23 Soccsksargen firms 'engaged' in illegal contracting

GENERAL SANTOS CITY--At least 23 companies in Region 12 or Soccsksargen have been found by the Department of Labor and Employment (DOLE) engaged in illegal labor contracting practices.

Sisinio Cano, DOLE Region 12 director, said Tuesday these companies were discovered to have been employing labor-only contracting or contractualization schemes in the hiring of workers in the last two years.

Cano said the findings were based on the series of inspections and assessments conducted by the agency on business establishments in parts of the region since 2016.

“We have issued compliance orders to these companies but their cases are currently on appeal before the Office of the (Labor) Secretary,” he said in a radio interview.

Cano said they submitted the names of the 23 companies to the central office last month in compliance with a directive from President Rodrigo R. Duterte.

He said six of them were included in the list issued by the agency on Monday of the top 20 companies in the country that were found engaged in labor-only contracting practices.

These are the Dole Philippine Inc. (Dolefil) based in Barangay Cannery, Polomolok town in South Cotabato; General Tuna Corporation in Barangay Tambler, this city; KCC Property Holdings in Barangay Lagao here; Sumifru Philippines Corp. in Barangay Poblacion, T’boli, South Cotabato; Dolefil Allah Valley Operations in Surallah, South Cotabato; and, Dole-Stanfilco in Barangay Crossing Rubber, Tupi, South Cotabato.

The six firms account for 21,540 contracted workers, with Dolefil topping the list with 10,521.

The fruit giant, which is owned by Japanese trading giant Itochu Corp., was number two among the top 20 companies with the most affected workers.

Labor-only contracting is an arrangement “where the contractor or subcontractor merely recruits, supplies or places workers to perform a job, work or service for a principal.”

Such practice, along with end-of-contract or “endo” and “555” schemes, is prohibited under the Labor Code and DOLE Department Order No. 174.

Cano said the inspections covered the principal or main companies, contractors and sub-contractors as well as affiliated entities like cooperatives.

“Based on our findings, we issued compliance orders for the regularization of the contracted workers,” he said.

Of the 23 cases currently pending before the Office of the Labor Secretary, he said one was recently resolved as the company involved has agreed to comply with the agency's previous order. (PNA)