Labor-only contractors list worries employers

THE business community has expressed concern over the presidential order for the Department of Labor and Employment (DOLE) to provide a list of companies allegedly engaging in labor-only contracting (LOC) activities.

In a panel discussion on contractualization last May 24, speakers said they were dismayed with the April 17 memorandum issued by President Rodrigo Duterte, who ordered DOLE to inventory companies practicing LOC and to submit the roster to him within 30 days.

President Duterte also ordered the National Labor Relations Commission to submit a list of cases involving respondents found to be engaged in labor-only contracting or who have violated the DOLE orders.

Rhoda Caliwara, national president of the Philippine Association of Local Service Contractors, said the directive of the President is “problematic,” since even those who are only still suspects can be included in the list. She added that this issue merits priority attention and discussion by the business community on “what to do next.”

Former labor secretary Marianito Roque agreed that the memorandum is “a cause for worry” for companies and service contractors “because the big employers are taking this seriously also.”

He explained that big companies are concerned about the impact on their image and corporate social responsibility efforts to be associated with a party said to have violations pertaining to labor-only contracting.

“On the two parties who are part of the employer-employee relationship chain there is cause for worry and there has to be a middle ground that I hope that they can find, and to meet with the DOLE and find the middle line solution on how they can approach this list,” said Roque.

On how the list is coming along, “I think they are already midway in cleaning up the list of those who are respondents to initial LOC findings,” he added.

Another panel reactor, Atty. Benedicto Bitonio Jr., professor at the UP School of Labor and Industrial Relations, suggested that DOLE can “just publish its decisions on the website about contractors and all the other decisions so that the public can monitor who is erring and who is not, rather than come up with a list of suspects because that has very grave constitutional implications the way it sounds to me.”

Presidential spokesman Harry Roque explained earlier what the April 17 memorandum’s message to companies was: “Comply, otherwise the President will have you closed down. There will really be a tokhang against companies... He will run after them one by one. This will be a tokhang against cabo.” (PhilExport News and Features)

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