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CHAPTER I

1.0 INTRODUCTION

1.1 Statement of the Problem / Opportunity (Research Question)

This capstone research aims to determine the effectiveness and efficiency of Lighthouse

Cooperatives' inventory management practices in the Office Supplies Department

Specifically, this study sought to answer the following:

1. What inventory management strategies can be implemented within the

Office Supplies Department of Lighthouse Cooperatives to achieve cost
optimization (minimizing unnecessary expenses) and improve operational
efficiency?
2. What strategies can be implemented to achieve and maintain efficient
operations?

What inventory management methods are most effective in optimizing the office supplies

department at Lighthouse Cooperatives compared to current practices?

1.2 Background, Context, and Significant of the Study

One of the regulatory agencies of the government in providing direction

and protection to both the employers and employees or workers is the Department

of Labor and Employment (DOLE).

As a developing country, it is imperative that we not only look into its

mandate in monitoring compliance to the provisions of law, but we should also

look into the direction of DOLE in its efforts in creating a sustainable business

environment through the financial and technical assistance it provides to the

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marginalized sector and to those who are striving in creating livelihood through

micro-enterprise, small and medium livelihood.

The Department of Labor and Employment (DOLE) was created through

the instrumentality of the International Labor Organization (ILO) Convention 88

which mandated the Philippines being a ratifying state to create and maintain a

free employment service which consist of a national system of employment

offices under the direction of a national authority.

The above-mentioned mandate is religiously carried out by the

Department of Labor and Employment through the Bureau of Local Employment

(BLE).

In 1952, the National Employment Service (NES) was created under the

Department of Labor and Employment by virtue of Republic Act 761 which puts

to operation employment service in the country; subsequently in 1957, during a

government reorganization that took place, NES was dissolved to create the

Office of Manpower Services. Then in 1974, Presidential Decree 442, otherwise

known as the Labor Code of the Philippines was promulgated which provides

detailed policies and guidelines pertaining to labor standards. Hence, the Bureau

of Employment Services (BES) was created as a line Bureau concerned with both

local and overseas employment functions.

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Moreover, BES established forty two (42) Public Employment Offices

(PEOs) in various regions with the Central Office in Manila overseeing all

activities. In 1982, by the Executive Order No. 97, the local employment

functions

of the BES, including the functions of the defunct Bureau of Apprenticeship (BA)

were absorbed by the Bureau of Local Employment (BLE).

Five years later, in June 1978, Administrative Order No. 186, a

decentralization policy delegated BLE’s line function to the Regional Offices of

the Department of Labor and Employment.

Then in 1994, the Technical Education and Skills Development Authority

(TESDA) was created under RA 7796 (TESDA Act of 1994) which absorbed the

Apprenticeship functions of the BLE; eleven (11) personnel of the Bureau were

transferred to TESDA.

In 1999, Republic Act 8759 was enacted institutionalizing a National

Facilitation Service Network thru the establishment of Public Employment

Service

Offices (PESOs) in every province, key cities and other strategic locations. PESO

is a none-free charging multi-employment service facility. It serves as an

information hub on labor market and employment programs of the DOLE and

other entities. The administration of the PESOs is lodged with the BLE.
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Article 162 of the Labor Code of the Philippine indicated that DOLE was

vested to set body of standards, rules and regulations referred as “Standards” by

the Occupational Safety and Health Standards which is commissioned under the

Bureau of Working Conditions (BWC).

The Philippine government is now moving towards these developments as

mentioned earlier, the progressive change as evident with Republic Act No.

11058,

an act strengthening compliance with occupational safety and health standards,

which was presented during the Seventeenth Congress Second Regular Session on

July 24, 2017 and which was signed into law on August 12, 2018 by President

Rodrigo Roa Duterte. The enacted law also provides for the penalties for

violations thereof.

The dynamic change in the business landscape globally is felt in our

country. As previously mentioned, government has to adopt strategies resilient to

the changing business environment to support and regulate operations to maintain

balance and equitable working conditions.

As we take a glimpse of business trends ten years ago in the Philippines,

there seems to be a tremendous change in the traditional business landscape. The

physical stores were reduced because of on-line facilities and transaction reducing

manpower. Services offered have likewise extended its reach specifically with
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the emergence of outsource service providers in all its various offerings and

scope.

Unknown to many, DOLE has been assisting micro-enterprise groups and

individuals through financial assistance and through collaborated efforts who are

food cart vendors, fish vendors, vegetable vendors and others who are engaged in

small and medium livelihood activities. The beneficiaries (formal and informal)

are

however properly screened and are asked to register or comply to regulatory

agencies to operate legally.

Under RA 9231 otherwise known as, the “Special Protection of Children

Against Child Abuse, Exploitation and Discrimination Act” amending RA 7610,

the DOLE’s intervention being planned is the provision of DOLE Kabuhayan

Starter KITS Project to the parents/guardians of said vulnerable workers. Its

implementation is thru the DOLE’s Integrated Livelihood Emergency

Employment Program (DILEEP).

The DOLE’s Kabuhayan Starter KITS program is a livelihood formation

strategy that provides each beneficiary an opportunity to start quickly a small

easy-to-earn business undertaking of retailing of prime commodities by providing

them
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with a starting capital. Under the program, DOLE-12 and the Peso will assist

beneficiaries in starting their own small business ventures. Available projects are

food businesses with Negosyo carts, welding and steel fabrication, vulcanizing

and car washing, vegetable propagation, cosmetology, kakanin making,

dressmaking, rug making, and bag making. The program mainly aims help

informal workers transition into formal ones and reduce poverty in our

communities. The provincial government signed a memorandum of agreement

with DOLE-12 for the funding

and implementation of the program. As part of the agreement, the provincial

government provided an equity or counterpart of 20 percent of the total project

cost.

The counterpart funding will cover for the supervision and monitoring,

and other needs related to the project’s implementation.

DILEEP seeks to contribute to poverty reduction and reduce vulnerability

to risks of the poor, vulnerable, and marginalized workers through emergency

employment and promotion of entrepreneurship and community enterprises. It is

the DOLE's contribution to the governments' agenda of inclusive growth through

massive job generation throughout the country. http://ro2.dole.gov.ph

Figure 1. The Department of Labor and Employment Logo

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DOLE logo
(Manila Bulletin file photo)

The main objective of this capstone research is to present how far have

DOLE delivered in supporting businesses or business activities in the Philippines

through its regulatory functions, business support program and its collaborative

monitoring with the Philippine Statistics Authority.

The following are the sectors or groups of people to whom this research is

significant:

1. The Department of Labor and Employment (DOLE)

2. Collaborative Agencies such as TESDA, DTI, LGUs and the Provincial

Government
3. Business Administration Students, Academicians and Future Researchers
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CHAPTER II

2.1 LITERATURE REVIEW

This section presents excepts, citations, pieces of information taken from

readings, articles and previous studies conducted in relation to the present study;
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all of which shed light and guidance in setting the direction for the researcher to

make this endeavor a meaningful and significant.

2.1.0 Business Process Compliance

Governatori et. Al (2008) explained that business process compliance will

free the enterprise of regulatory penalties and can save significant amounts that

can be translated as savings for the business enterprise.

2.1.1 Agencies Regulatory Procedures

Marques (2016) elaborated how regulatory capture creates harmony in the

organization. The government is mandated and is authorized to execute regulatory

procedures make sure that state will be guided accordingly as the government is

expected to generate funds to sustain its operations and perform its function in

providing security, basic services and order in the community.

2.1.2 Review of Government Programs

Volkova (2011) believes that government programs are intended to

improve the lives of its constituents. A review will allow change to transpire to

improve implementations that will be beneficial to the state and to its people.

There will

always be trial and error but when regular evaluation is conducted, it is mostly

likely to improve processes. Output is expected to reach its fullest potential as it is

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evident in Russia, when they started looking into its priorities to restore economic

stability.

2.1.3 Government Subsidies

Watson (2010) gave a powerful insights about government subsidies.

Generally speaking, it is designed to alleviate living conditions and provide

assistance to its constituents who are living in poverty or in difficult circumstance.

It is a temporary solution in order a provide a lift that will restore dignity and

equality. The bottom line of government subsidies is to make people productive

and self-reliant. This was seen in Australia. For 21 years they have enjoyed a

good economy but since 2003, it failed to save enough resources as the problem

on the prices of commodity went down.

2.1.4 Organizational Control System

Verburg et. Al (2017) explained with his framework how organizational

control system influences employees’ organizational trust and affects performance

outcomes. Managers or strategist cannot discount a structured organizational

control system. It provides clear cut policies and institutionalizes standards that

becomes the basis for any expected results or outcomes.

2.1.5 Sound Strategies in Business Organization

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Mamun et.al (2019) defines what constitute a sound strategies in business

organizations. It refers to a win-win situation as explicitly reaffirmed by Steven

Covey. It also considers the financial outlays or investment that should result to a

more profitable business operations.

2.1.6 Public Trust in Government Agencies

Thomas (1998) in his article, Maintaining and Restoring Public Trust in

Government Agencies and their Employees had given much emphasis on how to

maintain public trust in government service. It is not uncommon that irregularities

and corruption exist and that the mandate of constitution should be the guiding

principle among public servants. But the author explained that to work in

government is to carry along public trust . And in order to maintain that is be

responsible by properly accounting

2.1.7 Relationship Between Transparency and Accountability

Porumbesco (2015) put to light the strong relationship between

transparency and accountability. Transparency can be achieved when there is

correct accountability. It eliminates doubts and require complete honesty

especially for managers or leaders in any organizations who are entrusted with

valuable resources or responsibility. The authors framework strongly defines a

character that should be imbued by those who are given special assignments

which is founded on trust and confidence. Records should maintain its integrity

which will define

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transparency and accountability. The complexity of business processes may

hinder transparency but when records are up to date, it should not be a concern.

2.1.8 Livelihood Implications

Zeng, et.al (2013) had well explained the factors associated with

livelihood as to the benefits, cost as obtained from regional payments for

ecosystem services.

Humankind benefits from a multitude of resources and processes that are supplied

by natural ecosystems. Collectively, these benefits are known as ecosystem

services and include products like clean drinking water and processes such as the

decomposition of wastes.

The Philippines is rich with these kinds of resources, but it is not able to generate

a substantial amount to would likewise take care of these resource in order to

create a sustainable livelihood.

It is however a very potential source of revenue if only conscientious effort is

exerted.

2.1.9 Impacting Employee Performance

Bedarkar et.al (2014) provided excellent concept as to the drivers of employee

engagement impacting employee performance.

The greatest need of the human soul is to be appreciated. When performance is

evaluated objectively, and workers are accorded appropriately whether in terms of

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rewards, promotion, or appreciation, it is most likely to result into a more

motivated employee. The bottom line is a more productive company or enterprise.

2.2 Theoretical Framework

The researcher designed the framework of this capstone research.

This capstone research explains and highlights the Department of Labor

and Employment (DOLE), put three important variables which reaffirms of its

contributions to businesses and supports to business activities which are: first, its

regulatory functions (Marques, 2019), which institutionalizes requirements from

employers and employees and encourages full compliance (Sadiq, 2008) ; second

its programs (Wodon et.al, 2002) which are designed to assist Filipinos in their

entrepreneurial or livelihood pursuits, encourage more entrepreneurs to be engage

in feasible businesses formal or informal operations and third, its monitoring

efforts which should result into continuous building and establishing public trust

(Volkova, 2011) and confidence in government, establishes transparency

(Porumbesco, 2015) in government practice and inspire (Olusadum and Anulika,

2018) and motivate passionate government employees in their jobs.

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2.3 Conceptual Framework

BUSINESS
SUPPORT COLLABORATIVE
REGULATORY THROUGH ITS MONITORING
FUNCTIONS DILP, DILEEP &
WITH PSA
OTHER
ASSISTANCE
PROGRAM

 POVERTY  BUILDS PUBLIC

COMPLIANT REDUCTION TRUST &
 INCREASED CONFIDENCE IN
BUSINESSESS TO INFORMAL & GOVERNMENT
FORMAL  ESTABLISHES
LABOR STANDARDS, BUSINESSESS TRANSPARENT
ACTIVITIES GOVERNMENT
OSHS & OTHER  INSPIRES
 EMPOWERED
PASSIONATE
LABOR LAWS AND SELF-
GOVERNMENT
SUFFICIENT EMPLOYEES
FILIPINOS
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Figure 2. Conceptual Framework

Figure 2. This figure shows that the variables in the study; the inputs indicates

that:

1. With the DOLE’s Regulatory Function:

It encourages and compels business establishment to comply with Labor

Standards, Occupational Safety and Health Standards and Other Labor Laws

2. With DOLE’s Support and Assistance Program, the expected results are:

a) Poverty Reduction

b) Increase Informal and Formal Business Activities

c) Empowers and Self- Sufficient Filipinos

3. With DOLE’s Collaborative Monitoring with PSA, the expected results

are:

a) Builds and establishes trust and confidence in government

b) Established Transparent Government

c) Inspired Passionate Government Employees

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CHAPTER III

3.0 METHODS

This capstone research has utilized on primary data gathered about some
programs of DOLE in supporting and assisting businesses activities in the country
obtained in an interview from selected staff of the Department of Labor and
Employment Regional Office in Region 2 which is located in Tuguegarao City,
Region Office No.2 and another interview with Bureau of Working Conditions of
the Department of Labor at 3/F, DOLE Building, Muralla cor. Gen. Luna Streets,
Intramuros, Manila.

The secondary data about Compliance to General Labor Standards was

obtained from DOLE’s website through the assistance of the Management
Information System personnel of the Bureau of Working Conditions at DOLE’s
office in Intramuros. The 2016 Survey Employment was used to get the statistics
on agency-hired workers.
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CHAPTER IV

4.1 RESULTS

1. In terms of Compliance to General Labor Standards and Occupational

Safety and Health Standards based from the data obtained from Bureau

of

Working Conditions Central Office in Intramuros, the table below shows

the results: (Table 1)

Table 1. Labor Inspection Report for CY: 2018

Period Total number of General Labor Standards Occupational Safety and Health
Establishments (GLS) Standards
Inspected Compliance Rate (in %) Compliance Rate (in %)
Initial After Initial After Correction
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Correction
As of
59,380 66.52 80.02 67.50 74.77
December

www.bwsc.dole.gov.ph/images

a) Table 1 shows that in terms of compliance to General Labor Standards,

during the initial inspection, it shows 66.52% compliance of which

after the correction results to an 80.02 % compliance; a 13.5% increase

in compliance. Most of the deficiency found is on the minimum wage,

the

inclusion of service incentive leaves and night differential and some on

paid holidays and working hours compliance.

b) In terms of abiding to the Occupational Safety and Health Standards,

an initial of 67.50 compliance. And 74.77% result in after the

correction.

The data shows that an average of 20% of the business owners based

on the actual registered and visited business establishments are still not

compliant to General Labor Standards and Occupational Safety and

Health Standards. It is however commendable that majority of the

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business owners or enterprises are adherent to regulatory provisions

which is an indication of a maturing economy.

2. The Department of Labor and Employment through its Kabuhayan

Program or DOLE Integrated Livelihood Program had been assisting

micro-enterprise business by providing capital with the two category of

livelihood projects: 1) Group Projects and; 2) Individual Projects

DOLE Region Office 2 had been assisting informal and formal

entrepreneurship activities .

DOLE NVFO OIC Engr. Joseph B. Sales disclosed that part of the results

of a convergence survey program for the vulnerable sectors conducted by

the DOLE in 2015 was the identification of the presence of child laborers

in some municipalities in the province.

There were 60 needy families in the municipality of Diadi, Nueva

Viscaya, who were identified to be the beneficiaries of the said program

who proposed to engage in Sari-sari Store Livelihood Project.

Initially, these identified beneficiaries attended the orientation seminar and

later have undergone a skills training on Food Preparation and series of

training sessions on Social Preparation, Values Formation including the

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basic training on Entrepreneurship Development with Simple

Bookkeeping.

On February 14, 2018, during the town’s “Gamutan, Sayawan at

Kantahan Sa Araw ng mga Puso” program which was simultaneously

celebrated with the birthday party of Mayor Norma U. Miguel, the formal

awarding of the livelihood fund to the LGU as the accredited co-partner

(ACP) and to the program beneficiaries was held.

Municipal and barangay government officials, special guests and

visitors and the constituents of said municipality were able to witness the

awarding of the fund intended for the project totaling to P600,000.00.

Included in the released fund is the ACP’s counterpart amounting to

P137,100.00 where the expenses for the trainings and project space rental

was charged.

In a report on August 22, 2017, some 300 informal workers in

South Cotabato were set to benefit from a P3.5 million livelihood program

supported by the Department of Labor and Employment (DOLE) in

Region 12.
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Cynthia Barrientos, South Cotabato Public Employment and Services

Office (Peso) manager, said in period that they have started the

processing of applications for the livelihood initiative, which is targeted to

start next month. DOLE-12 formally released to the local government last

week a grant of P2,847,000 under its Integrated Livelihood and

Emergency Employment Program (DILEEP). The provincial government

allotted a counterpart funding of P715,700 to facilitate the program’s

rollout, she said.

Furthermore, Barrientos said the program is anchored on the

DOLE's "Handog Kabuhayan sa Mamamayan Program," which was

initially implemented in 2014. She said they have received more than 300

applications among informal workers from parts of the province’s 10

towns and lone city. The prospective beneficiaries would fill-up the slots

of applicants in 2014 who cancelled their applications and did return.

The program’s components are the Kabuhayan or livelihood

program and emergency employment program, which is also dubbed

Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers.

(FKA/PNA)
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Data was tried to be obtained from the website and by way of

interview but unfortunately, there are no available records.

3. This LABSTAT Updates is the 2nd in the series of reports on the results of

the employment module of the 2015/2016 Integrated Survey on Labor and

Employment (ISLE).

Conducted every two years, the ISLE is a nationwide sample

survey covering agricultural and non-agricultural establishments with 20

or more

workers. The survey’s reference month is June of the survey year. The

latest survey, 2015/2016 ISLE, covered 12,926 establishments.

This issue presents statistics on: (1) the extent to which firms or

establishments across industry groups resort to agency-hired workers to

augment their workforce; and (2) the types of jobs/services outsourced by

firms to manpower agencies.

More than half of the total establishments resorted to agency-

hired workers
 The engagement of agency-hired workers was reported in more
than half (54.7% or 17,094) of the estimated 31,277 establishments
with at least 20 workers in June 2016. (Table 2)
 Across industry groups, the highest proportion of establishments
with agency-hired workers was posted in electricity, gas, steam
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and air conditioning supply (78.0%) followed by human health and

social work activities except public health activities (64.8%);

financial and insurance activities (63.5%); mining and quarrying

(62.4%); and manufacturing (61.8%). (Table 3)
 Meanwhile, industries with the lowest number of establishments
with agency-hired workers were observed in administrative and
support services activities (36.8%); and repair of computers and
personal and household goods; other personal service activities
(34.2%). (Table 2)

Agency-hired workers mostly engaged in manufacturing

 The total number of agency-hired workers was placed at
691,341 or LABSTAT Updates (Vol. 21 No. 22) Page 2 of 5
 13.6% of the total 5.076 million persons engaged by the
establishments in June 30, 2016. This figure is quite modest
considering the proportion of establishments resorting to this
type of work flexibility. (Table 2)

Table 2. Number of Establishments with 20 or More Workers with/without

Agency-Hired Workers and Total Persons Engaged, Philippines: June 2016.
(http://www.psa.gov.ph (LABSTAT Updates Vol.21 No.22, December 2017)

INDICATOR Number
NUMBER OF ESTABLISHMENT 31,277
- With agency-hired workers 17,094
- Without agency-hired workers 14,183
% of establishments with agency-hired 54.65%
workers
TOTAL PERSONS ENGAGED (‘000) 5,076
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- Establishments total employment 4,385

- Agency-hired workers 691
% share of agency-hired workers to total 13.62%
persons engaged
Source of data: Philippine Statistics Authority, 2015/2016 ISLE

 Among the industries, establishments engaged in manufacturing stood out

with the biggest number of agency-hired workers at 311,722 or 45.1% of

total agency-hired workers reported in 2016. This means that roughly two

in every five agency-hired workers were engaged in manufacturing

activities. Wholesale and retail trade ranked a distant second with 93,867

or 13.6% of total agency-hired workers. (Table 3 and Fig.3)

 Also belonged to the top industries but with relatively lesser number of

agency-hired workers were transportation and storage (5.6% or 38,511);

accommodation and food service activities (5.5% or 38,148); and

administrative and support services activities (4.6% or 32,027).

 Further, the presence of agency-hired workers was less visible in three

industries, namely, repair of computers and personal and household goods,

and other personal service activities (1,078); water supply, sewerage,

waste management and remediation activities (1,843); and arts,

entertainment and recreation (7,171) – each share to the total was equal or

less than one percent. (Table 3)

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Figure 3. Distribution of Agency -hired workers by Industry in the Philippines,

2016

Source of data: Philippine Statistics Authority, 2015/2016 ISLE

Most of agency-hired workers were tapped to perform production/assembly

activities

 The bulk of agency-hired workers were engaged to perform activities related to

production/ assembly. About one-third (34.2%) of the total agency-hired workers

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in 2016 were hired for these activities, of which majority of them were found in

manufacturing industry (86.1%). (Table 3 and Figure 3)

Figure 4. Top 5 Jobs / Services Contracted Out by Establishments with 20 or

more workers, Philippines: June 2016

Source of data: Philippine Statistics Authority, 2015/2016 ISLE

Comparatively, Figure 4 as shown, across all industries, most of the

establishments continued to outsource their security and janitorial service needs

from manpower agencies.

 About 20 percent of the agency-hired workers were for security services. High

proportion of those engaged in security services out of the total number of

agency-hired workers by industry were observed in Water Supply; Sewerage,

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Waste Management and Remediation Activities (69.6%); and Financial and

Insurance Activities (46.7%).

Similarly, for janitorial services, the highest proportion was reported in

human health and social work activities (42.9%); and in education (38.2%).

Workers hired by agencies to perform janitorial services comprised 9.5

percent of the total number of agency-hired workers.

 Marketing/sales and repair/maintenance/construction activities had a combined

share of 9.3 percent of the total agency-hired workers.

TABLE 3 - Number and Percent Distribution of Establishments with 20 or More

Workers with Agency-Hired Workers by Major Industry Group, Philippines: June
2016
Major Industry Groups Total Total Percent
Establishments

ALL INDUSTRIES 31,27 17,09 54.

7 4 7

Agriculture, Forestry and Fishing

1,151 523 45.
Mining and Quarrying
156 98 5
Manufacturing
6,068 3,748 62.
Electricity, Gas, Steam and Air Conditioning Supply
4
249 194
Water Supply; Sewerage, Waste Management and
61.
334 179
Remediation Activities
8
986 407
Construction
78.
7,127 3,900
Wholesale and Retail Trade; Repair of Motor Vehicles
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and Motorcycles 1,063 488 0

Transportation and Storage 4,197 2,281 53.

Accommodation and Food Service Activities 808 413 7

Information and Communication 1,365 866 41.

2
Financial and Insurance Activities 410 243

54.
Real Estate Activities 654 292
7
Professional, Scientific and Technical Activities 1,797 661
45.
Administrative and Support Services Activities 3,362 1,913
9
Education except Public Education 970 629
54.
Human Health and Social Work Activities except Public 243 145
4
Health Activities 335 114
51.
Arts, Entertainment and Recreation
2
Repair of Computers and Personal and Household
63.
Goods; Other Personal Service Activities
5

59.

44.

36.

56.

64.

59.

34.

Note: Details may not add up to totals due to rounding.

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Source: Philippine Statistics Authority, 2015/2016 Integrated Survey on Labor and Employment (ISLE).

Table 3 provides a summary of the major industry in the Philippines in

relation to the distribution of establishments with more than 20 hired workers

from agency or outsourced companies showing its total and percentage against in-

house employees.

It shows that an increasing trend of subscribing to outsourced service

providers due to some significant reasons: first, it is cost-efficient because it

unburdens the establishments in the hassles of recruitment, hiring, selection

process, training and retention program which are costly in nature; second, it also

eliminates retirement provisions and third, supervision and over-all management

is placed upon the care of the service provider.

Table 4- Number of Agency-Hired Workers in Establishments with 20 or More

Workers by Type of Jobs / Services Contracted Out and Major Industry Group,

Philippines:2016

MAJOR Total Secu Janit General Marke Packa Produ Researc IT Food Logist
INDUST Num rity orial Administ ting/ ging ction / h& Serv Servi ic/
RY ber Serv rative Sales Assem Develop ices ce/ Trans
GROUP Agen ices bly ment Cate port
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cy-
Hire
d ring
Wor
kers
All 691,3 136, 65,80 236,69 5,32 19,88 19,03
15,077 36,472 20,084 1,921
Industries 41 360 8 7 1 6 6
Agricultu
re,
25,50 4,78
Forestry 566 70 85 1,783 12,654 277 11 18 90
7 5
and
Fishing
Mining
11,51 3,49
and 831 172 1 - 3,120 - 19 155 233
3 7
Quarrying
Manufact 311,7 28,8 13,31 203,69
2,193 9,349 15,583 752 803 3,759 5,899
uring 22 38 0 5
Electricit
y, Gas,
Steam
14,98 6,83
and Air 2,317 458 - - 8 4 49 111 346
2 2
Condition
ing
Supply
Water
Supply;
Sewerage
, Waste
1,843 1,28
Managem 333 - - - 93 8 32 - 15
3
ent and
Remediati
on
Activities
Construct 2,07
9,969 180 61 7 - 3,246 - 26 23 71
ion 4
Wholesal
e and
Retail
Trade;
93,86
Repair of 25,0
7 8,311 3,479 21,141 1,947 6,663 65 414 235 4,644
Motor 32
Vehicles
and
Motorcyc
les
Transport
38,51 8,62
ation and 1,123 465 1,293 148 264 18 195 11 5,300
1 0
Storage
Accomm
odation
38,14 8,16 11,73
and Food 3,742 466 310 88 5,662 27 62 489
8 3 9
Service
Activities
Informati
on and 11,01 3,14
2,246 710 1,234 - 98 16 952 89 188
Communi 7 2
cation
Financial
& 29,54 13,8
6,516 2,858 336 1 2 - 408 62 289
Insurance 8 13
Activities
Real 17,96 6,28 5,044 439 387 - 421 14 45 216 62
Estate 0 6
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Activities
Professio
nal,
Scientific 9,650 1,21
878 755 791 66 - 94 710 36 28
and 1
Technical
Activities
Administr
ative &
32,02 5,55
Support 3,984 1,053 2,118 522 640 4 806 838 707
7 1
Services
Activities
Education
except 23,60 10,6
9,018 975 16 10 29 26 201 581 69
Public 6 35
Education
Human
Health
and
Social
Work 13,22 4,39
5,668 560 13 2 - - 76 512 121
Activities 2 2
except
Public
Health
Activities
Arts,
Entertain
2,35
ment & 7,171 1,470 190 117 - 8 - 2 1,414 409
0
Recreatio
n
Repair of
Computer
and
Personal
Househol
1,078 188 393 137 - - - - 8 87 76
d Good:
Other
Personal
Service
Activities
Note: Details may not add up to totals due to rounding. Source: Philippine Statistics Authority, 2015/2016

Integrated Survey on Labor and Employment (ISLE).

Table 4 provides detailed information indicating the number of Agency-

Hired Workers in Establishment with 20 or more Workers by Type of Jobs /
Service Contracted Out of Major Industry Group, Philippines: June 2016.

The data shows a clear picture of a growing trend in the subscription or

engagements of establishments to outsourced service providers indicating specific
segment of the industry vice versa. The manufacturing industry is one of the
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biggest market of outsourced serviced providers. The Janitorial and Security

services affirm that establishments are already into outsourcing as shown in Table
4.

4.2 DISCUSSION

The enormous scope and responsibilities that is lodged to DOLE is critical

to the overall economic performance of the country. Employers and Employees’

compliance to the basic standards such as minimum wage, working hours,

working

conditions, safety and health standards will define the success of the business

activity and smooth operation they are engaged respectively.

A proactive adaptation is evident from the international and macro-

perspective to the national and micro-perspective.

Statistics would show as indicated in Table 1, obtained from DOLE in

terms of Compliance to General Labor Standards is by and large showing

progress because of the significant compliance after the inspection from a

66.52% compliance to an 80.02 % by the end of December 2018. We can expect a

better

2019 of which 100% compliance would be a close reality. In terms of the

Occupational Safety and Health Standards compliance , from 67.50% to 74.77%

 CAGAYAN STATE UNIVERSITY 33

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is a little low compliance. This may be attributed to the low awareness and lenient

implementation of the regulatory agency in charge.

The IRR of RA 11058 has been signed into law on August 12, 2018 by Pres.

Duterte which also provide for penalties to establishment found to be violative of

the act

will compel businesses establishment to comply with OSHS. We can expect a

higher rate of compliance in 2019.

Furthermore, the DOLE Integrated Livelihood Program (DILP) or

Kabuhayan Program is the DOLE’s contribution to the governments’ agenda of

inclusive growth though massive job generation and substantial poverty reduction.

It seeks to reduce the

vulnerability to risk of the poor, vulnerable and marginalized workers by

providing them access to a grant assistance for capacity-building on livelihood

ventures either for individual or group undertakings.

There are three components of the Kabuhayan Program and they are as follows:

 KABUHAYAN FORMATION

This aims to enable the poor, vulnerable and marginalized workers in the

informal and formal economies to start individual or group livelihood

undertakings

 KABUHAYAN ENHANCEMENT
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This aims to enable existing livelihood undertakings to grow into viable

and sustainable businesses that provide income at least at par with those of

the minimum wage earners.

 KABUHAYAN RESTORATION

This aims to enable the re-establishment of lost or damaged livelihoods

due to occurrence of natural disasters / calamities and / or armed conflicts.

The livelihood projects are categorized into two:

A. Group Projects

 Micro-livelihood. An organization composed of 15-25

members can avail of maximum financial assistance of

P250,000.00, depending on the project requirement

 Small Livelihood. An organization composed of 25-60

members can avail of maximum financial assistance of

P500,000.00, depending on the project requirement

 Medium Livelihood. An organization composed of more than

50 members can avail of a maximum financial assistance of

P1,000,000.00, depending on the project requirement.

B. Individual Projects
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Under this category, the beneficiaries can avail of the Starter Kit or

Negosyo sa Kariton (Nego-Kart). Up to a maximum financial

assistance of P20,000.00, depending on the project requirement.

The following are the eligible projects under the Kabuhayan Program:

 Priorities of the Regional Development Council (RDC) and Regional

Development of LGUs.

 Key Employment Generators such as agribusiness, health and wellness,

eco-tourism, manufacturing, small transport, wholesale and retail trade

and local based industries as indicated in the Local Development Plan.

 DTI priority products e.g. coffee, coco-coir, cacao, rubber, support to

tourism (crafts, processed food and services).

The following projects are not allowed under the Kabuhayan Program:

 Micro-lending projects

 Projects with construction works (project that would require purchase of

motor vehicles, which means any vehicle propelled by any power other

than muscular power using public highways)

The eligible beneficiaries of the Kabuhayan Program are following:

 Self-employed with insufficient income

 Marginalized and landless farmers

 Marginalized fisherfolks
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 Unpaid family workers

 Women and Youth with low / minimum wage earners

And seasonal workers

 Persons with Disability (PWD)

 Senior Citizens

 Workers displaced or to be displaced as a result of natural disasters or

closure of establishment, retrenchment, termination

 Indigenous people: Parents / Guardians of child laborers

 Rebel Returnees

 Victims of Armed Conflict

Beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps) and

government employees, including those at the local government units, are not

eligible to avail of the program.

The Kabuhayan Program specifically provides the following support

services for the beneficiaries:

 Working capital solely for the purchase of raw materials, equipment, tools,

and jigs, and other support services necessary in setting up the business.

 Training how to plan, set-up, start and operate their livelihood undertaking

i.e. trainings on production skills, entrepreneurship, business management,

productivity and business planning.

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 Social security through enrolment in Group Personal Accident Insurance

(GPAI) or GSIS, to be included in the total project cost or as counterpart

of the Accredited Co-Partner (ACP).

 Continuing technical and business advisory services to ensure efficiency,

productivity and sustainability of the business / enterprise.

The DILP is implemented either through Direct Administration by the

DOLE Regional Offices or through an Accredited Co-Partner (ACP).

Under the ACP scheme, the following will qualify for accreditation as co-

partner: (a) people’s organizations; (b) workers’ association; (c) unions /

federations; (d) state universities and colleges / higher educational institutions /

national technical-vocational schools; (e) local government units; (f) cooperatives;

and (g) national government agencies.

The proponent may avail of the DILP assistance by submitting a letter of

intent to the nearest DOLE Regional / Provincial Offices with a completed

documentary requirements as provided in the DILEEP guidelines (i.e. Profile of

the Beneficiaries, Work Plan, Project Proposal or Business Plan approved and

signed by the officers of the organization, etc.).

The DILP program of DOLE and its regulatory mandate is contributing

much to what we now see with GDP and GNP as a result of its continuing,

collaborative and conscientious efforts in implementing and capacity building

projects.
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The result of the conducted 2016 Survey Of Employment as to the

Statistics on Agency-Hired Workers shows an increasing outsourced services due

to the fact that it is more cost effective and efficient.

It unburdens the hassle of recruitment, hiring, selection and training which

entails much cost as well as in retaining workers.

Obviously, we also see that across different industries and is making it

easier for business establishment as the inclination to tap outsourced-service

providers is becoming a trend.

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CHAPTER V

5.1 CONCLUSIONS

The Department of Labor and Employment (DOLE) is not just a regulatory

agency which has a strong mandate of keeping a sustainable and viable business

environment that is helping in shaping a sound economic agenda of the

government; DOLE is also catalyst for entrepreneurship movement that is able to

assist informal business activities up to medium enterprises which is also assisting

the government in reducing if not totally eradicate poverty.

Its regulatory powers enable the government to set order and correct labor

standards coupled with safety and health standards to ensure even minimum wage

earners is accorded a dignified work and working conditions.

The goal now is about having green jobs which means decent, safe and helpful to

the environment.

The key to a sustainable program now is a collaborative effort in order to sustain

government programs and awareness for a more effective and efficient

implementation.
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5.2 RECOMMENDATIONS

1. Further studies or researches should be conducted to triangulate the

capstone findings and conclusions by obtaining data from the businesses

and beneficiaries of the programs of DOLE mentioned.

2. Review and Monitoring measures specifying indicators on the following:

a) on progress of the programs or project implementation,

b) integration and collaboration with other government agencies, and

c) contributions / impact on the economic performance at the national

and local level

d) information education campaign

3. To increase DOLE’s reach in implementing its program to greater worthy

recipients.
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CHAPTER VI

REFERENCES

(1) Bedarkar, M., Pandita, D., (2014). A Study on the Drivers of Employee

Engagement Impacting Employee Performance. India.: Elsevier, Ltd.

(2) Governatori, G., Sadiq, S. , (2008). The Journey to Business Process

Compliance Australia.:, DOI: 10.4018/978-1-60566-288-6.ch020

(3) Mabillard, V., Zumofen, R., (2016). The Complex Relationship Between

Transparency and Accountability: A Synthesis and Contribution to

Existing Frameworks. U.S.A.:

https://doi.org/10.1177/0952076716653651

(4) (4) Mamun, C. A. Hasan, Md. N. ,. (2017). Factors Affecting Employee

Turn-over and Sound Retention Strategies in Business Organization: A

Conceptual View. U.S.A.: Volume 15 2017, Issue #1, pp. 63-71,

https://www.researchgate.net/.../316784217

(5) Marques, J. C.,(2019).Private Regulatory Capture Via Harmonization.

Vol. 13, Issue 2, https://doi.org/10.1111/rego.12252

 CAGAYAN STATE UNIVERSITY 42

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(6) Zheng, H., Robinson, B. E, Liang, Y.C., Polasky, S., Ma, D.C., Wang, F.

C., Ruckelshaus, M., Ouyang, Z.Y., Daily, G. R. (2013). Benefits, Cost,

and Livelihood Implications of a Regional Payment for Ecosystem Service

Program. Philippines.:

https://www.pnas.org/content/110/41/16681

(7) Porumbesco, G. (2015). Linking Transparency to Trust in Government

and Voice. U.S.A.: https://doi.org/10.1177/0275074015607301

(8) Thomas, C. W., (1998). Maintaining and Restoring Public Trust in

Government Agencies and their Employees. U.S.A.: Vol. 30, No. 2

(1998), 166-193, 1998 Sage Publications, Inc.

(5) (9) Verburg, R. M., Nienaber, A. Searle, R. H., (2017). The Role of

Organizational Control Systems in Employees’ Organizational Trust and

Performance Outcomes U.S.A.: Volume 15 2017, Issue #1, pp. 63-71,

https://doi.org/10.1177/1059601117725191

(10) Volkova, Albina, (2011). A Review of Government Programs. Russia.:

17(3): 399-409, doi:10.1007/s11948-010-9210-x

(11) Watson, L., Ryan, Dr. C., (2010). Choosers and Loosers: The Impact of

Government Subsidies on Australian Secondary Schools. Australia.: Vol.

54 (2010), https://research.acer.edu.au/aje/vol54/iss1/
 CAGAYAN STATE UNIVERSITY 43

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 CAGAYAN STATE UNIVERSITY 44

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Appendix I. Permit to Conduct Interview at DOLE Regional Office 02, Tuguegarao City, Cagayan
 CAGAYAN STATE UNIVERSITY 45

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Appendix II. Permit to Conduct Interview at BWC Central Office, Intramuros, Manila
 CAGAYAN STATE UNIVERSITY 46

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Appendix III. Unstructured Questionnaire / Guide Questions

Unstructured Questionnaire

Guide Questions

1. What are some of DOLE’s present program in helping businesses in the

country?
2. I would like to focus on:
Outsourced services- Agency hired workers
How many outsourced company do we now have in the Philippines and in
Region 2 / in the country?
3. Some challenges that the agency is experiencing in implementing those
programs.
 CAGAYAN STATE UNIVERSITY 47

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Capstone Attachments Pictures with DOLE Regional Office, RO2

Tuguegarao City
An interview with Ms. Winnie Joy Talamayan, in-charge of DOLE’s INTEGRATED
LIVELIHOOD PROGRAM (DILP) or KABUHAYAN PROGRAM
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An interview with Ms. Gloria M. Alvarado, CPA, Senior Officer in-charge of Labor Relations

An interview with Ms. Laura Diciano, the Senior Labor Regional Office in charge of
Labor Standards DOLE RO 02.
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Capstone Attachment Pictures with Bureau of Working Conditions (DOLE)

at Intramuros
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An interview with Ms. Elizabeth Echavez and Mr. Gerald Khu of BWC’s Management

Information Systems Office.

Inside the BWC Officer of the Day Office A selfie pic at exterior part of DOLE building

Curriculum Vitae of ARNEL P. RINGOR

Address: Block G Lot 8 Woodcrest North Subd. Alimannao, Peñablanca, Cagayan 3502
Contact Numbers: 078) 304-0645, C.P.: 0917-5995895. Email add: [email protected]
WORK EXPERIENCE

2017-Present Full-time Instructor/ Adviser, Cagayan State University Andrews Campus

Subjects taught: Marketing Management, Product Management, and
Professional Salesmanship, Strategic Marketing Management, Franchising
2015 to 2016 Training Consultant (Hotel Lorita/ Hotel Ivory/ Alejandra Enterprises
2008-present Managing personal business:
 Aces Cyber Marketing (Computer Sales, Services, System Dev.) /
Valiant Aces General Services (Janitorial Services)
2015-2016 PT- Instructor, University of Cagayan Valley /Cagayan State University
2007-2015 Part-time Instructor
MCNP/ISAP, Alimannao Hills, Peñablanca, Cagayan
Subjects taught: Principles of Marketing, International Marketing,
Entrepreneurship, Basic Finance, Asia Pacific Business Environment,
European Business Environment, Human Resource Development and
Management, Business Tax
2006-2008 Marketing Manager, HR Consultant
Sharp Digital Copiers- Alejandra, Tuguegarao City
 CAGAYAN STATE UNIVERSITY 51

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Part-time HR Consultant, Hotel Lorita & Hotel Ivory
2001-2002 Marketing Supervisor, STAT Medical Distribution
Alimannao, Peñablanca, Cagayan
1996-2001 District Sales Manager, Territory Manager
Basic Pharmaceutical Corp., Greenhills, San Juan, Metro Manila
1996-2001 District Sales Manager, Territory Manager
Basic Pharmaceutical Corp , Greenhills, San Juan, Metro Manila
1993-1996 Medical Sales Representative, Corporate Holdings Management, Inc./
Servicia Pharmaceuticals, Inc.
EDUCATION
Post Graduate: MBA / University of Cagayan Valley 2015
MPA / Cagayan State University 21 units 2009
Tertiary Education Bachelor of Science of Business Administration Major in Marketing
Eligibility: Civil Service Professional Exam 82.67% 2008
Registered Marketing Professional Passed 2017
(JA Philippines, International)
PERSONAL INFORMATION
Date of Birth: 19 February 1971
Name of Spouse: Arlene Pagulayan Donato-Ringor, MSN
Occupation: Clinical Instructor / Managing Family Business
Child: 1 (one)
Name of Child: Adora Mae D. Ringor (17 years old)
Father’s Name: Benito L. Ringor (deceased)
Mother’s Name: Anita Cudal Pasion- Ringor
Religion: The Church of Jesus Christ of Latter-day Saints