Business groups call against service contracting abolition

SEVERAL business groups have gathered recently to express their stand against the perils of abolishing service contracting or contractualization.

Dubbed “Should Contract Work Be Abolished?” the 16th Labor Executive Updates, organized by the Employers Confederation of the Philippines (ECOP), allowed business groups to say that abolishing contract work would mean dire consequences not only to employers and their businesses but also to the national economy, the country’s competitiveness and to Filipino workers who search for decent and quality jobs.

ECOP President Donald Dee lamented that the laws and other government policies of the Philippines should be flexible enough. Otherwise, potential investors will look for another country. Dee said ECOP is also partnering with the De La Salle University-College of St. Benilde (DLSU-CSB) to put up ECOP academy to help establish a Bachelor of Science in Human Resources.

“ECOP is doing all it can to help improve on human resources and

During the 16th Labor Executive Updates organized by the ECOP, from left: Ranulfo Payos, vice president of ECOP; Rene Soriano, honorary president; Rhoda Caliwara, president of Philippine Association of Legitimate Service Contractors; Marianito Roque, former secretary of Department of Labor and Employment; and George Barcelon, chairman of the Philippine Chamber of Commerce and Industry.

labor practices in the country and invested so much to help change the mindset. We are an organization that will protect workers and we will work with our workers’ welfare in mind because they are our assets,” Dee said.

Ranulfo “Noli” Payos, ECOP vice president, meanwhile, said contractualization had been a long-standing issue and suggests that all employers

should meet and perhaps come up with a common stand on the matter.

George Barcelon,chairman of the Philippine Chamber of Commerce and Industry (PCCI), said that the service contracting industry is very crucial in the development of any country, particularly for the exporters and the Micro, Small and Mediumscale Enterprises (MSMEs).

Barcelon fears that abolishing service contracting would make the Philippines lose its global competitiveness. “We’ve been talking about globalization for the past decade. It’s not just about the Asean economic community anymore. It’s about being competitive globally,” adds Barcelon, who is also a member of the Asean Business Advisory Council.