Regional labor officials may not have a full comprehensive grasp on President Duterte’s policy to labor contractualization, the head of the Employers Confederation of the Philippines (Ecop) said.
As a result, Ecop President Donald G. Dee said the new presidential order is wreaking havoc on manufacturing firms in economic zones (ecozones).
In an interview with reporters, Dee said more than 40 firms operating in ecozones in Laguna were ordered by the regional labor director to regularize their workers for allegedly violating labor laws and the President’s executive order (EO) prohibiting contractualization.
“There were firms, mostly from Laguna, who came to us seeking help, saying they do not practice endo. We are reviewing [their employment processes] now. In fact, I have to organize Ecop for that purpose. The problem with the DOLE [Department of Labor and Employment] and its regional directors is they move on their own,” Dee said in a mix of English and Filipino.
“Every regional director [it seems, has his] own interpretation on how they should do their work. So what I intend to do is invite [Labor Secretary Silvestre H. Bello III] and the regional directors for us to discuss how the endo policy should be interpreted,” he added.
Dee accused some labor officers of equating service contracting to endo. The practice of hiring and terminating workers every five months to circumvent their regularization, notoriously known as endo, has long been outlawed under the Labor Code.
The affected Laguna-based firms, however, source their employees from manpower agencies, and are not employed through endo, Dee claimed.
“That policy is crystal clear. Contract working is available in the law. Contractualization, as defined by labor, is a different story. That was outlawed,” the Ecop chief argued.
The troubled firms are mostly from manufacturing industries, such as electronics and garments. Dee said these firms will be provided with legal support from Ecop.
He added the group is ready to contest the regularization order, and will go as far as filing charges in court if need be. “If we have to sue, we will sue the government,” Dee said.
The Semiconductor and Electronics Industries of the Philippines Foundation Inc., for its part, denied its members are practicing endo. Seipi President Danilo C. Lachica has yet to see the list of the over 40 Laguna-based firms ordered to hire their workers for good, but said, “I wouldn’t be surprised if none of our members are included on it.”
If one thing is certain, Seipi member-firms are compliant with labor laws, he said.
“Our situation as far as labor contracting is concerned, we hire from legitimate service firms that meet the criteria. [We make sure] they have capital and they paid government-mandated fees,” Lachica told the BusinessMirror.
However, he pointed out there is a need to clarify what kind of contractual arrangement is being banned by Duterte’s EO. The Seipi chief said as long as the provision is left unclear, there will really be possible interpretation understandings of the EO.
“The President’s executive order is really vague. Donald [Dee] and I are concerned it might be misinterpreted,” Lachica said.
The President’s EO is aimed at implementing Article 106 of the Labor Code to protect the right to security of tenure of all workers based on social justice under the 1987 Constitution.
“Contracting or subcontracting, when undertaken to circumvent the worker’s right to security of tenure, self-organization and collective bargaining, and peaceful concerted activities pursuant to the 1987 Philippine Constitution, is hereby prohibited,” the EO read.