CITY OF SAN FERNANDO— The first phase of the government’s campaign to stop contractualization, end-of-contract (“endo”) and labor-only contracting (LOC) in Central Luzon region has resulted in the regularization of 10,212 workers in economic zones in Clark, Subic, Bataan and Bulacan, a labor official said.
Their security of tenure was guaranteed when 92 companies complied with labor laws, said lawyer Ana Dione, director of the Department of Labor and Employment (Dole) in Central Luzon. Most are employed in the electronics manufacturing industry.
Labor-only contracting is an arrangement where the contractor or subcontractor merely recruits, supplies, or places workers to perform jobs for a principal client.
Endo is a system where employers dismiss employees after their end of contract to avoid making them regular employees.
“These practices deprive employees from benefits that come with being regular employees such as paid leaves, bonuses, overtime and member contributions to social and health benefits,” Dione said.
“They thought [the labor practices] were legal. They were surprised when our labor laws compliance officers shared information during consultation and assessment,” she said.
The 92 firms were not penalized because they voluntarily complied with the law, she added. These firms are among the 268 companies that were assessed since the campaign began in August.
Assessments for the rest of the companies are set to be completed in the first quarter of 2017.
“We are going full blast against contractualization, endo and LOC as we expect new rules to be out by Dec. 29,” Dione said.
The Dole in Central Luzon used two strategies to stop the prohibited practices, one of the election campaign promises of President Duterte. It held consultations and encouraged firms to voluntarily grant tenure to contractual workers.
The 3,939 workers were regularized by 54 companies following the assessments. The 6,580 others were regularized through conferences at the regional office. —TONETTE OREJAS