MANILA - The Philippine Federation of Industries supports President Rodrigo Duterte’s veto of the proposed Security of Tenure bill as regularizing all employees could lead businesses to automate and cut jobs, its president said Monday.
Duterte said vetoed the measure seeking to end contractualization because there should be a “delicate balance” between the interests of workers and employers.
"What’s going to happen is that businesses will tend to automate or will tend to totally rely on outside services that will just be on call,” manufacturing group Philippine Federation of Industries president George Chua told ANC.
“So the impact on even the people who have a chance on becoming regular employees, they will no longer be given the opportunity to do so because employers do not want to take the risk of hiring them in the first place and seeing how they pan out or seeing if they’re trainable or not” he said.
Other business groups such as the Employers Confederation of the Philippines also expressed their support to the President's decision to veto the measure.
The principal author of the Security of Tenure bill, Senator Joel Villanueva has refiled the measure.