Employers say not all forms of contractualization must be banned

ABS-CBN News

Posted at May 23 2019 10:24 AM | Updated as of May 23 2019 10:44 AM

Labor groups march against contractualization on May 1, 2019. The government should not outlaw all forms of labor actualization, especially those that are practiced globally, an employers' group head said on May 23, 2019. Jonathan Cellona, ABS-CBN News

MANILA -- The government should not outlaw all forms of labor contractualization, especially those that are practiced globally, an employers' group head said Thursday.

In some cases, labor providers should be the ones to grant their workers regular status, said Employers Confederation of the Philippines president Sergio Ortiz-Luis, after the Senate passed the Security of Tenure bill.

The ECOP "always said that endo is illegal," but some provisions in legislation aimed at stopping the practice could "turn off investors," Ortiz-Luis told ANC's Early Edition.

President Rodrigo Duterte assumed office in 2016 promising to stop "endo" or employeers evading paying benefits to regular employees by hiring and re-hiring them in cycles.

"What we are really saying is they should not prohibit all sorts of contracts that is practiced in the world, so long as they can eventually be permanent, whether with the principal or outsourcing. That should be okay and the benefits are given," Ortiz-Luis said.

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