DOLE explains why some companies are not in list of labor-only contracting firms

After netizens pressed the Department of Labor and Employment (DOLE) to explain why certain companies were obviously missing in the list of top 20 labor-only contracting companies, the department said there is an explanation behind it.

DOLE Secretary Silvestre Bello III said in a Radyo Inquirer interview on Tuesday that companies such as SM Malls and Golden Arches Development Corp. have reached an agreement with the department, thus excluding them from the list.

“Almost two weeks ago, they (SM Malls) have regularized almost 5,000 of their employees.  At no’ng sinabi ko sa mga abogado nila na masyado yatang maliit, ang commitment nila that before the end of this year, they would regularize another 5,000 (We told their lawyers that the number is too small, they expressed commitment that they would regularize another 5,000 employees before the end of the year),” Bello said.

“So that would be about 10,000 (workers).  Medyo satisfied na ang department sa kanilang commitment,” he added.

Bello added that Golden Arches, which handles fast food chain McDonalds, also created their own regularization program.  SM Malls and Golden Arches are known to have hired contractual workers over the years.

DOLE released the list on Monday, with Jollibee Foods Corporation at the top, with 14,960 contractual workers.

READ: Jollibee tops DOLE list of labor-only contracting companies

The secretary reiterated that labor-only contracting, which is a process where a company merely hires employees to do a job for a principal, has already been disallowed.

“Hindi mo ina-outsource (‘yong empleyado) kapag ‘yong kanilang serbisyo ay indispensable and necessary to your business (You don’t outsource jobs that are indispensable to your business),” Bello said.

He added that a company may only be allowed to recruit contractual employees if the need arises, such as spikes in demand for more workers over a seasonal basis.

Bello also reminded companies that the agencies they should tap are those who have the capacity to regularize its employees, and provide them with benefits that a regular employee receives.

“Pero yung agency na kukuhanin mo, hindi dapat labor-only contractor, na walang ginawa kung hindi maghanap ng trabahante at ibibigay sa’yo ang trabahante (Companies should tap agencies that are not labor-only contractors whose business is only to provide workers for companies),” he said. /ee