EDCOM 2: TESDA Charter needs overhaul to meet demands of 21st Century workforce

EDCOM 2: TESDA Charter needs overhaul to meet demands of 21st Century workforce

The Second Congressional Commission on Education (EDCOM II) highlighted the critical need to amend Republic Act No. 7796, or the TESDA Act of 1994, emphasizing that the nearly 30-year-old charter no longer adequately empowers the Technical Education and Skills Development Authority (TESDA) to address evolving labor market demands, lifelong learning requirements, and global quality assurance standards.

The hearing is part of EDCOM II's mandate to "review of the mandates of the three agencies of education", and was led by EDCOM II Commissioners Senator Sherwin Gatchalian and Congressman Roman Romulo, TESDA officials led by Secretary/Director General Jose Francisco Benitez, and representatives from the private sector and academe.

Dr. Karol Mark Yee, Executive Director of EDCOM II noted that TESDA was created in 1994 to consolidate the National Manpower and Youth Council (NMYC), the Bureau of Technical-Vocational Education (BTVE), and DOLE's Apprenticeship Program, envisioning it as the central planning, coordination, and monitoring agency for post-secondary, non-degree TVET programs. However, the discussion revealed that TESDA's mission has "drifted toward direct provision, raising questions about mission clarity".

Key issues necessitating charter reform

The hearing identified several critical gaps and challenges that the current TESDA charter fails to adequately address.

TESDA's dual role as both regulator and implementer creates inherent conflicts of interest, as its own training institutions (TTIs) compete directly with private providers. Meanwhile, the TESDA Board's expansion from 13 to 22 members through the years has also led to operational inefficiencies leading to delays in approvals of training regulations, among others.

Meanwhile, despite Section 29 of RA 7796 mandating the devolution of community-based TVET to Local Government Units (LGUs), implementation has been piecemeal and sporadic, with only limited pilot phases since 1994. Senator Sherwin Gatchalian questioned the logic of increasing TESDA's budget while the law mandates devolution, proposing that funds allocated to TTIs could be redirected to LGUs ready to manage these functions.

Likewise, EDCOM noted that skills-job mismatches remain, with 93% of TESDA graduates completing NC I-II programs, many of which are already covered under Senior High School. Worse, many Training Regulations (TRs) are outdated, and industry involvement in curriculum development and financing innovation (like the industry levy system) remains limited.

Finally, the Commission noted how TESDA has absorbed mandates from major national laws since its creation, yet its budget remains only about 2% of the national education allocation, and personnel strength has not grown proportionally. In contrast, a significant portion of TESDA's budget (50-70%) has been dedicated to scholarships (e.g., TWSP, RCEF), despite the TESDA Secretariat having no explicit responsibility under RA 7796 to manage said programs, leading to manpower challenges.

"The current charter prevents TESDA from fully addressing the upskilling needs of our workforce today," stated Dr. Karol Mark Yee. "It is evident that the 1994 charter of TESDA needs a significant update to enable the agency to truly enable Filipino learners to reskill and upskill given the rapid changes in the world of work."

The Commission affirmed its commitment to working with TESDA and other stakeholders to simplify programs and operations, re-centering its mission on enabling TVET graduates to secure gainful employment. This comprehensive review and proposed reform agenda aim to transform the technical vocational education and training landscape to be more responsive, relevant, and globally competitive.

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