Magnolia denies engaging in labor-only contracting

ABS-CBN News

Posted at May 30 2018 07:49 PM

MANILA - Magnolia Inc. said on Wednesday it was wrongly included in the government's list of companies engaged or suspected to be engaged in labor-only contracting.

The Department of Labor and Employment (DOLE) on Monday listed more than 3,000 companies suspected or found to be engaged in labor-only contracting. 

In a statement, Magnolia said it complies with labor laws and protects the rights of its employees. 

"We believe that our inclusion in the list stems not from our contracting of labor but from the use of certain machinery and equipment leased by a DOLE-accredited independent service provider whose workers maintain and operate them," Magnolia said in a statement.

It added that the workers employed by the independent service provider were not Magnolia employees. 

President Rodrigo Duterte earlier this month signed an executive order to stop "endo" or illegal contracting.