Labor groups slam DOLE on contractualization rules

MANILA, Philippines—Workers groups on Thursday scored the new order from the Department of Labor and Employment which granted more right and benefits to contractual employees.

The Kilusang Mayo Uno described the order as mere “fine-tuning” of existing regulations allowing non-regular workers and pushed for the abolition of the contractualization scheme.

“The new department order is like laws in American history that merely regulate the owning and selling of Black slaves, not the abolition of slavery.

“Under contractualization, workers are like slaves and what is needed is the actual junking of this oppressive employment scheme, not its mere regulation,” said Elmer “Bong” Labog, KMU chair.

The DOLE Department Order No. 18-A series of 2011, also known as “Rules Implementing Articles 106 to 109 of the Labor Code, as Amended,” was made public by the agency early this week.

The new DO 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.

The Philippine Airlines Employees Association said it was puzzled by DO 18-A, recalling that the DOLE approve the PAL management’s outsourcing scheme, which led to the dismissal of about 2,500 regular workers who were supposed to be absorbed as contractuals by the firms contracted by the national carrier to take charge of its call center reservations, catering and airport services.

“If that is so, why did she allow us PAL workers to be downgraded as contractuals if we are going to enjoy the same entitlements that we are receiving now? What ‘security of tenure’ is she talking about when it was this ‘tenure’ that she removed from us when she approved Lucio Tan’s outsourcing plan in PAL?,” Palea president Gerry Rivera said.

Labog said that as long as contractualization is regarded legal by the DO 18-A as authorized by the Labor Code, “capitalists are sure to find ways to boost profits by exploiting contractuals,” adding, “They have managed to go around the many regulations on contractualization. We haven’t seen anybody imprisoned for contractualization.”

“From the perspective of workers, all contractors and subcontractors are illegitimate. They are agents of the extreme exploitation of workers. They should all be outlawed and abolished,” he said.

According to the new order, non-regular workers would be entitled to benefits provided under the Labor Code such as 13th month pay and overtime pay as well as retirement benefits. They will also be entitled to Social Security System, Pag-IBIG, and Philhealth benefits. Their right to self-organize or negotiate a collective bargaining agreement is also specified in the new order.

“It appears here that there seems no difference at all now between regular and contractual workers. But it’s a big ‘No.’ If both are the same, why would a company need to hire contractuals?” added Rivera, who is the vice president of the labor group Partido ng Manggagawa.

The difference, Rivera explained, lie in the contract as all the rights mentioned in the new rules are co-terminus with the contract, adding, “So if a worker is hired for just five months as most contractuals are, then it is also a temporary enjoyment of those entitlements, or none at all. Unfortunately there is also no such thing as a five month CBA, or a five month union membership.”

Both Rivera and Labog surmised that by coming out with this new DO 18-A, the DOLE was just trying to “prettify its image” while Labor Secretary Rosalinda Baldoz was just trying to “recover lost credibility” from the labor sector, the general public, and the international community after she made an error in forcing the issue of outsourcing on PAL workers.

“Contractualization in PAL clearly destroyed everything that we had. Hence, while we support the view that contractual workers (in their many categories) deserve the same entitlements being enjoyed by regular workers, we stand firm in our position that regular workers are not entitled to become contractuals and the latter deserve to become regulars,” argued Rivera.

The KMU also contradicted Labor Secretary Rosalinda Baldoz’s claim that the new department order would “promote employment and encourage full compliance with minimum wages and general labor standards, including safe and healthful conditions of work, security of tenure, and self-organization and collective bargaining.”

“That is just DOLE’s public relations personnel speaking. It is not as if the country lacks laws on workers’ rights and interests, but even the pro-capitalist laws are not implemented and no one has yet been imprisoned for their violations, especially with regard to contractualization,” Labog said.

The mere fact that the DOLE speaks about ‘encouraging’ and not punishing capitalists to uphold the most basic rights of workers “shows that it is powerless before, and in connivance with, capitalists who are implementing contractualization,” he added.