ECOP maintains status quo on contracting, security of tenure

MANILA, Philippines — The Employers Confederation of the Philippines (ECOP) is pushing for status quo as far as the implementation of Labor Code provisions on “contractor or subcontractor” and “security of tenure” are concerned.

In a statement, ECOP acting president Sergio Ortiz-Luis said preserving the status quo in these provisions would help sustain the country’s current economic growth and make ongoing reforms more inclusive.

Ortiz-Luis said the provisions ensure appropriate benefits, safeguards and policy environment for contract workers.

“We reiterate our support towards ensuring that fundamental rights of workers are protected even as we are well aware of the employers’ rights to hire workers based on their qualifications and our needs,” he said.

“Further, these terms allow mutually-beneficial labor and market relationships where legitimate job contracting is used as a business model mainly to tap available expertise and meet surges in market demand. On the other hand, workers are provided the statutory benefits and rights, as they also get opportunities to acquire additional and higher skills,” Ortiz-Luis added.

He said legitimate job contracting has been an important source of industry competitiveness worldwide, with companies focusing on their core competence while contracting out the other tasks to other parties or workers.

“It is impractical and costly for the enterprise to maintain workers beyond what it needs, operating in a highly competitive trade environment that requires just-in-time production,” Ortiz-Luis said.

Ortiz-Luis said maintaining the current environment has likewise contributed very strongly in “breaking the vicious cycle of unemployment and poverty in the country.”

“As we collectively work to achieve the President’s 10-point agenda, we commit to police our ranks and continue to uphold the law and labor policies as the Constitution guarantees,” he said.

Articles 106 to 109 of the Labor Code contains the provisions on contractor or subcontractor which are being implemented through DOLE Department Order (DO) 174, while provisions on security of tenure are covered under Articles 297 to 299 and are being implemented under DO 147-2015.