Win-win plan vs ‘endo’ nears

October 17, 2016 at 12:50

MANILA, Philippines – The government, the private sector and labor groups are nearing the finish line in terms of coming up with a win-win solution that will address contractualization concerns and put a stop to the practice of end-of-contract or “endo” scheme in the country.

Following a meeting with the Department of Labor and Employment (DOLE) and stakeholders last week, Trade Secretary Ramon Lopez said a “merging of the best points” among all concerned parties are likely to be made through a joint resolution soon.

“We’re close to 80 percent to 90 percent to reaching a compromise based on the discussion,” he said.

“The objective of the meeting was really to come up with a win-win solution. Our win-win solution we proposed was supported by many. Of course at the labor side, they have their own comments on it on what should not be. But we reiterated that it (contractualization) is in the law. The problem is not contractualization per se but compliance,” Lopez added.

Lopez said endo – the one that is abusive and illegal – is different from legitimate contractualization wherein the security of the workers would be assured.

He said what the government needs to do now is to ensure that there would only be legitimate and well-capitalized service providers.

The principal or the companies that would hire service providers, meanwhile, must also frequently check if the service providers are complying and that those promised worker benefits are being given.

“We are seeing not a compromise but merging of the best points from both sides that will hopefully still allow keeping flexibility for contractualization. We are working within the principle of allowing legitimate contractualization. Hopefully we can find that compromise or that win-win solution wherein the right to form unions can also be done.  So that might be a possible source of a win-win formula, for contractualization to be acceptable and at the same time we’re not prohibiting unionization,” Lopez said.

Lopez said the resolution should have been ready this week but upcoming state visits to Brunei and China in which he will be part of would likely delay it.

“Hopefully we will have another meeting where DOLE and DTI  can present the recommendation already where it will have the best of both worlds,” he said.

Whatever comes out on the resolution, the trade chief said what is important is to preserve the country’s attractiveness as an investment destination which in turn would spur job creation.

“We don’t want a change in policy that will rock the boat. Even though you say that only a few will be affected on the labor side, to us, personally to me, one job or two jobs they matter. So what we hope is no job will be lost,” Lopez said.

Lopez earlier said not accepting the win-win proposal of the DTI may lead to some people losing jobs, as forcing the regularization of employees would simply lead to companies regularizing fewer people.

Under the proposed win-win set-up, 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, are given the flexibility to either directly hire workers as regular employees or outsource them through service providers, in view of seasonal job functions.

Meanwhile, the Bukluran ng Manggagawang Pilipino (BMP) has asked President Duterte to dismiss Lopez for allegedly being pro-contractualization of labor.

“Lopez has been defying and contradicting the President’s own campaign promise to end the practice of contractualization. The President must remove him from office if he is still serious about fulfilling his promise,” the BMP said in a statement.

BMP has also asked Duterte to begin the end to labor-only contracting in the country by certifying as “urgent” a bill amending Articles 106 to 109 of the Labor Code to prohibit the contracting and subcontracting of “usually necessary or desirable” work in the normal operations of a business. – With Giovannie Nilles

Source: www.philstar.com/business