THE Department of Labor and Employment (Dole)-Northern Mindanao has admitted that they are still waiting for the guidelines to identify the parameters and scope of contractualization.
Atheneus Vasallo, Technical Service and Support Division (TSSD) Director II of Dole-Northern Mindanao, said while awaiting the guidelines, what they are imposing strictly is the “5-5-5” scheme or the endo (end of contractualization).
Under the 5-5-5 work arrangement, an endo worker is hired and fired every five months so that employers will not make them permanent employees to avoid paying them benefits.
"Kanang manpower nga controlled and supervised by the company, kani siya prohibited ni siya daan, kana lang ang atong gi-strictly enforce sa pagka-karon mintras gapaabot ta sa guidelines sa central office," Vasallo said on Thursday, September 8.
Vasallo said the employers or subcontractors engaged in these malpractices are sanctioned under Article 288 of the Labor Code.
Vasallo added although there is a possibility that many will lose their jobs, the amount would not reach an “alarming point.”
"Kung iend ang contractualization, daghan ma-displace. Naay possibility pero dili kaayo ingana ka-alarming gayud kay granting, ma-implement gyud ang pag-end sa contractualization, ang manpower company, mao ra baya gihapon, dili man sila mawala. Ang mahitabo lang, daghan ma-regular. So paspas ang turnover sa mga workers ug kadtong mga bag-ong entrance, medyo walay bakante para sa ila," Vasallo said.
"Maghulat lang gayud ta sa new guidelines sa contracting nalang, kay by October murag naa naman ni siya nga guideline," Vasallo added.
Oro Chamber of Commerce & Industry Foundation, Inc. President Jeffrey Ang earlier said that business groups are demanding to set a clearer guideline to ensure that abuses under contractualization, such as endo, were curbed.
Ang added multinational companies, such as supermarkets, food chains, malls will be hit hard upon its implementation.
Dole-Northern Mindanao Regional Director Raymundo Agravante said some 500 companies in the region, including almost all shopping malls in the city, are practicing endo.
Corazon Guidote, senior vice president of the SM Investors Corporation, however, told the members of the media in the city that SM does not practice contractualization.
"We don't practice contractualization. I think there's a misunderstanding about seasonal and contractual workers. Ang contactual yung nagpapractice ng endo, they hire a worker and then end a contract after 5 months tapos they rehire. Kami we only hire seasonal kasi may seasonal peak kaming nao-observe," Guidote said.
Guidote said the mall's seasonal peak include Christmas and back-to-school season that usually lasts for 3-4 months only.
"After that, we don't rehire them and that's perfectly legal, the Labor Law allows that. So people think we're hiring contractual. We don't do it to abuse the law, we're too big to do that," she said.
With over 80,000 regular employees, Guidote said they hire 20 percent of the workers to work during its season peak.
"We don't rehire, we make sure you're not rehired kasi augmentation lang yan eh. We also hire on-the-job training, students who want extra income for summer or christmas, we hire them, sa sales, bagging, sa customer service, but we don't hire them again. This is what we call service quality, we make sure there are enough people to take care of the customer's needs," she said. (PJO)