Business groups back apprenticeship program bill

MANILA -- Some of the Philippines' most influential business groups on Wednesday said they support a bill aiming to improve apprenticeship programs saying this will ensure that the country’s new generation of workers will be better equipped with updated skills.

During a hearing initiated by the Senate Committee on Labor, Employment and Human Resources Development, the Philippine Chamber of Commerce and Industry (PCCI) and Employers Confederation of the Philippines (ECOP) said it was important to expose students to various apprenticeship programs.

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The hearing centered on the proposed “Apprenticeship Training Act of 2023,” which seeks to give an apprenticeship stint to 15-year-olds and above who would like to be immediately exposed to actual work via the Technical and Vocational Educational Training (TVET).

Potential applicants can avail of the apprenticeship program, through the assistance of the Technical Education and Skills Development Authority (TESDA).

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Under the bill, each apprentice must pass a set of “minimum requirements” before one can be accepted and stay in the company based on the stated Training Regulations.

An apprentice during the period will be receiving an allowance and a certificate upon the conclusion of his or her apprenticeship program.

An apprentice who would later on decide to apply to the served company if accepted, will no longer be required to undergo the six-month probationary period, the proposed measures stated.

Meanwhile, companies that will be included in the apprenticeship program will receive tax incentives from the government, the bill proposed.

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ECOP vice president Antonio Sayo said the bill’s coverage still needs a lot of improvements and clarification.

“Although generally, the applicability of the apprenticeship bill is great, we will have problems with certain industries,“ Sayo said.

The Makati Business Club (MBC) meanwhile pointed out the dearth of qualified individuals for the available jobs in the country today.

“We’re all frustrated by the difficulty in hiring. Not enough skills,” MBC Director for Governance and Sustainability Catch Ofilada told the Senate panel.

Sayo also added that employers, specifically those who belong in micro, small and medium enterprises, will be having issues with the “Apprenticeship Training Fund” derived from the apprenticeship fee, which the bill is pushing.

Department of Labor and Employment (DOLE) Undersecretary Carmela Torres registered the agency’s full support for the bill.

“The DOLE supports these bills which seek to create a national apprenticeship program that allows the acquisition of competencies in a particular occupation and includes on- and off- the job training components with tripartite involvement. The bills definitely support the goal of promoting full employment of the youth and young workers through training and development,” Torres said.

Discussions on the measure will resume next month, pending the submission of other groups’ position papers, panel chairperson Sen. Jinggoy Estrada said.

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