Cebu biz leaders laud Duterte’s EO on endo

CEBU, Philippines — Cebu business leaders have expressed their support to President Rodrigo Duterte's executive order (EO) on contractualization.

Following Duterte's signing of the EO during a labor day event in Cebu City on Tuesday, Cebu Chamber of Commerce and Industry president Antonio Chiu said the business organization supports the President's move prohibiting illegal labor contracting because "it is consistent with the Labor Code passed by Congress."

"While it allows certain jobs to be contracted out, it also protects the right of workers for just benefits and compensation plus security of tenure," Chiu told The FREEMAN in a phone interview yesterday.

The business leader pointed out the rule of law should always prevail "so that we could continue to attract foreign investments and create more jobs."

Cebu Business Club president Gordon Alan Joseph also echoed the same comment, saying fair labor practices are imperative in business.

"Business needs to practice fair labor practices and our practices should reward high productivity," Joseph said.

He, however, urged the government to correct some areas in the law that makes it hard to penalize inefficient workers.

"But our laws make it extremely difficult to penalize inefficient workers and this must be corrected," he told The FREEMAN.

For his part, Mandaue Chamber of Commerce and Industry vice president for external affairs Steven Yu said the business community is always looking after the welfare of its workers.

"A harmonious and progressive relationship between management and labor is a step towards business prosperity and economic growth," the chamber official said.

"The business community welcomes this development and seeks to be a partner with government in nation building," Yu also said.

Fighting job contractualization has been a contentious issue since Duterte's 2016 presidential campaign.

Duterte said the EO includes “prohibition against illegal contracting and subcontracting.”

Based on the EO, contracting or subcontracting when undertaken to circumvent the worker’s rights to security of tenure, self-organization and collective bargaining and peaceful concerted activities pursuant to the 1987 Philippine Constitution is strictly prohibited.

The EO authorizes the Secretary of Labor, in consultation with the National Tripartite Industrial Peace Council (NTIPC) under Art. 290 (c) of the Labor Code, as amended to determine activities, which may be contracted out.

Security of tenure refers to the right of employees not to be dismissed or removed without just or authorized cause and observance of procedural due process.

Based on the EO, the principal employer engaged in any arrangement shall be considered the direct employer of the workers for all purposes.

Duterte had earlier ordered Labor chief Silvestre Bello III to submit an inventory of companies engaged in labor-only contracting practices. 

“Your days are numbered. I warned you before, and now, I warned you again. Stop endo and illegal contractualization,” Duterte has said. 

At the same time, the President also said that the signed EO is not enough to end ‘endo’ and other illegal employment practices. He urged Congress to pass pending laws to ensure security of tenure.

The EO will take effect 15 days after its publication in a newspaper of general circulation.