Makabayan bloc refiles bill against contractualization

Makabayan bloc lawmakers have refiled the measure seeking to ban labor-only contracting and the practice of ending workers' tenure every five to six months.

Party-list representatives France Castro of Alliance of Concerned Teachers, Arlene Brosas of Gabriela and Raoul Manuel of Kabataan made the bid under their House Bill 2173 that seeks to ban any job contracting, or the contracting out of work by the principal employer to a contractor, manpower agency, cooperative, in-house agency or a similar analogous entity or arrangement.

Likewise, House Bill 2173 or the proposed Security of Tenure Law also seeks to prohibit direct hiring of contractual workers.

Moreover, it states that no employee, regardless of employment status, will be dismissed without just cause or without due process.

Further, a regular employee unjustly dismissed from work will be entitled to immediate reinstatement pending appeal and without loss of seniority rights and other privileges.

In addition, the measure provides that when the employer contracts or subcontracts the performance of a work that is necessary or desirable to its business or operations, the worker or workers supplied by a third person or party under this paragraph will be considered regular employees or employees of the principal employer, as provided for in Article 295 (280) and Article 296 (281) as amended of the Labor Code.

"Violations [of these provisions] will constitute unfair labor practice and will be deemed unlawful and penal in nature," House Bill 2173 read.

"The burden of proof in showing that the work performed is not necessary or desirable to the employer's business or operations lies on the employer," it added.

Also, the measure deems the following circumstances as contractualization:

• a  principal  agrees  to  contract  out  or  farm  out  with  a contractor,  subcontractor, manpower agency, workers' cooperative, or a similar or analogous entity, the performance or completion of  a  specific  job, work  or service within a definite or predetermined period, regardless of whether such job, work or service is to be performed or completed within or outside the premises of the principal, and
• a person,  partnership, association or corporation, or cooperative which, not being a principal, contracts with a contractor, subcontractor, manpower agency/cooperative, workers' cooperative or any other similar or analogous entity for the performance of any work, task,  job or project."

Former President Rodrigo Duterte had vowed to end labor contractualization during his tenure from 2016 to 2022, but in 2019 he vetoed the measure, which he certified as urgent.

Makabayan lawmakers noted that such unfulfilled presidential promise needs government intervention.

"In regular working arrangements, the gains from the enterprise have to be shared between two parties: the workers and the company. In labor/job contracting, however, the gains have to be divided into three parties: the company, the contractor or agency, and the workers. The company has thus to share the gains with another party or parties, the labor contractor, contractors, at the expense of workers. This means lower wages and benefits for the workers," they said.

"With this reality, the state must relentlessly protect and uphold workers' rights to decent and long-term employment," they added. —LBG, GMA News