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