Duterte has power
to ban all forms of contractualization
A Counter-statement by
Bukluran ng Manggagawang Pilipino to Deputy Executive Secretary
Menardo Guevarra deceptive claim
April 5, 2018
Deputy Executive Secretary
Menardo Guevarra’s statement that President Duterte has no power to
ban contractualization because Congress must first amend the Labor
Code is an April Fool’s joke.
This is a joke for the
controversial provisions of the Labor Code on contractualization –
Articles 106 to 109 – explicitly delegates the power of prohibition
to the Secretary of Labor (who is directly under the President).
Article 106 states: “The
Secretary of Labor and Employment may, by appropriate regulations,
restrict or prohibit the contracting-out of labor to protect the
rights of workers established under this Code.”
Since Labor Secretary
Silvestre Bello is a mere alter ego of President Duterte, this means
that Duterte himself has the power, through the issuance of an
Executive Order, to ban all forms of contractualization.
BMP and all other labor
groups in the Philippines has submitted said Executive Order on the
very day Duterte took power as President – an Executive Order that
does not merely “regulate” contractualization, but an Executive
Order that bans contractualization in its entirety, which entails
the immediate closure of all third-party labor contractors –
agencies, cooperatives, manpower companies – like PALSCON, AsiaPro,
Paramount, and many more whose only business is to sell workers to
with these “agencies” is by nature contractual, hence, they deserve
to be closed. DOLE’s Department Order 174 (D.O. 174) is a farce
because it legitimizes contractualization even more by allowing
“agencies” with ‘’substantial capital” to operate. This
capitalization – P5 million – is too small and is equivalent to a
small restaurant, that is why under this order, “agencies” will
proliferate. It is also not enough to “regularize” workers under
agencies for they will inevitably lose their jobs as well if the
principal company opts to terminate or end contract with the
“agency.” Hence, D.O. 174 is a farce.
What workers want is
direct hiring without these “agencies,” then regularize workers
after six months of continuous or intermittent work.
If DOLE can regularize
thousands of workers with just one directive, just like how it
regularized more than 6,000 workers of Jollibee last April 4, 2018,
why can’t it regularize all contractual workers in the Philippines?
regularization only shows that DOLE and the President have the power
to end contractualization even without the amendment of the Labor
Code, precisely because the Labor Code allows them to do so.
Regularization of all would be easier if Duterte will fulfill his
promise of ending contractualization and this is through an
While we demand this from
Duterte, BMP will not stop from calling on Congress to junk Articles
106 to 109 of the Labor Code for it allows contractualization
(though it also allows its prohibition through the Executive
branch). Deletion of these Articles will ensure that
contractualization will no longer exist.
But the process of
amending this law will be slow considering that our lawmakers will
focus on the campaign for next year’s election. In short, we have
nothing to expect from them at this point.
While Congress is slow on
this, an Executive Order for the total ban of all forms of
contractualization and the closure of all third party manpower
agencies and cooperatives from Duterte no less is a “quick-quick
solution” to regularize all downtrodden contractuals in the