ECOP slates symposium on D.O. 18-A

The Employers Confederation of the Philippines (ECOP) held a symposium last December 7 on Department Order No. 18-A on the new regulations governing contracting and subcontracting arrangements.

The symposium had Bureau of Labor Relations (BLR) Director Rebecca Chato as resource person who noted that the issuance strikes a balance between the need of business for numerical and functional flexibility, on one hand, and observance of labor standards and workers’ rights, on the other.

Chato clarified that these rules shall apply to all parties of contracting and subcontracting arrangements where employer-employee relationships exist and shall apply as well to cooperatives engaging in contracting or subcontracting arrangements.

D.O.18-A outlines the circumstances concurring legitimate contracting or subcontracting, prohibition against labor-only contracting, and prohibitions. It also dwells on 10 essential points – mainly on clear criteria for legitimate contracting or subcontracting, direct mandatory registration of subcontractors, summary administrative remedy in case of violation of the rules which is not found in the previous D.O.18-02.

In addition, Chato noted that as a remedy of the workers against a subcontractor or principal who violates the provision of D.O. 18-A, they can file a complaint for cancellation of the contractor’s registration before the Department of Labor and Employment (DOLE) Regional Office.

ECOP Director General Vicente Leogardo, Jr., for his part, said D.O.18-A provides balance of rights in the relationship of the employer and his employees with respect to contracting out, noting that:

• the employer has its legally defined and protected management prerogatives; while
• workers are guaranteed their own protection through specific labor provisions and the recognition of limits to the exercise of management prerogatives
• an imbalance is introduced where the DOLE Secretary requires the employer to consult the union in a CBA before it can contract out; such should be struck down as being unreasonable, restrictive and potentially disruptive

http://ecop.org.ph/ecop-slates-symposium-do18-A.php