Duterte inks EO on contractualization

PRESIDENT Rodrigo R. Duterte has signed the much-anticipated executive order (EO) on job contractualization, a leading and contentious issue since his 2016 presidential campaign.

Mr. Duterte signed the order Tuesday morning at an event in Cebu City marking Labor Day and organized by the Department of Labor and Employment (DoLE) and other agencies.

Malacañang, as of this reporting, has yet to release the EO, but Mr. Duterte in his speech said it includes a “prohibition against illegal contracting and subcontracting.”

He cited Section 2 on the “Prohibition Against Contracting or Subcontracting,” as also subtitled by the draft EO sent by the Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP).

The draft, as sent by Alan A. Tanjusay, spokesperson of ALUTUCP, read in part: “Contracting or subcontracting when undertaken to circumvent the worker’s rights to security of tenure, self organization and collective bargaining and peaceful concerted activities pursuant to the 1987 Philippine Constitution is hereby strictly prohibited.”

Mr. Duterte read the same provision in his speech.

ALU-TUCP had also earlier sent the media the draft EOs that it attributed to DoLE and to business groups.

According to Labor Undersecretary Joel B. Maglunsod, Mr. Duterte had asked these stakeholders to submit their proposed EOs to the Palace.

ALU-TUCP’s draft order, regarding Section 2, also read: “Security of tenure refers to the right of employees not to be dis- missed or removed without just or authorized cause and observance of procedural due process consistent with the constitution, labor code of the Philippines as amended, and prevailing jurisprudence. Security of tenure is hereby strengthened by the general norm of direct hiring.”

The draft EO by DoLE, according to ALU-TUCP, also referred to direct hiring. Mr. Duterte, however, did not cite any such provision in his speech.

Sought for comment, spokesperson Renato B. Magtubo of the Nagkaisa coalition which includes ALU-TUCP said, “The EO that was signed is a product of a consultation of DoLE with DTI (Department of Trade and Industry) and ECoP (Employers Confederation of the Philippines). Hence we call it a DoLE-DTI EO.”

Also sought for comment, Labor Undersecretary Jacinto V. Paras said about the EO: “It’s the version of the President which is a balance( d) version consistent with existing law and the (C) onstitution to attain industrial peace.”

Mr. Duterte in his speech also called anew for the passage of the congressional measure on security of tenure and reaffirmed DoLE’s lookout for companies suspected to be engaged in laboronly contracting.

Mr. Magtubo, for his part, replied via text when sought further for comment: “We felt [that] we are taken for a ride. There was no consultation with our 5th draft submitted to the OP ( Office of the President) on April 13. The EO that was signed definitely is an EO for the employers, not for the workers. We will not waiver, we will continue to fight to give

justice to workers affected by the widespread contractualization of labor.”

But he also said: “We expect the President to sign the fifth draft of the workers’ EO we have submitted to him last April 13 thru the labor secretary that would make direct hiring of workers to principal employers as a norm in employment relations of his administration but on the other hand would open some jobs or functions to labor contracting subject to consultations in the National Tripartite Industrial Peace Council.”

For his part, ECoP chairman Edgardo G. Lacson said in a press statement the order signed by Mr. Duterte is “a wellcrafted EO that balances the welfare of labor and allows legal contractual employment which is a globally accepted form of work arrangement.”

“Endo or 5- 5- 5 is an illegal practice which the tripartite partners(,) government labor, and capital(,) will jointly stop through aggressive enforcement of the law. To a great extent, under the government of President Duterte, we can say Endo is fast dying if it is not dead in the water yet,” Mr. Lacson added.

ECoP president Donald G. Dee for his part said, “We will just make clear our understanding of this EO. Hindi na kami mag- ke- question pa ( We won’t have any further questions) because we want to move forward already.”

Also sought for comment via phone interview and text, Philippine Chamber of Commerce and Industry ( PCCI) president Ma. Alegria Sibal- Limjoco said ECoP and PCCI “find worrisome the exact definition of security of tenure, among others, and the possible loose or abused rules of engagement in the enforcement of certain prohibitions.”

She also said the EO “is not really what businessmen want.”

“Government, though, must be credited in its serious and sincere effort to craft an EO that meets the expectations of both labor and capital,” Ms. Limjoco said.

“The EO is signed and despite our reservations… employers will live with it and comply,” she added. — with