The labor group Trade Union Congress of the Philippines said at least 10,000 fly-by night third party labor contractors would be affected once the Security of Tenure Bill was approved by President Rodrigo Duterte.
“These are the ones who are operating illegally by hiring workers and supplying these to principal firms without the required sufficient capital, office and the needed equipment and tools to be considered legitimate labor contractors,” TUCP spokesperson Alan Tanjusay said.
The TUCP also said the SOT bill would cut labor cost on the part of employers while it would stimulate higher productivity for workers and improve the business climate in the country.
“On the part of labor, the bill will incentivize workers to higher labor productivity by regularizing huge numbers of them. On the part of the business and employers, it will cut down production costs by doing away with ‘Labor-only’ contractors whose financial services charges add 15 percent to the labor costs of employers utilizing such agencies,” TUCP president Raymond Mendoza said.
He added: “The measure will also reduce training costs for firms who are constantly refitting a new workforce as they phase out workers whose ‘Endo’ contracts have run out. It means having an experienced and loyal workforce for employers treating their workers fairly.
“After all, our labor market model should not be sweatshop countries like Bangladesh. By equipping our workers with world-class labor standards, we help our workers make world-class products.”
Once the bill is approved, industrial tripartite councils composed of government, employers and labor groups shall identify the type of jobs which can be considered seasonal, regular, probationary and project-based.
Meanwhile, Malacañang assured the labor group of passage of the bill without the interference from the Palace.
The Presidential Legislative Liaison Office assured the TUCP that President Rodrigo Duterte would not veto the anti-Endo Security of Tenure that would be tackled by the bicameral conference committee this coming Wednesday after it was passed 15-0 vote by the Senate last week.
TUCP vice president Louie Corral said the Security of Tenure bill that was passed by both the Senate and the House of Representatives will convene as bicameral conference committee on Wednesday (May 29) to reconcile the two versions.
“The House and the Senate versions look almost the same. We don’t see any difficult differences between the two versions,” said Corral.