Category Archives: End Endo

Time is up: The buck stops now with the President on the issue of endo

NAGKAISA! Labor Coalition
28 February 2018

Contractualization was a top billing issue during the 2016 presidential election. And it was the President who made a campaign promise that the moment he becomes the Chief Executive, contractualization will stop. The trade union movement responded with enthusiasm and accorded the President the courtesy and latitude of managing his plans by participating in all the summits, workshops, and dialogues organized by the government on this issue.

Several times he asked leaders of Nagkaisa labor coalition that he be given more time to realize his pledge – the first was on February 27, 2017; then on May 1, 2017; and the last was on February 7, 2018 where he asked for another extension until March 15. On these occasions, President Duterte would always say that contractualization is anti-labor and anti poor as it brings in hardship and poverty upon millions of our workers.

Furthermore, it was also the President who asked Nagkaisa leaders during the Labor Day dialogue held in Davao last year to draft within 10 days an Executive Order (EO) that he can sign to correct the labor-rejected Department Order 174 issued by the Department of Labor and Empoyment (DOLE) in March last year and to rectify the more than two decades of failed framework of regulation. Nagkaisa religiously complied with all these processes and waited for the final response of the President.

Now, a few days before his self-imposed deadline and the President is no longer asking for time and more drafts but for a compromise. The buck stops now with President Duterte. The labor-drafted EO which seeks to bring back direct hiring and institutionalize prohibition as the general rule on contractualization but recognizes that there are types of jobs that can be contracted out as along as it passes through consultation with the National Tripartite and Industrial Peace Council (NTIPC) is the fairest middle ground or “compromise” that labor can take. A watered-down version of an EO is unacceptable.


Strike Looms in Coca-Cola as company threatens destruction of jobs

Photo by Jun Santos

Today, at least a hundred workers belonging to various unions working together under the banner of the Coalition of All Coca-Cola Workers’ Unions and their allies, swooped down on the headquarters of Coca-Cola FEMSA Philippines Incorporated (CCFPI) at Netlima in Bonifacio Global City, to once again protest the company’s plan to destroy more than 600 regular jobs, including union leaders, many of whom are young workers.

“Coca-Cola claims to be the No. 1 soft drinks company in the country, and yet, by busting the union, Coca-Cola is acting like the worst corporate thug,” the coalition said in its statement. “We have no recourse but to take strike action,” the coalition said.

In an overwhelming fashion, workers in TRCI voted last 23 February 2018 to go on strike. Meanwhile, most of the sales force unions have filed their respective Notices of Strike.

Twenty-three of those to be laid-off are union leaders, including four union presidents.  CCFPI claims that the lay-offs are being done to develop its new business model in order to conform to the challenges in the industry and the larger economic environment.

The CCFPI management and the Federation and Cooperation of Cola, Beverage, and Allied Industry Unions (FCCU-SENTRO/IUF) had an agreement which requires the management to hold discussions with the union on labor relations issues, including violations of international guidelines for industrial and labor relations like the OECD Guidelines for Multinational Enterprises. The restructuring and mass lay-off on are outright violations of the above. This is outright, unabashed union busting. The lay-offs are nothing but CCFPI destroying jobs and people’s lives.

The CCFPI management uses the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) as a façade for their union busting. The workers and their families are not gullible to accept such elementary reasoning and alibi.

The Coalition of All Coca-Cola Workers’ Unions calls on the DOLE to hold the CCFPI management accountable for their callous decision to destroy their workers’ jobs. The Coalition also demands for the CFFPI management to present concrete evidence for the need to restructure and let workers be consulted in any action related to this. The Coalition also demands a joint agreement with the management that will assure them that there will be no restructuring without negotiation with our unions.

Oppose Coke’s blatant disregard for workers’ rights! 

No to Contractualization!

Stand with the Coalition of All Coca-Cola Workers’ Unions!

Nagkaisa hails passage of Security of Tenure Bill

Labor Coalition Nagkaisa! is satisfied over the passage on third reading of HB 6908 on the Security of Tenure at the House of Representatives.

Nagkaisa! said that “the SOT bill is a great improvement to existing legislation as it gives more teeth to the government by providing penalties for those who will violate the security of tenure laws.”

“This is the farthest a proposed law on SOT has gone for decades,” said Nagkaisa! “Now, it’s time to get the Senate moving on their proposed SOT measure.”

“HB 6908 gives more flesh and blood to the guaranteed right to security of tenure,” Nagkaisa! said. “It’s not perfect or ideal, but we can live with it,” said Nagkaisa!, the largest labor coalition in the country.

Fear of employers allayed

Nagkaisa! also addressed fears of employers who went on record saying that they will have a “big problem” if the proposed measure was passed. “If the big problem employers have about HB 6908 refers to the potential cutbacks in the windfall of profits a number of employers have been amassing through the massive abuse of workers via contractualization for decades, the bill intends to do just that,” Nagkaisa! said. “Employers who do not abuse workers through contractualization have nothing to fear,” Nagkaisa! added.

“Never in the history of employment relationship in the country has workers enjoying regular employment and implementation of strict rules in labor contracting been detrimental to the economy and job generation,” Nagakaisa! said.

“Job generation is a function of the development of sectors of the economy influenced by economic policies of the government, and not by labor contracting practices,” Nagkaisa explained.

A “serious problem” employers noted is that if the SOT bill becomes a law, it will be detrimental to the economy and job creation. Nagksaisa! countered the argument. “Workers with regular employment generate more income, thus, with more purchasing power contribute to increasing demand in goods and services that lead to higher income taxes and VAT for the government. These are all good for the economy,” said Nagkaisa.

“The fear that the HB can lead to unemployment is only possible if they are not paying their contractual employees what the law currently demands. In other words, their argument is an admission that they are doing business at the expense of workers’ rights – and they want to continue doing so,” Nagkaisa! added.

The recent statement by the employers didn’t specify which provisions of the bill they strongly disagree with.

Nagkaisa! said it was grateful to Labor Committee Chair Rep. Randolph Ting who steered the discussions and Rep. Raymond Mendoza of TUCP Partylist and Rep. Tom Villarin of Akbayan Partylist who co-authored the SOT Bill and helped defend it together with Nagkaisa.

Rules Allowing Agency Hiring Rejected Anew by Workers Groups

The anticipated new Department Order (D.O.) on endo is finally out for issuance today. But rejection can only be the immediate response of organized labor for the kind of rules that speak about prohibiting contractualization but ends up allowing agency hiring in many forms.

The Labor Secretary has ignored the overwhelming demand of trade unions and workers’ associations to prohibit contractualization since the previous administrations and which the groups continue to articulate in all official consultative processes called for by the DOLE and national tripartite conferences from the beginning of the Duterte Administration.

The President then was very clear: “Ayoko sa agency agency, wala na dapat itong agency agency,” declared the President during the labor dialogue last February 27. The labor movement, likewise, was very insistent: The current policy is a failure, thus, the government must now shift to prohibition.

Workers were demanding prohibition on contractualization based on the following grounds:

The current policy of “allow then regulate” has failed the workers and this nation. A country of endos is a nation of poor, violated, and voiceless people.

It is immoral as it allows employers to save on labor cost and avoid having direct responsibility to their workers while their middlemen (agencies and cooperatives) earn profit from the same exploitative trading transaction.

It is anti-labor because it violates all the fundamental rights of labor.

It is anti-development as it exacerbates poverty and deepens inequality in our country.

By ensuring continuity and stability of agency hiring, the new D.O. will never put an end but rather perpetuate the epidemic of contractualization.

1. It prohibits labor-only-contracting (LOC) and the cabo system which is already prohibited by law anyway;

2. While it prohibits the contractualization of jobs directly related to main business and subject to control of principal, interpretation disputes shall mean expensive an wearisome litigations in DOLE, NLRC and the courts;

3. Only in-house agencies and labor cooperatives are not allowed to operate. Independent contractors are permitted;

4. The DO opens floodgates to agencies to set up shops. This will enhance cutthroat competition among contractors bidding down salaries and benefits of their employees;

5. The more contractuals the country will have, the harder to monitor and regulate. DOLE’s inspection capacity is a chronic problem that also has to be addressed.

It is still a sad day for workers. But the struggle continues. It’s time for a full court press and nationwide actions. We thus demand that Pres. Duterte issue an Executive Order in place of this bad order and certify as an urgent measure HB4444 that seeks the prohibition of contractualization and the criminalization of such offense

17 March 2017
Contact: Ka Rene Magtubo, Spokesperson

DOLE must enforce ‘prohibit order’ on contractualization

President Rodrigo Duterte’s marching orders are clear: Stop contractualization! No agency hiring!

Labor Secretary Silvestre Bello III received these marching orders from the President during the labor dialogue last Monday.  He was instructed to work on a new draft Department Order and to address the related plea of PALEA on outsourcing.

“As the alter ego of the President, Sec. Bello is hard pressed to comply with the order and to abide with the demand of workers without further delay,” said Nagkaisa chairman, Michael Mendoza.

Through a symbolic pressing of time button, the group declared a 30-day countdown for DOLE to come up with new rules prohibiting contractualization.

Junk win-win

The group noted that the latest draft of the issuance, distributed in January, still reflects the DTI and employers formula of legitimizing manpower agencies and regulating their practices.

“In the light of the President’s latest instructions, Sec. Bello should junk its draft and adopt Nagkaisa’s proposed DO, which seeks prohibition of contractualization, as the new working draft,” added Mendoza

On orders of the President, Sec. Bello is to convene the Tripartite Industrial Peace Council (TIPC) to discuss the new draft order. The TIPC, composed of workers and employers representatives serves as the clearinghouse of all labor polices, with the power to endorse proposed issuances to the DOLE Secretary.

“Should there be another deadlock at this level, we will expect the Secretary to decide along the line of prohibition agreed upon at the Palace,” stressed Mendoza.

The coalition is likewise hopeful that HB4444 authored by Rep, Raymond Mendoza of the TUCP Partylist, which seeks total prohibition and criminalization of contractualization offenses, will gain ground in Congress once certified by the President.

Once contractualization is finally prohibited, the rights of workers to security of tenure, to unionize and bargain collectively will be restored.

However, Mendoza called on workers to continue working together and be vigilant as the enemies of the working class will surely find ways to prevent workers from achieving total victory against contractualization and other forms of exploitation.

Women march against endo

Women make up more than half of contractual workers. Hence, led the Women’s Committee of Nagkaisa, women workers will continue to exert pressure on the DOLE to stop contractualization.

On March 6, two days before International Women’s Day, women workers will march from Plaza Salamanca to the DOLE offices in Intramuros. Among their calls are, “Sa multiple burden ko, dagdag pa ang endo”, “Sa regular jobs, may forever,” and “Endo itigil na, now na!”

Rights for public sector workers

While calling for a stop to contractualization in civil service, public sector unions has also secured a commitment from the President to ratify ILO Convention 151.

According to Annie Geron of the Public Services Independent Labor Confederation (PSLINK) which is affiliated with Public Services International (PSI), Convention 151 is an international labor standard that recognizes the rights of public sector workers to freedom of association and collective bargaining.