House approves bill vs. labor-only contracting

The House of Representatives on Tuesday approved on third and final reading the measure seeking to strengthen the security of tenure of workers in the private sector.

With 204 affirmative votes, seven negative, and three abstentions, the chamber approved House Bill 7036, or the proposed "Security of Tenure Act".

The measure aims to prohibit labor-only contracting, which occurs when any of these conditions is present:

• The contractor does not have substantial capital or investment in the form of tools, equipment, machineries, work premises, among others;
• The contractor has no control over the workers' methods and means of accomplishing their work; or
• The contractor's workers are performing activities which are directly related to the principal business of the employer.

It also introduces a new provision that requires all persons or entities doing business as job contractors to get a license from the Department of Labor and Employment.

The measure likewise provides that a dismissal without just or authorized cause or without observance of procedural due process is illegal, and those who were illegally dismissed are entitled to immediate reinstatement, and full backwages and accrued benefits.

It also mandates that the rights and benefits of relievers, project and seasonal employees be at par with those of regular employees.

Members of the Makabayan Bloc, however, opposed the approval of the measure, saying that its provisions do not completely put an end to contractualization in the country.

"Sa panahon ng pandemya at pagbagsak ng ekonomiya ng bansa, narito tayo naglalagay ng rekisito na dapat ang trabaho ng isang mangagawa ay 'directly related and necessary' para sila ay maging regular. Ito ay magreresulta sa pagreregularisa ng mga manggagawa, hindi sa principal employer, pero sa contractor o subcontractor lamang," said Bayan Muna party-list Representative Carlos Zarate.

"Hindi rin pinahintulutan na lantarang ipagbawal and job contracting, labor-only contracting at subcontacting sa panukalang batas na ito. Ibig sabihin, sa panukalang batas na ito, pwede pa rin ang kontraktwalisasyon," he added.

ACT Teachers party-list Representative France Castro, for her part, said the measure also provides a "legal cover" for the abusive practices of many companies in hiring relievers, project workers, and seasonal workers.

"Nasaan ang katarungan sa pagle-legitimize ng gubyerno sa pag-iimbento ng mga bisnes ng artipisyal na 'season' gaya ng 'Valentine’s season,' 'back-to-school season,' at iba pa bilang excuse para hindi mag-hire ng regular na manggagawa?" she asked.

Kabataan party-list Representative Sarah Elago, meanwhile, pointed out that the problem lies not only subcontracting, but in contractualization itself, where employers avoid regularizing their employees in order to evade providing higher wages and benefits.

"This bill seeks to make illegal and unfair labor practices legal. It only promotes unhealthy competition amongst workers, dividing them and in the end conquering over them and their basic interests to work and have a decent wage," she said.

"We must not compromise the right to life and property of our workers at the expense of big businesses who gain profit regardless of the toils of the working class," she added.

President Rodrigo Duterte vetoed the version of the bill in the 17th Congress as he saw that there were not enough safeguards in the measure for the business sector. -NB, GMA News