Labor chief warns vs contractualization ahead of Labor Day
MANILA, Philippines – Amid preparations to commemorate Labor Day, Labor Secretary Rosalinda Baldoz warned employers Monday against resorting to contractualization.
At the same time, the labor chief urged employers to follow President Benigno Aquino III’s “daang matuwid” (righteous path) battle cry.
Employers, she said, particularly owners of shopping malls, which are perceived engaging workers in contracts for only three to five months, should keep in mind that contractualization must not be used to circumvent the law.
“The President always reminds us that contractualization must not be used to circumvent the laws providing workers with minimum benefits,” she said in an interview with Radyo Inquirer 990AM.
“This order will further be reinforced and even private companies will be told to resolve malpractices,” she said.
She warned that DOLE will no longer allow the practice of employing personnel for only three to five months. To ensure strict compliance of a department order against hiring contractuals, she said the labor department had fielded inspectors and officers to check businesses and establishment.
Baldoz is referring to Department Order No. 18-A series of 2011, also known as “Rules Implementing Articles 106 to 109 of the Labor Code, as Amended.” The order provides that a legitimate sub-contractor should be registered with DOLE, have a capital of around P3 million, and ensure that its employees are covered by their service agreement, which implies that “the employees should work continuously for a year if the sub-contractor is under a one-year contract.”
In previous Inquirer report, it was explained that “the Department Order No. 18-A seeks to differentiate legitimate from non-legitimate contractors and subcontractors and lays down requirements for legitimate ones.”
Among the requirements to be a “legitimate” contractor and subcontractor are: owning a distinct and independent business; readiness to take full responsibility for performing a job, work or service; substantial capital or investment; commitment to comply with labor laws; and registration with DOLE regional offices.
But workers slammed the order as nothing but “fine-tuning” of existing labor regulations allowing
non-regular workers.
Labor groups, particularly the Kilusang Mayo Uno, are pushing for the abolition of the contractualization scheme.
However, not all instances of contractualization can be considered as violations but there were many abuses on the six-month probationary period and in employing sub-contractors, Baldoz said.
“Many abuse the six-month probationary period wherein instead of allowing the employee to finish the contract and evaluate to see if he can be given regular status, there is repeated hiring,” she said.
According to the labor chief, some employers don not allow some workers to reach six months.
“Others employ sub-contractors due to their nature of business and conspire with them to act as dummies to circumvent payments of salaries, overtime pay and benefits,” Baldoz said.
Baldoz said that they required companies to provide their employees with benefits from Social Security System (SSS) and PhilHealth, minimum wage, night shift differential pay, and 13th month pay if the worker has been with them for a year.
Labor officers, she explained, are there to assist companies in resolving such issues but are prepared to enforce DOLE’s order if the employers or contractors are uncooperative.
She said that violations through conspiracies between the contractor and sub-contractor to bypass laws through contractualization will cause the former to be charged for the amount of benefits employees should have received and may face cancellation of their registration with DOLE.
Meanwhile, preparations were ongoing for Labor Day—part of this were 44 venues for jobs and livelihood fairs where labor officials hoped some of the 2.9 million jobless Filipinos would be able find work, said Baldoz.
On the part of the military, Armed Forces chief General Jessie Dellosa ordered Monday the mobilization of forces of the military and beefing up of its security measures in support of the Philippine National Police for Labor Day and Asian Development Bank’s annual meeting.
Military spokesman Colonel Arnulfo Marcelo Burgos Jr. said the preparations include deploying of K9 and Explosive and Ordnance Disposal Teams from the Philippine Army, Philippine Air Force, Philippine Navy and the General Headquarters and Headquarters Support Command to augment “heightened preparations” set by the PNP National Capital Region Police Office.
The “preemptive and proactive preparations” will also include the deployment of four civil disturbance management companies from the Major Services and the GHQ-HSC that are on stand-by alert to respond upon request of the PNP. The AFP will also provide “extensive intelligence support” to the PNP Task Group Manila with covert security monitoring on ground and of all threat groups.
The military in support to the PNP will also focus on highly populated areas including LRT and MRT stations, bus terminals, and shopping malls, and rally points. It will also provide regional security support as a preemptive measure, Burgos said.
Gatherings of trade and labor organizations are expected on Labor Day to mark the annual celebration.
Meanwhile, the annual ADB Meetings, are venues for governors of ADB members that will provide an opportunity for member governments to interact with ADB staff, non-government organizations, international organizations and the private sector.
Expected to attend are top financial and economic ministers, senior government officials, representatives from multilateral development bank community, and investment bankers, among others. The ADB meeting will be held at the Philippine International Convention Center on May 2 to 5.
Dellosa in a statement assured that the celebration of Labor Day “will be peaceful and free from any disturbance.”
“It is (also) our responsibility, in support to the PNP, to ensure that the security of the 45th Annual ADB Meeting is enforced with high priority. This is important in enforcing not only the credibility of the Philippine security sector, but more so in enabling our government to focus on building stable relations with foreign economic partners for the betterment of the Filipino people,” he added.
Originally posted at 05:24 pm | Monday, April 30, 2012
