THE Department of Labor and Employment (DOLE) has ordered the regularization of over 76,000 workers from top local companies, which they found to be engaged in illegal labor-only contracting (LOC).
In a news conference, Labor Secretary Silvestre H. Bello III said the workers are employed by 20 companies that their inspectors identified to have the most number of confirmed LOCs from June 2016 to April 2018.
Bello said the list is part of the inventory of 3,377 companies—engaged or suspected to be engaged in LOC—they submitted to Malacañang last week in compliance with Palace orders.
Out of 3,377 firms, Labor Assistant Secretary and Bureau of Labor Relations (BLR) Director Benjo Benavidez said 767 have confirmed LOC incidents.
“These are the ones with compliance orders. The rest [2,610 of the 3,377] have inspection results from our labor inspectors,” Benavidez said.
Top violators
Jollibee Food Corp. (JFC) had the highest number of workers ordered to be regularized by the DOLE, with 14,960.
It was followed by Dole Philippines Inc. with 10,521 workers, and PLDT Inc., with 8,310 employees.
Last month the DOLE ordered JFC to regularize 7,100 of its workers. It also issued a compliance order to PLDT to regularize 7,306 workers.
PLDT appealed the regularization orders, while JFC said it will also do the same.
So far, only the case of PLDT Inc. has been decided by Bello as final and executory on April 24.
Bello said a lawyer of JFC told him last week that JFC has committed to voluntarily regularize 1,000 of their 7,100 workers per year.
He said this is still too slow and they may ask JFC to increase the rate of their regualarization.
“Maybe if they can regulate 10 percent of the total number of employees, maybe we could accept that,” Bello said.
No chilling effect
Other companies probed by the DOLE are Philsaga Mining Corp. (6,524); General Tuna Corp. (5,216); Sumi Philippines Wiring Systems Corp. (4,305); Franklin Baker Inc. (Diamond Plant) (3,400); Philipinas Kyohritsu Inc. (3,161); Furakawa Automotive Systems Lima Philippines Inc. (PKI Manufacturing Technology) (2,863); and Magnolia Inc. Barangay San Francisco, Gen. Trias, Cavite (2,248).
Rounding up the 20 list of companies with the most number of suspected illegally contracted workers are KCC Property Holdings Inc. (1,802); Sumifru Philippines, Corp. District 1 (1,687); Hinatuan Mining Corp. (1,673); KCC Mall De Zamboanga (1,598); Brother Industries (Philippines) Inc. (1,582); Philippine Airlines and PAL Express (1,483); Nidec Precision Philippines Corp. (1,400); Peter Paul Phil Corp. (1,362); Dolefil Upper Valley Operations (Duvo) (1,183); and Dole-Stanfilco (1,131).
Bello said SM Mall, which also have alleged cases of LOC, was not included in the list after it committed to regularize 10,000 contractual workers before the end of the year.
The release of the list was not meant to put the concerned companies in a “bad light,” but rather to show the government is doing its job in implementing the law on contractualization, Bello said.
“It is just to emphasize the concern, not only of the President but also our department to respect the security of tenure of our workers,” Bello said. “If they comply [with our regularization order], we will also announce they finally comply,” he added.
He assured investors the campaign against LOC will not extend to those who follow the law. “Why would this create a chilling effect when we are only trying to do what the law provides? This will only have a chilling effect if you are a violator.”
More inspectors
THE DOLE admitted there could more LOC cases in the country, but which they have yet to identify for lack of manpower. Their 574 labor inspectors were only able to inspect 99,526 of the 900,000 companies nationwide in the last two years.
“That is why in our report to the President we asked for an additional [2,000] inspectors because it is currently physically impossible for 574 inspectors to inspect 900,000 establishments,” Bello said.
Bureau of Working Conditions Director Ma. Teresita Cucueco said they will submit another list to Malacañang once they get updates from their regional offices.