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By Ma. Alyanna Selda
IFTIKHAR ALAM | DREAMSTIME.COM
OUNTRIES in the AsiaPacific region, including the Philippines, must integrate principles of decent work into their national trade standards if they want to drive and sustain economic growth, an expert said.
Collaboration
NADVI noted the gaps in how people understand public policy, saying that none of the regional and bilateral trade agreements among global south partners contain an explicit social clause. Such agreements, he observed, rarely extend beyond compliance with national labor laws, adding that enforcement of these laws remains weak. For Nadvi, collaboration is important between stakeholders, private companies and government agencies in formulating effective and sustainable trade standards. “In some countries in the global south, you see states and private actors coming together to develop sustainability standards.” “In this region you have Asean. Asean can be a very important player and you have to also think about how bringing together regional organizations to develop collective responses can actually improve the ability to develop the new rule spaces.” The Philippine labor department’s National Wages and Productivity Commission Technical Service Director Jerome Yanson shared the same sentiment, saying that the country’s strategic compliance plans are developed through a tripartite process that involves labor groups, employers
Khalid Nadvi, International Development Professor, on technology and the workforce: “We need social protection measures and skills training to navigate the opportunities and challenges AI and digitalization bring.”
and relevant agencies, including local governments. Yanson cited Mindanao’s aquaculture sector, wherein a local industry tripartite council was established to strengthen social dialogue and oversee the implementation of compliance plans that would improve labor standards and productivity. “In the Philippines, as a developing country, we rely on supply chains for economic activities to drive innovation, to create employment opportunities and, of course, to promote sustainable development. So to achieve this, we are guided by our principle that economic activities must always be balanced with protection and promotion of workers’ rights and welfare,” Yanson said.
Labor inspectors, microenterprises
DOLE’s technical and advisory visits, according to Yanson, also rely on cooperation with microenterprises, which make up the bulk of Philippine businesses. He said inspectors work directly with owners to assess compliance, develop months-long action plans and provide technical assistance to help small businesses meet labor and safety standards. “So the action plans also include interventions like, of course, social protection services, occupational safety and health standards and even productivity interventions. They all need these interventions because these microenterprises are actually crucial to the economy of the Philippines.” This approach, he said, encourages voluntary compliance and strengthens the role of microenterprises within supply chains. In November last year, the Philippines became the 151st member state to ratify ILO’s Convention No. 81, which sets out requirements for a national labor inspection framework to enforce laws on working conditions in both industrial and commercial workplaces. The Philippine labor department was able to conduct a total of 97,150 labor inspections consisting of technical visits, regular assessments and workplace safety
WALK THE TALK
ILO challenges Asia-Pacific countries to integrate decent work into national trade standards if they want to sustain growth
investigations from July 2022 to March 2025. “We saw the need to focus on microenterprises because these are dominant forms or business forms in the country, in the Philippines.... And more importantly, we believe that when they comply with labor standards, it will help facilitate their full integration into the supply chain,” Yanson said.
Challenges
STILL, Nadvi said challenges remain in the labor sector as technological innovations continue to reshape the workforce. According to him, digitalization, robotics and advanced artificial intelligence (AI) tools are driving a reduction in employment in manufacturing, raising concerns about the future of jobs.
“So we need to think about appropriate social protection measures to offset such impacts on labor from new technologies. We also need to think about appropriate skills training to engage with the technological revolution and with the opportunities that AI offers and the challenges that AI will impose.” At the same time, the rapid growth of the informal and gig economy presents additional challenges for promoting decent work, said Nadvi. The World Bank estimates that the gig economy now accounts for up to 12 percent of the global labor market, with demand continuing to rise, particularly in developing countries. In China, more than 200 million workers participate in gig work, representing roughly a quar-
ter of the nation’s workforce. The gig economy in the Philippines has also seen growth, especially during the Covid-19 pandemic. According to the Philippine Statistics Authority (PSA), approximately 9.9 million Filipinos were engaged in gig work as of 2022, comprising about 22 percent of the total employed population of 44 million. Gig work in the Philippines spans multiple sectors, including retail, agriculture, construction, administrative services and personal services. While PSA noted that 17 percent of gig workers are engaged through online platforms or mobile applications, the majority work in private establishments or operate as self-employed individuals. With the growing gig employ-
ment in the Asia-Pacific, Nadvi called for a deeper understanding of how labor standards can be upheld in these expanding sectors to ensure that workers are protected even outside traditional employment structures. The discussion was part of ILO’s forum on “Emerging Trends in Supply Chains in Asia-Pacific,” which brought together policymakers, labor groups and industry representatives to examine challenges and opportunities in creating sustainable and resilient supply chains in the region. ILO is a United Nations agency that sets international labor standards and facilitates dialogue among governments, employers, and workers to develop policies on employment, social protection and workplace rights.
PESO EXCHANGE RATES n US 57.0570 n JAPAN 0.3857 n UK 77.3750 n HK 7.3363 n CHINA 8.0218 n SINGAPORE 44.5097 n AUSTRALIA 37.7261 n EU 67.2588 n KOREA 0.0411 n SAUDI ARABIA 15.2140 Source: BSP (September 19, 2025)
PRZEMYSŁAW NIEPRZECKI | DREAMSTIME.COM
Khalid Nadvi, an international development professor at the University of Manchester in the United Kingdom, raised the need for regional governments to “step outside the box” and tap into the role of decent work in trade standards. “Decent work, by generating sustainable employment, rising income and workers’ rights, can and will drive economic growth,” Nadvi said in a forum hosted by the International Labour Organization (ILO). He cited Indonesia as an example, noting how its highest standard on its palm oil industry is now gaining global recognition despite being a counterpoint to the standards set by the global Roundtable on Sustainable Palm Oil. “By incorporating elements of labor and environmental concern . . . into their standard, they were able to give it credibility in ways that grow purchase among global buyers,” he said. He also noted the rise of regional standards developed by other countries in the Asia Pacific region. “Many of these developments have weaknesses in them, especially on enforcement mechanisms, but they point to a growing trend and recognition that in emerging economies, standards do and will matter.”