A united labor front on Thursday threatened to stage bigger demonstrations on Labor Day if President Duterte will not sign the new executive order (EO) on contractualization next month.
Labor coalition Nagkaisa and militant labor group Kilusang Mayo Uno (KMU), which represent 90 percent of the country’s organized workers, said they will no longer tolerate the President’s foot-dragging on the issue.
They also said any attempt from the government to implement a watered-down version of their EO will be met with more protests.
“Come May [on Labor] Day, we will hold one of the biggest marches if ever the President will not make good on his promise come March,” KMU Chairman Elmer Labog told reporters in a news briefing on Thursday.
“[The nonsigning of the EO] will push more workers to be on the streets to call for the junking of contractualization, or the signing of the EO,” Labog added.
Trade Union Congress of the Philippines (TUCP), one of the members of Nagkaisa, said more labor organizations are expected to take up their cause.
“Instead of fighting each on these issues [contractualization and regularization], we decided to unite. We should thank President Duterte for this,” TUCP President and Party-list Rep. Raymond C. Mendoza said.
On Wednesday Duterte met with labor leaders to discuss several labor issues, particularly the EO. He, however, deferred signing the EO so he could further study its possible impact on the economy.
The EO, which has been endorsed by the Department of Labor and Employment (DOLE), is now being reviewed by the legal team of the President.
Duterte scheduled another meeting with the “study group” from the labor sector on March 15 to discuss a subsidy for minimum-wage earners, the lowering of electricity rates and the EO. The TUCP said it will attend the meeting, but added that it will expect some “breakthrough” by March 15.
“There is a real cause for alarm that there is foot-dragging and it is becoming politically dangerous because it is creating a situation where the frustration of workers and ordinary citizens will eventually catch up,” TUCP Vice President Luis Manuel C. Corral said.
Corral also questioned the reservations of Duterte on their draft EO, despite its “more relaxed” position on contractualization.
“We have already retreated from very strong position of total prohibition and criminalization toward essentially what is the most fair language there is. There is no more point of retreat with respect to the proposed executive order,” Corral said.
Under their proposed EO, a company will only be allowed to contract out a positions, which will be approved by the Department of Labor and Employment and its advisory council, the National Tripartite Industrial Peace Council.
TUCP also allayed the concerns of Duterte that the new EO will drive away potential foreign investors from the country.
“No company has ever shut down its operations from giving the right wages. The problem is our expensive power cost, corruption and lack of infrastructure,” Mendoza said.
TRAIN layoffs
Labor groups also said they are now bracing for the possibility that more workers would lose their jobs because of the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) law.
Kilusang Mayo Uno (KMU) Chairman Elmer Labog noted that Coca-Cola Femsa Philippines Inc. is now using the impact of TRAIN as an excuse to dismiss 600 of its employees.
“I think they will be kicking out workers from the sales force, and just leaving the delivery and production aspect as regular [workers],” Labog said.
Earlier this week, Coca-Cola Femsa Philippines Inc. announced it will be dismissing some its workers as part of the “restructuring” of its operations, but it did not disclose the number of its employees who will be affected by it.
Beverages companies have already expressed their concern on the impact of TRAIN since it is expected to raise their production cost and at same time reduce demand for their products.
TRAIN, which took effect last month, imposed new taxes for oil, cars and sugary drinks, among others. Corral said they expect similar displacements in other industries.
“One month into the TRAIN, and it is already [being used] as a scapegoat by some companies to let go of workers because corporate profits are being affected,” Corral said.
“We expect [layoffs] in the auto-manufacturing sector. That is one major area that will take a major hit. We also expect it to affect companies that are dependent on imports for their operations and plantations,” he added.
Both KMU and TUCP are now urging the government to continue monitoring the effects of TRAIN to ensure it will not be abused by unscrupulous employers and that its affected workers will be given aid.