The Board of Investments (BOI) and the Department of Labor and Employment (DOLE) signed on Tuesday a joint department order that would require garment firms to secure labor standards compliance certification before they could participate in preferential trade arrangements.
This, according to the BOI, is a self-imposed restriction that is expected to “eventually become a competitive advantage” in the overseas market.
In a statement, the BOI said the order provided the guidelines for the issuance, suspension or revocation of certificates of accreditation for garments firms. The accreditation would last for three years unless either revoked or suspended by the BOI, which would act as the DTI Accreditation Board.
These accreditation guidelines would cover garment manufacturers, exporters, and subcontractors who want to avail themselves of preferential tariffs under the Generalized System of Preferences (GSP).
“Despite the changing landscape of global trends, the production of goods and services must still conform to international labor standards for market access. This order will help promote labor laws compliance and standards in the garment industry via certification and decertification mechanisms for companies who want to avail preferential tariff under the GSP,” said BOI Chairman and Trade Secretary Ramon Lopez in a statement.
A product of more than half a decade worth of consultations, the joint department order would make the certification mandatory for those availing themselves of privileges under the GSP and voluntarily for all other garment firms.
The BOI said the order called for a Workers’ Rights Review Committee, which would be composed of four members representing the Department of Trade and Industry, DOLE, the labor sector and the employers sector. The committee would audit the applicant’s compliance with labor standards and submit its findings and recommendations to DAB.
The order may later on pave the way for similar regulatory guidelines to be applied to other sectors, the BOI said.
“In discussing with the garments sector, we saw that this is initially self-restricting but it would eventually be a competitive advantage. This would ensure that products made in the Philippines are produced by workers who are treated well,” BOI Managing Head and Trade Undersecretary Ceferino Rodolfo earlier said.