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DOLE approves new ‘endo’ policy

by UNTV News and Rescue   |   Posted on Friday, March 17th, 2017

After a nine-month dialogue, DOLE Secretary Silvestre Bello III has signed on Thursday the Department Order # 174 Series of 2017 or the DOLE order on contracting and subcontracting.

This, after a series of dialogues with labor groups and employers across the country on the creation of a new policy on contractualization or endo.

But the labor groups argue that the new order will only regulate and not prohibit contractualization. Thus, it will not provide solution on labor issues caused by the endo scheme.

“We’ll try to seek audience again with the President and tell him this is not your campaign promise, this is not your instruction. Why the goal of the leadership of the present administration of department of labor contradicting or contravening the instructions made by the President,” PALEA President Gerry Rivera said.

The labor secretary, on the other hand, clarifies that he has no power to totally prohibit all forms of contractualization and fixed term employment since only congress has the authority to do so by amending existing laws.

‘Under the law I can regulate contractual and subcontractual arrangements but I can also prohibit labor only contracting but the legitimate contracting and subcontracting I cannot prohibit that is for Congress to prohibit… even though the president wants it to end, the problem is there are existing laws which allows certain forms of contractual arrangements,” said DOLE Secretary Bello III.

Bello says the regulations stated in the order is in accordance to the President’s directives when it comes to the employment of Filipino workers.

“When the President said he doesn’t like endo or contractualization what he was referring to is the illegal and unlawful contractual arrangement. So, it is still in line with the President’s marching order,” Secretary Bello III added.

Among the prohibitions under the new DOLE order are: labor- only contracting; contracting out of job or work through an in- house agency; repeated hiring by the contractor/ subcontractor of employees under an employment contract of short duration or the hiring of worker for only a short period of time.

DOLE will immediately implement the said order and vows to intensify inspections of companies and business establishments across to the country to ensure that the rights and benefits of workers are not being violated.

“The number is close to 630,000 plus the workers not included here. 1.3 million non-regular workers under the bilateral arrangement… this may reach close to two million workers in the event of the full implementation of this new department order,” labor undersecretary Maglunsod said. — Aiko Miguel | UNTV News & Rescue

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Duterte certifies Security of Tenure Bill as urgent

by UNTV News   |   Posted on Tuesday, September 25th, 2018


PASAY CITY, Philippines — Senate President Vicente Sotto III said he received a letter from President Rodrigo Duterte dated September 21 urging the “immediate enactment” of Senate Bill No. 1826 or the Security of Tenure Bill and End of Endo Act of 2018.

Senator Joel Villanueva, chairperson of the Senate committee on labor, employment, and human resources development, lauded President Rodrigo Duterte’s certification of the Security of Tenure Bill as urgent.

He said the practice of contractualization affects more than 1.9 million workers in the private sector. Overall, about three out of 10 Filipino workers are not regular and one out of two non-regular workers are contractual.

Once passed into law, the measure would remove ambiguities in the Labor Code, which is the source of circumventions, and: (a) prohibit labor-only contracting, and provide penalties for violation (b) limit job contracting to licensed and specialized services, (c) classify workers into regular and probationary employees–and treat project and seasonal employees as regular employees, (d) provide security of tenure, (e) clarify standards on probationary employment, and (f) provide “Transition Support Program” for employees while they are not at work or transitioning in between jobs.

The senator added that giving the country’s workers certainty and social protection makes them more efficient and more productive.

Villanueva stressed that, “We certainly need a law that will not only uphold our workers’ basic labor rights and restore dignity of work, but also a law that will promote quality employment without jeopardizing business operations but rather create more stable jobs for every Filipino.” — UNTV News & Rescue

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PLDT, NutriAsia blame Labor Code over ‘endo’ issues

by UNTV News   |   Posted on Thursday, August 9th, 2018

Labor Undersecretary Joel Maglunsod sorrounded by protesters waiting outside DOLE Bldg. in Intramuros Manila on Thursday, August 9 as the hearing continues on regularization of PLDT ccontractual employees. Enrico Orola/PVI


Officials of the Department of Labor and Employment, the Philippine Long Distance Telephone Incorporated, NutriAsia and union workers attended on Thursday the Senate hearing on contractualization.

Until now, there’s no assurance of re-employment for the 7,000 retrenched workers of PLDT who are insisting regularization based on DOLE’s decision.

The two companies blame the ambiguous provisions of the Labor Code as the underlying cause of issues on contractualization.

PLDT human resources head Menardo Jimenez, Jr. said, “In my interpretation of the law, which may need interpretation, we are allowed to outsource to call centers and business process outsource.”

However, the labor department reminded companies not to use the law’s ambiguity as an excuse to circumvent it.

“Huwag na po nating pagsamantalahin ang kakulungan sa batas,” said DOLE Usec. Joel Maglunsod.

Due to these issues, Senate Committee on Labor, Employment, and Human Resources Development chairman, Sen. Joel Villanueva said he will ask President Duterte to certify anti-endo bill as urgent.

“Klaro na merong pang-aabuso na nangyayari. Klaro na may problema tungkol sa ambiguedad ng ating mga patakaran , protocols,” said Villanueva.

Last Monday (August 6), the Anti-Endo Bill reached the Senate plenary discussions.

Under the provision, labor-only contracting is strictly prohibited with corresponding penalties.

There will also be a clear –cut classification of regular and probationary employees, and a measure that provides security of tenure to all kinds of workers. — Nel Maribojoc

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DOLE finds 3,377 firms with violations of illegal contracting

by UNTV News and Rescue   |   Posted on Monday, May 28th, 2018


MANILA, Philippines – The Department of Labor and Employment (DOLE) found a total of 3,377 companies in practice of illegal contracting.

Following a series of inspections on how companies implement labor policies, the agency found out that over 224,000 employees from the said companies remain on contractual status.

Labor Secretary Silvestre Bello III said they already submitted the list to President Rodrigo Duterte. He reiterated that the President is determined to order the closure and revocation of business permits of firms who will not adhere with his directive of regularization and proper compensation of employees.

“Ipinapakita lang niya na he is serious in his advocacy in putting an end to ENDO and at the same time putting an end to Illegal and unlawful contractual arrangement,” said Bello.

Bello said what he submitted to the President was just the initial list. He explained that because of limited number of labor law compliance officers, DOLE couldn’t immediately finish the inspection to around 900,000 establishments in the country.

“Inulit namin iyong request namin na dagdagan iyong aming labor law compliance officers. Kasi physically impossible na with 574 inspectors mag-iinspect ka ng 900,000, ” Bello explained.

The agency also vows to strictly monitor the regularization of employees in 20 companies that have the most number of contractual employees, one of which is a local food chain with over 14,000 contractual workers.

DOLE is obliging the said companies to regularized at least 10 percent of their employees every year.

“If they will submit to us a regularization program of regularizing 10% of their total workforce to us, the Department of Labor, it will be reasonable,” Bello said.

Bello emphasized that this labor inspection is not a form of shame campaign but part of a reform that the government wants for the agency. – Aiko Miguel

Top 20 Companies with most number of contractual employees
14,960 – Jollibee Food Corporation
10,521 – Dole Philippines Inc.
8,310 – Philippine Long Distance Telephone Company
6,524 – Philsaga Mining Corporation
5,216 – General Tuna Corporation
4,305 – Sumi Phils. Wiring Systems Corporation
3,400 – Franklin Baker Inc.
3,161 – Pilipinas Kyohritsu Inc.
2,863 – Furukawa Automotive Systems Phil., Inc.
2,248 – Magnolia Inc.
1,802 – KCC Property Holdings Inc.
1,687 – Sumifru Philippines Corp.
1,673 – Hinatuan Mining Corporation
1,598 – KCC Mall De Zamboanga
1,582 – Brother Industries Philippines Inc.
1,483 – Philippine Airlines and PAL Express
1,400 – Nidec Precision Philippines Corporation
1,362 – Peter Paul Phil. Corporation
1,183 – Doelfil Upper Valley Operations
1,131 – DOLE-Stanfico

Source: DOLE

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