2 major issues compelled Duterte to veto anti-endo bill, says DOLE

The definition of labor-only contracting and concerns about outsourcing were the major considerations taken by President Rodrigo Duterte when he vetoed the Security of Tenure (SOT) Bill, Labor Secretary Silvestre Bello III said Monday.

“I think the focus of the President was on the definition of labor-only contracting,” he told reporters in a press conference in Manila City.

The proposed bill prohibits labor-only contracting, or when the job contractor—whether licensed or not —merely recruits and supplies workers to an employer, but has no substantial capital or investment in tools, equipment, machineries, and work premises.

“Dalawang version ‘yan,” Bello noted. One says that the contractor must hold capital and equipment.  (The other says) capital or equipment,” Bello said.

“Ang gusto niya (Duterte), ‘yung or, hindi ‘yung and, para bigyan ng leeway ‘yung ating mga businessmen and investors,” he said.

Another concern raised by the President is about the allowable types of outsourcing.

“Sa aking paningin, sa SOT ang pinakaimportante is what service can be outsourced,” Bello noted. “Ano ba ‘yung trabaho na pwede mong i-outsource. And under that bill, nakalagay don, you cannot outsource a service if it is directly related to the principal business of the employer,” he said.

Retail companies, for example, are not allowed to outsource sales ladies since they are directly involved in sales, the Cabinet official noted.

A tripartite body will be tasked make a decision on whether or not a service is directly related to the principal business.

“Medyo ano siguro, may mga gustong (business) na sila ang mag-determine—‘yung mga employers. It should be a tripartite body” Bello said.

The Labor department has been tasked by Duterte to come up with a draft SOT bill to address such concerns.

On Friday, Presidential spokesperson Salvador Panelo confirmed that President Rodrigo Duterte vetoed the Security of Tenure bill.

In his veto message, Duterte said the bill “unduly broadens the scope and definition of prohibited labor-only contracting, effectively prescribing forms of contractualization that are not particularly unfavorable to the employees involved.”

The National Economic and Development Authority (NEDA) said some of the provisions in the proposed measure were in need of “quick adjustments.”

Senator Joel Villanueva, chairman of the Senate Committee on Labor, on Monday re-filed the SOT bill. —VDS, GMA News