2nd Front Page BusinessMirror
A16
Monday, August 8, 2016
www.businessmirror.com.ph
House to fast-track bills seeking to prohibit labor-only contracting W By Jovee Marie N. dela Cruz @joveemarie & David Cagahastian @davecaga
ith strong signals coming from President Duterte, the House of Representatives is seen passing within the year the bills seeking to end the practice of labor contracting, a leader of the lower chamber said. National Unity Party Rep. Karlo Alexei B. Nograles of Davao City, chairman of the House Committee on Appropriations, said the lower chamber will end endo, or end of contract, through the passage of bills against this employment system. “Several bills have been filed at the lower chamber designed to address labor contractualization. It will be prioritized and passed [at the lower house], because President Duterte has already given the directive that we should end contractualization,” Nograles told the BusinessMirror. Nograles also expressed confidence that the current House Committee on Labor chairman, Rep. Randolph S. Ting of Cagayan, “will fast-track it [the passage of bills ending endo] in his committee.” Nograles was a former chairman of the House Committee on Labor. For her part, Party-list Rep. Emmeline Aglipay-Villar of Democratic Independent Workers Association said the government should soon put an end to the practice of
5,150 The number of registered contractors the Department of Labor and Employment will assess this year to make sure they are not engaged in labor-only contracting
labor contractualization. Endo is a work arrangement where workers are hired for six months, either through fixed-term contracts with a six-month period or they are fired during their probationary period before regularization. “This practice denies workers of their right to security of tenure ,and prevents them from receiving Social Security System, Philippine Health Insurance Corp., Home Development Mutual Fund and other basic benefits that regular workers are entitled to,”
AKLAN PRESS CLUB VOWS TO STAND UP ON VITAL ISSUES
T
he Aklan Press Club Inc. (APCI) has vowed to stand up on vital issues confronting the province of Aklan and the nation. In its recent general membership meeting held at the NVC Carmen Hotel in Kalibo, Aklan, attended by key leaders of Aklan media practitioners, the 60-year-old Aklan Press Club has adopted resolutions to be vigilant vanguard of press freedom, human rights, an educative outpost, and as a proactive partner of the government in promoting public interest and welfare. Its newly elected officers, led by veteran journalist Odon S. Bandiola, have pledged to squarely dwell on contemporary issues concerning freedom of information, federalism, peace talks, human rights, drug menace, media killings, food security, environment, decision of UN-backed Permanent Court of Arbitration and constitutional reforms, particularly the controversial plan to build a 2-kilometer bridge connecting Boracay Island and Panay mainland. The new set of APCI officers, aside from Bandiola, who writes a syndicated column in the region, are Ernesto Solidum, executive vice president; Recto Vidal, vice president for print; Arnel Vicente, vice president for radio; Gary Vargas, vice president for cable; Richie
Oloroso; secretary; Mary Joy Reyes, treasurer; Lynn Abitang Arguilles, assistant secretary-treasurer; Megs Lunn, auditor; Jun Aguirre, Edwin Ramos, Aris Asuncion, Joel Naingue, Delano Tefora, Prof. Jay Tejada, Roben Laserna and Frank I turriaga, board members. Board of advisers, headed by Dr. Allen Salas Quimpo, representing the School of Mass Communication of the Northwestern Visayan Colleges (NVC), chairman. Its members are composed of former presidents, namely, lawyer Ronquillo C. Tolentino, Dr. Ambrosio Villorente, Edwin Pelayo, Boy Ryan Zabal, Megs Lunn and Gary Vargas. Juan P. Dayang, founding organizer of APCI, is chairman emeritus. Dayang, a veteran journalist, is a retired publisher of Philippines Graphic, former president of the Manila Overseas Press Club, Publishers Association of the Philippines (Papi) and secretary-director of the National Press Club . At present, he is secretary and trustee of the Catholic Mass Media Awards Foundation and columnist of Manila daily publications. Aklan Press Club, founded in 1956 after the separation of Aklan from Capiz, is an affiliate of the Federation of Provincial Press Clubs of the Philippines and Papi. It has a regular weekly media forum, the Kapihan sa Aklan.
Aglipay-Villar said. She added several employers get away with contractualization because of loopholes in the Labor Code of the Philippines. Earl ier, President Duter te warned businessmen against endo, saying they must “stop contractualization.” Speaker Pantaleon D. Alvarez also admitted the country’s labor laws need revisions. “We should increase the penalties presently in our statutes for the nonpayment of minimum wage, and the National Wages and Productivity Commission and the Dole [Department of Labor and Employment] should have an arm that will make sure violators are prosecuted,” he said. “The practice of endo should be looked into. Manpower-supply agencies should be mandated, upon pain of criminal liability, to comply with all labor standards on wages and benefits, and the employer be made liable,” Alvarez added. Nograles said he filed five bills seeking to plug the “loopholes” in the 1974 Labor Code of the Philippines, and address the problem between workers and employers on the issue of labor contractualization. “These bills seek to institutionalize the multiple approach adopted by the Dole in addressing the issue of endo, or contractualization, which amounts to circumvention of labor laws on labor standards and occupational safety and health standards, security of tenure, and right to self-organization and collective bargaining,” Nograles said. He added that the Dole has undertaken reforms to address the issue of contractualization. Nograles said Department Or-
der 18-A prescribes stricter rules and regulations on contracting and subcontracting, and provides all contractors’ employees the rights and labor standards benefits, including the right to security of tenure, right to self-organization and collective bargaining. “Another reform by the DOLE is the Department Order 131-2013, or the Labor Law Compliance System, that ensures enforcement of all labor laws and regulations and addresses issues on contractualization, security of tenure and other labor laws violations through a combined regulatory and developmental approach,” Nograles said. He added there are identified gaps in the Labor Code that need to be refined to address the challenges of globalizing production chains and to ensure workers’ protection. The lawmaker said these gaps include Articles 106-109, which allow contracting and subcontracting arrangement and prohibit laboronly contracting; Articles 279, 280 and 281 on the right to security of tenure, regular employment, probationary; Articles 282 and 283, or the grounds on termination of employment; and Articles 128 and 129 on visitorial and enforcement power of the secretary of labor and employment. The bills also seek to amend Book IV on occupational health and safety standards and penalties for noncompliance; and coverage to self-organization, particularly Article 243, to remove the notion that those without definite employer-employee relationship, the probationary and employees other than those with regular status are excluded from the union,
and only allowed to form labor organizations for mutual aid and protection, and not for purposes of collective bargaining. These bills are the proposed act Specifying the Requirements of Legitimate Contracting or Subcontracting; an Act Defining the Causes of Termination of Employment of Workers; and employment relations bill. “Completing the package of amendments is the proposed Labor Laws Compliance System, or the amendments to Articles 128 and 129 of the Labor Code; and the Occupational Safety and Health [OSH] bill, which imposes penalties for noncorrection of OSH violations, including criminalizing deaths with employer negligence due to nonobservance of OSH standards,” Nograles said. Party-list Rep. Tomasito S. Villarin of Akbayan also filed House Bill 341, or security of tenure bill. “None other than President Duterte himself threatened to shut down companies that intend to continue the practice of labor contracting. We welcome the President’s pronouncement. But if he’s really committed to help the Filipino workers, he must certify the security of tenure bill as urgent,” he said. The bill seeks to amend the Labor Code by drawing from both Executive (Department of Labor and Employment Department Order 18, Series of 2002) and Judicial recognition that all workers have the right to security of tenure, to notice and hearing. HB 341 also clarifies what constitutes casual, regular and project employment; and introduces the following innovations: employ-
ment may be fixed by the term of the project, task or work to be performed, but may not be bound to a mere reference to a time; the period of probationary employment is fixed at six months when all the employers shall have enough time to ascertain whether a worker is fit for retention or not; and deliberate misclassification of employees for the purpose of misleading them as to their rights is deemed an unfair labor practice. “It’s high time to enact a law that will effectively end endo beyond this administration and institutionalize security of tenure for all classes of employees,” Villarin said. Meanwhile, the Dole will assess some 5,150 registered contractors and subcontractors and their client corporations to make sure they are not engaged in laboronly contracting. The assessment of the 5,150 registered contractors is the initial target for the assessment process for 2016, and more registered contractors will be assessed next year as part of the DOLE’s campaign against labor-only contracting. However, a total prohibition against labor contractualization is not forthcoming, since a repeal of Department Order 18-A is still off the agenda of the DOLE. Labor Secretary Silvestre H. Bello III explained that the Dole still recognizes legitimate contracting arrangements by the registered contractors, such as the engagement of project-based workers in the construction industry, provision of janitorial and security services, and other arrangements recognized by the Labor Code and by existing jurisprudence.
‘Duterte admin should fix LGUs first’ By Catherine N. Pillas
R
@c_pillas29
eforms to strengthen local governments should be implemented first to facilitate the country’s shift to a federal form of government, according to an official of the Philippine Chamber of Commerce and Industry (PCCI). PCCI honorary chairman Sergio R. Ortiz-Luis Jr. said that while federalism is a “novel concept,” the Duterte administration should consider prioritizing the amendment of the Local Government Code of 1991. “Many in the business community would like to see the powers devolved to the local government units [LGUs] to be defined clearly and streamlined,
as businesses are also taxed by local governments,” Ortiz-Luis told the BusinessMirror. “Rather than graduating from local government devolution to federalism, let’s first revisit the devolution of powers to local governments and fix it,” he added. Aside from double taxation, Ortiz-Luis said the redundancies in securing permits and documentary compliance must also be resolved. Ortiz-Luis, who also heads the Philippine Exporters Confederation Inc., said the success of a federal form of government depends on how well the LGUs have developed. This, he said, is pivotal in bridging the disparity in economic development in the regions. “As it is, there is disparity in the
Home Radio partners with Davao City LGU
implementation of the Local Government Code. If we shift to a federal form of government, laws must be clear. It will be difficult to grow businesses if we do not clearly delineate the powers of the local and central governments,” Ortiz-Luis said. He said the Philippines could avoid the pitfalls of other countries that have experimented with fed-
eralism if it does not clearly define the responsibilities of local and national agencies. “Latin American experimented with federalism and countries there had a runaway inflation, because there is no central authority, no military authority, they had various monetary policies and economic strategies,” Ortiz-Luis said.
Many in the business community would like to see the powers devolved to the local government units to be defined clearly.”—Ortiz-Luis
Aliw Broadcasting Corp. President and CEO Josephine C. Reyes (left) visits Davao City Mayor Sarah Duterte (right) ahead of the shift of Home Radio Davao’s programming to a news and entertainment format. This change brings with it additional opportunities between the station and the local government to work together in their mutual efforts to serve the Davao community. Reyes reaffirmed the company’s commitment to serve its Davaoeño listeners more with this change. Photo at right shows (from left) OIC Regional Operation Niña Domingo, Reyes, Davao City Administrator Lyka Lopez and Home Radio Davao Station Manager Randy Quilos.