Press Release
March 15, 2017

Villanueva's sponsorship speech on Revised Apprenticeship bill
WORK-BASED LEARNING: THE KEY TO SOLVING YOUTH UNEMPLOYMENT

The need to revise the current Apprenticeship Law

Mr. President, my esteemed colleagues: I have the honor to sponsor Senate Bill No. 1392 under Committee Report No. 54 or the Apprenticeship Training System Act of 2017.

This is not the first time that the Senate Committee on Labor submitted this measure that seeks to reform the country's apprenticeship training system. In the 16th Congress, a similar proposal, contained in Senate Bill No. 136, made its way here at the Senate plenary for the second reading while its counterpart measure, House Bill No. 5303, was approved by the House of Representatives on its third and final reading in January 2016.

The results of the deliberations during the past Congress, led by Senator Jinggoy Estrada and eventually, Senator Sonny Angara, and our parallel consultations with several organizations last year, manifest a very noble reason to pass this measure without further delay: to help our people get jobs and to help businesses flourish.

Mr. President, there is a need to repeal Chapters I and II of Title II of Presidential Decree No. 442, as amended, otherwise known as the Labor Code of the Philippines and to put in place a reformed apprenticeship training system because the world of work is changing rapidly; we need individuals who possess the competencies suited to the job and those who can deliver results.

Sa apprenticeship: ang skills na matututunan, konektado sa aktwal na mga trabaho. Sa apprenticeship: may sweldo agad habang nagsasanay pa lang, may pagkakataon pang matuto kahit ang mga out-of-school youth at unemployed. Sa apprenticeship: mas mataas ang posibilidad na ma-absorb ang mga apprentices pagkatapos ng training.

State of apprenticeship training system in the Philippines

Mr. President, your committee believes that a reformed apprenticeship system will improve our people, it will improve the business sector.

For the past six years, from 2010 to 2016, we produced more than 12-million tech-voc graduates. This number covers all the training delivery modes: institution-based, community-based and enterprise-based training that includes our National Apprenticeship Program.

Table 1. TVET Output, 2010-2016

Indicator 2010-2016
Number of Enrolees 13,473,550
Number of Graduates 12,110,210

Unfortunately, the number of graduates in our Apprenticeship Program represented only 5% or 474,962 out of 12,110,2010 graduates in all delivery modes.

Mr. President, the small number of apprentices and the number of participating companies point to the need to institute reforms in our existing National Apprenticeship Training program. We couldn't agree more to the Joint Foreign Chambers of the Philippines that such a small number indicates the importance of reforming and expanding the program to provide a route to long-term jobs for much larger number of young Filipinos.

The need for a work-based training

Mr. President, base sa karanasan at sa mga datos na ating nakalap, basta't ginawa ang pagsasanay sa loob ng mga pagawaan o sa loob mismo ng kumpanya, garantisadong akma ang skills sa trabaho.

Halimbawa: sa training program ng TESDA at SEIPI o Semi-Conductor and Electronics Industries in the Philippines, halos lahat ng mga trainees o 97%, nabigyan ng trabaho. Sa isa pang training program ng TESDA at IT-BPM o Business Process Management, umabot sa 70.7% ng mga near-hires ang agad nabigyan ng trabaho. Dalawang halimbawa lamang po ito sa mahigit anim na raang (600) industry partnerships ng TESDA sa nagdaang anim na taon.

Indeed, work-based learning is the trend because jobs are fast evolving: jobs are becoming obsolete or replaced with new ones due to automation and new technologies that require new skills set that can be learned at real time at the workplace.

Mr. President, your committee believes that the workplace is the best training institution today:

Halimbawa po ay si Dave Lawrence Pacanza, taga-Calamba, Laguna na naging scholar ng Ampon ni Don Bosco Foundation para sa 10-month Automotive Mechanics Course. Pagkatapos mag-training sa Don Bosco, napili siya ng Porsche para sa Service Mechatronics Course, sa PGA Cars sa Mandaluyong. Sabi n'ya, siyam na buwan siyang nagco-commute mula Calamba hanggang Makati sa kagustuhan niyang makumpleto ang training sa isang prestigious brand. Sa PGA Cars, natutunan ni Dave ang Porsche transmission and vehicle electronics involving fiber optics. At dahil sa akmang training sa loob mismo ng Porsche, isa si Dave sa mga napisil na mabigyan ng trabaho sa Porsche Center sa Abu Dhabi.

Si Noema Flejoles naman po ay tambay at over-age jobless engineering graduate. Matagal siyang unemployed at halos mawalan ng gana sa buhay dahil sa pagpanaw ng kanyang ama. Kumuha siya ng Automotive Servicing NC II sa TESDA Women Center (TWC), at pagkatapos ng kanyang on-the-job training sa Hyundai sa Pasig, na-absorb siya ng kumpanya bilang Warranty Administrator. Mula noon, bumalik ang sigla sa buhay ni Noema at mabilis na na-promote sa kanyang trabaho.

Indeed, there is no substitute to the actual work-based learning which can allow young workers to learn from experienced workers or business people. I believe that the Revised Apprenticeship bill will enable Filipinos to learn from their fellow Filipinos.

Salient features of the Revised Apprenticeship bill

Mr. President, the proposed apprenticeship law aims to increase employability of youth through responsive training at the workplace.

Let's say that a certain Juan dela Cruz wants to join the apprenticeship program. Under this proposed measure, Juan should be at least 15 years of age. He can enter any apprenticeable occupation that is specified by the Industry body and approved by the TESDA Board.

Kahit out-of-school youth o unemployed si Juan, basta't kinse-anyos pataas, pwede siyang maging apprentice.

In the past, the period of apprenticeship covers a maximum of six months. Now, the apprenticeship period shall be based on the duration of training required in the Training Plan and on the complexity of the skills that Juan should learn as an apprentice. Let me stress that the training duration is based on set requirements in the training regulations, not as determined by law. The bill also removes from its coverage the skills that can be learned in six months, which can be learned through probationary employment.

Hindi po pare-pareho ang apprenticeable occupations kaya hindi dapat limitahan sa anim na buwan ang training ng mga apprentices tulad ni Juan. Pwede itong umabot ng isa o dalawang taon o higit pa. Ang training duration, dapat aprubado ng TESDA alinsunod sa umiiral na curriculum o training regulation. Kailangan ding mapatunayan ng kumpanya na may sapat silang kakayahan para ipatupad ang aprubadong training contract.

Under the revised apprenticeship program, Juan gets paid to learn as well. His wage should not be below 75% of the minimum wage, combining what the employer pays and what the government may pay in order to attract more investors to the Philippines.

Habang nagsasanay si Juan, kumikita na rin siya at pwede nang makatulong sa kanyang pamilya o makapag-ipon para sa kanyang kinabukasan.

However, Juan's enterprise can only engage apprentices equivalent to 20% of its regular employees or the apprentice shall be considered a regular employee. This will lessen the opportunity of his employer to commit abuses. As an apprentice, Juan will also benefit from a disability or accident insurance policy during his apprenticeship period.

Kasama sa proteksyon ng karapatan ni Juan ang insurance policy na sasagutin ng kanyang kumpanya. Sinisiguro din na mananagot ang kumpanya kung may paglabag sa training contract at kung mapatunayang may paglabag nga, hindi na ito papayagang tumanggap pa ng mga apprentices.

The bill also installed assessment and certification system to ensure the quality of program delivery. Therefore, Juan will undergo competency assessments for qualifications within his apprenticeship period. He will be awarded National Certificates which will have equivalent credits in the formal system of education.

Pagkatapos ng apprenticeship contract ni Juan at gusto niyang mag-enrol sa kolehiyo, layunin ng batas na ito na magamit niya ang kanyang National Certificate mula sa kumpanya para ma-credit sa kursong gusto n'ya.

In return, the participating enterprise will get an additional deduction from the taxable income equivalent to one-half (1/2) of the value of training expenses incurred for developing the productivity and efficiency of apprentices. This is an opportunity for the private sector to take an even bigger role in nation-building by investing in our people.

Higit pa sa tax incentive, makakatulong ang kumpanya sa pagbibigay ng akmang kasanayan sa ating mga kabataan.

Mr. President, our experience in the past proves that apprenticeship system offers real work experience, allowing trainees to get an understanding of what a job is like. Let me emphasize: hands-on training is necessary to equip the workers with the required competencies. As Benjamin Franklin once said, "Tell me and I forget, teach me and I remember, involve me and I learn."

Your committee believes that the proposed apprenticeship system is reflective of the requirements of the 21st century education.

Providing opportunities for every Juan

Mr. President, by not reforming our apprenticeship system, employers will continue to turn their back on young workers, graduates will continue to face challenging job search, our economy will continue to experience a bumpy road ahead.

Reforming our apprenticeship system is a solution to youth unemployment and job-skill mismatch because the companies will have a hand in training the students with the skills they need for a particular job.

Noon, hinahanapan ng mga magulang ang kanilang anak ng magandang paaralan kasi ang nasa isip nila, makakuha agad ng magandang trabaho ang kanilang anak pagka-graduate. Ngayon, pwede na ring humanap ng mga kumpanya kung saan ang training at trabaho ay pinagsanib na.

Mr. President, distinguished colleagues: We can give to our young people the immense opportunities present in today's workplaces, outside our formal educational system, but only when alternative modes of learning like apprenticeship, guarantee their rights and welfare.

Let's help our people get decent jobs and help businesses flourish. Let's pass Senate Bill No. 1392.

Maraming salamat po at pagpalain tayong lahat ng Panginoong Diyos.

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