Extending Social Protection to Homebased Workers in the Philippines: Analyzing, Evaluating and Sustaining the Work in Progress and Drawing Lessons from the Experience

SUMMARY VERSION

Introduction

In cooperation with the Ford Foundation and the Foundation for Labor and Employment Promotion (FLEP) based in Thailand, PATAMABA undertook a research project from mid-2002 to 2005 with the end in view of evaluating initiatives on the extension of social protection for homebased and other workers in the informal sector in the Philippines.

Among the project’s specific research objectives, undertaken through a participatory action methodology, were: 

1)    To examine through a survey, followed by focus group discussions and  key informant interviews resulting in case studies and life stories, the ways by which homebased workers address risks such as sickness, death, disability, old age, childbirth, calamities, and other life reversals in the context of their current working and living conditions, for the purpose of surfacing their priority needs as workers and as women –- this study will also help in the evaluation of the strengths and weaknesses of new initiatives regarding the extension of social protection to informal workers;

2)    To discuss the findings of the survey and case studies/life stories with homebased workers’ groups through initial awareness-raising and later education/training and validation sessions to verify the results of the study and do capacity-building on the local level –- this in turn will be followed by multi-sectoral policy fora to discuss the findings with informal workers’ organizations, non-government organizations (NGOs), local government organizations, and national and regional policymakers and institutions; and

3)  To document and analyze the “movement” for social protection of the homebased workers and other workers in the informal economy in the Philippines  within  the context of  the current and proposed state policies and programs, and also continue to document the process of advocacy for social protection for homebased workers and other workers in the informal economy directed at government and other stakeholders in the country.

Lessons Learned from Case Studies

The research focused on six information-rich communities with PATAMABA’s organizational presence, on which case studies were produced.  These case studies are on:

• PATAMABA damayan (mutual aid association) in San Francisco, Bulacan, Bulacan, which has 216 members, and which is “branching out” from death benefits to sickness benefits. The strong spirit of mutual assistance - “bayanihan” and “damayan” - as practiced in the community served as impetus for the social protection initiative of the organization. “Bayanihan” is a community tradition of neighbors offering free labor assistance for farm work, home repair/transfer, etc. “Damayan” is the tradition of offering help especially during times of bereavement. Neighbors assist each other financially on a purely voluntary basis.
• PATAMABA Apugan chapter in Baguio City (Cordillera Administrative Region), composed mostly of indigenous women, who have their social protection tradition to bank on during times of illness, death and burial but the same indigenous practices like hablag (death/burial practice) and pinagpagan (practice related to illness) also require them to have the financial means to comply due to the expense involved.
• PATAMABA chapter in La Union, whose leaders and members are also engaged in the ORT Health Plus Scheme (OHPS), which is a non-profit community health insurance program financed through a voluntary prepayment scheme with comprehensive benefits and is open to all residents of the province of La Union. The scheme is promoted as a model by ILO-STEP.
• Community-based health micro-insurance scheme in Angono, Rizal, launched under the auspices of the ILO-STEP (“Strategies and Tools against Social Exclusion and Poverty”) project involving PATAMABA members, who are simultaneously the proponents (through the PATAMABA-HOA) of a 300-unit housing project being developed by the local government in cooperation with the National Home Mortgage and Finance Corporation. The Angono scheme has taken into consideration the community’s capability to address risks such as illness, death, disability, old age, etc –all of which are necessary in addressing the sustainability of the housing project. 
• Microfinance program of PATAMABA Region VI in Iloilo and Antique, which has integrated damayan or mutual aid, and, is supplemented by an aggressive campaign to enroll members in the Social Security System (SSS), Philhealth and Red Cross.   Its other programs and services include livelihood loans, savings mobilization/capital build-up, skills training, awareness raising (on gender issues and reproductive health), community organizing, entrepreneurship development, and marketing assistance.
• PATAMABA Balingasa chapter in the National Capital Region, which pioneered the Automatic Debit Account (ADA) program in Quezon City in partnership with PS Bank and the Department of Labor and Employment (DOLE).  Under this program, informal workers can open accounts at the PS Bank from which their SSS contributions can be automatically debited.  The minimum maintaining balance for this account is just P100, in contrast with the usual P1,000. PATAMABA Balingasa has other programs that include relending short term loans as capital for livelihood projects and production of “Budbod Sustansiya” (vegetops) which targets malnourished children, pregnant and nursing women.

  Among the lessons learned from the six case study sites are the following:

• Building on the strong rural tradition of  community-based solidarity is a good start (in the Philippines, this is embodied in such ideas as “bayanihan” and “damayan”);
• Tradition can be both a boon and a burden among indigenous communities (it provides some forms of security, but is also a financial burden at times);
• Social security is very much tied up with income and employment security. Without reserve funds set aside from a reasonably regular source, contributions to SSS, Philhealth, damayan, etc. cannot be sustained;
• Gender issues as well as child issues  need to be addressed explicitly and comprehensively (e.g., domestic violence, reproductive health, childcare and children’s welfare) since felt risks and vulnerabilities are closely connected to these fundamental concerns;
• Asset reform (e.g., access to land and other resources) is essential; 
• Sustained networking and advocacy at both national and local levels lead to results over the long run; and
• There is need to develop an integrated (holistic or comprehensive) approach to social security and protection for informal workers, since a piece-by-piece approach will not work. At the same time, there needs to be flexibility because different types of homebased workers face a different constellation of needs.

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Insights from Life Stories/Narratives

Six subjects of varying backgrounds and experiences were selected for in-depth interviews, one from each field site:

• Remedios Solitario, a widow with many children, who provides the story of an unorganized, aging woman in rural Iloilo   trying to make ends meet by vending vegetables and processed food after her husband’s death;
• Corazon Casim, an Ifugao migrant weaver living in Baguio City, also a widow with six children and active in PATAMABA; 
• Ramil Patacsil, brother-in-law of a PATAMABA leader in Naguilian, La Union, whose story exemplifies the advantages of membership in the ORT Health Plus micro-insurance scheme (OHPS) over and above Philhealth;
• Angelita Carbillon, a Damayan member from San Francisco, Bulacan, Bulacan, a displaced factory garments worker who turned to milkfish processing and other forms of informal work to support her daughters and three grandchildren (one grandchild died at birth after caesarian delivery);
• Divina Cesar, a homebased worker leader from Balingasa, Quezon City active in the SSS-ADA program, whose fortunes took a turn for the worst when her husband got sick with diabetes, and her own income from lace-making and other informal production fell due to competition and other factors; and
• Lucia Almazan, a migrant who has been working since childhood as a domestic helper, eatery employee, homebased worker and vendor, suddenly widowed with four children, but determined to have her own house through the PATAMABA HOA and to enjoy social protection through the SSS-ADA.

The vulnerabilities and risks to which the subjects have been exposed  include death of primary breadwinner ( in the case of Remedios, Lucia, and Cora); fatal/chronic sickness of primary breadwinner ( in the case of Cora and Divina); need for laboratory services of a pregnant wife, medical expenses for self and children, and hospitalization of a dependent parent not covered by Philhealth  (in the case of Ramil); unwanted pregnancy, caesarean delivery, and death of the newly born grandchild ( in the case of Angelita); potentially dangerous sickness of  a child ( in the case of Lucia);  displacement from formal work of subject or primary breadwinner due to the effects of  globalization as well as decreased income and irregular employment  ( in the case of Divina and Lita);  the problems of gender, age, family and work status, as well as her lack of organizational experience in the case of Remedios,  magnifying her multiple burdens  as an aging solo parent; inadequate earnings as solo parent  with many children ( in the case of Remedios, Lucia, and Cora);  ill health, overfatigue,  multiple burdens, and worries about the future due to gender roles and old age ( in the case of Lita and Remedios); and  special  problems due to ethnicity and migration ( in the case of Cora and Lucia).

The stories point to the need for a more concerted advocacy agenda that can more effectively combine economic empowerment strategies (enterprise building, microfinance, social marketing, etc) with facilitation of access to social protection. If empowerment is seen as a process with many stages, the cases discussed can be tracked along a continuum where progress is dependent on many factors: resource and work status, gender, ethnicity, migration, level of organizational engagement, nature of the community environment, and macro-economic realities such as trade liberalization associated with globalization.

Within this continuum, Remedios, who has just been organized, has barely started on her empowerment process; she has no visibility and social protection except the traditional damayan.  Cora, who is an indigenous woman weaver and a solo parent, has to struggle against poverty and ethnic discrimination within the context of an organization which has developed her self-worth and may provide her the means to move towards entrepreneurship; her social protection is limited to traditional forms (which are quite expensive) and to the Philhealth scheme for indigents which she has not yet used.  Angelita, Divina, and Lucia have had a long history of organizational involvement  which have had a positive effect on their awareness of their rights, the building of their capabilities for alternative livelihood ( especially for Angelita and Divina), and their access to social protection through the damayan ( in the case of Angelita), SSS ( in the case of Divina and Lucia), and land for housing (Lucia).  Macro-economic environment (globalization), displacement from formal work,  chronic illness of the breadwinner coupled with  threat of eviction (in the case of Divina), status as migrant and solo parent   (in the case of Lucia)  as well as gender and aging issues ( in the case of Angelita),  have constrained the empowerment possibilities and the potential social protection coverage  laid open by their organizational involvement.   Ramil, who is a man, is the most empowered, because he is better educated and more well -off in the first place.  He has his own businesses (for which he underwent training through OHPS) and has a wife with regular earnings.  His whole family is fully covered by SSS, Philhealth, and OHPS.

Highlights of Survey Results

Social Protection Advocacy:The Experience Thus Far

National Level  Initiatives   Concerted  lobbying led by informal sector representatives directed mainly at the Philippine Health Insurance Corporation (PHIC) and the Social Security System include homebased workers and other workers in the informal economy in  its various programs.

A result of advocacy within PHIC is the direct representation of workers in the informal sector in the PHIC  Board . PHIC is expanding its services to cover informal sector workers by entering into agreements with local government officials whereby contributions could be made less burdensome through co-sharing, sometimes with the assistance of private institutions.  More needs to be ironed out regarding the accreditation of NGOs as collection agents.  Accreditation is a major leap forward from facilitation, as NGOs need to undergo training in proper procedures, and they have to produce bond money to guarantee the funds they collect. In exchange, NGOs can receive P10 per remittance per head as incentive.  

A major gain in the advocacy for SSS coverage of the informal sector is the Automatic Debit Account (ADA) program, jointly coordinated by DOLE and PS Bank, and initially piloted in Metro Manila.  Informal worker representation has not yet been institutionalized in SSS decision-making bodies, but  a Technical Working Group (TWG) on social protection has been organized  to ensure the implementation of the Country Program on the “Development and Protection of the Workers in the Informal Economy” approved by the National Economic and Development Authority (NEDA) in  late 2002. (The Country Program is in itself the result of sustained advocacy by informal worker organizations).  The long-term advocacy of informal sector groups for the accreditation of NGOs as collecting agents of the SSS still has to bear fruit.  There are ongoing debates on:  percentage of the incentive, and the amount of bond that NGOs have to produce to guarantee the contributions they collect.

Campaigns for and Sustaining Membership in the SSS, Philhealth, and Red Cross 

As part of this project, fora and focused group discussions were carried out in the six research sites during the second half of 2003 to raise awareness regarding the advantages and obligations of membership in SSS, Philhealth, and Red Cross. Continuous campaign on the part of PATAMABA leaders to enroll members in these formal social protection schemes followed.

Membership campaigns have been most successful in PATAMABA Region VI and in Angono Rizal, where representatives of SSS, Philhealth and Red Cross were invited to explain their programs thoroughly in various fora.   These lent more credibility to the campaign since information was directly imparted by the concerned agencies and opened opportunities for networking and a close partnership between PATAMABA and the agencies. PATAMABA was able to play the role of facilitator (helping the members fill out and submit the forms, etc.) and as in the case of Region VI, as virtual collecting agent. Rules were relaxed in favor of the informal workers – e.g., they could apply for membership even without the usual requirements (birth certificate, etc.), on condition that these would be submitted later as necessities for claiming of benefits.

PATAMABA leaders saw the importance of regular monitoring as a mechanism to alert the agencies to problem areas; e.g., the late remittance of contributions by the participating bank in the case of the SSS-ADA program.  Suggestions from PATAMABA leaders was for the agencies to  have a regular billing system (as practiced by power, water, and telephone companies) reminding members of their obligations, their missed payments, and the amounts they have contributed so far.

The difficult side of the campaign is to encourage those enrolled to continue payments, more so in areas where members’ incomes are seasonal.  An adjustment taken in Angono is to collect contributions several months in advance during times when members have money in their hands. Thus, the latter need not pay out funds during lean months.

Local-level initiatives   Community-based social protection schemes studied here focused on health, land and housing security, livelihood and market development. The  most significant experiences in connection with the research is the setting up of a community-based health micro-insurance scheme in Angono, Rizal, and the continuing  advocacy for land and housing security not only in Angono but also in Apugan, Baguio City.

Lessons Learned on Social Protection Advocacy. When asked about the secret of their gains in advocacy, PATAMABA leaders mentioned three words: patience, since it can take years before results manifest themselves; persistence, since the concerned authorities will only pay attention if they are continually reminded of the tasks at hand; and perseverance, since efforts need to be sustained if they are to lead to concrete gains. 

What made the advocacy more effective is broad-based coalition work by all informal sector groups in gaining representation in the National Anti-Poverty Commission, in Philhealth, in NEDA, and other decision-making bodies. Support by the ILO, the UNDP, UNIFEM and other UN agencies has also been of much help.  At the local level, the forging of good relations with local government officials as well as representation in task forces and other bodies concerned with the informal sector have borne much fruit, especially in the case of Angono.  However, such ties are dependent on political alignments, and the story can be very different if other forces not friendly to informal workers take local power.

Conclusions and Recommendations

Overall, the current situation presents a challenge to traditional notions of economic and social security tied to formal government-run or -regulated systems.  Such systems barely covered women workers in the informal economy before the Asian crisis, since most could not establish clear employer-employee relations, and the self-employed did not have the information or the means to join. The situation is expected to worsen as formal social and health security systems are now under much pressure, stress, and increasingly suffering from a credibility gap. Long-standing campaigns by homebased workers’ and other informal sector networks have led to some gains in terms of gaining access to the formal systems.

But even if women workers in the informal economy are able to enroll in such systems, they cannot sustain their contributions if they have no employment or income security.  Furthermore, there are other forms of security that are increasingly gaining importance in their lives, such as food security, health security, security of place of work, education security, reproduction security (covering childbirth and child care),  security of capital and  market demand (specifically for the self-employed).

Various recommendations have been culled from the research through the survey, case studies, life stories, focus group discussions, key informant interviews while on field, and the validation workshop held 21 January 2005. 

These recommendations proceed from an integrated and empowering approach to social security and protection for informal workers, which takes into consideration  the following factors: an  income that is sufficient to cover basic needs; the ability to secure sufficient food for self and family; access to sufficient health services (particularly occupational and reproductive health), along with income and food, so that health status – particularly for women – can be secured; freedom from violence in the home, the workplace, and the community;  a secure place of work – a  place in which work can be done safely and productively, a place in which to live (land and housing);   a level of education that will enable economic participation in society;  opportunities to reproduce and change skills in accordance with changes in the market; opportunities to work and to pursue a career; and for the self employed, access to capital for enterprise development and sustainability, as well as a reasonably reliable market or demand for the commodity or service (or the means to change what is produced and sold).

The overriding concern to enable women workers in the informal economy to have a secure livelihood, to increase their capacity to meet basic needs (food, clothing, shelter) and to deal with risks and vulnerabilities should inform the national government’s overall agenda in combating poverty. Hence, it is important to review anti-poverty programs so that the social protection agenda can be integrated in such programs to serve workers in the informal economy through mechanisms that ensure their visibility and participation.

This political agenda  can be easily harmonized with the stand of PATAMABA, the Workers in the Informal Sector Council (WISC) in the National Anti-Poverty Commission (NAPC),  and Homenet Southeast Asia that  the empowerment of informal workers  can be attained through  increased visibility, access to resources,  (income, employment, training, capital, market, etc), and social protection. Within the rights-based framework, these are economic, social, and political rights which are inalienable, indivisible, and mutually reinforcing.  In terms of development work, strategies to protect, defend, and attain these rights need to be pursued and integrated in order to make a difference in the everyday lives of women in the informal economy.

These point to the need for a more concerted advocacy agenda that can more effectively combine economic empowerment strategies (enterprise building, microfinance, social marketing, etc.) with facilitation of access to social protection as well as participation in decision making in the various spheres of women’s lives: the home, the workplace, the community, the nation, regional and global bodies. The action plans of the participants from the six research sites who participated in the January 21 validation workshop confirm the fact that they see how continuing and expanding their access to social protection  through awareness-raising, lobbying, advocacy, and networking is very closely tied to the success of other strategies such as  product development and  marketing assistance.   Organizing and leadership development are prerequisites for this agenda, which can be broken down in terms of general and specific recommendations.  

The general thrust of the recommendations regarding local level initiatives is the promotion of and support for indigenous social protection schemes as well as community based micro-health insurance schemes which benefit and empower informal women workers. The initial efforts on promoting social protection schemes by PATAMABA should be sustained and monitored to derive key lessons in the implementation. Resources to assist the organization in their pioneering efforts on social protection should be provided by government (especially at the local government level) and development agencies. Of particular interest is the systematization of the initial efforts done in the six (6) communities where PATAMABA has promoted the social protection programs.

Another general recommendation is the formulation of policy directives and implementing guidelines in accordance with the Country Program  on the  “Development and Protection of the Workers in the Informal Economy” at local level involving local governments, NGOs, POs, cooperatives, academe, development agencies  and other stakeholders, as exemplified by the highly fruitful experience in Angono, Rizal.

More specific recommendations from the research participants addressed local-level initiatives such as damayan and various health micro-insurance schemes. For the damayan,  these  are, among others,  to  have a reserve fund for continuous and timely service; register and get accreditation from the local government to acquire legitimacy in accessing more assistance and benefits;  and  add services to cover hospitalization of members  and  provide immediate aid to victims of calamities.  For  the community based ORT  Health Plus Scheme based  in La Union, research participants say  there is need to strengthen  the information, membership and collection campaign; cultivate  relations with LGUs for more support and subsidy for staff and indigent members; and increase employee compensation, especially for  the doctor and day care workers. Furthermore, an integrated approach to social protection should be adopted; i.e., continue to  strengthen livelihood and marketing capabilities of members  so that they can sustain contributions to the scheme.

Local government units (LGUs) are also called upon to participate in and support the establishment of community-based health micro-insurance schemes. Other recommendations addressed to LGUs are for them to provide for  free or subsidized medicine;  preventive health programs;   mobilization of barangay health workers for social protection campaigns; additional doctors, nurses, and other health workers;   emergency loans to those in need;  additional  facilities for health, daycare, survivors of  violence against women (VAW); improvement of  flood control programs;   more participation of people in disaster management and community rebuilding;  and support  for the establishment  of botica sa barangay ( village drug store)  run by people’s organizations as an enterprise  on a cost-sharing  basis.

Regarding research, there is need for continued documentation through mapping  of the status of  homebased workers .(under subcontracting/putting out system and in self-employment)  and other  workers  in the informal economy,  focusing on  working conditions at various levels of the value chain,  the employer-employee relationships (if any),   remuneration system,  reproductive and occupational safety and  health problems,   the rights of workers under the law,  and   the available social protection. A comprehensive information base  on their livelihood and income situation including aspects of health, gender  and relevant issues would help provide the basis for future social protection programs. An analysis of their situation should include looking into the global issues that affect the local economy (e.g., trade liberalization, termination of the Multi-Fiber Agreement, debt dependence and the financial crisis), and how these issues impact on the vulnerabilities and risks of workers in the informal sector.

Another target for continuous documentation should be the social protection initiatives (both formal and informal) by people’s organizations and NGOs that exemplify people’s active participation in the promotion of their social well-being. These initiatives could be compared across countries and regions to enhance cross-fertilization of ideas and practices, and to maximize the reach of the benefits derived from the lessons learned and the possible ways forward.

There is also a need to see how homebased women workers proceed from stage to stage in the empowerment process and to what extent progress is dependent on many factors: resource and work status, gender, ethnicity, migration, level of organizational engagement, nature of the community environment, and macro-economic realities such as trade liberalization associated with globalization. More case studies and life stories of such women in the context of their work, community, and organizational affiliation can help illuminate this.