Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco, Jr. and Department of Labor and Employment (DOLE) Secretary Rosalinda D. Baldoz led today the signing of the Banking Industry Tripartite Council (BITC) resolution “Adopting the Banking Industry Voluntary Code of Good Practice on Dispute Settlement and Outsourcing/ Subcontracting of Certain Banking Functions” at the BSP head office in Manila.
The Voluntary Code of Good Practice aims to maintain and promote industrial peace in the banking sector through the use of constant dialogue in resolving disputes arising from emerging issues like outsourcing.
The resolution enjoins management and workers to discuss issues in good faith and to submit unresolved grievances to voluntary arbitration. Unsettled disputes may be elevated to the BITC, which will select a representative from DOLE and two each from labor and management to discuss the issue. Agreements reached will be binding.
The resolution also considers outsourcing as a bank management prerogative. Should outsourcing lead to downsizing, the resolution requires management to transfer affected employees to other departments on a best effort basis. Management is also tasked to encourage outsourcing firms to absorb the affected workers.
Should these remedies prove unfeasible, DOLE will implement livelihood programs and other interventions for the benefit of said workers.
BITC is adopting the landmark agreement after a series of talks since 2008 among its members: BSP and DOLE from government; representatives of bank management; and bank labor unions.
Also signing the agreement are the Bankers Association of the Philippines, Chamber of Thrift Banks, Rural Bankers Association of the Philippines, National Union of Bank Employees, Associated Labor Unions, Federation of Free Workers and the National Association of Trade Unions.