Labor unions push for Security of Tenure to end ‘middle man’ work arrangements
MANILA, Philippines (Updated Oct. 30, 2019; 1:37 p.m.) — Hundreds of unionists under labor coalition PAGGAWA on Tuesday held a protest dialogue at the Department of Labor and Employment to urge Labor Secretary Silvestre Bello to draft and endorse a "security of tenure" (SOT) bill that will prohibit all forms of contractualization.
PAGGAWA spokesperson Leody De Guzman said DOLE accepted their proposal on what the SOT bill should contain and listened to the unions who discussed their cases of contractualization.
“Pag-aaralan daw nila (They will review our appeal),” De Guzman said.
De Guzman said an SOT law is necessary to protect workers against low wages, lack of benefits, union-busting, and other labor issues.
Among the unions who joined the three-hour protest were Goodyear Philippines, Armscor Union, Cosmic Enterprises Inc. Independent Union, Cargill Philippines Union, Bestank Drivers Union, and Trans Asia Labor Action, according to a Bukluran ng Manggagawang Pilipino release dated October 22.
However, an official from Cargill Philippines, Incorporated clarified that the company "does not have any labor union," contrary to the earlier report.
All the unions present reportedly have pending cases before the Labor department involving illegal contractualization practices. They narrated their experiences with manpower agencies and service cooperatives, which they said are the most common contractualization scheme.
President Rodrigo Duterte in July vetoed a Security of Tenure bill that he had certified urgent and that Congress passed.
"It's just a temporary setback on the part of the working class because the president is also looking at the side of the management," presidential spokesperson Salvador Panelo said in a radio interview then.
READ: Security of Tenure bill not a safety net for 'habitual absentees'
Removing the ‘middle man’
De Guzman said a comprehensive SOT bill needs to prohibit trilateral work arrangements and mandate direct hiring of workers.
“Alisin ang middle man (Remove the middle man),” De Guzman said.
Lawyer Jimmy Miralles of the Alliance of Genuine Labor Organizations said companies use manpower agencies and service cooperatives to decrease bargaining units and curb the power of unions to “demand meaningful concessions from employers.”
Proponents of trilateral work arrangements argue that outsourcing labor would lead to increased efficiency and productivity, ultimately benefitting the consumer. However, these arrangements curtail unionism and make it more difficult for workers to air their grievances against a company, according to the BMP.
“[M]anpower agencies are businesses’ scapegoats whenever their employees bargain or file complaints against them. Whenever there’s an issue with wages, it’s the manpower agencies’ fault. Whenever there are labor standard issues, it’s the manpower agencies’ fault,” a BMP position paper read.
“Businesses are freed up of their responsibilities to take care of their workers when it is them who manage their laborers’ daily work and it is them that profit from their work.”
Current SOT bills
Proposed SOT laws pending in the House of Representatives include House Bill 3881 filed by Rep. Ferdinand Gaite (Bayan Muna party-list) and other Makabayan bloc lawmakers and HB 4892 filed by Rep. Raymond Mendoza (TUCP party-list).
De Guzman said PAGGAWA coalition supports both bills but has suggested additional provisions to ensure the welfare of laborers.
Among the recommended amendments to HB 3881 and HB 4892, listed in BMP's position paper, are removing employers' option for payroll reinstatement in cases of illegal dismissal, including provisions that strengthen bilateral work arrangements, and removing the cancellation of business permits as a penalty.
Editor's Note: An initial version of this story stated that the labor union of Cargill Philippines was among those who joined the protest. An official from Cargill Philippines, however, clarified that the company does not have any labor union contrary to the earlier report.
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