By David Cagahastian & Catherine N. Pillas
The government is intensifying its efforts to convince all stakeholders to accept the proposed “middle ground” in stopping illegal hiring practices, highlighting that ending all forms of contractualization will drive away investors and lead to the displacement of at least 100,000 employees.
Labor Secretary Silvestre H. Bello III reiterated his appeal made in the three Labor Summits in Luzon, the Visayas and Mindanao in the past two months for the supposed middle ground, reminding labor groups to recognize the importance of legitimate forms of contracting to help employers sustain the profitability of their businesses.
“While the department [of Labor and employment] is keen on curbing illegitimate contractualization, or endo, practices as directed by the President, we recognize that there are legitimate forms of contracting and, thus, may be allowed particularly in seasonal and project employment,” Bello said in a statement.
He added that endo practices, or the illegal schemes used by employers to skirt the constitutional right of workers to security of tenure, are different from legitimate contractual arrangements, which businesses use to save on costs and make their businesses sustainable.
Coexist
“Workers and employers are bound to coexist. One could not be without the other,” Bello said, adding that the Constitution provides not only for the protection of the rights of workers but also recognizes the right of employers to reasonable returns on their investments.
“I urge labor groups to work hand in hand with the current administration in identifying plans, policies and platform of engagement in the next medium term that are anchored on principles of decent work and social justice,” he said.
However, Bello’s new appeal for labor groups and employers to reach a “middle ground” is seen by workers as a full turn-around from President Duterte’s campaign promise to stop contractualization.
During the first 100 days of the Duterte administration, officials of the ruling PDP-Laban party had adopted a hardline stance against contractualization and other violations of labor laws, even threatening to legislate more laws penalizing violators with imprisonment and steep fines.
Empty promises
But militant group Anakbayan, in its statement before the scheduled Bonifacio Day protest on Wednesday, said Duterte’s campaign promises in favor of workers are quickly turning out to be empty promises, resulting in a “business-as-usual” situation, wherein oligarchs are able to exploit workers.
“Rather than decisively junking neoliberal policies legitimizing this anti-worker scheme, the Duterte regime, through Labor Secretary Silvestre H. Bello III, has made one excuse after another to justify the continuation of contractualization,” Anakbayan National Chairman Vencer Crisostomo said.
“There is no genuine change under the Duterte regime. It’s business as usual for big comprador oligarchs, while Filipino workers continue to suffer from contractualization, low wages, high prices and inaccessible services,” he added.
No blanket end to contractualization
But Trade Secretary Ramon M. Lopez continues to bat for the continuation of legal contractualization, resisting the move of militant labor groups for a blanket end to contractual work.
“We know that this affects the operations of businesses. This is one flexibility that we will not remove, definitely we will argue to keep this because removing this will discourage a lot of investors, even those here may leave the country,” Lopez told manufacturing stakeholders during the first day of the Manufacturing Summit: Trabaho at Negosyo held on Monday.
“If there’s one thing really posing a threat to job generation and investment attraction, it’s the issue with contractualization and not the rhetoric of our President,” he added.
Lopez said three companies with existing operations in the Philippines, employing among them some 90,000 workers, have indicated they want to shut down or downgrade their operations.
Another Japanese company that the DTI chief spoke with during Duterte’s visit to Japan also expressed his hesitance to setting up operations in the country if the labor policy remains unclear.
“Tatlong malaking kumpanya na kumausap sa akin, ’yung isa naman, na Japanese na nag-air ng views,” he said.
Win-win solution
Lopez remained firm that legal contractualization, as opposed to the illegal endo scheme, should continue, advising that his alternative “win-win solution” will strike a balance between maintaining contractual work but providing security of tenure to employees.
Under the proposal, principal companies can still farm out work via third-party service providers (SP), which will then ensure their workers are both regular and permanent employees with mandatory retirement benefits.
“These are regular employees with the SP, but their principal still has the choice to hire directly or get an SP,” he clarified.