Duterte warns erring employers: Your days are numbered

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02:55

Staying true to his flare for drama, Philippine President Rodrigo Duterte signed an executive order prohibiting “illegal contract and sub-contract hiring” on Labor Day.

Just last month, his spokesperson, Harry Roque, said Duterte was abandoning his promise to sign the executive order and was leaving the matter up to Congress. But in a speech in Cebu City in the Central Philippines on Monday, Duterte warned erring employers.

"To all non-compliant and abusive employers who are engaged in labor contracting, your days are numbered," Duterte said.

He read parts of the document then proceeded to sign it in front of the crowd.

Philippine President Rodrigo Duterte (C) speaks to members of the Philippine community during a gathering in Singapore on April 28, 2018. /VCG Photo

The Employers Confederation of the Philippines (ECOP) released a statement, lauding the executive order, saying it balances “the welfare of labor and allows legal contractual (third-party) employment.”

Duterte had won the presidency, in no small part, due to his promise to stop “endo,” which literally means end of contract – a practice of hiring employees for less than six months. Philippine labor law requires employers to give workers full benefits, protection, and security of tenure once they’ve been employed for six months.

Business and labor groups agree “endo” is illegal. Under Duterte, “endo” is fast dying or practically dead in the water, according to ECOP. But while the government may be cracking down on private sector employers hiring temp or “contractual” employees, there may be a need to address a similar issue in its own backyard.

Jason Byahe has been employed with the Department of Public Works and Highway (DPWH) for more than six years, but he’s had to renew his contract every six months. His co-workers, who were painting a portion of the national highway just north of Manila when we met them last week, were all what’s known is government as job order workers, the equivalent of private sector temp hires.

“We can get run over by vehicles while working but we get no accidental or death benefits. We only get donations from our co-workers. They’ll give a dollar or two each and that’s it,” said Jason.

Thousands of Philippine workers carry placards while marching towards the Malacanang Presidential Palace during a May Day rally at Espana, metro Manila, Philippines May 1, 2018. /VCG Photo

But even if the government is able to put a stop to “endo” both in the public and private sectors, labor union leaders say they are holding Duterte to the other half of his campaign promise, which is to adopt a policy of direct hiring.

Labor Secretary Silvestre Bello III says it remains legal to outsource jobs that are seasonal and project-based. Critics say what Duterte effectively did by signing the executive order was merely to reiterate what’s already prohibited under Philippine law.

"Because our labor laws are very loose and easy to circumvent, employers will still be able to hire contractual workers. So we need a policy where direct hiring is the norm and third party hiring is the exception," Rene Magtubo, chair of the Labor Party of the Philippines, told CGTN in an interview.

Business leaders argue that hiring workers through a third party is perfectly legal and is “a globally accepted form of work arrangement.” They say a policy of direct hiring could, in fact, result in job cuts.

"Let’s take a shopping mall, for instance. During the Christmas season, it may have 10,000 employees; during ordinary months of year, maybe 7,000. If you force them to hire the 10,000 and make them permanent, what will they do? They will just maintain the 7,000 and make them do overtime or do extra work," Sergio Ortiz-Luis, Jr., honorary chairman of the ECOP said in an interview with CGTN.

Thousands of Philippine workers carry placards while marching towards the Malacanang Presidential Palace during a May Day rally at Espana, metro Manila, Philippines May 1, 2018. /VCG Photo

President Duterte, for his part, says he has done what he can within his power, and that the ball is now with Congress.