MANILA -- Malacañang on Monday said the Department of Labor and Employment (DOLE) will be the one responsible to impose appropriate sanctions against companies practicing labor-only contracting, after more than 700 companies were found practicing the prohibited labor scheme.
Labor-only contracting happens when a contractor or subcontractor merely recruits, supplies, or places workers to perform a job, work, or service for a principal.
“Alam na po ng DOLE ang gagawin nila (DOLE already knows what to do) because the law already provides what they will do (it) ‘no. They will provide fines and they may even order closure and criminal prosecution,” Presidential spokesperson Harry Roque said in a Palace briefing.
Roque made this remark after DOLE released early Monday a list of top 20 labor-only contracting companies in the Philippines.
These include Jollibee Foods Corporation, Dole Philippines Inc., Philippine Long Distance Telephone, Philsaga Mining Corporation, General Tuna Corporation, Sumi Philippines Wiring Systems Corporation, Franklin Baker Inc., Pilipinas Kyohritsu, Inc., Furukawa Automotive Systems Phil., and Magnolia Inc.
Also included are KCC Property Holdings, Inc., Sumifru Philippines, Corp., Hinatuan Mining Corporation, KCC Mall de Zamboanga, Brother Industries (Philippines) Inc., Philippine Airlines & PAL Express, Nidec Precision Philippines Corporation, Peter Paul Phil. Corporation, Dolefill Upper Valley Operations, and DOLE-Stanfilco.
President Rodrigo R. Duterte earlier asked the DOLE to give him a copy of the list of labor-only contracting companies.
However, Roque said that the President does not micromanage, adding that although the President asked for the list, “the asking for the list does not mean it’s the President who will act.”
Roque pointed out that the Labor Code is very clear that it is within the power of DOLE Secretary Silvestre Bello III to close these establishments, provide fines and even the prosecution.
In 2017, DOLE issued Department Order No. 174 which bans illegal job contracting or "endo."
Last May, Duterte also signed the executive order (EO) banning illegal contracting or subcontracting which strengthens employees’ security of tenure.
Duterte, however, pointed out that Congress also needs to do its part to amend the existing Labor Code.
"I remain firm in my commitment to put an end to ‘endo’ and illegal contractualization. However, I believe that in order to implement an effective and lasting solution to the problems brought about by contractualization, Congress needs to enact a law amending the Labor Code," Duterte said.
“A mere executive order can only do so much because you have to change or modify or entirely aggregate some of the provisions,” he added. (PNA)
