Nagkaisa hails passage of Security of Tenure Bill

SECURITY OF TENURE. The House of Representatives passes the security of tenure bill on 3rd reading. File photo by Ben Nabong/Rappler

Labor Coalition Nagkaisa! is satisfied over the passage on third reading of HB 6908 on the Security of Tenure at the House of Representatives.

Nagkaisa! said that “the SOT bill is a great improvement to existing legislation as it gives more teeth to the government by providing penalties for those who will violate the security of tenure laws.”

“This is the farthest a proposed law on SOT has gone for decades,” said Nagkaisa! “Now, it’s time to get the Senate moving on their proposed SOT measure.”

“HB 6908 gives more flesh and blood to the guaranteed right to security of tenure,” Nagkaisa! said. “It’s not perfect or ideal, but we can live with it,” said Nagkaisa!, the largest labor coalition in the country.

Fear of employers allayed

Nagkaisa! also addressed fears of employers who went on record saying that they will have a “big problem” if the proposed measure was passed. “If the big problem employers have about HB 6908 refers to the potential cutbacks in the windfall of profits a number of employers have been amassing through the massive abuse of workers via contractualization for decades, the bill intends to do just that,” Nagkaisa! said. “Employers who do not abuse workers through contractualization have nothing to fear,” Nagkaisa! added.

“Never in the history of employment relationship in the country has workers enjoying regular employment and implementation of strict rules in labor contracting been detrimental to the economy and job generation,” Nagakaisa! said.

“Job generation is a function of the development of sectors of the economy influenced by economic policies of the government, and not by labor contracting practices,” Nagkaisa explained.

A “serious problem” employers noted is that if the SOT bill becomes a law, it will be detrimental to the economy and job creation. Nagksaisa! countered the argument. “Workers with regular employment generate more income, thus, with more purchasing power contribute to increasing demand in goods and services that lead to higher income taxes and VAT for the government. These are all good for the economy,” said Nagkaisa.

“The fear that the HB can lead to unemployment is only possible if they are not paying their contractual employees what the law currently demands. In other words, their argument is an admission that they are doing business at the expense of workers’ rights – and they want to continue doing so,” Nagkaisa! added.

The recent statement by the employers didn’t specify which provisions of the bill they strongly disagree with.

Nagkaisa! said it was grateful to Labor Committee Chair Rep. Randolph S. Ting  who steered the discussions and Rep. Raymond Mendoza of TUCP Partylist and Rep. Tom Villarin of Akbayan Partylist who co-authored the SOT Bill and helped defend it together with Nagkaisa.

Nagkaisa labor coalition supports House Bill 6908

With its provisions that can be considered as marked improvement from existing laws and regulations pertaining to labor contracting, particularly Article 106 of the labor code and DO 174, rules and regulations on labor contracting promulgated by the DOLE last March 2017, Nagkaisa!, the largest labor coalition of worker's union and labor organization in the country supports HB 6908, an act strengthening workers security of tenure, which was approved on second reading by the house of representatives last January 23.

Among these provisions are:

a) Disallowing subcontracting of jobs already contracted out by principal employers;

(b) Disallowing any form of fixed-term employment;

(c) Any one of the three conditions found present on the the employment relationship between the labor contractor and employees dispatched to principal employers, such employment relationship is deemed labor-only contracting. These conditions are (1) labor contractor has no substantial capital in the form of investment and tools, (2) the labor contractor has no control over the worker's method and means in performing their function, and (3) workers recruited and dispatched perform functions which are directly related to the principal busines of the employer; and

(d) Labor contractors found violating labor-only contracting provisions of this act shall be fined Php 30, 000 for each worker engaged in labor-only contracting arrangement but the total amount of the fine shall not exceed Php 5 million.

Nagkaisa! admits that HB 6908 is not a perfect bill to prohibit all forms of labor contracting. However, the marked improvement in its provisions would surely address to a great deal widespread use of contractual labor in the country, and thus strengthening workers' security of tenure and the exercise of their right to organize and collectively bargain compared to the present laws and regulations pertaining to labor contracting.

Nagkaisa now calls on the Senate to introduce more prohibitive provisions in their version of bills pertaining to security of tenure so as to further improve what HB 6908 has achieved.

Finally, we thanked the efforts made by Rep. Randolph S. Ting, Chairperson of the Labor Committee, representatives of TUCP and Akbayan! partylists, and the rest of the co-authors of HB 6908 for successfully defending and passing it on second reading.

Security of tenure bill remains imperfect—labor coalition

Rappler photo

THE country’s largest labor coalition on Thursday called on lawmakers to add more teeth to House Bill (HB) 6908, also known as the security of tenure bill.

In a news statement, the Nagkaisa labor coalition said the new legislation is still imperfect since it still allows some forms of contractual labor.

Nagkaisa, however, threw its support behind the legislation, which it said is already a step toward finally providing better protection to contractual workers.

“The marked improvement in its provisions would surely address to a great deal widespread use of contractual labor in the country and, thus, strengthening workers’ security of tenure and the exercise of their right to organize and collectively bargain compared to the present laws and regulations pertaining to labor contracting,” Nagkaisa said.

On Tuesday the House of Representatives approved on second reading HB 6908.

Among the salient points of the legislation is its prohibition of subcontracting of jobs already contracted out by principal employers and any form of fixed-term employment.

It will imposes a fine, ranging from P30,000 to P5 million, on labor contractors who will violate its provisions.

Nagkaisa thanked the House Committee on Labor and Employment and the representatives of the Trade Union Congress of the Philippines (TUCP) and Akbayan party-lists, and the coauthors of HB 6908 for supporting the bill.

The group is now urging the Lower House and the Senate to add stiffer penalties for employers who will violate the provisions of HB 6908.

“We call on the Senate to introduce more prohibitive provisions in their version of bills pertaining to security of tenure, so as to further improve what HB 6908 has achieved,” Nagkaisa said.

Almost 2 million workers are expected to benefit from HB 6908 once it takes effect.

In a text message, Federation of Free Workers, a member of Nagkaisa, said it will also hold rallies and forums in the coming weeks to gain public support for the bill.

Aside from the legislative measures, members of Nagkaisa are also set to meet with President Duterte next month to discuss the new EO, which is expected to further restrict contractualization in the country.

“Malacañang said [a] meeting is expected to take place on February 9,” Labor Secretary Silvestre H. Bello III, for his part, said.

Associated Labor Union-TUCP, another Nagkaisa member, said they will urge the President to finally sign the new EO during the meeting.

The meeting was originally scheduled in December 2017, but was later reset due to Duterte’s busy schedule that time.

Nagkaisa is a coalition of 40 major labor groups in the country. - By Samuel P. Medenilla - January 25, 2018

Labor group welcomes House bill vs. “endo”

PASSED ON 2ND READING

Rappler photo

The Trade Union Congress of the Philippines (TUCP) welcomed on Thursday the passage of House Bill 6908, or the proposed “Security of Tenure Act,” on second reading at the House of Representatives.

While it does not completely eradicate the practice of “end of contract” or “endo,” TUCP president and Rep. Raymond Mendoza said the bill paves the way for stringent hurdles before a job contractor can register. It also imposes heavier fines for violators.

HB 6908 makes it easier to declare a contractor as practicing illegal “labor-only” contracting or LOC.

A contractor can be deemed as engaging in endo based on any of the following criteria: no substantial investment, tools or equipment; and no handle on workers’ methods and means of accomplishing work.

“If declared LOC, the principal employer shall be responsible to the workers as if he directly employed them,” Mendoza noted.

“Under the proposed bill, it will be simpler to go after the contractor. This will ensure regularization of anywhere from 2 million to 6 million workers,” he said.

Fixed-term employment and further subcontracting work that has already been contracted out will be prohibited.

Mendoza said the TUCP wants workers to be regularized under the principal employer, not under the agency or contractor.

“The agency is only the vehicle used by the employers to avoid their legal, social and financial obligations towards their workers. We all need to help regularize more workers to make our society more fair and equitable,” he said.

TUCP also welcomed Labor Secretary Silvestre Bello III’s announcement that President Rodrigo Duterte will soon issue an executive order against endo.

Passed on January 23, HB 6908 makes both the employer and contractor liable if the contractor fails to pay the wages, allowances, and benefits of employees.

The bill also requires “just cause” to terminate the services of a regular employee. It defines an employee as one hired for an indefinite period.

Relievers, project, and seasonal employees will also get the same rights as regular employees during their contract period. —Rie Takumi/VDS, GMA News

Labor groups hope Duterte’s new EO will ban all forms of contractualization

Workers putting a final retouch to the building construction at the Global City. (photo by: NONOY LACZA)

The country’s largest labor groups are hoping that a new executive order (EO) set to be signed by President Duterte this month will finally prohibit all forms of contractualization, as what they sought in their draft EO that was submitted to Malacañang last year.

“The EO must end abusive contractualization, reverse the epidemic of contractual work, bring about inspections and punishment of workplace violators and ensure regularization of millions of workers,” Party-list Rep. Raymond T. Mendoza of the Trade Union Congress of the Philippines (TUCP) said.

Mendoza issued the statement following the announcement of the Department of Labor and Employment (DOLE) on Wednesday that the new EO approved by labor and employer’s groups is expected to be signed by Duterte before the end of the month during his meeting with labor leaders.

In a phone interview, Labor Undersecretary Joel B. Maglunsod said they already invited at least 25 labor leaders to participate in the meeting with Duterte.

This was confirmed by Associated Labor Union-TUCP Spokesman Alan Tanjusay, who said their association will be among the groups that will send a representative to the said dialogue. “However, the invitation still has no specified date,” Tanjusay said.

The DOLE earlier said the current draft of the new EO will still allow the practice of contractualization, but prohibit labor-only contracting and subcontracting.

Mendoza, who is also a member of the labor coalition Nagkaisa, maintained that allowing contractualization is a violation of the campaign promise made by Duterte to eliminate the controversial work scheme.

“We in TUCP and the Nagkaisa labor coalition request that both Malacañang and the DOLE listen carefully to workers so that the EO to be signed by President Duterte faithfully reflects his oft-repeated campaign promise to free millions of Filipino workers from the bondage of oppressive and unjust short-term work,” Mendoza said.

Tanjusay said they already requested for a copy of the EO on contractualization to check if it is consistent with their draft, which they submitted to the Office of the President last year. The new EO was supposed to augment or replace DOLE’s Department Order 174, which was implemented last year.

It was opposed by labor groups for still allowing the practice of contractualization, but subject to more regulation. Tanjusay said they plan to contest the content of the EO if it will still allow contractualization. - By Samuel P. Medenilla

Farmer, labor groups air fears on tax-reform implementation

In Photo: A family shops at a Makati supermarket over the weekend. Consumers are starting to worry about the possible effect of the Tax Reform for Acceleration and Inclusion law on the prices of fuel and, consequently, basic commodities.

Aside from fishermen, farmers, especially those with small landholdings, will pay the price of the tax-reform measure introduced by the Duterte administration.

The “burdensome” tax measure will severely affect rice farmers and threaten the country’s rice production and food security.

“TRAIN [Tax Reform for Acceleration and Inclusion] will definitely wreck our livelihood and drive us into a state of hunger,” according to the group Kilusang Magbubukid ng Pilipinas (KMP).

“The overall rice production and consumption will be affected by TRAIN. TRAIN will cause worsening hunger among the poorest of the poor. Whatever minimal gain that low to middle employees will get from TRAIN will be easily offset and swept by rising prices of commodities, services and public utilities,” said Danilo Ramos, KMP chairman.

For one, KMP said the new excise tax on oil products will result to a minimum 20-percent additional cost in the use of fuel-run farm equipment.

This means farmers will have to shell out more money out of their pockets for the added cost on production brought about by TRAIN.

In 2017 prices of diesel average at P33 per liter. Now, diesel prices have gone up to at least P40 per liter. Meanwhile, cost of fuel prices are higher in the provinces.

In a sample case study by KMP, a rice farmer in Bulacan province tilling 1 hectare of rice land will have to shell out additional P294 per hectare per cropping for the use of mechanized hand tractor to pull and harrow rice lands during land preparation. This does not include added cost for the use of water pump for irrigation, use of dryer, payment for rice milling, transportation of rice produce and other daily expenses.

According to government data, the country has 4 million hectares of rice-harvested lands. This minimum sample computation would translate to a P1.176-billion additional cost for land preparation alone.

Other farm inputs, such as seedlings, fertilizer and pesticides are also expected to increase. Food prices and commodities will increase, too, under TRAIN.

“This situation will have a domino effect on rice prices. Rice marketers and retailers are also expected to pass on added cost to consumers, resulting in hike in rice prices. We see prices of commercial rice increasing up to as much as P58 to P60 per kilo at the minimum in the coming months,” Ramos said. The current average price of commercial rice per kilo in retailers is P50 to P55 per kilo. National Food Authority (NFA) rice price averages at P38 to P40 with reported increase in some areas.

The National Economic and Development Authority has already rejected the NFA’s proposal to increase the buying price of rice from local farmers by P5 per kilo from P17 to P22. The NFA is also poised to import 250,000 metric tons of rice this year.

“These factors will affect severely the livelihood and economic state of rice farmers, and TRAIN will make it worse,” Ramos said.

The Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP), for its part, said the government has failed to put in place safety nets for the poor and adequate protection mechanism against profiteering activities in the light of the tax-reform measure’s implementation.

“We are greatly concerned over the government’s inadequate response to provide social safety nets to millions of poor Filipinos, who are about to fall into deeper poverty due to inflation brought about by the implementation of TRAIN’s excise tax on fuel and sweetened beverages,” ALU-TUCP Spokesman Alan Tanjusay said.

The group is looking for the mechanics and the implementing rules and regulations of the TRAIN and plan a dole out of P200 a month to the poor and for those economically affected by an anticipated spike in inflation.

“This TRAIN is a strategic project of the Duterte administration, yet it looks like the implementing rules are not ready and the government institution that would actualize the social safety net program for the poor is unprepared. Is TRAIN a big joke being played on poor Filipinos? Tanjusay said.

The ALU-TUCP also criticized the Trade Secretary Ramon M. Lopez on his statement on profiteering in light of TRAIN’s implementation.

“Stores and local markets have already irresponsibly increased the prices of basic and prime commodities, even before their old inventories are used up. The government must step in [and] impose the consumer-protection laws and regulations, but we don’t see them, we don’t feel the government is protecting us from profiteers and profiteering,’’ Tanjusay added.

Tanjusay said millions of Filipinos will fall further below deeper poverty if government safety nets are not ready and its institutions are ill-prepared to protect those affected by rising inflation caused by TRAIN excise tax. - By Jonathan L. Mayuga



Image Credits: Nonie Reyes

How safe are our malls? TUCP seeks DOLE-BFP joint fire safety inspections nationwide

Otto van Dacula via Reuters

MANILA – The Philippine economy has been growing the past several years on the back of continued robust consumption, fueled in turn by the proliferation of malls nationwide, but how safe are these malls?

The safety question was raised at the weekend by the biggest labor federation in the Philippines, as authorities struggled to put out the second major mall fire in just over two weeks.

Firefighters in Cebu City grappled at the weekend with the blaze that hit the Ayala Mall, even as authorities in Davao City had just pulled out the last body of the 38th victim in the Dec. 23 NCCC mall fire in the southern Mindanao City.

Alarmed over what it called the mall owners’ gross violations of fire safety and healthy and safe workplace regulations that caused the death of workers and put at risks the lives of mall shoppers, labor group Trade Union Congress of the Philippines (TUCP) on Sunday called for a joint fire safety audit of malls nationwide.

It cited violations of NCCC Mall and SSI call center to fire safety codes and non-compliance with occupational safety and health regulations.

All of the 38 fatalities in the Davao fire were call center agents working for the US-based SSI firm, which leased space at the mall. Some quarters had questioned the wisdom of allowing call centers – which run 24 hours – to occupy space at the malls, which go into lockdown mode at night and limit entrances and exits for security reasons.

TUCP President Raymond Mendoza said a nationwide inspection to be conducted by the Department of Labor and Employment (DOLE) and the Bureau of Fire Protection (BFP) will greatly minimize fires in malls.

“It is outrageous to see another fire taking place in Metro Ayala mall and Gaisano mall in Cebu City when just 15 days ago 38 workers perished in NCCC Mall fire in Davao City. These are not isolated incidents. There is a widespread violation of malls owners to fire safety standards and compromise the safety of mall goers and well-being of mall workers to cut costs and make bigger profit for themselves,” Mendoza said.

“The ongoing Metro Ayala Mall and the Gaisano mall and the NCCC Mall fires are symptoms of the wanton disregard of department store owners to go around our building safety laws and ignore workplace policy on workers’ health and safety. We have to find out other malls nationwide how safe or how fire-risks these are,” he added.

According to Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) spokesman Alan Tanjusay, the joint DOLE-BFP safety audit inspections could be conducted immediately to coincide with the forthcoming dry season when most fire incidents happen. March is traditionally marked as Fire Prevention Month, but it’s also that time of year when many fires occur.

“Fire safety audit to all malls is important because workers work here and children, old folks and entire families consider malls as home. It is the place for work, recreation and business. Malls have become very important place in the community, but how safe is our malls in the light of these twin mall fatal fire incidents? Tanjusay asked. - News5-InterAksyon

Labor group calls for joint fire safety audit of malls nationwide

Manila Bulletin photo

Alarmed by the alleged violations of mall owners to fire safety codes and noncompliance to occupational safety and health regulations, labor group Trade Union Congress of the Philippines (TUCP) has called for a joint fire safety audit of malls nationwide.

In a statement, TUCP president Raymond Mendoza said the Department of Labor and Employment (DOLE) and the Bureau of Fire Protection (BFP) should conduct a nationwide inspection to greatly minimize fire incidents in malls.

“It is outrageous to see another fire incident taking place in Metro Ayala mall and Gaisano mall in Cebu City when just 15 days ago 38 workers perished in NCCC Mall fire in Davao City,” he said.

Mendoza believes these are not “isolated incidents.”

“There is a widespread violation of mall owners to fire safety standards and compromise the safety of mall goers and well-being of mall workers to cut costs and make bigger profit for themselves,” he said.

Mendoza said the ongoing Metro Ayala Mall and the Gaisano mall and the NCCC Mall fires are symptoms of the wanton disregard of department store owners to go around the building safety laws and ignore workplace policy on workers’ health and safety.

“We have to find out other malls nationwide how safe or how fire-risks these are,” Mendoza said.

Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) spokesman Alan Tanjusay stressed the importance of conducting fire safety audit inspections in malls, which some Filipinos consider as home.

“Fire safety audit to all malls is important because workers work here and children, old folks and entire families consider malls as home. It is the place for work, recreation and business,” he said.

Malls have become very important place in the community, but how safe is our malls in the light of these twin mall fatal fire incidents? Tanjusay asked.

ALU-TUCP said the joint DOLE-BFP safety audit inspections should be conducted immediately in view of the forthcoming dry season when most fire incidents happen. - By Leslie Ann Aquino

Labor union eyes wage hike petition amid TRAIN effects on prices

The Associated Labor Unions-Trade Union Congress of the Philippines says it would seek a nationwide wage increase if the tax reform law triggers 'exorbitant' inflation

Rappler photo

MANILA, Philippines – If prices of goods and services become "exorbitant" because of the tax reform law, a labor union would file another petition for a wage hike despite the one-year ban.

"We will indeed file a petition for wage increase if there is an extraordinary increase in prices of basic commodities such as rice, fish, vegetables and if there is an excessive surge in the cost of services such as transport fare, tuition fees, electricity and water rates," said ALU-TUCP spokesperson Alan Tanjusay on Wednesday, January 3.

Wage increase orders had been issued in several regions in 2017. This included the P21 increase for Metro Manila minimum wage earners, which labor groups slammed as "measly."

Under the Revised Rules of the National Wages and Productivity Commission (NWPC), no wage petition will be entertained for one year upon the effectivity of a wage order.

"If the situation warrants, we will file the petition for workers to cope with [the] rising cost of living even if the one year prescribed for no-wage-increase period set by the wage board is still in effect," Tanjusay said.

ALU-TUCP, which also holds a seat in the House of Representatives, would file petitions in all regional wage boards or through emergency legislation.

Social protection

ALU-TUCP earlier called on the government to implement better social protection policies in order to shield the poor from inflationary effects of the Tax Reform for Acceleration and Inclusion (TRAIN) law.

Figures from the Philippine Statistics Authority (PSA) as of December 2017 show that there are about 2.4 million unemployed persons. There are also an estimated 15.6 million informal sector workers.

Informal sector workers – composed mostly of independent small-scale distributors like sidewalk vendors, jeepney drivers, and small store owners – are the most vulnerable to price hikes because they have no access to social safety nets.

Since they do not have an employer and the financial means, they are unable to register for the Social Security System (SSS), PhilHealth, and Home Development Mutual Fund (Pag-IBIG Fund).

Presidential Spokesperson Harry Roque earlier said the government will be providing a P200 monthly cash voucher to the poorest of the poor.

The Department of Finance (DOF) allocated P1 billion to the Department of Social Welfare and Development (DSWD) for this subsidy. But no implementation guidelines have been released to date. – Rappler.com