Rody open to amending ‘endo’ ban

MANILA, Philippines - President Duterte is open to amending the labor department’s order prohibiting “endo” or end of contract and other “labor only” contracting practices, Malacañang said yesterday. 

The issue was discussed during the President’s meeting with labor groups on Monday.

Citing a statement by labor group Partido ng Manggagawa, presidential spokesman Ernesto Abella said workers welcomed Duterte’s stand that contractualization should be totally prohibited.

“After decades of consistent struggle against the epidemic of contractualization, workers may finally get their demand for its total prohibition, as the President in his first audience with worker groups Monday evening left no doubt that he is not only targeting endo but indeed wants to categorically end all forms of contractualization involving middlemen agencies,” Abella said.

When asked if the labor department’s order on contractualization would be amended, Abella said: “It’s being facilitated and there will be a few adjustments. It needs to go through due process.”

Last December, the Department of Labor and Employment (DOLE) released an order banning endo and labor only contracting schemes.

The order bars the termination of service of a worker after his service agreement with his employer expires. The capital requirement for enterprises involved in permissible contracting arrangements was also increased to P5 million from P3 million. 

To ensure that workers are paid despite collection problems, contractors are now required to maintain a working capital equivalent to 50 percent of their employees’ total salary.

Employers who violate the new order would be slapped with fines ranging from P10,000 to P50,000 and would lose their registration.

Some labor groups have rejected the order, saying it did not address security of tenure issues. They also claimed that the fines and higher capital requirements would not eliminate contractualization.

Labor groups have urged Duterte to disregard the labor department’s regulations and to come up with a new executive order that would completely prohibit endo.

Abella said Duterte was also inclined to honor the request of labor groups to certify House Bill 4444 or the Security of Tenure Act as an urgent measure.

Abella said the author of the bill, Trade Union Congress of the Philippines Rep. Raymond Mendoza, lauded Duterte for his stance on contractualization.

“We were heartened by the pro-poor, pro-worker thinking of the President. We have not had this kind of bold dramatic leadership in any previous administration,” Mendoza was quoted by Abella as saying.

“The President was playing hard ball and for keeps, when he instructed the DOLE to issue a department order consistent with the agreements of the meeting and his directives are prohibition of both endo and agency contractualization and the restoration of direct hiring as the employment norm. –  With Sheila Crisostomo