BUSINESSMEN and labor groups failed to reach consensus on the “win-win” solution proposed to end the unfair and abusive of labor contractualization and the higly controversial end-of-contract, or “endo,” scheme in the country.
A top business leader, meanwhile, scored a senior Department of Labor official whom he blamed for the worsening dispute resulting in the persistent rejection of the “win-win” solution by the labor groups.
Following a tripartite conference called by the Labor Department last Monday, wherein groups were asked to settle their positions on the “win-win” setup proposed by employer groups, several labor groups nixed the proposal they claimed was against President Rodrigo Duterte’s vow to end contractualization and other illegal labor practices in the country.
“The Department of Labor [and Employment] is consulting with the labor sector. And I think the labor sector is still requesting for some clarification,” George Barcelon, Philippine Chamber of Commerce and Industry president, told Malacañang reporters Tuesday.
The Trade and Labor departments had earlier suggested a “win-win” setup proposed by employers themselves wherein workers would be hired by the service providers and agencies as regulars, receiving full benefits such as leave credits, 13th month pay as well as retirement, social security and health insurance plans, among others.
Companies, meanwhile, will have the flexibility to either directly hire workers as regular employees or outsource them through the service providers, in view of seasonal job functions as required by their needs and other operational demands.
Barcelon, who represents the mostly small and medium enterprise-led PCCI along with Donald Dee, chairman emeritus of the Employers’ Confederation of the Philippines expressed support for the proposed “win-win” solution by the government for workers to be regularized and enjoy all benefits mandated by the law.
“They will get the benefits and they would be registered SSS members. So that’s one thing from the employer side. If we were to get some employees, our workers from the service provider, we have to make certain that they are registered with the SSS. And they will also enjoy all the full benefits, 13th month, holiday pay, and all of these must be granted. So we’re for that solution,” Barcelon said.
Workers groups, however, said the proposal would surely be a “lose-lose” situation for workers.
“Regularization through labor contractors further weakens workers’ security of tenure as it ceases any employer-employee relationship between workers and the principal employer,” said Elmer Labog, Kilusang Mayo Uno (KMU) chairperson.
“We weighed the Dole’s efforts to heed our workers’ pressing demand to end contractualization. Clearly, the labor department has taken no concrete steps to fulfill the President’s commitment,” he added.
The labor leader claimed the labor department’s efforts to address contractualization does not directly respond to their workers’ demands for regular jobs.
During the labor dialogue, KMU presented a draft of workers’ proposed Department Order to replace what they claim as the “anti-worker” DO 18-A.
According to Labog, their proposed DO aims to “strengthen workers’ rights to security of tenure by asserting that principal employers should have full responsibility for their workers while labor contractors should be considered as mere agents.”
Dee, however, scored these assertions made by workers groups on the definition of “security of tenure,” one of the contentious issues hindering any approval of the proposed “win-win” solution.
“When they talked about security of tenure, their definition is different. To them, security of tenure is lifetime work. That’s not it,” he said.
“Security of tenure simply means you do not remove any employee without just cause and without following a process. So they will not agree. But it’s for the Dept. of Labor to say we will go back to the Labor Code,” he added.
Dee also asked a left-leaning senior Dept. of Labor official, now part of the Duterte administration, “to resign” for doing disservice to the President’s policy of giving dignified jobs to Filipinos.
“There are people or appointees in the department and I was very open to object to them because they are there not to implement and support the President’s policy of job creation and providing dignified jobs and life for our people. They are there to implement their own philosophical stuff,” Dee said.
Dee added: “And I said people like that should have no right to accept the appointment. They would do the President justice by resigning.”
Asked in a chance interview following the press briefing, Dee told the Manila Standard he was indeed referring to Labor Undersecretary Joel Maglungsod, a progressive labor leader and former Anakpawis Representative personally handpicked by the President from the earlier list given by the National Democratic Front (NDF).
Dee scored Maglungsod in one of his proposals to raise wages to P125 across the board.
“Boss, personal opinion? You are a senior government official. You have lost your right to make public statements like that and did you even bother to make a computation? P125 for 7.7 million people or employees will amount to almost a billion pesos a day,” the business leader said.
He added: “And Neda itself said, if you do that, you’re going to see inflation go to beyond 6 1/2 percent. What happens? – I asked the guy who made this statement – to the 32 million tricycle drivers and self-employed who will not get your P125? They’re going to carry the burden of the increase in price?”
Maglungsod earlier expressed belief the “win-win solution” being pushed by the employers’ sector would become a major obstacle in their bid to eliminate contractualization.
“This will definitely cause a delay because the ‘win-win solution’ is a position of employers that is totally against the stance of workers and that of President Duterte,” said Maglunsod in an interview.
The Kilusang Mayo Uno (KMU) earlier expressed alarm over the appointment of well-known management lawyers in key positions in the DOLE, saying these officials are out to sabotage the Filipino workers’ unity with President Duterte to end contractualization.
“We urge Secretary Bello not to listen to – if possible kick them out – these scumbags from the Dole. These pro-capitalists lawyers are openly defying the Presidents’ marching orders by rejecting our workers’ legitimate demands to end contractualization to protect their personal and business interests,” Labog said.
Barcelon said employer groups don’t want to be the stumbling block to President Duterte’s mandate of inclusive growth.
“I hope they will see that this arrangement is neither pro-management but it should be more pro laborers,” Barcelon said.
The Labor Department has committed to reduce contractualization work arrangements by 50 percent by 2016 and its elimination by 2017.
Data showed there are to date 5,150 registered contractors and subcontractors deploying more than 416,000 workers to not less than 26,000 principals.