Workers’ groups, solons slam Duterte ‘betrayal’

File photo / Philstar

The Trade Union Congress of the Philippines slammed foreign businessmen and their chambers of commerce for interfering in the country’s domestic policy following President Rodrigo Duterte’s veto of the proposed Security of Tenure bill.

“They are engaged in an unwarranted interference in the purely domestic affairs of the Filipino people. They are also infringing [on] our sovereignty. We remind these businessmen and chambers that while we welcome their investments, it should not be at the expense of denying what should rightly be regular jobs for Filipinos,” the group said in a statement Friday.

The TUCP said it took 19 years in Congress for the SOT bill to reach this stage, only to have it blocked by those who “stand in the way of the struggle of Filipino workers and their families’ struggle for decent work through secure and regular jobs.”

The Department of Labor and Employment and labor groups had thrown their full support for the bill.

On Friday, they said President Duterte’s veto would enable companies to keep hiring contractual workers who will be terminated after only five months and rehired on the same contractual basis, as a way to avoid regularizing their workers.

The Employers Confederation of the Philippines, on the other hand, welcomed the veto.

“We’re very glad that Malacañang has finally made up its mind that the security of tenure bill will only lead to loss of jobs and investments,” ECOP president Sergio Ortiz-Luis said.

He said ECOP would police its own ranks to end abusive contractual practices.

Duterte clearly turned his back on workers, the TUCP said.

“The most democratic and most peaceful struggle of ordinary workers out of their poverty trap to endo are shut by a man who promised to introduce genuine change and uplift them,” TUCP President Raymond Mendoza said in a statement.

“President Duterte certified the security of tenure bill as an urgent measure in his 2018 State of the Nation Address, saying he did not have the power to end endo and only Congress, which has the legislative power, could do this. Now that Congress has acted on his certification, why veto something he certified as an urgent national bill?”

The TUCP also said the bill was not a disincentive to businesses, who could still hire seasonal and contractual workers.

The Pagkakaisa ng Timog Katagalugan-Kilusang Mayo Uno denounced the President’s veto as a betrayal of his campaign promise to end contractualization.

“Duterte has only put the nail on the coffin on the workers’ call for regular jobs under his administration, Similarly, there remains no justice for the more than 30,000 workers in the Southern Tagalog region that have been declared regular workers but have not returned even for a single minute as regular workers,” Pamantik-KMU said in a statement.

“In light of his betrayal against the people, we enjoin the call to intensify the workers’ fights outside the walls of Congress,” the group said.

Senator Joel Villanueva on Friday led senators in expressing disappointment over the presidential veto, while vowing to refile and prioritize the bill for the 18th Congress.


“Unfortunately, profit wins again with the veto of the SOT bill,” said Villanueva, who chaired the Senate labor committee.

Senate President Vicente Sotto III said the upper chamber “will refile and prioritize [it]. We will find an acceptable version.”

In a separate text message to GMA News, Sotto said he was “crestfallen but that’s how democracy works, and Congress, being dynamic, can refile [and have the bill passed again].”


Minority Leader Franklin Drilon also said he was saddened with the President’s decision because the Senate worked hard for its passage, as it was certified as urgent.

He said the bill can be refiled but the executive branch “must first get its act together.”

“We have frontline departments [DOLE and NEDA] with opposing views. We are unclear as to what the policy is. The bill passed by Congress essentially mirrors DOLE’s position but apparently the NEDA has a different one—which was eventually concurred with by the President,” Drilon said in a statement.

In the House of Representatives, Gabriela Party-list Rep. Arlene Brosas denounced the veto, calling it the President’s “biggest betrayal” of Filipino workers.

She said she and her fellow legislators would file a “stronger” anti-contractualization bill that would plug all the loopholes in the law that allow businesses to engage in job contracting.

“President Duterte’s veto of the security of tenure bill exposes his full allegiance to big businesses which lobbied hard against the measure,” Brosas said. “Despite certifying the measure as urgent and despite prominently vowing to end contractualization during the campaign period, the President pandered to the pleasure of business chambers by killing the anti-endo bill.”

Brosas accused Duterte of acting “in absolute compliance to the business sector’s demand not to sign the security of tenure law in utter disregard of his campaign promise. Duterte chose big business over workers and even over himself.”

“It is very clear in the veto message that the President wants to allow businesses to have the upper hand in outsourcing jobs “regardless of whether this is directly related to their business.”

“This essentially means unli-job contracting that will trap more workers in short-term, low-paying, and unsafe employment,” Brosas added.

Parañaque City Rep. Joy Tambunting said Congress would need to find “a better compromise between labor and management.”

Tambunting is the wife of former Parañaque City Rep. Gus Tambunting, who was the principal author of the measure at the House of Representatives during the 17th Congress. - Joel E. Zurbano and Maricel V. Cruz

Labor group: Vetoing ‘anti-endo’ bill ‘really hurt’ contractual workers, their families

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MANILA—The President's decision to veto a bill that would have given temporary workers secure employment "really hurt" laborers and their families, a union group said on Friday.

Alan Tanjusay, spokesman for the Associated Labor Unions—Trade Union Congress of the Philippines (ALU-TUCP), said the group was disappointed for contractual workers who had hoped that President Rodrigo Duterte would fulfill his promise to stop "endo," the colloquial term for hiring and dismissing workers in fixed cycles.

"We are saddened for the millions of endo workers and their families dahil matagal silang umasa. They hoped for the President for so long, hoping that before the end of Duterte's term that he would fulfill his promise to address head-on the issue of poverty caused by endo," Tanjusay said Friday in an interview with ANC.

"It really hurt us because this is the President's campaign promise and he said he would not renege on his promise to end contractualization."

Duterte vetoed the Security of Tenure (SOT) bill authored by Sen. Joel Villanueva, despite his promise during his presidential campaign to stop contractualization and help in granting full-time employment status and corresponding benefits to contractual workers.

Presidential Spokesperson Salvador Panelo announced the veto of the bill after retracting his statement late Thursday that the President rejected the measure.
Duterte vetoes 'security of tenure' bill, says spokesman

"So this is a non-fulfillment of his (Duterte's) promise and he's turning his back away on the workers," Tanjusay said.

The spokesman stressed the bill was a "chance" for contractual workers to "experience the economic gains the country has been experiencing."

"Mataas ang ating ekonomiya, yumayaman ang ating bansa, lumalaki ang profits ng companies, pero hindi po sila nakikinabang dito sa economic wealth na ito na sila mismo ay naging bahagi," Tanjusay said.

According to him, there is no more middle ground between the President and contractual workers.

"We don't see any middle ground because the SOT bill is the middle ground," Tanjusay said.

Duterte, he said, "might take a hit on his political capital" for rejecting the bill. - ABS-CBN News

Duterte certifies ‘end to endo’ bill as urgent

He cited the need to immediately enact Senate Bill 1826, titled “An Act Strengthening Workers Right to Security of Tenure,” in a letter to Senate President Vicente Sotto III dated Sept. 21.

MANILA, Philippines — MANILA, Philippines — President Duterte has certified as urgent a bill that seeks to prohibit contractualization and labor-only contracting, practices that he said are causing poverty and underemployment in the country.

He cited the need to immediately enact Senate Bill 1826, titled “An Act Strengthening Workers Right to Security of Tenure,” in a letter to Senate President Vicente Sotto III dated Sept. 21.

The President said the measure would strengthen workers’ security of tenure by prohibiting the “prevalent” practices of contractualization and labor-only contracting, describing these as something that “continue to immerse our workers in a quagmire of poverty and underemployment.”

“It is now certified urgent by the President, in line with his promise to put an end to endo (end of contract),” presidential spokesman Harry Roque said at a press briefing yesterday.

When the president certifies a bill as urgent, it will not be covered by the rule which states that a measure can only be approved on final reading three days after its approval on second reading.

The House of Representatives approved its version of the bill last January.

Roque said the Senate version aims to bar all forms of labor-only contracting and does not exempt contractors with huge capital.

Under the bill, there is labor-only contracting if the job contractor, whether licensed or not, merely recruits, supplies or places workers to a contractee, whether he has substantial capital or investment.

If the bill is enacted, companies would have to hire employees directly and could no longer source workers from employment agencies.

“This effectively repeals the provision of the Labor Code that permits labor-only contracting as long as the company has enough capital and assets,” Roque said.

Labor groups are becoming more optimistic that the country is closer to ending illegal short-term employment.

“We are near the goal. It’s closer than it has ever been, but we still have some work to do. The Senate has been given a directive to craft a law that will end contractualization. We must see this through and ensure that the proposed measure shall address the weaknesses of existing laws on security of tenure,” said labor coalition Nagkaisa chairman Sonny Matula.

He said the workers’ campaign to eradicate the endo scheme and other illegal forms of contractualization got a big push after Duterte certified the security of tenure bill as urgent.

“Labor’s persistence has so far paid off. Our relentless efforts have shown dividends. After more than two years, the Duterte administration has finally made a big step towards the fulfillment of a campaign promise,” Matula noted.

To ensure that legislators act on the certification, he said labor groups would mount more rallies to ask the lawmakers to pass the bill at the soonest time.“With the election season fast approaching, the Senate and House of Representatives, voting separately, are under pressure to ratify the harmonized version and submit the law for the President’s enactment,” Matula said. The Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) also lauded Duterte for certifying as urgent the security of tenure (SOT) bill, which was already approved by Congress on third reading.

Gerard Seno, ALU-TUCP national executive vice president, said the certification of the SOT bill is definitely a positive vibe to workers whose morale has been low due to rising cost of living.“We pray that it will be passed by Congress consistent with the presidential promise instead of being watered down by the corporate vested interests which are overrepresented in Congress,” he said.TUCP party-list Rep. Raymond Mendoza said the certification from the President is an early Christmas gift for workers who continue to struggle in making both ends meet.

Labor Secretary Silvestre Bello III claimed that DOLE has long recommended the need to certify the SOT bill as urgent.

“We are now looking forward to the better implementation of regulation ensuring security of tenure of workers with the expected passage of the SOT bill,” he said.Labor Undersecretary Joel Maglunsod hopes that the bill will be passed by November, if not early next year.– Alexis Romero (The Philippine Star) With Mayen Jaymalin

Palace certifies as urgent Senate’s anti-‘endo’ bill

MALACAÑANG has asked that Senate Bill 1826 or the Security of Tenure (SoT) Bill be certified as urgent, following President Rodrigo R. Duterte’s commitment to abolish “endo,” an employment practice that denies workers a path to permanent status.

In a palace document dated Sept. 21, Mr. Duterte asked Senate President Vicente C. Sotto III to “certify the necessity of the immediate enactment” of the SOT Bill.

Malacañang added that the bill needs to pass to “strengthen workers’ security of tenure by prohibiting the prevalent practice of contractualization and labor-only contracting which continue to immerse our workers in a quagmire of poverty and underemployment.”

Mr. Sotto said in an interview with reporters that the chamber will push for the bill’s passage before Congress adjourns on Oct. 12.

“We’ll do our best to pass it by Oct. 11,” he said.

Sen. Emmanuel Joel J. Villanueva, who chairs the Committee on Labor, Employment and Human Resources Development, added: “We certainly need a law that will not only uphold our workers’ basic labor rights and restore dignity of work, but also a law that will promote quality employment without jeopardizing business operations but rather create more stable jobs for every Filipino.”

The Senator, who is also the author and principal sponsor of the bill, added that the SoT bill will address the interests of both the labor and business sectors.

Labor and Employment Secretary Silvestre H. Bello expressed the hope that the law will pass and be implemented promptly.

At a briefing on Tuesday, Mr. Bello said he has a personal timetable of October passage for the bill allowing it to be signed into law by December.

Labor Undersecretary Joel B. Maglunsod said in a chance interview on Tuesday that the move to certify the bill is “(a step forward).”

Nagkaisa Labor Coalition (NAGKAISA) Chairperson Jose Sonny G. Matula said the process of certification brings the sector closer to the goal of ending contractualization.

“It’s closer than it has ever been but we still have some work to do,” Mr. Matula, who is also the President of the Federation of Free Workers, said in a statement on Tuesday.

He added, “After more than two years, the Duterte administration has finally made a big step towards the fulfillment of a campaign promise.”

Associated Labor Unions — Trade Union Congress of the Philippines (ALU-TUCP) National Executive Vice-President Gerard R. Seno said in a press release, “The moment the SOT bill is enacted into law, there is now a chance for contractual workers to be included in the country’s growing economic growth.”

For his part, Employers Confederation of the Philippines Acting President Sergio R. Luis-Ortiz, Jr. stressed that the passage of this bill could effectively reduce the labor force, adding that employers will be deterred from hiring workers especially for high-demand periods like Christmas.

He added that eliminating contractualization will also put off current and potential foreign investments from the country.

“Many foreign investors are turned off (by the measure),” he said in a phone interview with BusinessWorld on Tuesday.

“You cannot (remove contractualization); we’ll be the only one in the world to do that,” he added, noting that the contracting of services not directly affecting the company’s business is a common global business practice. — Gillian M. Cortez

Labor group expects “good” SONA

Nagkaisa Labor Coalition, the largest coalition of worker’s organization in the country expects a “good” SONA from President Duterte.

“It should be a SONA that would squarely address economic woes and political issues besetting the country today”, said Nagkaisa spokesperson Ka Rene Magtubo.

Nagkaisa expects the President’s SONA should contain the following:

– Addressing the proliferation of illegal and abusive contracting arrangements that DO 174 and EO 51 failed to do, by way of certifying as urgent the Security of Tenure Bill pending in the Senate

– Addressing the “gap” in workers wages and the cost of living brought about by the TRAIN law, rising inflation, peso devaluation, profiteering and the spike in global prices of petroleum products by way of certifying as urgent wage bills pending in the House of Representatives;

– Providing more assistance to women workers by enacting into law the Expanded Maternity Leave Bill pending in the House of Representatives;

– Addressing the prevalence of poverty despite positive economic growth in terms of programs and services that would directly benefit the poor people by way of increasing budget in affordable housing, universal healthcare and pension for the elderly among others;

– Addressing the continuing problem of unemployment and underemployment by way of policies and programs that would provide more local employment opportunities to the labor force by way of a clear industrialization policy, continuing land reform, and development of agriculture; and

– Clear government policy of defending the country’s sovereignty and patrimony on its rightful claims in the West Philippine Sea.

“These are the real issues that matter most to the working people that government should prioritize and not charter change. Absent these issues, the speech will be “business as usual” as in the previous SONAs”, Magtubo added.

Majority of the members of the coalition will be joining the United Peoples’ SONA to voice out workers issues and concerns.

– Nagkaisa Labor Coalition
Press Release

Labor hesitant about Palace Meeting sans knowledge of final EO version

“We are not sure if we will go to the meeting with the President as we don’t know which version of the Executive Order (EO) Labor Secretary Silvestre Bello III is once again peddling,” Nagkaisa Labor Coalition said in a hastily called press conference following reports of a much delayed meeting with President Rodrigo Duterte happening in mid-April.

President Duterte, in a meeting with labor leaders on February 27, promised that he and his legal team will look into the workers’ draft EO submitted jointly by Nagkaisa and Kilusang Mayo Uno with the support of the National Anti-Poverty Commission. He promised to sign the issuance by March 15, to no avail.

“The truth is, the Secretary has been obstructing our efforts these past few years. He has been misleading the president and has been fooling the public by twisting labor’s position and making it appear we are unreasonable,” Nagkaisa said.

“The workers’ draft has moved from total prohibition of contractualization to a framework of prohibition of contractualization that would allow certain exemptions for contracting out of work, but subject to the decision of the National Tripartite Industrial Peace Council.” Nagkaisa added.

“We abhor the abuse and exploitation of workers through contractualization as it has become the convenient excuse of unscrupulous employers and manpower agencies and pseudo cooperatives to pay low wages, disregard social protection, bust unions and fire workers at will. We believed the President share these abhorrence with irresponsible employers,” Nagkaisa added.

Nagkaisa calls on government to decide where its policy on addressing contractualization stands. “Is it for more profits to employers at the expense of workers’ rights and welfare; or adhering to state guarantees of providing full protection to workers’ rights and welfare that would bring about sustainable growth to the economy?”

“Secretary Bello shamelessly foisted that labor is calling for the total prohibition of contractualization and deliberately misled the public and the President that workers are hardlining and demanding the impossible. He obstructed and derailed the democratic processing of an EO,” Nagkaisa added.

“He has acted beyond the pale and has shown to what depths he will unconscionably betray his sworn trust and the public interest. He must now disclose what this purported April 16 EO contains. It is something we have never seen,” said Nagkaisa.

Nagkaisa only learned about a supposed new round of meetings in Malacañang via news reports as no official invitations and meeting agenda have been received by any labor group.

DTI should impose its weight against rising inflation, not on labor

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The Department of Trade and Industry (DTI) should impose its weight against rising inflation rather than keeping the labor price low under the policy of contractualization.

The DTI has always been on the side of business, thus, when Secretary Ramon Lopez stated that contractualization “is not unfair to workers” he was essentially parroting the line of the Employers Confederation of the Philippines (ECOP) whose bottom line position on this issue is to keep the price of labor low to remain competitive. For DTI and ECOP, the best way to keep the price tag of labor low is to keep contractualization as the prevailing policy of the Duterte administration.

The labor movement has repeatedly rejected the “win-win” formula of DTI and the Department of Labor and Employment (DOLE). Our bottom line is change: Direct hiring must be the new policy. This is the only way workers can actually enjoy their constitutional right to security of tenure. The DTI and DOLE position is for workers to enjoy security of tenure in their respective manning agencies and not in their principal employers as contained under Department Order 174 of DOLE. This “win-win solution” has led to a farcical situation where majority of the more than 45,000 workers reportedly “regularized” under DO 174 last year now find themselves “regularly employed” by agencies and not by the principal. The rule should be, as its name denotes, manpower agencies and other service providers should merely be treated as agents of the principals.

This is the main reason why we have been pushing for an Executive Order to correct this distortion and rectify decades of injustice imposed upon millions of workers. The Labor Secretary, and in this particular case, the President, can prohibit contractualizaton under the Labor Code.

Section 2 of the labor-proposed EO provides relief for this impasse as it states that: “Contracting or subcontracting when undertaken to circumvent the worker’s rights to security of tenure, self-organization and collective bargaining and peaceful concerted activities pursuant to the 1987 Philippine Constitution is hereby strictly prohibited. Security of tenure refers to the direct hiring relationship between the principal employer and employee.”

Contractualization under the proposed EO is still recognized. Only that the types of job that can be contracted out be done upon consultation with members of the National Tripartite Industrial Peace Council (NTIPC). What the DTI wants is to perpetuate the norm of contracting out almost all jobs in the guise of management’s exercise of their prerogative. This regime, for over two decades, led to a dramatic change in employment relations, with “middlemen employers” such as manning agencies and “labor cooperatives” dominating the trade.

This norm also has dissipated almost all rights guaranteed to workers by the constitution and labor laws, from security of tenure, right to organize, collectively bargain and to strike in accordance with law, and to be represented in the formulation of policies affecting their welfare.

Again, to DTI: Contractualization is not unfair to workers? It seems like this agency is now headed by a feudal lord.

Trading workers through manpower agencies who act as middlemen in a trilateral employment relationship is feudalism, which is clearly unjust. For more than two decades, this re-feudalization of labor has become the norm and keeping the policy will perpetuate this abominable condition of poverty and inequality amid economic growth.

Hence, when we stated that the buck stops now with the President, it is because we believe the impasse can be resolve in favor of justice. It’s either change as promised by the President, or business-as-usual as demanded by ECOP.

NAGKAISA Labor Coalition
Press Statement

Time is up: The buck stops now with the President on the issue of endo

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Contractualization was a top billing issue during the 2016 presidential election. And it was the President who made a campaign promise that the moment he becomes the Chief Executive, contractualization will stop. The trade union movement responded with enthusiasm and accorded the President the courtesy and latitude of managing his plans by participating in all the summits, workshops, and dialogues organized by the government on this issue.

Several times he asked leaders of Nagkaisa labor coalition that he be given more time to realize his pledge – the first was on February 27, 2017; then on May 1, 2017; and the last was on February 7, 2018 where he asked for another extension until March 15. On these occasions, President Duterte would always say that contractualization is anti-labor and anti poor as it brings in hardship and poverty upon millions of our workers.

Furthermore, it was also the President who asked Nagkaisa leaders during the Labor Day dialogue held in Davao last year to draft within 10 days an Executive Order (EO) that he can sign to correct the labor-rejected Department Order 174 issued by the Department of Labor and Empoyment (DOLE) in March last year and to rectify the more than two decades of failed framework of regulation. Nagkaisa religiously complied with all these processes and waited for the final response of the President.

Now, a few days before his self-imposed deadline and the President is no longer asking for time and more drafts but for a compromise. The buck stops now with President Duterte. The labor-drafted EO which seeks to bring back direct hiring and institutionalize prohibition as the general rule on contractualization but recognizes that there are types of jobs that can be contracted out as along as it passes through consultation with the National Tripartite and Industrial Peace Council (NTIPC) is the fairest middle ground or “compromise” that labor can take. A watered-down version of an EO is unacceptable.

NAGKAISA Labor Coalition
Press Statement

‘End workers’ insecurity’: Duterte urged anew to junk contractualization

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A labor group called on President Rodrigo Duterte to properly balance the interest of employment and capital in the country.

The call of the Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) on Tuesday was made after Duterte said that he needed more time to study the proposed executive order (EO) that aims to terminate contractualization.

ALU-TUCP also urged Duterte to sign the said EO, as all workers deserve the security of tenure as stated in the Constitution.

“Management prerogative is not unfettered. It is bound by the Constitution, the laws of the land, public policy, morals and simple decency. The Constitution is crystal clear: workers have the right of security of tenure,” Michael Mendoza, ALU-TUCP president, said in a statement.

“We call on the President to fulfil his promise to the workers to end the hopelessness and insecurity of millions,” he added.

Under the proposed EO, contractualizaton would only be allowed for some professions to be decided by the labor department and its council, the National Tripartite Industrial Peace Council. /je - By: Faye Orellana - @inquirerdotnet

Labor groups hold picket outside Dole offices

For a cause. Members of labor groups in Cebu ask President Rodrigo Duterte to fulfill his campaign promise of ending contract-ualization in the country. (SunStar Photo/Amper Campaña)

A FEDERATION of labor groups called Nagkaisa held a synchronized rally in front of all Department of Labor and Employment (Dole) offices nationwide to lobby for the end of contractualization.

Art Barrit of the Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) and Dennis Derige of Partido ng Manggagawa (PM) said that President Rodrigo Duterte is scheduled to sign the executive order (EO) ending contractualization on or before March 15.

The labor groups believe that the issuance of the EO is long overdue, considering that ending contractualization in the country was a campaign promise of President Rodrigo Duterte in the May 2016 election. “I think this is just a pencil-pushing activity but this a coordinated nationwide mass action by a united labor front under Nagkaisa.

The President must sign that EO to end contractualization on or before March 15 because that is long overdue,” Barrit said.

He said Duterte promised to end 50 percent of contractualization in the country by the end of 2016 and the remaining half by the end of 2017.

Derige, for his part, said that once Duterte signs the EO, there will be no more fixed-term employment and labor-only contracting in several companies will be stopped. “There will be direct hiring and the companies are mandated to comply with all the benefits for them like Social Security System (SSS), Philhealth and Pag-ibig Fund since they are regular employees,” he said.

According to Derige, Dole’s Department Order (DO) 174 issued last year, which provided guidelines on contracting and subcontracting, was good that an issuance of EO will no longer be needed. But he said the DO was a failure. “It seems that our Dole Secretary Silvestre Bello III has a balancing act due to the lobby of the business sector,” he said.

Barrit said there are two versions of the EO submitted to Duterte, that of Dole and the labor groups. The latter, they believe favors the businessmen. Dole 7 Director Cyril Ticao, when sought for comment, said that he didn’t know about this since all documents are prepared by their legal department. (EOB)- SunStar

Labor groups call to end contractualization

Over a hundred individuals from different labor groups stage a protest in front of the Department of Labor and Employment (DOLE-7) building along General Maxilom Avenue corner Gorordo Ave., Cebu City on Monday morning.

Members of the Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) and Partidong Mangagawa demanded the issuance of an executive order by President Rodrigo Durterte to end the contractualization scheme in the labor force.

DOLE-7 Director Cyril Ticao said they are waiting for instructions from the central office regarding the issue. - By: Jessa Mae O. Sotto

Duterte urged: Sign EO against Endo

LABOR groups in Cebu are calling on President Rodrigo Duterte to sign the proposed Executive Order ending contractualization or the end of contract scheme.

The call was made during their protest rally in front of the Department of Labor and Employment in Central Visayas (DOLE-7) on Monday.

Art Barrit, spokesperson of Associated Labor Unions- Trade Union Congress of the Philippines (ALU-TUCP), said they staged a rally to put pressure on President Rodrigo Duterte, who asked to study the proposed EO until March 15.

“This is a synchronized mass protest action nga panawagan nga mapirmahanm na sa presidente ang EO on ending contractualization (calling for the President to sign the EO to end contractualization),” he said.

About a hundred members of the ALU-TUCP, Partido Manggagawa and Sentro, who are all from the Nagkaisa Coalition.

However, Dole-7 Director Cyril Ticao said they are waiting for the mandate from the higher authority.

“Sa amin, whatever order coming from the higher ups, we will just implement them,” Ticao said.

Despite the proposed EO not being finalized yet, Ticao said that some employers in the region had already regularized their workers.

“There are some who volunteered na i-regular ang mga workers nila (to regularize their workers),” he said.

For this year, he said the DOLE-7 are targeting that at least 21,000 contractual employees in the region will be regularized.

Last year, the DOLE-7’s target was 6,000 workers, who have secured a regular position in their respective companies.

Ticao also said that DOLE-7 distributed last Friday at least a P7.5 million allocation for livelihood programs in Toledo City in western Cebu.

Ticao said it would benefit 21 associations in the city, which would include farmers, fishermen and women’s groups. - By: Jessa Mae O. Sotto

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.

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

House oks ending "endo"

The House committee on labor and employment moved a step closer towards the passage of the much-awaited bills seeking to end the practices of contractualization and de-regularization of workers by approving the creation of a technical working group (TWG) that will consolidate all 25 measures pertaining to “endo.”

In a hearing held this week which was presided by committee chairman Rep. Randolph Ting (3rd District, Cagayan), the panel approved the creation of the TWG that will consolidate House Bills 55, 76, 170, 341, 556, 563, 709, 712, 895, 916, 1045, 1208, 1351, 1563, 1837, 1857, 1910, 2389, 3556, 3769, 3802, 4443, 4444, 5130 and 5264 which seek to strengthen the security of tenure of workers in the private sector by ending the practices of contractualization and de-regularization.

TUCP Rep. Raymond Democrito Mendoza

Ting said the TWG will use as reference in the TWG discussions House Bill 4444 authored by Rep. Raymond Democrito Mendoza (Party-list, TUCP), HB 556 by Rep. Ariel Casilao (Party-list, ANAKPAWIS) and HB 3556 by Rep. Mark Go (Lone District, Baguio City).

As to the composition of the TWG, Ting said this will include the authors of the bills, representatives of the different labor groups, the Department of Labor and Employment (DOLE), Department of Trade and Industry (DTI), and other concerned agencies.

Mendoza said his bill aims to totally prohibit contracting, sub-contracting, manpower agency hiring, outsourcing, including those undertaken by so-called service cooperatives engaged in manpower supply.

“All workers must be treated as regular employees, doing away with other types or definitions of employment. Moreover, contractualization clashes with the principle of social justice enshrined in our Constitution and must therefore be criminalized. Thus the bill provides penal provisions against violators,” said Mendoza.

Casilao said alongside the Duterete administration’s plan to abolish contractualization, the Kilusang Mayo Uno (KMU) and All Workers’ Unity have been demanding the end of contractualization schemes, a fundamental workers’ agenda presented to President Duterte since the campaign in 2016.

“With the end in view of uplifting the Filipino workers from deepening poverty and misery, prohibiting contractualization fundamentally shall protect the national interest and democratic ideals of Filipino society,” said Casilao.

Go said cases of violation on the prohibition on labor-only contracting and what is commonly called as “5-5-5” or “endo” have become rampant and unabated despite the provisions of the Labor Code and its implementing rules, DOLE Department Order 18-A.

“The guiding principles of DO 18-A provide: Contracting and sub-contracting arrangements are expressly allowed by law and are subject to regulations for the promotion of employment and the observance of the rights of workers to just and humane conditions of work, security of tenure, self-organization and collective bargaining. My bill seeks to regulate outsourcing of work by providing conditions for its practice and penalties for any violation,” said Go.

Go further said his proposal also seeks to resolve recurring problems in the practice of contractualization and to achieve a “win-win” solution for both the employees and employers, and as partners in attaining sustainable growth and development for the country.

The various labor groups and organizations and concerned agencies voiced out their respective position on the bills during the hearing. They also submitted their position papers to the committee.

The Associated Labor Unions (ALU)-Southern Mindanao and Northern Mindanao Region Offices, along with the Trade Union Congress of the Philippines (TUCP) and the NAGKAISA Labor Coalition strongly called for the total prohibition of labor contractualization in all its forms.

The ALU-TUCP-NAGKAISA said there are 13 million contractual workers out of the 43.7 million workforce in the country. It is time to reverse the trend so that there will be more regular workers receiving the social benefit obligations due them from the employers, it said.

The group said the epidemic scale of contractualization is the primary reason why the soaring Gross Domestic Product (GDP) growth numbers has not resulted in inclusive development. “There is a widening of the gap in income inequality because workers under contractualization are not given their SSS, Pag-IBIG, and PhilHEALTH benefits. And because regularization is not possible, they cannot organize unions through which they can bargain to get a fair share of the wealth they created,” the ALU-TUCP-NAGKAISA said.

The Sentro ng mga Nagkakaisa at Progresibong Manggagawa or SENTRO, representing at least 80,000 members in the private, public and informal sectors, including migrant workers, women and the youth, expressed its support for proposals pertaining to “endo”, specifically HB 4444.

“The years spent by the government trying to regulate subcontracting has failed to protect workers. The reason is simple: indirect employment inherently results in inequity,” said SENTRO in its position paper.

Meanwhile, Labor and Employment Secretary Silvestre Bello III, in a position paper, said the DOLE is not inclined to support the call for a total prohibition on contractualization because of its adverse effects on employment opportunities and industry competitiveness.

Bello said the practice of contracting and subcontracting is also a problem in other developed and developing countries, amidst intensified competition among firms due to globalization.

“The DOLE does not recommend ending contractualization as a practice. The Department, however, fervently believes that its abuse should be stopped and be meted with stricter or stiffer penalties, which can be made possible through legislation. Contractualization should not be allowed under abusive terms such as in labor-only contracting, which as defined in the Department Order No. 174, series of 2017, has the following nature or condition: The contractor or subcontractor has no substantial capital or does not have investments in the form of tools, equipment, machineries, supervision, work premises, among others; and the contractor’s or subcontractor’s employees recruited and placed are performing activities which are directly related to the main business operation of the principal; or the contractor’s or subcontractor’s employees recruited and placed are performing activities which are directly related to the main business operation of the principal,” said Bello.

Meanwhile, Maria Lourdes Yaptinchay, director of the Sector Planning Bureau (PB) of the Department of Trade and Industry (DTI), in a position paper submitted to the committee, said they are of the view that flexible work arrangements such as legitimate outsourcing and contracting-out work should remain and continue.

“Outlawing job contracting in general may not be in the best interest of our business and the economy. It may lead to the demise of legitimate contractors, which approximately employ 416,343 workers. Local companies/ business would, therefore be forced to directly employ workers to do the work that were previously contracted-out to manpower or contracting agencies, thereby increasing production/overhead cost by at least 30 percent which will lead to higher prices of goods,” said Yaptinchay.

The other authors of the bills seeking to end contractualization are Reps. Kaka Bag-ao, Emmeline Aglipay-Villar, Karlo Alexei Nograles, Tom Villarin, Winston Castelo, Bellaflor Angara-Castillo, Angelina Tan M.D., Harry Roque Jr., Emmi De Jesus, Carlos Isagani Zarate, Aniceto Bertiz III, Bernadette Herrera-Dy, Sol Aragones, Linabelle Ruth Villarica, Joseph Stephen Paduano, Arthur Yap, Manuel Zubiri, John Marvin Nieto, Sherwin Tugna, and Anthony Bravo. / Congress Press RBB

Workers ‘frustrated’ over failed promise on ‘endo’

THE country’s biggest labor groups were frustrated and felt neglected by President Rodrigo Duterte’s failure to lay down a clear-cut policy on work contracting and other forms of short-term employment during his second State of the Nation Address (SONA) on Monday.

The Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP), through spokesman Alan Tanjusay, on Tuesday said 25 to 30 million contractual workers were expecting that the President will fulfill his promise to end the contractualization scheme during his speech.

“We are very frustrated with Mr. Duterte as it turned out but we have no choice but to continue and [raise]the ante in pressing him to fulfill his promise to abolish endo (end of contract) and all forms of contractualization,” Tanjusay said in a text message to The Manila Times.

He added that only the fulfillment of the President’s campaign promise and subsequent meetings with leaders of various labor groups to put a stop to all forms of contractualization can free millions of workers from the “slavery” of contractualized work , jobs that have no security of tenure and paid with low wages and meager benefits.

“Mr. Duterte asked labor groups for time on the issue of contractualization on Labor Day. We hope that he would abolish it as he promised he would during his SONA,” Tanjusay said.

“We urge the President to make clear in no uncertain terms, in plain, categorical language, his placing the contractual problem as among our—and his—top priorities in the national order of battle. All surveys indicate that the Top 3 concerns nationally are the spiralling the cost of goods and services, the meager wages and the lack of decent employment. All are directly traceable to the regime of contractualization,” according to the ALU-TUCP spokesman.

The group noted that during their May 1 Labor Day dialogue with Duterte in Davao City, the President asked labor leaders to draft a presidential Executive Order (EO).

The draft EO was submitted by the ALU-TUCP and the Nagkakaisa Labor Coalition last May 9 in compliance with the President’s directive.

Covered by the EO are contracting and sub-contracting arrangements including cooperatives.

The order prohibited all forms of labor contracting, labor-only contracting or job contracting, which are declared illegal and are therefore strictly prohibited.

It stated, “All parties engaged in any arrangement in violation of this EO shall automatically be considered the worker’s direct employer and the latter shall be deemed as direct employees.”

The order said violations of the EO shall be penalized under existing laws and regulations.

If the offense is committed by cooperative, corporation, partnership, trust, firm, association or any juridical entity, the penalty shall be imposed upon the guilty officers of such groups.

The draft EO, if approved by the President, will effectively nullify Department Order (DO) 174 of the Department of Labor and Employment, the new guidelines on contractualization that took effect last April 3.

DO 174 replaced DO 18-A in response to the workers’s demand to abolish contractualization.

Labor groups rejected DO 174, claiming that it only benefits employers and manpower service providers and cooperatives.

During his meeting with organized labor in Davao City, the President assured them that he understood what the workers want and suggested that “we assert our public interest power to ensure a just transition to help him meet his promise to the nation.”

“I stand firm on my conviction to end endo. Just give us time. The Labor Code guarantees all the right to security of tenure. This has to be strictly enforced. Labor laws must be enforced against endo and labor-only contracting,” Duterte told the workers.

The President admitted in the labor dialogue that there is “resistance and objections” coming from some members of his Cabinet and interest lobby groups on his decision to ban contractualization “but the President said he has no sympathy for oligarchs.” - By WILLIAM DEPASUPIL, TMT

Workers fear ‘endo’ vow now on the back burner

Labor groups are seeing their hope for an end to contractualization—as what President Duterte committed on several occasions since the campaign period—dim by the day, especially with the Chief Executive opting to evade the labor issue in his State of the Nation Address (Sona) on Monday.

For Labor Secretary Silvestre H. Bello III, however, the President has already fulfilled his promise of ending “illegal contractualization”.

“What is left now is the issue on contractualization, because what the workers wanted is that there is total prohibition,” he said. “But we told them that it is not possible because there is a law that allows employers to get contractual workers,” he added. For example, he said, if an employer wanted to get a security guard for his company, he could hire one from a manpower agency. Also, if a company wanted to get janitors, it could hire from an agency. “We cannot tell employers to stop it because we have a law on that,” he added.

But the Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) and Kilusang Mayo Uno (KMU) disagree, which is why they were disappointed when Duterte did not mention in his second Sona how he intends to put an end to the practice of fixed-term employment. Moreover, theKMU said it is becoming obvious the President will not be able to junk contractualization under his six-year term.

“I don’t find any concrete and substantial commitment with regard to labor issues and other important issues of the masses. The President’s Sona is not for the common people,” KMU Chairman Elmer C. Labog told the BusinessMirror.

ALU-TUCP Spokesman Alan A. Tanjusay said they are still hoping for the issuance an executive order (EO) banning contractualization as a mode of employment. “Of course, [we still expect him to end contractualization], not only because ALU-TUCP wanted it, but, most important, because he promised it,” Tanjusay told the BusinessMirror.

However, Tanjusay said as much as ALU-TUCP wanted to give the Chief Executive time to resolve the labor issue, it wonders how long should workers wait for labor reforms to be enacted.

“We are willing to give him the time he said he would need in delivering the promises he made to the Filipino people, but how long are we going to wait? Until when will the workers have to hope in him?” Tanjusay added.

Duterte, during the campaign, vowed to outlaw contractualization—particularly the hiring practice known as endo—a promise that earned him the support of several labor groups. However, a year after and two Sona later, Duterte has yet to comply with the appeal of the labor movement for an EO scrapping contractualization.

What labor groups got, instead, was a department order issued in March by Labor Secretary Silvestre H. Bello III imposing tighter regulations on contractual arrangements. Labor groups and economists have since criticized Bello’s order, saying it was redundant with existing laws and it oversimplifies the labor market.

Striking while the iron is hot, labor groups demanded one after the other reforms under the Duterte administration, including a P184 across-the-board wage increase for Metro Manila-based workers, after getting the Chief Executive’s commitment to end contractualization.

Much to the labor groups’ dismay, however, Duterte made no mention of scrapping fixed-term employment and increasing wages in his second Sona. On top of this, Malacañang has yet to divulge any information on the status of the draft EO seeking to scrap contractualization submitted by ALU-TUCP on May 9.

But Bello insisted that there is no more endo (or end of contract), a term referring to the practice of employers to hire employees on repeated five-month contracts to go around the law requiring them to hire on a regular basis any employee who has worked for them for six months.

“Endo has stopped, because the President has already told employers and managers to stop,” Bello said, noting that “when the President said there would be no more contractualization, what he meant was that there would be no more illegal contractualization”.

He said they have corrected this practice in some big companies, such as in the country’s leading chain of supermalls, “where we asked the management to regularize their salesgirls, for instance, because the salesgirls are necessary workers in the malls”.

He said the SM Group has committed to comply, “but only gradually”, the same request made by leading food chains, citing the huge number of their workers.

Jollibee, for instance, has more than 50,000 workers “and has asked that they be allowed to gradually implement regularization”.

However, Bello admitted that there were still many shopping malls, department stores and food chains that continue to violate the law on contractualization.

So far, the labor department has monitored the regularization of 61,000 contractual workers in a span of one year, or since the President announced the end of the practice of endo. - By Elijah Felice Rosales With Manuel Cayon / Business Mirror


http://www.businessmirror.com.ph/workers-fear-endo-vow-now-on-the-back-burner/

ALU-TUCP wants P157 wage hike

The country's biggest labor federation, the Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP), will file today (Wednesday, May 24) a petition for an across-the-board P157 wage increase for workers in the National Capital Region.

The TUCP said the petition for wage increase was due to the rising cost of basic needs, such as electricity, water, foods and transportation.

ALU-TUCP spokesperson Alan Tanjusay said they will file the petition for Metro Manila's private sector minimum wage earners at the office of the Regional Tripartite Wage and Productivity Boards is-National Capital Region in Malate, Manila.

Tanjusay justified their demand for a P157 increase in daily minimum wage in the NCR , saying the current wage of P491 was not enough to lift workers out of poverty.

If approved, the minimum wage in Metro Manila would be P648 a day.

The petition for an "across-the-board" increase wil benefit all workers in all industries in the NCR, Tanjusay said.

The TUCP cited the reason for the wage increase to the rising inflation—low purchasing power of the workers monthly pay, which actually is equivalent to only P315.56, way below the government's 600-a-day estimated poverty threshold for a family to cope with the cost of living.

At present, the workers monthly basic was valued only at P9,467 a month, which should be at least P15,000 today to meet the basic food needs of a family of five based on the Food and Nutrition Research Institute (FNRI).

"All of the workers in Metro Manila should have the increase because everyone is hit by price increases," the ALU-TUCP said. - by Vito Barcelo / manilastandard