DOLE’s drive vs workers’ ‘contractualization’ boosted with MNCs support: Baldoz

AN increasing number of multinational companies are now abiding by the government’s implementation of protecting rights of workers to decent working condition, security of tenure through a labor rule that stops contractual work terms of six months less.

This after Labor Secretary Rosalinfa Baldoz has called on the strict implementation of Department Order (DO) 18-A, which is the government’s response to put a stop to the increasing abusive practice of service contracting known as “5-5-5”.

The department’s Kapatiran WISE-TAV is a flagship public-partnership program of the DOLE based on its commitment to the International Labor Organization’s Work Improvement in Small Enterprises.

Labor Undersecretary for Labor Relations Rebecca Chato said DO 18-A targets developmental compliance.  “We would like to foster a culture of compliance among companies and their contractors and subcontractors,” she said.

The contractual labor scheme spare private companies from giving their employees lawful benefits such as SSS, health and paid leave of absence by hiring and rehiring them on a five-month term.

Baldoz has called on multinational companies, as well as small and medium enterprises in the country to stop such abusive labor practices to prevent the Philippines from being labeled as a “global sweatshop” and instead a “globally competitive factory.”

She said the country’s economic growth should depend on a successful service contracting industry that complies with general labor and occupational safety and health standards, such as the payment of minimum wages, SSS and other workers’ basic benefits.

The labor chief said there are now 80 “big brother” companies (referring to multinational firms) and 840 “small brother” companies (referring to small and medium enterprises) that joined the department’s Kapatiran WISE-TAV program.

She said a total of 209,243 workers from these multinational companies and SMEs are covered by the labor department’s program that ensures their rights to decent work conditions.

Under DO 18-A (Section 35), principals and subcontractors are encouraged to enroll and participate in the Kapatiran WISE-TAV, also known as “Big Brother, Small Brother” Program to ensure compliance with labor standards and occupational safety and health (OSH) standards and also to the DOLE’s Incentivizing Compliance Program.

Among the “Big Brother” multinational and transnational companies are Petron Corp. in the National Capital Region and Aparri, Cagayan; Toshiba Information Equipment Philippines; and Taiyo Yuden Philippines Inc. Mead Johnson Corp., EEI Corp., San Miguel Corp., San Miguel Purefoods Corp., Continental Temic, Suyen Corp., Unilever Philippines, Vishay Philippines Inc., D.M. Consunji Inc., Synthetic Marketing Industrial Corp.; FEU-Nicanor Reyes Medical Foundation, Fompac Plastics Corp.; SN Aboitiz Power (Benguet and Magat) Inc., Moog Controls Corp., Ginebra San Miguel (Sta. Barbara, San Fernando, and Cabuyao), Holcim Philippines, Keppel Subic Shipyard, United Pulp and Paper Co. Inc., Trust International Paper Corp., Hanjin Heavy Industries Philippines Inc., Team Energy, San Miguel Brewery (Bacolod), Distileria Bago Inc., Plantation Bay Holdings, Tsuneishi Heavy Industries, Pasar Corp., Tarbemco, Sibuguey Valley CATV MPC, Sam’s Fastfood and Bakeshop; Nestlé Cagayan de Oro.

Big brother companies also include Dole Stanfilco Plastic Plant, Dole Stanfilco Calinan Zone, Dole Stanfilco New Products Development, Dole Stanfilco Luna Zone, Stanfilco VHT, Dole Stanfilco Valley Zone, Carmen Corrugated Container Inc., Stanfilco Panabo Zone, Dole Plant Biotech Facility, Nakayama Technology Corp., CJ Toyota Tsusho Philippines Inc., Therma Marine, Doreco, NCCC, Coca-Cola Bottlers Philippines Inc., Sumifru Philippines Inc., Tagum Development Co., Mindanao Corrugated Fireboard, San Miguel Yamamura Packaging Plant, Dole Philippines, Philsaga Mining Corp., and Celebes Oil Corp.

Baldoz observed that service contracting is now a major driver of economic growth in the Philippines with an increasing number of companies engaging in contracting and subcontracting.

“But the DOLE cannot allow the proliferation of unqualified and unprofessional subcontractors from entering into subcontracting arrangements that violate or circumvent labor laws,” said Baldoz. –Estrella Torres / Reporter, Businessmirror