Summary

In a country where the environment has emerged as a major public concern, a breakthrough was achieved when an industry leader and its union negotiated an environmental protection clause into their collective bargaining agreement. The Congress of Independent Organizations-Associated Labor Unions (CIO-ALU) reached an agreement with the San Miguel Corporation, the Philippines' largest company, which provides a framework for labor-management co-operation in all matters relating to the environment.

With no demand for any trade-offs, agreement was reached on environmental provisions which make a Labor-Management Committee responsible for programs on environmentally clean operations, protection and rehabilitation. This commitment to joint responsibility and action has laid the basis for mutual trust and harmonious relations on this matter, and countered widespread concern amongst employers that opening up collective agreement to environmental clauses would reduce flexibility and promote an adversarial relationship. It likewise, countered concerns amongst workers, that opening this area could have negative implications for such traditional bargaining concerns as wages.

The breakthrough also reaffirmed the strong leadership of the government of the Philippines, which was the first in Asia to establish a national body to coordinate a National Sustainable Development effort following Rio. It also profiled the valuable role played by the International Labor Organization which worked with the government as well as the two workplace parties to promote this breakthrough towards Agenda 21 goals.

The Participants: In the Workplace and Beyond

San Miguel Corporation (SMC), a multinational Philippine corporation, is the largest publicly-listed food, beverage, agri-business and packaging company in the Philippines and Southeast Asia, generating about 4% of the country's GDP and contributing about 6% of all government tax revenues. With over 30,000 employees and a market capitalization of over $US 5 billion, it is the country's largest employer, and according to business journals, "the closest business approximation to a national symbol". The company's principle of "Profit with Honor", is now being translated by its latest head, Robert Soriano III, into a commitment to the environmental protection.

San Miguel Beer holds more than 80% of the domestic Philippine market, and is one of the largest breweries in the world. As well, it accounts for 75 per cent of the country's soft drink, 66 per cent of the ice cream market, and supplies about 75 per cent of the country's glass and metal containers. It is now expanding its holdings with a massive program to acquire breweries and bottling plants in China, Indonesia and elsewhere in Asia.

The union involved in the San Miguel agreement is the Congress of Independent Organizations-Associated Labor Unions (CIO-ALU). With members across the country, it is primarily committed to a focus on economic benefits, rather than any explicitly political objectives. It is affiliated to the Trade Union Congress of The Philippines (TUCP), which is the country's major labor centre, and an affiliate of the ICFTU.

TUCP is an umbrella organization comprised of 50 affiliated labor organizations, together accounting for more than half the organized workers in the country. It has been active on the Philippines Committee on Strengthening the Role of Major Groups, and is committed to active participation as a collective voice for workers, women, the poor and youth in the political process, including legislative lobbying and mass action.

The Labor Advisory Consultative Council (LACC) is a coalition of labor groups composed of the Federation of Free Workers (FFW), Kilusang Mayo Uno (May Ist Movement), the Lakas Manggagawa Labor Centre (LMLC), the National Association of Trade Unions (NATU), Trade Unions of the Philippines and Allied Services (TUPAS), and Katipunan. While not very active in the Philippine Commission on Sustainable Development, the LACC has addressed concerns such as child labor, occupational health & safety and the environment, and has participated in several of the forums and activities taking place in the country.

The Philippine Business for Environment (PBE) is composed of large employers, and has a mandate to assist business with environmental concerns. It has focused on information campaigns and publications such as Business and the Environment, and on environmental training. The PBE has launched the Philippine Business Charter for Sustainable Development which promoted Codes of Management Practice, and the Industrial Waste Exchange, a database which seeks to match the waste from one enterprise with the raw material needs of another.

The International Labor Organization (ILO) has initiated activities in the Philippines in training, and partnerships on a tripartite basis through the Interdepartmental Project on Environment and the World of Work. It became involved in the sustainable development forum when it became clear that environmental factors made it increasingly difficult for the tripartite partners to meet the ILO's critical labor and social objectives.

Accordingly, the objective of the ILO's Environment and the World of Work Project is to improve the capacity of the ILO constituents to implement Agenda 21 World of Work activities in their country and regions, and to do so by through new approaches that strengthen their capacity.

The Employers' Confederation of the Philippines (ECOP) acted as the implementing agency for the ILO Interdepartmental Project. It is a confederation of businesses dedicated to environmental action, and has worked on several projects with the TUCP and NGOs.

The Philippines has a well-established network of NGOs, with some 900 registered as involved in environmental work. They are seen has having great potential for work with trade unions and employers' groups, especially in awareness raising, education and political pressure. Two major groups, the Haribon Foundation for the Conservation of Nature, and the Green Forum Philippines were instrumental in assembling the Philippine Environment Report which was presented to the UNCED in 1992.

The role of the Government of the Philippines

No account of environmental action in the Philippines could be complete without mention of the role played by the central government. The Department of Environment and Natural Resources (DENR) has initiated national action on the environment based on society-wide participation that is a model for other countries. This reflects the strong role citizens' action continues to play in the Philippine politics since Marcos, as well as the undeniable environmental challenge faced by that country today.

The DENR, for example, initiated the Philippine Strategy for Sustainable Development well before Rio, with many objectives related directly to the world of work, and has managed to maintain momentum through subsequent years. As well, the Philippine government was the first in Asia to establish a Council for Sustainable Development with a mandate to adopt the Philippine Agenda 21 and develop national sustainability plans.

DOLE is the government department mandated to look after the welfare of Filipino workers, including Safety & Health. As with much government activity after 1983, tripartism is actively promoted and practiced in all matters relating to employment and labor market policy.

The Context for Action on the Environment

By the late 1970's, severe environmental degradation in the Philippines had aroused a high level of concern amongst the general population. One summary of the state of the environment was provided in a 1993 Report by Philippine Business for Social Progress, which included:

• Stripped forest cover: from an original cover of 16 million hectares in early 1940's to only 6 million hectares today. In some regions, only 2.9 per cent of the total land area remains under forest cover, contributing to a serious water problem;
• Destruction of mangrove forests: the natural barrier between sea water and freshwater and breeding ground for fish is being lost at rate of 1000's of hectares a year;
• Depleted coral reefs; in fact, over 70% of all world's reefs now listed in fair to poor condition;
• Pollution; in particular, vehicular air pollution, which has soared in recent years;
• Solid waste; in Metro Manila alone, close to 3,400 tons are generated daily, of which an estimated 1,000 tons remains uncollected. Manila Bay's coliform count now exceeds the standard for recreational waters by a factor of 500, with rivers in the area listed as biologically dead.

The Report referred, as well, to factors that contributed to this ecological nightmare:

• The widespread belief that environmental degradation is necessary to cheaper production processes.
• A lack of information on evolving green technologies and practices that are competitive in medium/long-term.
• A lack of consumer awareness on the real and full cost of pollution.

Awareness of the advanced state of environmental degradation combined with a culture of participation and consultation to produce action. As a consequence, the Philippines led the way amongst the world's nations with a National Strategy for Sustainable Development (PSSD). Produced in 1987 by the Department of Environment and Natural Resources following multi-lateral consultation, it documented some of the effects of unsustainable production practices ranging from agriculture to factories, and set out strategies for change. It also contained a strong component on the world of work, as the participation of unions was well-accepted at all levels.

The Philippines also prepared for the Rio UNCED Conference in 1992 by holding a country-wide process of consultations involving all sectors: business and industry, employers and workers' organizations, and other groups, such as women, indigenous peoples, and the youth. These formed the basis of a national action plan for Sustainable Development, which became known as Philippine Agenda 21.

The adoption of Agenda 21 at Rio prompted the create of a national body in the Philippines to ensure and monitor the implementation of commitments made at the UNCED. The Philippine Council for Sustainable Development (PCSD) was created by Executive Order on September 12, 1992 to "Formally adopt the Philippine Agenda 21 and develop national sustainability plans." At the same time, the National Economic and Development Authority (NEDA) was directed to integrate Agenda 21 into its Medium-Term Philippine Development Plan to serve as a master plan for development to 1998. In addition, Local Government Units at all levels were directed to integrate Agenda 21 into their plans and programmes.

The PCSD is a multi-sectoral body chaired by the Director-General of NEDA with the Secretary of the DENR as Vice-Chair. Through "counterparting", it grants NGOs and "People's Organization" (including trade unions and employers' organizations) a role in decision-making. Its guidelines include "the creation of a critical mass of advocates for sustainable development in both government and non-governmental sectors." The PCSD itself brings together 16 government departments, as well as 7 representatives from NGO/PO's. Unions and employers' organizations sit on specific committees and sub-committees in a decision-making role.

The main goal of the Philippine Agenda 21 is "to ensure a healthy environment and a prosperous economy for current and future generations", but it recognizes the need to also address such related issues as: poverty and population, resource destruction, rapidly urbanizing areas, natural disasters and environmental degradation, biodiversity and biotechnology, energy, industry, debt relief, toxic and hazardous management, climate change, participation of major groups, and a lack of essential means. Thus key objectives and principles contained in Agenda 21 and the PSSD were expanded to include: Debt Relief; Technology Assistance on Man-Made and Natural Disasters; and Pollution Control. It also added Property Rights Reform to include Access to Resources.

The Philippine Agenda 21 emphasizes that participation of trade unions, along with other key groups, is crucial to planning and implementation of sustainable development. As a result, several joint projects have been undertaken by trade unions and business in the areas of public advocacy, education and training, policy reform, specific environmental and conservation programs and projects to strengthen the legislative and regulatory framework.

For trade unions, environmental action meant an extension of earlier efforts to win substantive and participatory rights in the area of occupational health and safety. The Filipino Labor Advocates on Safety and Health (FLASH) was organized in 1989, with support from both the TUCP and LACC, to spearhead information campaigns, training programs and policy, and legislative reform campaigns in occupational health and safety at the national, industry and local levels. Attention has now turned to winning the same rights with respect to the environment.

Early trade union activities included participation by the Associated Labor Union (CIO-ALU) in the Cebu Project in the Central Philippines. In this case, management provided a "Green Fund" to finance reforestation as part of a plan which involved a consortium of business, community and labor organizations. In another case, negotiations were held with the DENR to obtain 50 hectares close to Metro Manila to be used as an Ecology Site for education and training in environmental management. Another in Mindano, had unions and central bodies involved in research, consultation and policy advocacy for environmentally sustainable forest protection. Their experience was summarized and distributed as a primer, The Forest; Our Future.

Environmental Protection at San Miguel

Environmental language in the collective agreement between San Miguel and its union was proposed by the company in accordance with its Corporate Policy on the Environment. As it contained no counter-demand for any trade-offs, agreement with the union was reached quickly. These environmental provisions essentially make a Labor-Management Committee responsible for the implementation of programs on environmentally-clean operations, protection and rehabilitation. This commitment to joint responsibility and action has contributed to an atmosphere of mutual trust and harmonious relations in this area.

San Miguel's Corporate Policy on the Environment reflects Agenda 21 objectives. It reads in part:

San Miguel Corporation is committed to environmental protection and preservation as a requisite for sustainable development and for long-term socioeconomic benefits to present and future generations. Thus SMC actively contributes towards a clean and thriving environment for the well-being of its communities, employees, consumers and the nation. Total Environmental Quality is a key philosophy which reflects how SMC sources its raw materials and manufactures, packages, distributes and markets its wide range of products.

Consistent with its mission of responsible stewardship of the environment, SMC adopts a holistic approach by:

• exercising leadership in providing environment-friendly manufacturing processes, products and packaging;
• actively developing innovative and practical techniques in managing environmental issues related to its businesses and;
• supporting and implementing programs which involve the sustainable use of resources, waste management and pollution prevention.

To reinforce the above approach, we shall:

• heighten environmental awareness among our employees, and encourage them to take the lead roles in environmental quality within and outside their workplace;
• meet or exceed environmental standards and become a role model in regulatory compliance, while continuously enhancing our environmental technology;
• foster collaboration within the San Miguel Group, with external environmental groups, the government and our host communities to maximize the effectiveness of our initiatives and;
• share our environmental policy with various stakeholders as a potential positive influence on their own environmental responsibility.

Consistent with this policy, the employer has already implemented company-wide environmental programs promoting clean in-plant air, waste minimization and recycling, and reforestation as well as participating in some of the Green Initiatives sponsored by government and other groups. It also has planned a country-wide educational program for the environment for all of its employees to be launched in 1996.

In recognition that labor must play a key role in realizing and sustaining its environmental goals and objectives, the company chose the collective bargaining process to bind labor and management to the process. In the three bargaining units at SMC GMA, SMC Bacalod, and SMC Stock Transfer Services Corp., environmental provisions essentially provide responsibilities and powers to the Labor Management Committees to design and implement environmental programmes. One of the Agreements provides a separate article expressly stating the principle of joint commitment in this area.

Collective bargaining provisions for environmental action were piloted for collective agreements with the following bargaining units

Of the three, the most far-reaching provision was one that has already been negotiated and accepted for the Bacalod Brewery. It reads in part:

In compliance with the provisions of the Labor Code and its Implementing Rules and Regulations, and in order to enhance business competitiveness growth and employee welfare, and to further contribute to environmental protection and rehabilitation, a Labor-Management Council (LMC) shall be organized and shall be composed of an equal number of representatives from the COMPANY and the UNION.

The chairmanship of the LMC shall be for a fixed duration to be agreed upon by the parties and shall be held alternatively by the Management and the Union representatives. The LMC shall meet at least once a month or as often as necessary.

The LMC through joint consultation shall:

1. 1. Propose and oversee the implementation of programs and measures that shall promote and sustain the following;
   • environmental management: education and training,; health and safety-ensuring environment; cleanliness, pollution and emission control; efficient use or consumption of resources; other environmental protection and rehabilitation programs. .....

As this agreement has just been signed, concrete results have yet to be seen. Actual implementation of the intent of this general language in the Agreement will be established by the Labor-Management Committee. Local members are confident, however, that the healthy industrial relations climate which has been established for their plant will be maintained. They overwhelmingly endorsed the article, because it asked for no trade-off from the union, and because they recognized the need for joint action on the environment.

As well, in past years, communities surrounding their brewery have been complaining of offensive smells emitted from their plant, as well as sugar plants in the area. Because workers at all these plants belong to one Federation under the umbrella of TUCP, it was possible to take action immediately to settle the problem. Government intervention was unnecessary because of the joint commitment by management and the union to environmental action, and particularly the willingness of the company to invest resources to carry out its stated policies.

Agenda 21 Objectives and Lessons

The San Miguel experience illustrates the premise in Agenda 21 that, because most environmental problems arise at the workplace, workers and industry must take leadership to make sustainable development a reality. As explained in Chapter 29, collective bargaining provides a logical starting point for labor-management cooperation on environmental action because it is an established mechanism recognized by all actors in the workplace.

As such, it gives force to the principle in Chapter 29 that full participation of employees and their representatives is a necessary prerequisite to successful environmental action involving the workplace. It secures this principle in a collective agreement as the interest of both parties, rather as a program that could be unilaterally withdrawn as a management right. Workers cannot escape the close link between a healthy workplace and a clean environment, which is why the goal of full employment which contributes to sustainable livelihoods in safe, clean and healthy environments, at work and beyond.

This case illustrates how responsible entrepreneurship can play a decisive role in as provided in Chapter 30, (Business and Industry). SMC's corporate policy on the environment is reinforced in a company-wide program, and by participation in other green initiatives involved in a robust national initiative. This case provides a strong reminder, therefore that sustainable development strategies must include the promotion of workers' rights to association and participation.

A crucial element in this openness and dialogue with employees and the public. This case also illustrates the variety of measures that are available to employers and their workers in making the transition to sustainable forms of development and lifestyles, once it is recognized that economic activity must change course to a new forms of environmentally sound-economic development.

It displays the importance of government leadership in launching broad-based consultative mechanisms for action on the environment that involve NGOs and people's organizations. The Philippines is in the process of rebuilding, and is demonstrating that a key to long-term economic progress is a link to environmental protection. This happens best where nations establish a new and equitable partnerships involving governments, their people, and key sectors of societies.

This case proves that an international organization can play a valuable role in facilitating tripartite action around Agenda 21 goals, as stated in Chapter 38. The International Labor Organization played a key role in bringing government together with the workplace parties to achieve this breakthrough, showing how the United Nations system can guide the restructuring and revitalizing required in economic, social and related fields.

This case illustrates how human health depends upon a healthy environment, including clean water, sanitary waste disposal, and an adequate supply of healthy food as shown in Chapter 6. This is especially true where urban growth has outstripped normal mechanisms, as shown in Chapter 7, which explains that by 2000, half of the Earth's people will live in cities, given current patterns. Action being taken in the Philippines illustrates Chapter 10 (Managing Land Sustainability) and Chapter 18 (Protecting and Managing Fresh Water) both of which are critical for the healthy functioning of nature.

Whereas past economic decisions have separated economic, social and environmental factors, links must now be made in order to make development choices that are economically efficient, socially equitable and responsible, and environmentally sound. As provided in Chapter 8 the Philippine government has initiated sustainable development strategies that move decision-makers from narrow sectoral approaches. It also shows that changes in policy-making will require changes in information gathering, management techniques and planning.

The Philippine case also illustrates the point of Chapter 27, as non-governmental organizations have played a decisive role in the shaping and implementation of policy in the Philippines. They have proven their ability to play such a role because of their independence from government as well as diverse and well-developed expertise in fields needed to implement sound and socially responsible sustainable development.

For further information contact

The General Secretary
TUCP-PGEA Compound
Maharlike and Masaya Streets
1101 Dillman
Quezon City 3008, the Philippines
tel. 632-922-2185 fax: 632-921-9758