Close to 1,000 firms engage in illegal ‘endo’ — DOLE

by Mayen Jaymalin (The Philippine Star), May 10, 2018

MANILA, Philippines — Over 850 commercial establishments might face sanctions for illegal labor contracting and violating other labor regulations.

The Department of Labor and Employment (DOLE) has an initial list of companies violating labor standards, including the prohibition against labor-only contracting.

“We already have an initial list representing five regions. There are over 850 commercial firms (in the list),” Labor Secretary Silvestre Bello III said in an interview. “We have until May 25 to submit the report (to Malacañang). But it is possible we may have partial submission by May 10.”

Teresita Cucueco, director of Bureau of Working Condition of DOLE, said the list of erring companies came from the regions of Mimaropa, Western Visayas, Central Visayas, Davao and Soccsksargen.

“Of the submitted list, company violations usually involve non-compliance with minimum wage orders, proper computation of overtime pay and remittance of social benefits,” she added.

Another common violation of employers is not having a safety officer in charge of evacuation planning, monitoring and checking of occupational safety in the workplace and other safety-related matters in the company.

President Duterte earlier ordered DOLE to submit a list of companies violating labor laws. He issued the order before he signed an executive order regulating short-term employment. He also vowed to certify as urgent a pending bill on security of tenure.

As the DOLE validates the list, Bello has urged employers to comply with labor regulations.

Bello said companies found engaged in labor-only contracting will be required to regularize all their employees, while those violating the law on minimum wage will be ordered to pay the difference to their workers.

“We will not order them to close because it will lead to unemployment, they will just be required to comply with the regulations,” he explained.

The labor chief also said commercial establishments that will refuse to comply with the DOLE’s directive will be charged with administrative cases before the National Labor Relations Commission.

The DOLE is updating the membership of the National Tripartite Industrial Peace Council (NTIPC), which will help the labor secretary in determining business activities that may be contracted out.

Bello said labor and management will be asked to submit a list of new nominees to the NTIPC.

“The DOLE is not neglecting its job. We have ordered big companies engaged in contractualization to regularize their employees,” he said. “Obviously they are seeing DOLE is serious in our campaign against illegal contractualization.”