Contractualization

[firestarter]

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What are the advantages and disadvantages you think this "end of contractualization " will bring to the workforce and the economy in general?

Should there be a an absolute end to it?

Church, labor groups seek end to ‘endo’

July 3, 2016 8:54 pmby WILLIAM B. DEPASUPIL REPORTER

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THE Church-Labor Conference (CLC) composed of labor and church groups submitted over the weekend to new Labor Secretary Silvestre Bello 3rd a 10-point proposal to begin the process of stamping out the illegal practice of contractualization by many big shopping malls and other establishments around the country.
Contractualization, or “endo” or “555”, is a work arrangement whereby workers are only hired for about five months or less than six months without security of tenure, non-monetary and social protection benefits.
“Contractualization of labor, specifically the practices of unscrupulous employers that directly violate or circumvent labor laws and regulations pertaining to labor contracting and regularization of employment, [is] arguably the gravest threat to our workers’ right to security of tenure,” CLC said in a statement.





Established at the height of the global financial crisis in 2009, it has become an active member of the Technical Executive Committee of the National Tripartite Industrial Peace Council.
CLC is headed by Partido Manggagawa Chairman Renato Magtubo and Manila Auxillary Bishop Broderick Pabillo.
It submitted the following recommendations:
(1) Conduct a nationwide labor consultation of workers in the private and public sector aimed at (a) threshing out employment schemes workers have encountered during employment that violate and/or circumvent labor laws and regulations pertaining to labor contracting and regularization of employment; (b) generating proposals to address violation and circumvention of labor laws and regulations; and (c) establishing mechanisms to encourage workers’ participation to President Rodrigo Duterte’s campaign to end contractualization of labor.
(2) Work for the certification by President Duterte of anti-endo bills that are going to be filed in Congress that will strengthen workers’ security of tenure in the private and public sector.
(3) Launch a massive and sustained information and education campaign to workers and employers on the labor laws and regulations at present pertaining to labor contracting and regularization of employment.
(4) Conduct a nationwide and sustained inspection of all labor contractors and service providers registered with the Department of Labor and Employment [DOLE] and other government agencies aimed at (a) finding out whether they are compliant with the existing labor laws and regulations pertaining to labor contracting and regularization of employment; and (b) filing cases against violators.
(5) Conduct a nationwide and sustained inspection of all factories and establishments inside and outside of the private and public industrial estates and/or zones aimed at (a) finding out whether they are employing contractual workers and as such compliant with existing labor laws and regulations pertaining to labor contracting and regular employment; and (b) filing cases against violators.
(6) Formulate policies and guidelines to speed up resolution of cases under the DOLE quasi-judicial bodies on violations of labor laws and regulations pertaining to labor contracting and regularization of employment.
(7) Urgently resolve pending cases and labor disputes related to contractualization.
( Establish a separate mechanism comprised of among others representative of unions, the DOLE and the Civil Service Commission that will assess and address rampant use of contractual or other forms of non-regular employment in the public sector.
(9) Train and deputize labor leaders to become part of the DOLE pool of inspectors who are mandated to conduct inspections and provide reports and/or recommendations on violations of labor laws and regulations.
(10) Institutionalize the role of tripartite formations in the country as partner of the DOLE in accomplishing President Duterte’s campaign promise to end contractualization of labor.
Contractualization, the CLC said, is a problem that renders futile the exercise of workers’ other constitutional rights to freedom of association, bargain collectively, concerted action and living wage.
“Like the menace of illegal drugs and criminality in the country, it must be stopped! Otherwise, we will become a nation of endos where workers are deprived of their constitutional rights to gainful and productive employment,” it added.
The CLC, however, concedes that addressing contractualization of labor is not that simple as it requires complex and sustainable solutions.
But it expressed belief that cooperation and the strong resolve of like-minded stakeholders are very important in getting rid of the “endo” menace.
Bello has given his assurance that “endo” must stop because it is against the law.

[vengeanceismine]

pastilan ning saad2x panahon sa election campaign ... di gyud diay mawagtang o mahunong ning contractualization karon sa term ni digong




Read more: Duterte asks for understanding about contractualization in government

[boyq]

UPDATE

Bello signs D.O. on contracting and subcontracting
Date Posted: March 16th, 2017 04:33 PM


Labor Secretary Silvestre H. Bello III today issued an order imposing a total ban on labor-only contracting, strictly regulating lawful contractual arrangements, ending ‘endo’ and deputizing workers in nationwide inspection of establishments for compliance with labor standards and existing labor laws.

Bello signed Department Order 174, or the Rules Implementing Articles 106-109 of the Labor Code, after months of consultations with both labor and management, pursuant to the promise of President Rodrigo R. Duterte to end illegal contracting and ‘endo.’ The new DO supersedes the much assailed D.O. 18-A which was oftentimes circumvented to allow various forms of contractual arrangements and end-of-contract schemes.

“Given the impasse and taking into consideration the social and economic impact of prolonged policy uncertainties, we think that it will be for the benefit of the greater public if the Department, through the Secretary of Labor, would finally put closure to this issue, and exercise the power and discretion given him under the law,” said Bello, prior to the signing of the new order at the DOLE office in Manila.

He said D.O. No. 174: 1) Reaffirms the Constitutional and statutory right to security of tenure of workers; 2) Applies to all parties in an arrangement where employer-employee relationship exists; 3) Absolutely prohibits labor-only contracting, and specifies other illicit forms of employment arrangements; 4) Allows only permissible contracting and subcontracting as defined; 5) Re-enforces the rights of workers to labor standards, self-organization, collective bargaining and security of tenure; and 6) Requires mandatory registration of contractors and subcontractors and provides clear procedures for cancellation of registration.

The new department order prohibits the following: labor-only contracting; farming of work through "cabo"; contracting out of job or work through an in-house agency; contracting out of job or work through an in-house cooperative which merely supplies workers to the principal; contracting out of a job or work by reason of a strike or lockout, whether actual or imminent; and contracting out of a job or work being performed by union members and such will interfere with, restrain or coerce employees in the exercise of their rights to self-organization as provided in Article 259 of the Labor Code, as amended.

It also prohibits contractors and subcontractors to require their employees to perform functions which are currently being performed by the regular employees of the principal; sign, as a precondition to employment or continued employment, an antedated resignation letter; a blank payroll; a waiver of labor standards including minimum wages and social or welfare benefits; or a quitclaim releasing the principal or contractor from liability as to payment of future claims; or require the employee to become member of a cooperative; repeated hiring of employees under an employment contract of short duration.

The D.O. also prohibits the signing of a contract that fixes the period of employment to a term shorter than the term of the service agreement, unless the contract is divisible into phases for which substantially different skills are required and this is made known to the employee at the time of engagement; and such other practices, schemes or employment arrangements designed to circumvent the right of workers to security of tenure.

The new DOLE Department Order on Contracting and Subcontracting also shortens the validity of the certificate of registration of contractors and subcontractors from three years to two years and increases the registration fee from P25,000.00 to P100,000.00.

To ensure the effective implementation of D.O. 174, the Labor Secretary directed Undersecretaries Joel Maglunsod and Bernard Olalia to review the enforcement framework of labor laws and standards under Department Order No.131-B, Series of 2016, or the Revised Rules on Labor Laws Compliance System.

He also requested President Duterte for the creation of 200 plantilla positions for Labor Laws Compliance Officers which will be deployed in the DOLE Regional Offices. Undersecretaries Maglunsod and Olalia will supervise these regional inspection teams.

Bello said that the Department will push through its plan to deputize labor groups to take an active part in inspection, thus assessing the more than 90,000 establishments in the country targeted this year.

“Kahit na anong ganda ng department order kung hindi naman ito maipapatupad nang maayos ay wala rin itong halaga,” said Bello.

Other information:
Press Statement: Issuance of DOLE Department Order[1] on Contracting and Subcontracting
[1] DO 174