are – in law or practice – not covered or insufficiently covered by formal arrangements,” one does not need statistical data if the question is whether the informal workers have ubiquitous presence in this jurisdiction. The pandemic made them more visible. To what figures one may find, we can be assured that these have exponentially increased during the pandemic that saw the rise of the gig economy. By gig, we describe a labor market that relies heavily on temporary and part-time positions filled by independent contractors and freelancers rather than full-time permanent employees. For this subset of informal workers, the same can be said. They hustle in plain sight and more importantly, this multitude is not just statistics.
Last month, we commemorated 50 years of the Labor Code. Extensive and representative of trade unionism, collective bargaining and compulsory arbitration – markers of a protected workforce, this framework largely focuses on codifying established labor standards and regulations. Unfortunately, these safeguards only apply to the formal economy, leaving informal workers like gig workers without coverage. Put differently, in a world that is continually shaped by modern work models like the gig economy, is the Labor Code still equipped to handle the realities of the workforce?
The informal economy is often a forced entry point for workers with limited options. The first and most impactful consequence they have to live with is the lack of security of tenure. Without the years of experience or specific skills due to limited educational opportunities, these workers rely on the strategies of an underdog or in the vernacular, “diskarte”, to make ends meet. However, “diskarte” can only go so far. It translates to longer hours, unpredictable pay, and minimal to no benefits, leaving them vulnerable and constantly hustling for their next job. We are not yet discussing the occupational hazards they face on a daily basis.
Those workers in the gig economy, a subset of the umbrella described above, are identified by their platforms in general as partners or as third-party service providers. The legal designation of these freelance workers as independent contractors excludes them from the protection and benefits afforded to employees under the Labor Code.
While the current legal landscape acknowledges the informal sector (e.g., R.A. No. 8425, the Social Reform and Poverty Alleviation Act), the true test lies in translating recognition into action. Policies like the National Health Insurance Act (R.A. No. 10606) and the Universal Health Care Act (R.A. No. 11223) offer a glimpse of progress towards social protection for all Filipinos, regardless of employment status.
The recent case of Ditiangkin v. Lazada E-Services Philippines, Inc. (G.R. No. 246892, 21 September 2022) demonstrated the much-needed shift in addressing labor controversies. The High Court in interpreting the law that defined the contractual relationship of the gig workers involved considered not only the express terms of the contract but waded through the nature of the work by looking at the factual circumstances of their engagement. The “two-tiered test” in the determination of employment relationship was applied in a manner consistent with the constitutional mandate of giving full protection to labor. Deemed a game-changer as this is the first Supreme Court decision involving e-commerce and digital economy labor, its instructive effect cannot be downplayed. If that is not social justice one can taste in the everyday lives of those affected, I do not know of any other way to name it.
The worst response is that of the uncaring Filipino. #TogetherWe should work toward securing labor rights. At its core, this is a question of society’s moral responsibility to secure the dignity of labor and the laborer. And together, we need to show that we can rise to the challenge, with the rallying cry “Manggagawa naman!”