MANILA, Philippines – The Department of Labor and Employment (DOLE) is now considering more options to finally put an end to the widespread illegal contractual employment scheme in the country.
Labor Secretary Silvestre Bello yesterday reported that DOLE was looking at four proposals submitted by different employers and labor groups on how to address the issue of contractualization.
Bello said DOLE was studying the recommendation of the Filipino Chinese Chambers of Commerce in addition to the win-win solution proposed by the Department of Trade and Industry and the middle ground position of the Employers Confederation of the Philippines.
He declined to elaborate on the proposal of the Filipino Chinese Chambers of Commerce, except to say it was a “radical” measure to address contractualization.
“We will have to assimilate all these inputs that will address the focal position of President Duterte which is to end illegal forms of contractualization,” he said.
Bello earlier said DOLE was inclined to adopt ECOP’s proposal as a temporary policy to resolve illegal forms of contractualization.
Speaking at the 6th national forum of the Philippine Association of Legitimate Service Contractors, Bello assured service providers that DOLE would be fair in deciding a new policy to address contractualization.
The labor chief said it was “unrealistic” for the government to impose a total ban since there are legal forms of contractualization provided under the law.
After holding two labor summits this week, Bello said DOLE would come out before the end of the year with a final policy that is legal and beneficial for both employers and workers.
Since the government launched the campaign against end of contract (endo) employment scheme, Bello said DOLE has found a thousand companies engaged in the illegal scheme.
He said DOLE suspended the permits of some of those companies while about 25,000 workers have been regularized.
For his part, Baguio Rep. Mark Go has proposed to amend the Labor Code and allow contractualization on certain conditions.
Contractualization is now a global trend and in the Philippines the number of contractor employees has grown from over 600,000 in 2014 to two million this year.
