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Friday, March 29, 2024

Employers’ group warns ending ’endo’ may spark capital exodus

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Employers said it will be difficult for the government to stop “endo,” the practice by which companies hire and rehire contractual employees after five months to avoid giving them benefits as full-time employees because many industries have come to thrive using this scheme.

Employers Confederation of the Philippines (ECOP) president Sergio Ortiz-Luiz said the President might not truly understand the consequences of ending endo since this could lead to an exodus of investments.

He added that contractualization is widely used in other countries like India.

“It is a global practice accepted by many governments. It is only here in the Philippines where endo, though practiced, is not acceptable,” he said.

Many big companies in the Philippines practice endo, foremost among them SM Retail where many of its employees in malls and its grocery and convenience store chains are contractual workers, he said.

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Ortiz-Luis noted that retail, construction, and similar sectors practice endo because these sectors need to always adjust to the level of demand for services particularly in peak seasons for retail and construction.

“These companies outsource labor to service providers. And frankly, whether they subcontract or not, it should be the prerogative of the employer or company,” he said.

Earlier this week, President Rodrigo Duterte called on Congress to rectify the vetoed provisions of the security of tenure bill as he reiterated his commitment to stop “endo,” the practice by which employers hire and rehire contractual employees after five months to avoid giving them benefits as full-time employees.

Palace spokesman Martin Andanar issued the statement after Senate President and vice presidential candidate Vicente Sotto III criticized Duterte for failing to sign the bill.

In 2016, Duterte vowed to stop “endo,” which is short for “end of contract,” but he vetoed an anti-endo bill in 2019.

“The version submitted by Congress ‘unduly broadens the scope and definition of prohibited labor-only contracting, effectively prescribing forms of contractualization that are not particularly unfavorable to employees involved’,” Andanar said, quoting the President’s veto message.

Duterte said there should be a “healthy balance” between the conflicting interests of laborers and employers.

Despite the rejection of the security of tenure bill, the Palace official said that Duterte signed an executive order in May 2018 to stop the illegal contracting and subcontracting arrangements between employers and their employees.

Sotto, in a speech during a sortie in Cebu, said “endo” continues because Duterte vetoed the measure passed by Congress.

“One of the promises in 2016 is ending contractualization, right? What did the Senate do? We passed it,” the vice presidential bet said.

“But what happened? It was vetoed by the President. He did not want to sign it into law. It was sent back to us,” Sotto added.

Re-electionist Senator Risa Hontiveros on Thursday said she will go back to the Senate and fight for the security of tenure bill that Duterte failed to sign again.

Together with different organizations and workers’ unions, Hontiveros was the first to file a security of tenure bill.

“We worked hard on this up to the end together with Senate President Vicente Sotto III,” she said. “But we all failed. We are sad the Palace did not support this.”

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