Over 400 firms practicing labor-only contracting scheme

MANILA -- More than 400 companies have been found practicing laboronly contracting, a prohibited scheme under a Department of Labor and Employment (DOLE) order.

Malacañang was optimistic that the Dole would impose appropriate sanctions against the 767 companies, the top five of which include Jollibee Foods Corp. (14,960 affected workers), Dole Philippines Incorporated (10,521), Philippine Long Distance Telephone Company (8,310), Philsaga Mining Corporation (6,524), General Tuna Corporation (5,216).

Speaking to Palace reporters, Presidential Spokesperson Harry Roque Jr. said President Rodrigo Duterte is leaving the fate of the firms practicing the unlawful work scheme to the DOLE.

"Although the President asked for the list, the asking for the list does not mean it's the President who will act. I think the Labor Code is very clear, that it is within the power of the Secretary to close these establishments, provide fines, and even prosecution under the penal clause of the Labor code," Roque said.

"The DOLE already knows what to do because the law already provides what they will do. They will provide fines and they may even order closure and criminal prosecution," he added.

On April 20, the President ordered the DOLE to submit a roster of firms that are engaged or suspected to be engaged in labor-only contracting, a prohibited act cited under the agency's Department Order 174.

Earlier Monday, the DOLE revealed that 767 of 99,526 establishments inspected from June 2016 to April 2018 were found to be engaged in laboronly contracting.

Some 2,610 companies, on the other hand, were suspected to be engaged in the illegal work arrangement.

The DOLE also identified 20 companies that supposedly have the most number of workers affected by the labor-only contracting scheme.

Rounding up the top 10 firms with most affected workers were Sumi Philippines Wiring Systems Corporation (4,305), Franklin Baker Incorporated (3,400), Pilipinas Kyohritsu Incorporated (3,161), Furukawa Automotive Systems Philippines, Incorporated (2,863), and Magnolia Incorporated (2,248). SunStar Philippines