End of contractualization
President Rodrigo Duterte has vetoed the bill aiming to end the culture of contractualization in large companies.
Presidential spokesperson Salvador Panelo says Duterte has indeed vetoed the Security of Tenure bill this morning after wavering on the statement late last night.
The bill was supposed to lapse into law tomorrow, July 27, 2019.
The Security of Tenure bill that both houses of Congress have passed falls short of banning contractualization, Bukluran ng Manggagawa ng Pilipinas chairperson Leody De Guzman says.
"It may have placed harsher penalties to erring employers but if it maintains the legality of a scheme for cheap and docile workers. We may have a law that swears to the innocence of all principal and contractors in trilateral work schemes," he says in a statement.
"The call for prohibition, not regulation, stays. It is legal. It is an optional power granted to the Labor Secretary as per Article 106 of the Labor Code and because Secretary [Silvestre III] Bello is a mere alter-ego of the President, the demand for an issuance of an Executive Order remains. The ball is still in Duterte's court and his electoral promise to end contractualization remains unfulfilled," he says.
The Security of Tenure bill is one of the measures that President Rodrigo Duterte asked Congress to pass during his State of the Nation Address last July.
The Senate has approved the Security of Tenure bill, one of the priority measures that President Rodrigo Duterte asked Congress to pass during his State of the Nation Address last July
Senate approves on third reading the Security of Tenure Bill or the anti-"endo" bill | @PaoloSRomero pic.twitter.com/i6EJZpfRdq
— The Philippine Star (@PhilippineStar) May 22, 2019
The House had long approved its version of the bill, which regulates contractual labor but does not ban it altogether. Employers' groups have said that they need contractual workers to meet seasonal increases in the demand for their products but cannot afford to hire them as regular employees.
Malacañang on Wednesday released a copy of the much-awaited Executive Order No. 51, which prohibits “illegal contracting or subcontracting.”
In time for the celebration of Labor Day, President Rodrigo Duterte signs an executive order which puts an end to illegal contractualization.
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