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NO ONE can blame progressive groups in the labor sector for rotesting the so-called “win-win” solution proposed by the Labor and Trade departments on labor contractualization. They expect contractualization abolished as promised no less by then presidential candidate Rodrigo Duterte. Now that he is president, however, his administration is singing a different tune. Contratualization will not be abolished at all, just tweaked. Now, labor groups are fuming mad. They were taken for a ride.
Filipino workers’ demand is clear and firm – all labor contractualization schemes must end, as the President himself promised. They won’t accept any policy that aims otherwise.
This is the proposed “win-win” solution of the government, according to Trade secretary Ramon Lopez: “We have come up with an alternative structure, and the premise of this is that the workers’ benefits will be assured and will be protected. We also have to balance it with the need to have a business-friendly policy environment that will generate jobs and attract investments. In other words, the structure should be in favor for both business and labor. We basically have two set-ups, one is the company hires directly the workers, the labor. The other option is if it is not direct hire via the company, the principal or the company will outsource it to service providers. Service providers will then hire the workers and they will have the direct employer-employee relationship.”
Through this “win-win” set-up, Lopez said workers can be hired by service providers 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 service providers, in view of seasonal job functions.
What is critical now is the compliance of service providers in giving full benefits to the workers, said Lopez, as he encouraged companies to ensure service providers comply with laws safeguarding rights of the workers.
For the progressives in the labor sector, however, this “win-win” solution is anti-worker. They said workers are at the losing end. It will not strengthen workers’ rights to security of tenure. Worse, it would even allow capitalists to hire more workers under various contractual employment schemes.
Are the Labor and Trade departments missing the point? Contractualization has proliferated precisely because our laws allowed it to. Contractualization became prevalent mainly because it was legalized. Ending only what are “illegitimate forms of contractualization” means they would not end it at all. The Department of Labor and Employment could only end contractualization by junking laws and policies, especially Department O rder18-A and the Articles 106-109 of the Labor Code, which has legalized this gross violation of workers’ rights.
The President rode on the workers’ widespread clamor against contractualization to win their support last elections. Is he a man of his words?
If the Labor and Trade departments continue to expose themselves as no different from previous pro-capitalists and anti-worker administrations, they are bound to get the ire of the labor sector and could expect bigger and bolder protests.
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