Labor department cracks on firms using illegal job contracting
Seven manpower agencies in Luzon got cease-and-desist orders from the Department of Labor and Employment after being found to be engaged in “labor-only contracting” work schemes.
In its press conference for the First 100 Days of the Duterte administration, Labor Secretary Silvestre Bello III said they issued these orders to seven companies, including five in Calabarzon, one in Metro Manila, and one in Central Luzon.
Bello said the labor department is seriously looking into the work scheme of Alaska Milk Corp, hinting that the company could be issued a cease-and-desist order.
“Cease-and-desist order, from its very implication, means we are stopping the operations of a company or ordering an agency or manpower service not to deploy people. This is cease and desist order is already a form of sanction,” said Bello.
The seven agencies are Global Skills Multi-Purpose Cooperative, HD Manpower Services Cooperative, Worktrusted Manpower Cooperative, Excellent Multi-Purpose Cooperative, and DCMM Manpower Services in Calabarzon; JD Manpower Services in Metro Manila; and Abelline Human Resources Services in Central Luzon.
Labor officials said the orders to the manpower agencies should warn other business establishments, who continue to refuse ending illegal contractualization schemes such as “endo”.
“All regional offices have been directed to suspend the Certificates of Registration of establishments found violating the law of security of tenure,” said Bello.
Among the companies that have agreed to regularize workers include mall giant SM, which regularized 4,796 workers; and convenience store chain, 7-11, which made 800 workers regulars.
Department store chain Rustan’s has committed to convert 1,200 employees to permanent workers.
The department said "labor-only" contracting is a work arrangement duration of employment is fixed for a short period for purposes of circumventing workers’ rights to security of tenure, self-organization and collective bargaining, labor standards, and other basic workers’ rights. DMS
