THE LABOR sector has been waiting for a presidential executive order to end “endo” or the so-called labor contractualization scheme.
But Friday last week the President finally made up his mind to leave to Congress the job of amending the law on this practice of hiring casuals.
Labor slammed President Rodrigo Duterte’s decision that reneged on his campaign promise to end labor contractualization after waiting for more than two years. Because of their great disappointment, the coalition of workers is calling on all labor groups to close ranks and show on Labor Day on May 1 their indignation and protest!
What happened was that more powerful forces from employers’ organizations dissuaded the President from ending labor contractualization, notwithstanding his election promise.
Government itself is the biggest employer of contractuals or what we call “casuals forever.” They are in all three branches of government — the Executive, the Legislative or Congress and the Judiciary. The practice cannot stop because it helps government officials win elections or continue to stay in office even for those who are not elective. The politicians know this but make promises anyway every election to put an end to labor contractualization. But it does not happen.
Now here is our idea of regular work for everyone that may be adopted by labor groups, as we previously wrote in our column of Oct. 4, 2016:
Regular and stable work is the best way to help people live a decent life. But many of our industries and business enterprises today do not offer regular jobs; instead, with the connivance or tolerance of labor authorities, they hire contractual employees for five months service so the worker or employee will not attain regular status as it is short of the minimum six months for regular employment required by law.
New personnel will again be hired for five months to replace the ones whose work term expired. Former workers are banned from re-employment if they reapply, lest they become permanent.
The function that can be undertaken by service cooperatives has not been explored before. It is the business of supplying outsourced staff or workers to business and industry. It is a unique service because it will now do away with casuals and provide regular work for everyone.
What are the advantages to business or industry by sourcing their manpower needs from a service cooperative or coop?
First, there will be no employer-employee relations established between the worker and the company to undertake a particular work or service, he being an owner-member of the coop and not an employee; second, the company will have no labor problem since coop-member workers cannot form unions or join labor organizations; and third, there is no additional obligation by the company to the worker outside of the contract price for the labor or job contract agreed upon with the coop.
Employers will now deal directly with the service cooperative to supply workers who are their members. The old practice of employers dealing with service providers to supply workers will be cut off and earn big savings for employers because it will do away with service providers that get a big cut from the workers contract.
Moreover, as owner-member of the coop, the worker can enjoy benefits from his membership like group insurance, credit privileges, purchase discounts, dividends, etc. customarily enjoyed by members of cooperatives, tax free, including his income.
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Historical Quote of the Week
“The first elementary school established in the Philippines by the Americans was the Baluarte Elementary School in Baluarte, Molo, Iloilo City.” (For comments or re-actions, please e-mail to jnnoveracompany@yahoo.com/PN)
