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A day before Labor Day, groups call for end to contractualization, wage increase


A day before the observance of Labor Day, groups Nagkaisa Labor Coalition and Kilusang Mayo Uno (KMU) on Tuesday called for an end to contractualization among workers.

"We have long and consistently called for a just end to pervasive contractualization of labor, yet the practice of labor-only contracting, job-only contracting and other forms of flexible labor remain prevalent among the working people," KMU chairperson Elmer Labog said in a statement.

Attorney Sonny Matula, chairperson of Nagkaisa and a senatorial candidate, vowed that the labor movement would "defend workers' rights to the last."

"With enough political will, President Rodrigo Duterte and his allies in the Senate can still have a Security of Tenure Law enacted during this Congress," Matula said.

"This will definitely continue the pressure on the Senate, especially its reelectionist senators to openly declare either their support or opposition to the proposed End Endo law,” he added.

Duterte during the 2016 presidential campaign promised to abolish "endo" or the practice of contractualization.

In 2018, Duterte inked Executive Order 51 which prohibits the illegal contracting and sub-contracting of workers “by all parties including cooperatives.”

According to Labog, the said EO as well as the Department of Labor and Employment (DOLE) Order 174 in 2017 both failed to solve and instead worsened contractualization in the country.

"This is unacceptable. We cannot legitimize labor-only contractors, who do nothing but recruit and deploy workers, yet maintain supervision over contractual workers on paper," Labog said.

"They connive with principal business owners to deprive workers of security of tenure and other basic labor rights, while avoiding legal and financial obligations,” he added.

Wage increase

Meanwhile, the labor groups also called for an increase in wages, especially the fulfillment of a national minimum wage.

"A significant wage hike is long overdue. The sharp increase in inflation and cost of living has already eroded the value of existing wages. We call for an immediate wage increase and a national minimum wage for all workers in the country," Labog said.

In a separate Balitanghali report by GMA News' Mark Salazar, the Trade Union Congress of the Philippines (TUCP) is calling for an additional P710 on the minimum wage of workers in the National Capital Region.

"Tumaas 'yung labor productivity for the past 12 years ng 59 percent pero wala hong kapalit 'yun na real wage increase," Luis Manuel Corral, TUCP vice president, said.

If the Tripartite Wage Board will allow this increase, the minimum wage in Metro Manila will be P1,247, the report said.

For its part, the DOLE said the wage increase will be a long shot.

"Basically ang criteria ay 'yung needs ng workers, isang set 'yun tapos 'yung isa naman 'yung capacity of the employer to pay. Isang set 'yun and then the needs of the economy," Undersecretary Ana Dione said. — RSJ, GMA News