THE next legislative battle on the passage of a Security of Tenure (SOT) bill—after last week’s veto by the President—might not be on its provisions limiting contractualization, but over those that could make it widespread by granting employers more leeway in determining positions they can outsource.
On Monday, the Department of Labor and Employment (DOLE) announced it is now drafting a new “balanced” version of the bill to be presented at the scheduled Legislative-Executive Development Advisory Council (Ledac) on August 5.
Labor Secretary Silvestre Bello III gave assurances the new bill will retain the provision in the vetoed SOT bill for an Industrial Tripartite Council (ITC), vested with the authority to determine positions directly related to a company’s core business, and which cannot be outsourced. However, he did admit there are proposals for employers to be the sole determiner of what positions are directly related to their companies.
DOLE said it is crafting a new SOT bill, upon the orders of Duterte himself, that will retain the ITC provision.
Also on Monday, Senator Joel Villanueva, the principal author of the Senate version of the SOT bill that was vetoed by President Rodrigo R. Duterte last week, re-filed his measure on contractualization.
Limitless contractualization
Former University of the Philippines economist Rene Ofreneo, however, said if the veto message of President Duterte last week will become the thrust of the government policy on contractualization, there will no longer be any limit to the practice of the controversial work arrangement.
In his message, Duterte said businesses “should be allowed to determine whether they should outsource certain activities or not, especially when job-contracting will result in economy and efficiency in their operations, with no detriment to the workers, regardless whether this is directly related to their business.”
Focusing on the last line of the message, Ofreneo said it will contradict the existing provision of the Labor Code, particularly on illegal labor-only contracting (LOC).
LOC is the only prohibited form of contractualization. Among its salient qualities is, if the positions to be contracted out are directly related the principal business of the employer.
“So they would want outsourcing without any limits. No country allows this,” Ofreneo told BusinessMirror in an email.
The former labor undersecretary said some companies are already circumventing this restriction by citing “management prerogatives” in determining positions, which are directly related to their operations. Citing existing jurisprudence, he said management prerogatives are limited by existing laws’ provisions on fair play and good faith, which is usually subjected to court interpretation.
New version
In a press conference, DOLE chief Bello, however, said the public misunderstood the veto message of Duterte in thinking it could lead to more widespread contractualization.
“For him (Duterte), he maintains an employee cannot be outsourced if the service he will render is directly related to the business of the principal,” Bello said.
Labor Assistant Secretary Benjo M. Benavidez said they are studying how to limit the discretion of management on the said matter.
“We are looking at the extent of the management prerogative on their power to outsource…There has to be some specific or parameters to determine this. This is what we will do when we revisit the [vetoed] version,” Benavidez said. Benavidez together with Labor Undersecretary Ana C. Dione will make the draft of the Cabinet version of the SOT bill.
Bello said they will collaborate with lawmakers, who have filed their own SOT bills in the 18th Congress, to make the draft.
“We will get their inputs from their version and from that, we will come up with a version that I think will serve the cause of the workers and businessmen,” Bello said.
Certified as urgent again?
The country’s largest labor group appealed to Duterte to certify as urgent the re-filed SOT bill to reiterate his commitment to end widespread contractualization.
“If we read and examine the bill carefully, the SOT Bill that President Duterte already vetoed, the proposed measure already contains the provisions that he wanted to have,” Trade Union Congress of the Philippines (TUCP) spokesperson Alan Tanjusay said.
For its part, the Federation of Free Workers (FFW) said it hopes the new SOT bill will contain not only the Senate version but its twin bill at the House of Bill 6908, which has “stronger” provisions. These “stronger” provisions include provisions on prohibition of multiple contracting and fixed-term employment as well as the inclusion on the specific fine of P30,000 per head for violation of the law.
“We need to put ‘flesh and blood’ to SOT,” FFW President Sonny Matula said.
Duterte drew flak from labor groups after he vetoed the SOT bill last Friday.
Duterte said he vetoed the bill due to its definition of its expanded definition of LOC, which could lead to labor displacement.
Bukluran ng Manggagawang Pilipino (BMP), however, called the reasoning “hogwash.”
On Monday, several labor groups including the Kilusang Mayo Uno, Partido Manggagawa (PM), Sentro ng mga Nagkakaisa at Progresibong Manggagawa (SENTRO) and Alliance of General Unions, Institutions and Labor Associations (AGUILA) held their demonstrations to condemn Duterte’s alleged retreat from his campaign promise.
Image credits: Roy Domingo