Race to the bottom: a case study on the working conditions of Export Processing Zone Workers in Cavite

Abstract

This paper assessed the working conditions of export processing zone workers in Cavite. A total of 100 respondents were surveyed and interviewed using the qualitative research design. These workers were from Wooin Industries and Hamlin Industrial Corporation, both of which are operating inside the PEZA-registered Golden Mile Business Park in Cavite. Findings reveal the widespread abuse of the rights of the workers. Majority of the workers are overworked and underpaid. They work long hours for extremely low wages. Workers are also kept on short-term contracts and are denied equal access to the rights and benefits they are entitled to. On labor relations, the study indicated the low level of workers participation in the decision-making process in the firms. All the respondents reported that the firms do not recognize the rights of the workers to collectively bargain and join trade unions. Results further showed that the harsh working conditions of the workers can be attributed to the failure of the government to implement the labor laws across the firms. To attract foreign investors, the government engages in an intense "race to the bottom" to lower the labor costs. Export processing zones continue to be part of the government's strategy to generate employment and develop the economy. However, the benefits enjoyed by the country seem to be very limited as the jobs actually being generated within the zones are exploitative, low paid and low skilled.