Business groups find parts of EO on contractualization ‘worrisome’

Some members of the business community expressed on Tuesday reservations about the signed executive order (EO) on contractualization, but nevertheless they said they would just have to “live with it.”

In a text message sent to reporters, the Employers Confederation of the Philippines (ECOP) and the Philippine Chamber of Commerce and Industry (PCCI) said that they were worried over the definition of some terms in the EO.

That was the reaction shortly after President Rodrigo Duterte signed the order on Labor Day, reversing Malacanang’s previous announcement that he would no longer be signing any order.

READ: Duterte signs EO vs illegal contracting

In a joint statement, the groups said that the order balanced the interests of both labor and management. However, they still had their reservations.

In particular, they found the definition of “security of tenure” and the possible loose or abused rules of engagement in the enforcement of certain prohibitions “worrisome.”

A copy of the EO is not yet available as of posting time.

“Government though must be credited in its serious and sincere effort to craft an EO that meets the expection of both labor and capital. The EO is signed, and despite our reservations some of which are cited above, employers will live with it and comply,” the groups said.

In a text message to reporters, the Department of Trade and Industry (DTI) said the EO would attract more investments.

“DTI is for the improvement of welfare and security of tenure of workers and at the same time ensuring we have stable policy environment that will create jobs,” DTI Secretary Ramon Lopez said.

“We believe the EO signed will further attract investments that will create more employment opportunities,” he added.

Various members of the business community previously defended the merits of legal contractualization, noting how it would provide flexibility for employers. /atm