Contract workers to get full perks

MANILA, Philippines – Contractual workers can now look forward to enjoying security of tenure and other benefits that are provided to regular workers.

Amid widespread contractualization of the labor force, the government is implementing a new policy that would provide better working conditions and protection for contractual workers.

Labor Secretary Rosalinda Baldoz said starting Dec. 5, the Department of Labor and Employment (DOLE) would enforce a new regulation for companies engaged in contracting and sub-contracting.

Under the new regulation, Baldoz said, contractual employees would be entitled to benefits provided under the Labor Code such as 13th month pay, overtime pay as well as retirement benefits.

She said contractual workers would also be entitled to Social Security System, Pag-Ibig and PhilHealth benefits aside from the right to self organize and negotiate a collective bargaining agreement.

“Under the new department order, contractors or subcontractors are now required to submit proof of payment of remittance to SSS, PhilHealth and BIR which are not present in previous regulation,” Baldoz said.

She added that the new regulation would provide clear-cut rules on contracting and subcontracting and thus curb abuses being committed against contractual workers.

“Amid the global phenomenon of contractualization, we will promote job generation, professionalize contracting and subcontracting arrangements and weed out the fly-by-night contractors,” she explained.

Contractualization means replacing regular workers with temporary workers who receive lower wages with less benefits or none at all.

These temporary workers are sometimes called contractuals, trainees, apprentices, helpers, casuals, piece raters, agency-hired, project employees, etc. They do the work of regular workers for a specified and limited period of time, usually less then six months. The work they do is “desirable and necessary” for the company’s survival, but they never become regular employees even if they get rehired repeatedly under new contracts.

Baldoz said the new policy would also prohibit repeated hiring of employees for a five-month duration or what has become known as “555” and “endo” or “end of contract” system.

The new policy would benefit about 200,000 workers employed in more than 2,600 companies nationwide.

Bonus for government workers

Meanwhile, presidential spokesman Edwin Lacierda said the 1.6 million government employees would most likely get a P10,000 Christmas bonus, aside from the 13th month pay.

“It is very likely that it will be approved,” Lacierda told reporters in a briefing, noting that the bonus is just awaiting approval from President Aquino.

“This is also in recognition of the efforts of government workers,” he said, adding that Budget Secretary Florencio Abad told him that the Productivity Enhancement Incentive (PEI) only needs the go signal of Aquino, and that the bonus will be released soon since it has been included in this year’s national budget.

“They can wait for the PEI before Dec. 15. It can be released anytime once it is approved, and an administrative order will follow. It has been included (in this year’s) budget,” Lacierda said.

The Department of Budget and Management announced Monday that the 13th month pay of state workers will be distributed until today and the Christmas bonus of P10,000 might be underway.

Abad said the total year-end bonus amounts to P27.82 billion, half of which had earlier been released to employees last May as mid-year bonus.

The PEI bonus will be on top of half of the regular year-end bonus – in the form of half of the 13th month pay and cash gift of P5,000 – which is already being given to government employees starting Nov. 15 up to 30.

“Our improved expenditure and deficit management will allow the national government to authorize the grant of additional bonus to government personnel on top of what they regularly receive,” the DBM chief said.

As for employees in the legislative and judicial branches of government, as well as from other offices with fiscal autonomy, they may be granted at rates not exceeding P10,000, and chargeable to their respective available savings.

The grant of the said PEI for employees in local government units (LGUs) may be determined by the concerned Sangguniang Bayan depending on the local government’s financial capability and subject to the Personal Services limitation in the Local Government Code. – Delon Porcalla, Mayen Jaymalin (The Philippine Star)