MANILA — Trade and Industry Secretary Ramon Lopez stressed on Tuesday that the government supports moves to ensure security of tenure among workers, even while fostering an environment that attracts investment, which in turn leads to more jobs.
In a text message to reporters, Lopez clarified that the long-delayed executive order (EO) ending contractualization should not be blamed on the Department of Trade and Industry (DTI), the Department of Labor and Employment (DOLE), or the Office of the President.
“There simply is difficulty in crafting an EO that will not violate the current law and still meet what the labor sector wants,” Lopez said. While the labor groups want to end all forms of contractualization, the Labor Code allows legitimate contracting.
“Legitimate contracting is practiced around the world, and it is just important to ensure social protection for workers,” the DTI chief said.
He added, “legitimate contracting is also allowed in the current Labor Code, as amended. And what is important is that the law is implemented well by the DOLE, and we see moves in this direction with the issuance of DOLE Department Order No. 147, series of 2017.”
Lopez said that insisting to be directly hired by companies would lead to less investments and lower job generation.
“A lot of investors have told us that with this uncertainty, many are thinking of establishing in other countries like Vietnam, Cambodia, and Myanmar, where labor rates are even lower. It would be easy for them to move or set up in those countries, so in the end we lose out on the opportunity,” he added.
DTI’s position on this issue, he said, is for the security of tenure to be established either with the company or with the contractor company, with all the benefits and retirement plan for the workers. (Kris Crismundo/PNA)
