Business Consulting BlogPhilippines may be forced soon to amend the 1987 constituition or get left behind

January 23, 2014

There are many reasons why the 1987 constitution of the Philippines needs to be amended to reflect the current state of the economy and the globalization of the world. As well as to encompass the social freedoms now enjoyed by the entire world in the 21st century. This post will highlight one of the top reasons for the change. The restriction of foreign nationals in certain employment positions within the Philippines.

The constitution not only bars foreign ownership of land and restricts the amount of foreign ownership allowed in corporations that deal in certain sectors. The constitution also protects through the foreign investment negative list about 4o jobs that only Filipinos may perform. Not only has this been proven in other developing countries as a the incorrect way to ensure that our local professions are operating at an internationally competitive standard but now we have run into another problem.

Philippines has a labor shortage. Recently the Department of Labor and Employment conducted a study across the Philippines and identified 110 hard to fill jobs. This list was later this list was reduced to 40 jobs that are needed and cannot be sourced locally. Included in this list are :

  • architect
  • chemical engineer
  • chemist
  • environmental planner
  • fisheries technologist
  • geologist
  • guidance counselor
  • licensed librarian
  • medical technologist
  • sanitary engineer
  • computer numerical control machinist
  • assembly technician
  • test technician
  • pilot and aircraft mechanic

Some of these positions are protected only for Filipino nationals in the Foreign Investment Act, which begs the question. How would it be possible to allow these positions to secured by foreigners.  Without workers filling these positions the Philippines shrinking industrial sector may soon vanish completely. The only way to open up these positions is through charter change.

Additionally to be figured into the equation is ASEAN integration which also requires the employment of ASEAN members in each other’s countries. This will also force the legislative and executive branches to finally push for Charter Change.

For any additional information regarding labor or employment laws in the Philippines, you may contact us.

Triple i Consulting is the first and only ISO 9001:2008 Business Consultancy in the Philippines, specializing in business registration, fda consulting, environmental regulation, accounting and payroll processing in the Philippines.

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