1. President Rodrigo Duterte vetoed the anti-endo bill which is beneficial for workers.

Why Duterte vetoed the anti-endo bill

Ian Nicolas Cigaral (Philstar.com) - July 26, 2019 - 1:09pm
MANILA, Philippines — President Rodrigo Duterte has vetoed a proposed legislation
seeking to ensure job security, a move that will surely upset labor groups demanding
that he fulfill his campaign promise of ending short-term hiring.

READ: Upsetting key campaign promise, Duterte vetoes anti-endo bill

Popularly known as the “End Endo bill,” the measure seeks to prohibit the practice of
labor-only contracting or the so-called “endo,” a Filipino-coined term for “end of
contract.”

Endo is an abusive labor practice where a worker is hired for up to five months to skirt a
labor law granting permanent tenure on the sixth month of service. The practice leaves
many Filipino workers unprotected and without benefits.

“I stand by my firm commitment to protect the workers’ right to security of tenure by

eradicating all forms of abusive employment practices,” read a copy of Duterte's veto
message that was reported by the media.

“Our goal, however, has always been to target the abuse, while leaving business free to
engage in those practices beneficial to both management and workforce,” he added.

Under the Constitution, bills sent to Malacañang will lapse into law if the president does
not approve or veto them 30 days after transmittal. The Security of Tenure bill was sent
to the Palace for Duterte’s signature on June 27.

The anti-endo bill was passed by the previous Congress. The measure has to be refiled
in the 18th Congress in order for it to be amended.

In rejecting the Security of Tenure bill, Duterte gave Congress the following reasons:

The bill 'unduly broadens the scope and definition' of endo

While the proposed legislation codifies existing labor laws and regulations, Duterte
argued that the bill effectively banned other forms of contractualization that do not
particularly harm employees.

“Indeed, while labor-only contracting must be prohibited, legitimate job-contracting

should be allowed, provided that the contractor is well capitalized,” the president told
lawmakers.

'Businesses should be allowed to determine whether they should outsource

certain activities or not'
Duterte said employers must be free to farm out jobs to a third-party contractor,
especially when such an action will result in efficiency in their operations and is not
unfavourable to workers.

“This is especially critical since empirical data shows that the Philippines is currently at
a disadvantage already in terms of cost and flexibility of labor use compared to its peers
in the region,” he said.

Constitutional policy to protect workers should not ‘oppress or destroy’ capital

Citing previous Supreme Court rulings, Duterte stressed that the government should
balance the interest of the workers and employers.

“I believe the sweeping expansion of the definition of labor-only contracting destroys the
delicate balance and will place capital and management at an impossibly difficult
predicament with adverse consequences to the Filipino workers in the long-term,” the
president said.

What chief socioeconomic planner, business groups say

Socioeconomic Planning Secretary Ernesto Pernia last Wednesday said the Security of
Tenure bill should be tweaked to ensure that it would benefit both the business and
labor sectors.

Pernia also noted that the measure would not be good for workers if it deters
investments and results in fewer job opportunities.

“If the president feels that the observation of Secretary Pernia is a good reason to veto
the bill, he (would),” presidential spokesman Salvador Panelo said.

READ: Duterte to consider NEDA misgivings on tenure bill

Last week, a coalition of business groups urged Duterte to veto the anti-endo bill,
arguing that there are existing laws that protect workers from illegal contractualization.

They also warned that the bill may prod employers to remove low-skilled work through
automation and artificial intelligence.

“Job contracting as an exercise of management prerogative and business judgment is

anchored on two constitutional rights: right and freedom to contract and right to
property,” the groups said.

Business groups urge veto of Security of Tenure bill

In a joint statement, the groups argued anew that the bill is already made redundant by
existing laws that protect workers from illegal contractualization.

Czeriza Valencia (The Philippine Star) - July 18, 2019 - 12:00am

MANILA, Philippines — A broad coalition of business groups yesterday urged President

Duterte to veto the Security of Tenure (SOT) bill and instead modernize labor
regulations to suit the needs of labor-intensive industries.

In a joint statement, the groups argued anew that the bill is already made redundant by
existing laws that protect workers from illegal contractualization.

It also goes against the constitutional rights of businesses to contract labor as part of
their management prerogative, they said.

“Job contracting as an exercise of management prerogative and business judgment is

anchored on two constitutional rights: right and freedom to contract and right to
property,” the groups said.

They added that the bill fails to cover contractual workers hired by government agencies
because of the potential fiscal challenge it may pose.

“Therefore, it does not protect contractual workers hired by the government with tenure
of up to 15 years already, under the so-called ‘job order‘ system. On the other hand,
equal opportunity is not given to private employers as it isolates them by increasing the
cost of doing business that could hinder their operations and slow down growth,” they
said.

President Duterte is slated to sign the bill soon, having been transmitted to his office
early this month.

Joining the call for a veto of the SOT bill are the American Chamber of Commerce of
the Philippines, Australian-New Zealand Chamber of Commerce, Canadian Chamber of
Commerce of the Philippines, European Chamber of Commerce of the Philippines, IT
and Business Process Association of the Philippines, Japanese Chamber of Commerce
and Industry of the Philippines, Inc., Korean Chamber of Commerce Philippines, Makati
Business Club, Management Association of the Philippines, Philippine Association of
Multinational Companies Regional Headquarters Inc., Philippine Chamber of Commerce
and Industry, Semiconductor & Electronics Industries in the Philippines Inc. and
Foundation for Economic Freedom.

The groups said the bill could have the opposite effect on job creation and security of
tenure as enterprises may choose to eliminate the low-skilled jobs currently contracted
out to service providers by using automation and artificial intelligence, redesigning work
processes, or transferring work to more investor-friendly foreign destinations.
FEF president Calixto Chikiamco, said that instead of forging through with the bill, the
government should instead “modernize the labor code” and “remove rigidities” in the
system to serve the needs of labor-intensive industries like manufacturing and
agriculture.

This, he said, should be done alongside the easing of restriction on foreign investment
in these sectors which produces the greatest jobs in the country.

“The government should also refrain from adding to labor cost by burdening labor-
intensive industries with additional holidays,” he said.

In this Jan. 15, 2019 photo, protesters call for the end of contractualization outside the
Department of Labor and Employment building.
Edd Gumban
Upsetting key campaign promise, Duterte officially vetoes anti-endo bill

Ian Nicolas Cigaral (Philstar.com) - July 26, 2019 - 10:51am

MANILA, Philippines (2nd update 11:46 a.m.) — President Rodrigo Duterte vetoed a
bill seeking to ensure job security, Malacañang said, in a major blow to workers’ groups
that had pinned their hopes on the chief executive’s campaign promise to end abusive
labor practices.

Presidential spokesman Salvador Panelo — who announced Thursday night that

Duterte rejected the measure only to retract the statement an hour later — broke the
news to reporters Friday morning.

In a letter to the House of Representatives explaining his veto, Duterte said the
proposed measure "unduly broadens the scope and definition of prohibited labor-only
contracting."

The current version of the bill places many businesses at a disadvantage even if their
contractualization practices are "not particularly favorable to the employees involved,"
Duterte added.

Duterte certified as urgent the measure in September last year.

Popularly known as the “End Endo bill,” the proposed legislation seeks to prohibit the
practice of labor-only contracting or the so-called “endo,” a Filipino-coined term for “end
of contract.”

Endo is an abusive labor practice where a worker is hired for up to five months to skirt a
labor law granting permanent tenure on the sixth month of service. The practice leaves
many Filipino workers unprotected and without benefits.
Various stakeholders had expressed their concern that removing "endo," without
making it clear that “legitimate contractualization” will remain, might make the country
less competitive.

Under the Constitution, bills sent to Malacañang will lapse into law if the president does
not approve or veto them 30 days after transmittal. The Security of Tenure bill was sent
to the Palace for Duterte’s signature on June 27.

Socioeconomic Planning Secretary Ernesto Pernia last Wednesday said the Security of
Tenure bill should be tweaked to ensure that it would benefit both the business and
labor sectors.

Pernia also noted that the measure would not be good for workers if it deters
investments and results in fewer job opportunities.

Last week, coalition of business groups urged Duterte to veto the anti-endo bill, arguing
that there are existing laws that protect workers from illegal contractualization.

“Job contracting as an exercise of management prerogative and business judgment is

anchored on two constitutional rights: right and freedom to contract and right to
property,” the groups said.

Read more at https://www.philstar.com/business/2019/07/26/1938050/duterte-vetoes-anti-endo-

bill#fvQCh7KpW1QO3sY2.99

Security of Tenure bill not quite end of 'endo', labor groups say

(Philstar.com) - May 23, 2019 - 5:51pm

MANILA, Philippines — In line with a campaign promise, President Rodrigo Duterte has
ordered a crackdown on companies hiring employees on short-term contracts. On
Wednesday, a bill seeking to ensure job security moved closer to his desk after
senators approved the measure on final reading.

Voting 15-0, senators okayed Senate Bill 1826, popularly known as the “End Endo bill,”
just before Congress adjourns in three weeks. The proposed measure seeks to prohibit
the practice of labor-only contracting or the so-called “endo,” a Filipino-coined term for
“end of contract.”
Endo is an abusive labor practice where a worker is hired for up to five months to skirt a
labor law granting permanent tenure on the sixth month of service. The practice leaves
many Filipino workers unprotected and without benefits.

Under the newly-approved bill, labor-only contracting exists when any of the following
instances occur:

 The job contractor merely supplies, recruits, and places workers to a

“contractee.”
 The workers supplied to a contractee perform tasks/activities that are listed by
the industry to be directly related to the core business of the contractee.
 The contractee has direct control and supervision of the workers supplied by the
contractor.

The measure also classifies workers under four employment types: regular,
probationary, project and seasonal. The bill states that project and seasonal workers
have the same rights as regular employees like the payment of minimum wage and
social protection benefits, among others, for the duration of their employment.

Job contracting still allowed

However, the Senate version of the End Endo Bill did not completely prohibit job
contracting, an arrangement where an employer, known as the principal, farms out jobs
to a third-party contractor who then hires workers of its own.

Various stakeholders had expressed their concern that removing "endo," without
making it clear that “legitimate contractualization” will remain, might make the country
less competitive.

"We listened to the concerns of various stakeholders, and took these into account in
putting together this bill. We believe this measure protects the interests of all parties
concerned," Sen. Joel Villanueva, principal author of the bill, said in a statement.

"The provision trims down the employment arrangements and addresses the current
practice of misclassifying employees to prevent them from obtaining regular status,"
Villanueva added.

According to Villanueva, the bill requires contractors to obtain a license from the
Department of Labor and Employment. to engage in job contracting.

Making contractors submit themselves to licensing will allow DOLE to scrutinize their
capacity to adhere to existing labor laws and regulation, and gauge their ability to
provide for their employees, Villanueva explained.

Despite the remaining session days, Villanueva said he is optimistic that the bill will
have just enough time to be tackled by a bicameral conference committee.
‘Loopholes’

Commenting on the Senate’s approval of the bill, the Trade Union Congress of the
Philippines said the latest development “will begin the process of finally ending
contractualization.”

"By a vote of 15-0, the Senate also brushed aside the apprehensions and objections
made by Finance Secretary Sonny Dominguez that the bill would negatively affect the
economy and was contrary to the interest of management flexibility,” TUCP President
Raymond Mendoza said in a statement.

“We remind Secretary Dominguez that TUCP also respects management flexibility, but
it must be consistent with the constitutional rights of workers, the right to security of
tenure, the laws and the higher goals of building decency and fairness in a society faced
with growing income and social inequality," Mendoza added.

For Leody de Guzman of Bukluran ng Manggagawang Pilipino, to celebrate the

passage of the End Endo bill at the Senate “is premature, if not downright mistaken.”

“The proposal is far from labor's demand to abolish trilateral work arrangements, which
is the basis for the anti-worker scheme of contractualization,” De Guzman said in an
interview.

“The Senate bill, which seeks stricter regulation of job contracting, is full of loopholes,”
he added.

Despite the Senate approval of the bill, De Guzman said “the call for prohibition, not
regulation, stays.”

“It may place harsher penalties to erring employers. But if it maintains the legality of a
scheme for cheap and docile workers, we may have a law that swears to the innocence
of all principal and contractors in trilateral work schemes,” De Guzman said.

“The ball is still in Duterte's court and his electoral promise to end contractualization
remains unfulfilled,” he added. — Ian Nicolas Cigaral

Read more at https://www.philstar.com/headlines/2019/05/23/1920293/security-tenure-bill-

not-quite-end-endo-labor-groups-say#TRoIMbajLsO0Qi3m.99

Senate bets urged:Declare stand on wage, contractualization

Mayen Jaymalin (The Philippine Star) - April 10, 2019 - 12:00am

MANILA, Philippines — With less than a month before the midterm elections, a militant
labor group yesterday dared senatorial candidates to declare their stand on wage and
contractualization issues.
Kilusang Mayo Uno (KMU) chair Elmer Labog said the candidates’ position on wage
increase and pressing labor issues like contractualization will determine how the labor
sector will vote in the coming polls.

“Senatoriables should take a stand in favor of increasing minimum wages

to P750 nationwide,” he said in a statement.

Labog said mandated minimum wages in the country remain insufficient to cope with
the high prices of basic goods and services brought about by the Tax Reform for
Acceleration and Inclusion or TRAIN Law.

He said the estimated Family Living Wage remains pegged at P1,001, a far cry from the
P537 minimum wage in the National Capital Region while wages outside the NCR do
not even come close to half of the FLW.

Labog said workers will take to the streets on May 1 to protest the government’s broken
promise to end contractualization, the TRAIN Law and gross attacks on labor and
human rights.

Read more at https://www.philstar.com/nation/2019/04/10/1908705/senate-bets-urgeddeclare-

stand-wage-contractualization#PXg3OUZWXshiAvQt.99

The government has no moral authority on contractualization

WHAT MATTERS MOST - Atty. Josephus B. Jimenez (The Freeman) - July 8, 2018 - 12:00am
How can the government, in conscience, pressure the private sectors employers to
absorb into their regular force the workers of the service contractors, when the
government itself is the top employer of hundreds of thousands of job order workers and
casuals who have been there for 10, 20 or even 30 years? Where does the government
get its moral authority to interfere with how businessmen run and operate their
businesses while the government itself cannot start its crusade on its own backyard?

The government is now very active in inspecting private establishments using a Labor
Code person on visitorial power. Today, we are in 2018 (44 years after the Labor
Code’s promulgation, and 46 years after the Martial Law proclamation), the government
is still acting like we are in a Martial Law dictatorship. Employers are ordered to do this
and do that, too much interference in running the business. This is very destructive in a
globalized, highly-competitive business environment. This is not good for the country.

How many thousands of job orders are wasted in the government? They do not have
SSS or GSIS coverage. They do not have PhilHealth or PAG-IBIG coverage. If they die
or meet work-connected accidents, the employees’ compensation system does not
cover them. And so, why is the government twisting the arms of small and medium
enterprises, micro-enterprises, and struggling firms with start-up operations to comply
with the many labor standards and follow too many regulations that destroy the viability
of enterprises?

Look at the quality of government buildings and offices. They are top violators of
occupational safety and health standards. Many offices are overcrowded, polluted, and
the physical and the psycho-social components are hazardous to the health safety and
welfare of employers. Only the top honcho and bigwigs are occupying cozy, 5-star
hotels. The poor casuals and job orders even eat their food inside dirty walks and
toilets.

The government should better examine its own conscience. If it cannot even walk its
talk, it better shut up. The government should not kill the goose that lays the golden
egg. The employers are not the enemies. They pay millions in taxes. They employ
millions of unskilled workers. And they pay all wages and benefits. Whys should the
government not clean up its own backyard?

Read more at https://www.philstar.com/the-freeman/opinion/2018/07/08/1831664/government-

has-no-moral-authority-contractualization#gCw5qx7xmgWz3osE.99

Nearly 500,000 ‘endo’ workers regularized in 2018 — DOLE

Labor Secretary Silvestre Bello said since the start of 2018, a total of 411,449 workers have been
regularized as part of the government’s intensified campaign against illegal forms of
contractualization.

Mayen Jaymalin (The Philippine Star) - December 20, 2018 - 12:00am

MANILA, Philippines — Almost half a million workers employed under the illegal end-of-
contract or “endo” scheme are now enjoying regular employment status, the
Department of Labor and Employment (DOLE) reported yesterday.

Labor Secretary Silvestre Bello said since the start of 2018, a total of 411,449 workers
have been regularized as part of the government’s intensified campaign against illegal
forms of contractualization.

“As of Dec. 3, we have regularized over 400,000 workers. We also inspected thousands
of establishments,” Bello said.

More than half or 65 percent of those regularized, Bello said, was a result of voluntary
compliance on the part of the employers.
“Less than 35 percent were the result of compliance order from our regional offices,
which means that even without an order, employers are now voluntarily regularizing
their contractual employees,” Bello noted.

According to Bello, they expect more contractual workers to be regularized since many
commercial establishments have already expressed their intention to voluntarily
regularize workers.

Bello further noted that the Employers Confederation of the Philippines (ECOP) also
committed to regularize 300,000 contractual workers.

The labor chief pledged to suspend regular inspections among ECOP member
companies upon compliance of its pledge to regularize 300,000 employees.

Though almost 500,000 have already have been regularized, Bello admitted that a large
number of workers nationwide are still employed under illegal forms of
contractualization.

“This is just a small number, but this is unprecedented in history of labor. No

administration was able to regularize as many contratual workers and this is because
employers saw the wisdom of the President’s campaign against endo,” Bello said.Last
May 1, President Duterte issued an executive order regulating short-term employment.

Read more at https://www.philstar.com/business/2018/12/20/1878350/nearly-500000-endo-

workers-regularized-2018-dole#VuAsfquykOprCShe.99

Laguna firms cry foul over endo tag

ECOP president Donald Dee said the firms engaged in various sectors such as electronics and
garments, have reached out to the group after claiming to have been falsely accused of
implementing the illegal practice and were given compliance orders.

Richmond Mercurio (The Philippine Star) - June 21, 2018 - 12:00am

MANILA, Philippines — Over 40 Laguna-based companies have cried foul after being
accused by the government of practicing the outlawed end-of-contract or “endo”
scheme, the Employers Confederation of the Philippines (ECOP) said.

ECOP president Donald Dee said the firms engaged in various sectors such as
electronics and garments, have reached out to the group after claiming to have been
falsely accused of implementing the illegal practice and were given compliance orders.

“They are saying that they don’t practice endo. We are now looking into each one of
them. In fact, I have to organize ECOP for that purpose,” Dee said.
“So we will review them. If there is really no violation, we will really fight for them. If we
have to sue, we will sue the government,” he added.

Dee lamented the work being undertaken by various regional directors of the
Department of Labor and Employment (DOLE) in implementing President Duterte’s
executive order on endo.

“Every regional director, they have their own interpretation on how they should do their
work. Some of them, once you have service contractors, they consider it endo already.
But that is allowed under the law,” Dee said.

“It is already very clear. Contract working is available in the law. Contractualization, as
defined by labor, is a different story. That was outlawed. They keep on making it
confusing,“ he added.

Dee said he intends to invite Labor Secretary Silvestre Bello III and the regional
directors for a dialogue to discuss the real definition of endo and how the law against it
will be properly implemented.

President Duterte on May 1 signed an Executive Order prohibiting illegal con tracting in
workplaces, commonly known as endo.

Labor groups have earlier called for a total ban on the practice of contractualization, but
such can only be achieved through amendments in the Labor Code.

Duterte had also directed Bello to provide the Office of the President with the list of all
erring private firms.

Read more at https://www.philstar.com/business/2018/06/21/1826373/laguna-firms-cry-foul-

over-endo-tag#DXul0bquUyk8rOvQ.99

Service contracting not endo

FROM THE STANDS - Domini M. Torrevillas (The Philippine Star) - May 15, 2018 -
12:00am
The Executive Order (EO) prohibiting labor-only contracting signed by President Duterte
last May 1 did little to calm the sentiments of labor groups, who claimed that their
demand was for the EO to make direct hiring the standard in employment contracts,
citing the evil schemes of employers who terminate employees right before the latter are
entitled to the benefits of regular employees under labor law.

However, there may be another side to this connotation regarding contracting jobs.
During a session at the Bulong Pulungan sa Sofitel forum, the Philippine Society of
Management Services (PSMS), a group of legitimate service contractors, not only
expressed their support for the move of the government to abolish the practice of
ENDO, 555, or contractualization, but also made it clear that there was a marked
difference between service contracting and ENDO.

“We would like to emphasize that service contracting is not the same as ENDO or 555
or contractualization. ENDO, 555, or contractualization is the practice of hiring workers
for short periods of five months or less to avoid regularization. We believe this to be
wrong and do not support it,” said Jay Antonio Meloto, PSMS president.

Director Atty. Danilo Patron explained further that “It is not necessary to directly hire to
end ENDO as all employees under legitimate service providers are already regular.” By
this, Patron meant that legitimate service contracting already provides regular jobs with
the proper wages, benefits, and security of tenure that are required by law.

“Without service contracting, people with less educational attainment or no work

experience will have difficulty getting a regular job and supporting their families. With
service contractors, those that have less are now given more opportunities to get
regular jobs becoming the source of their livelihood,” the group said.

Two employees hired by service contractors – Marjorie Mae Cotoner, a high school
graduate; and Reyjun Garcia, who holds a college diploma – were also able to share
their employment stories, from Marjorie’s experiencing ENDO first hand from her
previous employer to Reyjun having several jobs, including one where he was directly
hired.

We were surprised to hear that they prefer their jobs as service providers. For one, they
enjoy their regular status, pay, benefits, and security of tenure; for another thing, they
found career growth in the said industry.

“I never thought a high school graduate like me would get a regular, good-paying job
with full benefits. I tried applying for jobs where I could be directly hired, but I was never
accepted. My employer who is a service provider for different companies gave me this
opportunity to work. I am grateful for this job. It gave people like me, who don’t have
enough resources to finish school, the chance to save and plan for a better future for
ourselves and our families,” Marjorie said in Filipino.

For his part, Reyjun shared the difficulty of getting a rewarding, full-time job in the
province. “It is not easy to be directly employed in the province; the opportunity is
scarce, competition is tough. But with the presence of legitimate service providers in our
province (Isabela), a lot of us were given jobs that enabled us to grow as well, because
it gave us opportunities that we never thought were available for us in our area, which is
a regular job with good salary and benefits.”

During the forum, Meloto highlighted the fact that the industry of service providers exists
to produce regular, dignified jobs that uplift the lives of hundreds of thousands of
Filipinos and help boost the economy. “We contribute 1.3 million regular jobs and P35
billion in taxes every year,” he said.

If, despite PSMS’ argument – that the negative connotation of service contracting is
actually based on a mere misapprehension of terms – labor groups persist with pushing
a policy of direct hiring upon the government, will not this eventually cause more harm
than good, given that legitimate service contracting already provides a solution to that
boogeyman of widespread unemployment?

* * *

As a follow up to my story on ACTS-OFW Rep. Aniceto ‘John’ Bertiz III’s reaction to the
proposed draft of a memorandum of understanding between the Philippine government
and that of Kuwait, the representative from Quezon City now hails the adoption of a
new MOA as it “offers far greater protection to Filipino domestic workers” than a
previous draft.

“Our sense is, the Kuwaiti government signed the better deal on account of President
Duterte’s tough and uncompromising stance in safeguarding the rights and welfare of
our domestic workers,” Bertiz said in a press statement sent to me.

In the MOA, Bertiz said the Kuwaiti government agreed to “take legal measures against
erring employers” and to “provide legal assistance” to domestic workers concerning
labor contract violations by employers. It also agreed to “provide a mechanism of
inspection and monitoring of the level of care offered to domestic workers through
official authorities in Kuwait.”

It agreed to “establish a mechanism, which shall provide 24-hour assistance to domestic

workers,” and to “ensure that aggrieved workers shall have access to the services” of
the emirate’s Department of Domestic Labor, Bertiz said. The Kuwaiti government also
conceded that the passports of Filipinos are Philippine government property, and
agreed to forbid employers from seizing the passports of their workers.

Bertiz congratulated Foreign Affairs Secretary Alan Peter Cayetano, Labor Secretary
Silvestre Bello III and Presidential Adviser on Overseas Filipino Workers Abdullah
Mama-o for their teamwork in reaching a deal with Kuwait.

It is now up to the President whether he would partially lift the total ban on the
deployment of Filipino workers to Kuwait.

“The President has the option to partially lift the deployment ban with respect to Filipino
professionals and other skilled workers who are seldom mistreated because they are
difficult to replace. In a way, these workers are protected by their proficiencies,” Bertiz
said.
“The situation of domestic workers is different. They are far more susceptible, especially
because they live with their employers,” Bertiz said.

* * *

ON ANOTHER front: More than 400 women law enforcers from 13 various government
agencies participated in a conference hosted by the Republic Defenders Corp. at the
AFP commissioned officers club in Camp Aguinaldo.

Atty. Agnes VST Devanadera, Energy Regulatory Commission head, was the guest
speaker at the conference aimed to tackle the issues, challenges and problems
confronting women law enforcers. It also served as the venue to share Best Practices to
ultimately raise the bar of excellence in law enforcement. At the occasion, the Search
for Outstanding Women Law Enforcers of the Philippines (OWLEP) was launched; this
to give due recognition to women law enforcers who excel in their chosen profession
and contribute to the advancement of their communities. The award will be given in
March 2019.

Other resource speakers were Prof. Clarita Carlos of UP, Congresswoman Emmeline
Villar of DIWA, a leading advocate of women’s rights, Commissioner Greco Belgica of
the Presidential Anti-Crime Prevention Commission, and Asec. Marie Banaag of the
Presidential Communication office.

Police Supt. Kimberly Molitas who conceptualized the event was coordinator and
emcee. She is a Fulbright Humphrey fellow, like the other guest, Dr. Ruby Palma, a
women’s rights advocate and Lt. Col. for the Philippine Army Reserves Sector.

Read more at https://www.philstar.com/opinion/2018/05/15/1815241/service-contracting-not-

endo#mvLjyx9xKIIm3oRy.99

Duterte's EO vs 'endo' draws mixed reactions

Protesters parade an effigy in the image of President Rodrigo Duterte that will be burned on
Tuesday—Labor Day.

Ian Nicolas Cigaral (Philstar.com) - May 1, 2018 - 2:12pm

MANILA, Philippines — President Rodrigo Duterte on Tuesday—Labor Day—signed a

much-awaited executive order prohibiting “illegal contractualization,” a move that
generated mixed response from various sectors.

Reading an excerpt from the document, Duterte said the EO prohibits "illegal
contracting or subcontracting or undertaking to circumvent the workers' right to security
of tenure."
Duterte then defined “security of tenure” as the right of employees “not to be dismissed
or removed without just and authorized cause and observance of procedural due
process pursuant with the Constitution and Labor Code.”

The Palace has yet to release a copy of the EO.

‘Worrisome’

Reacting to the fresh EO, the Employers Confederation of the Philippines, or ECOP,
said that while the order “balances” the interest of labor and capital, the exact definition
of security of tenure that was provided by the document was “worrisome.”

ECOP also expressed concern over what they said was “possible loose or abused rules
of engagement in the enforcement of certain provisions.”

“Government though must be credited in its serious and sincere effort to craft an EO
that meets the expectations of both labor and capital,” the group said in a statement.

“The EO is signed and despite our reservations—some of which are cited above—
employers will live with it and comply,” it added.

Among Duterte’s campaign promises was to bar the practice of hiring employees on
short-term contracts.

The Labor department earlier issued Department Order 174, which imposed a complete
ban on “labor-only” contracting or the so-called “endo,” a Filipino-coined term for “end of
contract.”

Endo is an abusive labor practice where a worker is hired for up to five months to skirt a
labor law which requires grant of permanent tenure on the sixth month of service.

But the 12-page DO 174 did not completely prohibited job contracting, an arrangement
where an employer, known as the principal, farms out jobs to a third-party contractor
who then hires workers of its own.

Various stakeholders had expressed their concern that removing endo, without making
it clear that “legitimate contractualization” will remain, might make the country less
competitive.

Pro-employer?

Meanwhile, various labor groups rejected the signed EO, which they described as “pro-
employer” and a “complete farce.”

"There is nothing new in the EO,” Rep. Ariel Casilao (Anakpawis Paty-list) said. "What
the workers demanded is total prohibition of contractualization by virtue of direct hiring."
For his part, Kilusang Mayo Uno Chairperson Elmer Labog said labor groups were not
consulted when the presidential order was drafted, adding that the EO likely favors
businesses.

Separately, KILOS NA Manggagawa urged Duterte to show to the public the EO he

signed.

“If President Duterte had the intention of signing an Executive Order which is line with
the demands of the workers, he would not exclude us from full knowledge of it,” the
group said.

“Workers must be vigilant. This may be another attempt to divide our ranks and deflect
people’s attention from our struggle to end contractualization,” they added.

Labor laws

Despite the issuance of the order, the president, however, noted that a mere executive
order is not enough to ensure job security, as he urged Congress to amend the Labor
Code.

In a separate statement, Senate Labor Committee chair Joel Villanueva assured the
public that lawmakers will work on passing a law that would end labor abuses.

“The EO, whatever it is, is a guide for everyone on where the Executive’s stand on the
issue of endo although it did not depart from the existing policy on contracting,” the
senator said.

“But it should be noted that the president reiterated his call to end endo and illegal
contractualization,” he added.

Read more at https://www.philstar.com/headlines/2018/05/01/1811204/dutertes-eo-vs-endo-

draws-mixed-reactions#vpYOY1CWJ2EYQD3h.99

LABOR PROTEST. Trade union workers belonging to the Nagkaisa Coalition hold
a protest in Mendiola, Manila on Labor Day, May 1, 2019, calling for an end to
contractualization. Photo by Angie de Silva/Rappler

MANILA, Philippines (UPDATED) – In another setback for workers' groups, President

Rodrigo Duterte vetoed the anti-endo (end of contract) or security of tenure bill.

Presidential Spokesman Salvador Panelo confirmed this on Friday, July 26.

"Security of tenure bill vetoed by the President," Panelo said on Friday morning.
The night before, he had also confirmed the veto, only to take it back saying the
President was "still studying the pros and cons" of the bill.

In his veto message dated Friday, July 26, Duterte gave assurances that despite the
veto, he continued to stand by his “firm commitment to protect the workers’ right to
security of tenure by eradicating all forms of abusive employment practices.”

“Our goal, however, has always been to target the abuse while leaving businesses free
to engage in those practices beneficial to both management and the workforce,” he
said.

For the President, labor-only contracting should be prohibited but “legitimate job-
contracting should be allowed” as long as the contractor is “well capitalized, has
sufficient investments, and affords its employees all the benefits” in labor laws.

Echoing the line of major business organizations opposed to the bill, Duterte said
“businesses should be allowed to determine whether they should outsource certain
activities or not.”

He added that while the Constitution protects workers, such a policy should not
“oppress or destroy capital and management” and destroy a “healthy balance” between
interests of laborers and management.

The veto was unexpected given how Duterte had certified the bill as urgent in
September 2018 and asked Congress to pass it during his State of the Nation Address
(SONA) that year.

He conspicuously made no mention of the bill in his SONA this year, which led labor
groups to say Duterte no longer prioritizes labor rights.

A few days before the bill was to lapse into law on Saturday, July 27, Socioeconomic
Planning Secretary Ernesto Pernia voiced his own reservations about the bill, saying it
needed tweaking so it would safeguard investment as well as protect workers.

A few weeks before that, several big business organizations had made a last-minute
plea to Duterte to veto the bill.

These include the American Chamber of Commerce of the Philippines, Makati Business
Club, Philippine Chamber of Commerce and Industry, European Chamber of Commerce
of the Philippines, and the Foundation for Economic Freedom.
They claimed the measure would impinge on freedoms of companies to make
managerial decisions and would ramp up the cost of doing business which could lead to
job losses.

If the bill had been signed into law, it would have been illegal for a job contractor to
merely supply and recruit workers to a contractee.

It would have also been illegal for workers supplied to a contractee to perform tasks or
activities that are listed by the industry as directly related to the core business of the
contractee.

Problematic for labor groups, too. But even some labor groups had problems with
the bill submitted to Duterte for his signature.

Groups like Partido Manggagawa; Alliance of General Unions, Institutions, and Labor
Associations; and the Philippine Airlines Employees Association rejected the bill.

They claimed it was a watered down version of the bill the House of Representatives
had adopted. The House had decided to abandon this bill and adopt the Senate version
instead, to expedite its progress in Congress.

They had wanted the following features in the bill:

 Prohibition of fixed-term employment and multi-layered contracting

 Stiffer fines and penalties, including closure of agencies found guilty of
labor-only contracting

Back in May 2018, Duterte had signed an executive order on contractualization that
labor groups slammed as "useless."

The President had admitted the only way to end labor-only contracting is to amend the
Labor Code, which only the legislative branch can do.

With his veto of the anti-endo bill, Duterte is still to keep his campaign promise to end all
forms of labor-only contractualization. – Rappler.com

President Rodrigo Duterte delivers his 4th State of the Nation Address at the House of
Representatives in Quezon City on July 22, 2019.
Rey Baniquet/Presidential Photo
Panelo corrects self, says bill to end 'endo'—a key Duterte
campaign vow—not yet vetoed
(Philstar.com) - July 25, 2019 - 11:27pm
MANILA, Philippines (Update 1 12:21 a.m., July 26) — After saying
that President Rodrigo Duterte already vetoed the Security of Tenure bill,
presidential spokesman Salvador Panelo corrected himself and clarified
that the chief executive is still studying the measure's pros and cons.

"PRRD still studying the pros and cons. Sorry about the error. We will know
tomorrow for sure," Panelo said late Thursday minutes after telling reporters
that Duterte, who certified the bill as urgent, already vetoed it.

The measure also known as "End Endo" bill seeks to curb ambiguities that
allowed employers to skirt laws on labor-only contracting.

READ: Outspoken Duterte silent on 2 key policies in his 4th SONA

The bill will lapse into law on July 27 if the president does not act on it.

READ: Palace: Duterte may veto Security of Tenure bill if...

Ending labor-only contracting, locally known as "endo," is one of the campaign
promises of Duterte, who won by landslide in 2016.

Business groups have urged the president to veto the bill, which they said
would intrude into management prerogatives and result in the removal of low
skilled jobs.

Read more at https://www.philstar.com/headlines/2019/07/25/1938020/duterte-

vetoes-security-tenure-bill#0ASXJdFU7QzMWQyJ.99

Outspoken Duterte silent on 2 key policies in his 4th SONA

Philippine President Rodrigo Duterte gestures as he delivers his state of the nation address, as Senate
President Vicente Sotto the III (top L) and House Speaker Alan Peter Cayetano (top R) look on at
Congress in Manila on July 22, 2019.

Alexis Romero (Philstar.com) - July 22, 2019 - 9:20pm

MANILA, Philippines — While President Rodrigo Duterte's fourth State of the
Nation Address lasted for an hour and 34 minutes, it was surprisingly silent on
at least two of his campaign promises.

The president did not mention the security of tenure bill, which seeks to
strengthen workers' rights and the shift to federalism, which he said is key to
achieving lasting peace in Mindanao

Duterte said he is still studying the measure, which has been transmitted to
his desk for his signature.

"I had to confer with a lot of people affected. You know...this is a two to tango.
So it would affect the employers and of course it would also greatly favor the
workers. It’s a catch 22 for me," the president said in a press briefing after his
fourth SONA.

Asked if he would veto some provisions of the bill, Duterte did not give a
categorical answer.

"Maybe it could go both...Yeah. I can veto it or I can sign it or allow it to lapse

into law," he said.

The bill seeks to remove ambiguities in existing laws that have allowed
employers to skirt the prohibition against labor only contracting.

Under the bill, labor only contracting exists when the job contractor only
supplies, recruits, and places workers to a contractee, workers supplied to a
contractee do tasks listed by the industry to be directly related to the
contractee's core business, and the contractee has direct control and
supervision of the workers supplied by the contractor. Business groups have
urged Duterte to veto the measure, saying it would go against the businesses'
constitutional right to contract labor as part of management prerogative.

With regard to federalism, Duterte said the SONA is not the proper time to
discuss the matter.

"It’s better left in conferences that are not allowed to be open to the public,"
the president said.

"Magulo eh (It would be chaotic). One provision draws a lot of complaints. A

lot of pros and cons. You will get dizzy. So better, you just talk it among
yourselves and present it to the public once there is a package, it has been
completed," he added.

Pressed if he is still pushing for federalism, Duterte replied: "Yes, but I said
there are things which I cannot mention now. Federalism is good but there are
certain things that you have to be very clear."

Duterte noted that federalism devolves a lot of authority to the local

governments. He said the federal system has to have a strong president to
put together the country.

"With regard to federal, it’s a very loose structure. One has a lot of power
locally. So the president will have to have to (devise) it until such time that we
have perfected it, there has to be a strong president with the same powers
now," he said.

"As for me, I’m out of it because I think that it will pass beyond my time."

Read more at https://www.philstar.com/headlines/2019/07/22/1937042/loudmouth-

duterte-silent-2-key-policies-his-4th-sona#fAouUpFcbPWGbvqz.99

Palace: Duterte may veto Security of Tenure bill if...

President Rodrigo Duterte delivers his speech during the meeting with the local chief executives at
The Manila Hotel on July 23, 2019.
Alexis Romero (Philstar.com) - July 25, 2019 - 6:26pm
MANILA, Philippines — President Rodrigo Duterte may veto the Security of
Tenure bill if he finds merit in the views of Socioeconomic Planning Secretary
Ernesto Pernia, who had cited the need to tweak the measure to make it fair
to businesses and workers, Malacañang said Thursday.

The SOT bill, which aims to strengthen workers' rights by clarifying the
existing ban on labor-only contracting, will lapse into law on July 27 if the
president does not act on it.

While labor groups are pushing for the measure, business groups have asked
the president to veto it, saying it goes against employers' right to contract
labor as part of management prerogative.

Business groups have also warned that the bill may prod employers to
remove low-skilled work through automation and artificial intelligence.

Last Wednesday, Pernia said the SOT bill should be tweaked to ensure that it
would benefit both the business and the labor sectors. He noted that the
measure would not be good for workers if it deters investments and results in
fewer job opportunities.

"If the president feels that the observation of Secretary Pernia is a good
reason to vetoing the bill, he (would)," presidential spokesman Salvador
Panelo said in a press briefing.

"After all, if you veto the bill, members of Congress can always introduce
amendments or pass another bill for the signature of the president – so it
depends," he added.

Panelo said it's the president’s call whether to heed the suggestion of Pernia.
The SOT bill was passed by the previous Congress. The measure has to be
refiled in the 18th Congress in order for it to be amended.

Asked how the president would balance the interest of the workers and
employers, Panelo replied: "You have to find a win-win solution... You can find
a compromise. So if you veto the bill, then a member of Congress can
introduce another one with the win-win compromise solution."

"What I’m saying is that the president is always open to suggestion. He

rationalizes. If he feels that signing the law will create not beneficial effects to
the major players, he might consider vetoing it. But if he doesn’t feel that way,
he will sign that into law," he added.

READ: Nograles says LEDAC to convene soon

Duterte previously said he listens to his Cabinet members on economic
issues. There was an instance, however, when the president signed a law
despite the reservations of his economic team.

Duterte signed the law providing free education in state colleges and
universities despite claims of economic managers that the measure would
have a serious impact on the government's budget.

The president certified the SOT bill as urgent last September.

Read more at https://www.philstar.com/headlines/2019/07/25/1937775/palace-

duterte-may-veto-security-tenure-bill-if#qf0O3yZqqzYaJ2u6.99
Duterte rejects anti-endo bill, says
it destroys 'balance'
By Eimor Santos, CNN Philippines
Published Jul 26, 2019 10:45:52 AM
President Rodrigo Duterte has vetoed the bill that bans contractual work arrangements.

Metro Manila (CNN Philippines, July 26) — President Rodrigo Duterte refused to sign
the Security of Tenure (SOT) bill that he certified as urgent and which seeks to fulfill his
campaign promise of ending contractualization.

In his two-page veto message sent to Congress on Friday, Duterte said he rejected the
landmark measure because it "unduly broadens the scope and defintiion of prohibited
labor-only contracting, effectively proscribing forms of contractualization that are not
particularly unfavorable to employees involved."

"I believe the sweeping expansion of the definition of labor-only contracting destroys the
delicate balance and will place capital and management at an impossibly difficult
predicament with adverse consequences to the Filipino workers in the long term,"
Duterte said.

The bill defines labor contracting as a practice wherein a job contractor "merely recruits
and supplies or places workers to a contractee." The measure, which was supposed to
lapse into law Saturday, prohibits business entities from hiring workers on a contractual
basis. It requires businesses to directly hire employees, effectively banning the practice
of outsourcing workers through manpower agencies. It also wants companies to absorb
or regularize all workers. All employees, including project and seasonal employees
except those on probationary status, are entitled to benefits received by regular
workers.

Duterte stressed that he remains committed to eradicating all forms of abusive

employment practices and protecting the workers' right to security of tenure. "Our goal,
however, has always been to target the abuse, while leaving businesses free to engage
in those practies beneficial to both management and the workforce," he said.

He stressed that there should be a "healthy balance" between the conflicting interests of
laborers and employers.

The National Economic and Development Authority (NEDA) earlier submitted to the
President recommendations and proposed adjustments to the SOT bill. Socioeconomic
Planning Secretary Ernesto Pernia did not disclose what these are, but stressed that
"we have to be sure that the law benefits not only workers but also the employers."
Several business groups and firms also requested the President not to enact the bill, saying it
could discourage investors from venturing into the country, resulting in job losses. The
Employers Confederation of the Philippines said the President might have realized the
measure's drastic impact on the economy, and that what the country needs is not a new
law, but the enforcement of existing measures against illegal contractualization.

ECOP: Bawal naman talaga ang endo #CNNPHBalitaan

Malacañang in a statement agreed, "Our country cannot afford business closures as it

will pain us seeing a decline of job opportunities for our labor force."

Presidential Spokesperson Salvador Panelo also noted that the President during last
year's Labor Day signed Executive Order No. 51, enforcing a government crackdown on
unlawful contracting and subcontracting. He added that government efforts against
contractualization have resulted in the regularization of over 460,000 workers from
August 2016 to May 2019.

The Federation of Free Workers, however, maintained that existing measures have
failed to end all forms of "illegal contractualization" or "endo."

Matula: We are sad with the President's decision #CNNPHBalitaan

"Endo" or "end of contract" is a highly contested form of contractualization widely

practiced in the country – workers are hired for not more than five months, so employers
don't need to regularize them on the sixth month as mandated by the Labor Code. It
strips millions of workers of all the benefits granted by law to regular employees.

Senate President Vicente "Tito" Sotto III said he will ask colleague Joel Villanueva,
chairman of the chamber's labor committee, to refile an anti-endo measure. Villanueva
also committed to continue the decades-old fight to end illegal contractualization.

READ: Back to square one? Senators eye refiling of anti-endo bill

Labor groups have been calling on Duterte to fulfill his campaign promise of putting an
end to endo. As early as September 2018, the President certified the SOT bill as urgent,
allowing lawmakers to fast-track its passage.

"It makes no sense to me why Malacanang would declare it a priority measure then just
to Veto it after its approval," Senator Miguel Zubiri said, calling on the Palace to clarify
the matter.

Rep. Jericho Nograles, an author of the anti-endo bill in the House, told CNN
Philippines that lawmakers can refile the measure anytime, but the executive "should be
clearer" this time on how it wants labor contracting defined.
CNN Philippines Correspondent Ina Andolong contributed to this report.

After Duterte veto, DOLE

to submit proposal for new
anti-endo bill
Labor Secretary Silvestre Bello III says provisions on defining 'labor-only contracting'
among others will be part of a new proposal it will submit to the Legislative-Executive
Development Advisory Council by August 5

END ENDO. Labor groups march along Espana, Manila to push for the end of contractualization schemes
on Labor Day, May 1, 2019. Photo by Jire Carreon/Rappler

MANILA, Philippines – After President Rodrigo Duterte vetoed a bill that sought to end
contractualization in the country, the Department of Labor and Employment (DOLE)
aimed to assure workers that government efforts to combat endo (end of contract)
schemes would continue.

In a press conference on Monday, July 29 Labor Secretary Silvestre Bello III said the
department was currently working on a new proposal it would submit to the Legislative-
Executive Development Advisory Council (LEDAC) by Monday, August 5.

"The mere fact he allowed us to review this bill is a step forward.... This is not the end of
their cause.... I understand that there is LEDAC [meeting] on Monday so I hope we have
formulation so it can be presented to the President," Bello said.

Bello's statements come days after Duterte on Friday, July 26, vetoed the security of
tenure (SOT) bill just a day before it was scheduled to lapse into law. Labor groups had
slammed Duterte's decision, saying it only showed how he turned his back on workers
to whom he promised to end contractualization.

Up until the last minute, labor groups had urged Duterte to sign the SOT bill into law.
Despite earlier rejecting the bill, groups said though the measure was was a much
watered down version of what they wanted, it was still "better than nothing."
(READ: After Duterte's veto, labor groups vow to continue fight vs endo)
What are the possible new amendments? Among the possible provisions DOLE
would address were contentious issues such as the definition of "labor-only contracting"
and how to determine jobs considered directly related to employers' businesses.

As it stands, the SOT bill said "labor-only contracting" exists when:

 The job contractor merely supplies, recruits, and places workers to a

contractee.
 The workers supplied to a contractee perform tasks/activities that are listed
by the industry to be directly related to the core business of the contractee.
 The contractee has direct control and supervision over the workers
supplied by the contractor.

DOLE also said that in deciding who gets to determine what jobs were considered
directly related to employers' businesses, a tripartite group consisting of businesses,
workers groups, and government should be involved.

The expected output from the LEDAC meeting would be the Executive's proposed
version of the SOT bill, which lawmakers could refer to when drafting new proposals.
(READ: Villanueva refiles anti-endo bill days after veto)

Still committed? Both lawmakers and labor groups, though, questioned whether or
not ending contractualization was still a priority of the Duterte administration considering
Duterte vetoed the measure after he certified it as urgent. (READ: Senators hit Duterte
veto of anti-endo bill: 'Get your act together')

Bello argued that by vetoing the SOT bill, the President was still committed to ending all
forms of abusive contractualization.

"By vetoing the bill he thought this was the better option to provide our workers not only
employment but security of tenure.... The intention of the President was really to secure
our workers in their employment contrary to the perception na iniwanan niya yung ating
manggagawa (he left behind our workers)," Bello said.

Duterte himself earlier gave assurances of his “firm commitment to protect the workers’
right to security of tenure by eradicating all forms of abusive employment
practices.” (READ: TIMELINE: Duterte's promise to abolish endo)

In his veto message, however, Duterte echoed major business organizations as he said,
“businesses should be allowed to determine whether they should outsource certain
activities or not.” – Rappler.com
Villanueva refiles anti-endo
bill days after veto
'Babalik tayo sa Grade 1,' says Senator Joel Villanueva as he refiles the Security of
Tenure bill that was previously certified 'urgent' by Malacañang

END ENDO. Senator Joel Villanueva delivers a privilege speech at the Senate regarding the President's
veto on the anti-endo bill. Photo by Angie de Silva/Rappler

MANILA, Philippines – Senator Joel Villanueva on Monday, July 29, refiled the bill that
seeks to end contractualization in the country, even after the President vetoed its
approved version last week.

Villanueva said that Senate Bill Number 806 he filed Monday is "exactly" the same
version of the measure that the President thumbed down.

"Babalik tayo sa Grade 1 (We go back to Grade 1)…This is exactly the same measure
that was certified as priority and urgent by the President," Villanueva told reporters.

The bill bans "labor-only contracting." It exists when:

 The job contractor merely supplies, recruits, and supplies workers to a

contractee.
 The workers supplied to a contractee perform tasks/activities that are listed
by the industry to be directly related to the core business of the contractee.
 The contractee has direct control and supervision over the workers
supplied by the contractor.

The bill also classifies workers under 4 employment types:

 regular
 probationary
 project
 seasonal

Project and seasonal workers have the same rights as regular employees. These
benefits include the payment of minimum wage and social protection benefits.
On Friday, July 26, President Rodrigo Duterte vetoed the 17th Congress-approved
Security of Tenure (SOT) Bill. Duterte said that labor-only contracting "should be
prohibited" but "legitimate job-contracting should still be allowed."

Durterte's stance echoed the line of major business chambers that opposed the bill.

Villanueva, who had sponsored the Senate version of the SOT, said that the veto is
"baseless" and only reflects the "growing problem of misinformation and confusion in
the government."

Senate President Vicente Sotto III earlier said that the SOT bill will be included in the
priority measures, once it's refiled.

Senators had expressed dismay with the veto, as the President had certified it "urgent"
in September 2018. – Rappler.com

TIMELINE: Duterte’s
promise to abolish endo
(4th UPDATE) Despite certifying it as urgent, President Rodrigo Duterte vetoes the
security of tenure bill after businesses voice their opposition against it at the last-minute.
Workers say Duterte turned his back on them after he promised to end
contracualization.

Sofia Tomacruz
Published 9:10 AM, May 01, 2018

Updated 10:03 PM, July 26, 2019

MANILA, Philippines (4th UPDATE) – Over two years since President Rodrigo Duterte
first voiced his stand against contractualization, an Executive Order (EO) against the
labor practice was finally signed on May 1, Labor Day.

As early as November 2015, Duterte, then mayor of Davao City, said contractualization
is not for a country like the Philippines. He challenged those who disagreed with him to
“make sure” he loses the presidential race.
"I will not run a country that way. If those who have money won't accept this, then you
campaign against me. Make sure tatalunin ninyo ako (Make sure you will beat me). I will
not go for it. It is not a policy. It is not good," he declared.

Contractualization or endo (end of contract) is the illegal practice of hiring fixed-term

employees and continuously renewing their contracts to avoid giving benefits a regular
worker is entitled to.

Ending this labor practice is among the key campaign promises of President Duterte.

Rappler traces the events surrounding the government’s campaign to end

contractualization:

2016
January 7

Duterte and Vice President Alan Peter Cayetano unveil their platform in Cebu City.

Among their campaign promises is to “improve labor conditions for Filipino workers,”
including phasing out contractualization.

2016 ELECTIONS. Rodrigo Duterte and Alan Peter Cayetano answer questions from Cebu media on
January 7, 2016. Photo by Pia Ranada/Rappler

June 21

Silvestre Bello III becomes Department of Labor and Employment (DOLE) secretary
under Duterte. He says he is considering requiring all companies in the Philippines to
regularize at least 80% of their employees.

"I will do that. Because that is the first marching order of the President to me," Bello
says.

July 25

Duterte gives his first State of the Nation Address (SONA). At this point, Bello says he
would consult with labor groups and companies to get things started.

August 1
Duterte says he will be “unforgiving” of companies that continue to practice
contractualization. He warns he would close down companies and take away permits if
companies were found to be practicing contractualization.

October 4

Bello says DOLE is on track in its objective to end contractulization by 50% by the end
of 2016. He also reports 10,532 workers have been regularized by 195 employers.

November 22

Bello says 25,000 workers have been regularized.

End of 2016

DOLE says around 36,000 workers have been regularized by yearend.

2017
NO TO ENDO. Workers belonging to the Nagkaisa Coalition march to Mendiola in Manila on January 4,
2016 to call on the government to end the practice of contractualization. File photo by Martin San
Diego/Rappler

February 4

DOLE Undersecretary Dominador Say says the department plans to release a new
policy that aims to end labor-only contracting within the month. He notes that Bello
wants it in place by February 14.

The order was previously set to be released on December 28 but the department early
in January opened the draft to comments from both the labor and management sectors.

February 14

Bello does not sign the department order (DO). Instead, Bello says President Duterte
granted the labor sector's longtime request to have a dialogue with him.

After confirming the groups’ dialogue with the President, Bello says the DO will be
deferred until after February 27 to consolidate feedback from stakeholders.
February 27

Labor groups meet with Duterte.

Duterte orders Bello to craft a department order that would stop the illegal practice of
labor contractualization and reiterates his stand against agency hiring.

March 7

Labor groups criticize Bello's new department order, saying there is no drastic change in
the new draft. The contested Department Order 18-A (DO 18-A). DO 18-A or the
implementing guidelines of Articles 106 to 109 of the Labor Code of the Philippines is
criticized by labor groups as the root cause of contractualization because this legalizes
agency hiring.

March 16

Bello signs Department Order 174 (DO 174), which sets stricter guidelines for
contractualization. Under the order, manpower agencies – not the main employers – are
ordered to regularize their workers.

Labor groups, however, slam the new order as a betrayal and a step back from previous
talks with Duterte. The order allows “legal” forms of contractualization but labor groups
want all forms of contractualization banned.

Bello points out that for labor contractualization to be completely banned, Congress
needs to amend laws. "Prohibition of all forms of contractualization is beyond the
powers of the secretary of labor. DOLE can only regulate contracting and
subcontracting," he said.

April 19

DOLE says 45,605 workers have been regularized as of the first quarter of 2017.

April 27

Labor groups urge Duterte to keep his promise to abolish contractualization.

MEETING. President Rodrigo Duterte meets with labor groups during a Labor Day celebration in Davao
City in May 2017. Malacañang file photo
Major labor unions Kilusang Mayo Uno and the Trade Union Congress of the
Philippines join forces to draft an executive order (EO) as an alternative to Bello’s DO
174.

May 1

On Labor Day, Duterte promises to sign an EO against contractualization.

"I stand firm in my conviction to stop 'endo.' Workers have right to security of tenure. To
this end, I will create an executive order directing strict provisions against 'endo,'"
Duterte says. He also asks for more time to fulfil his campaign promise to end
contractualization.

May 9

Labor groups submit the draft EO to Malacañang. Discussions on the proposed EO are
scheduled for May 15 and later on postponed to June 27. After crisis erupts in Marawi
city, talks are postponed indefinitely.

June 16

DOLE says 49,393 employees have been regularized before Duterte marked his first
year in office.

June 24

DOLE receives an additional P15 million to hire more labor law compliance officers,
which will help the government’s campaign against labor-only contracting.

July 19

DOLE says over 60,000 workers have been regularized since it started its campaign
against contractualization in mid-2016.

ENDO. Workers group under the Nagkaisa coalition march to Mendiola on Labor Day, May 1, 2017 to call
for an End of Contractualization (ENDO). Photo by Rob Reyes/Rappler

July 25

Labor groups criticize Duterte’s silence on labor issues in his second SONA delivered
the day before.
"His silence is a great disappointment for workers as we were expecting him to
announce the release of an executive order prohibiting all forms of contractualization,”
Nagkaisa Labor coalition says.

November 8

DOLE and labor groups agree to come up with a joint draft of a proposed EO, which
would prohibit labor-only contracting with certain exemptions, instead of just regulating
the practice. The new EO would replace the previous proposed draft labor groups
submitted to Malacañang in May.

November 26

DOLE says 75,430 workers have been regularized while at least 50,000 are undergoing
processes for regularization.

December 14

In its year-end report, DOLE says it regularized at least 125,000 of the 200,000
contractual workers it had targeted to regularize for 2017. This figure means DOLE
achieved 62% of its 2017 target.

Though the accomplishment is a step forward in the effort to end contractualization,

more needs to be done as there are an estimated 1.3 million contractual employees in
the country.

2018
FAILED PROMISE. Labor groups under Kilusang Mayo Uno and Nagkaisa gather in Mendiola on March
15, 2018 as they hold a protest against the failed promise of President Rodrigo Duterte to issue an
executive order ending contractualization. Photo by Maria Tan/Rappler

January 17

Bello says Duterte is set to sign an EOagainst contractualization “anytime soon”. He

gives an expected timeline of one to two weeks when a meeting between labor groups
and the President is expected to happen.

“During that meeting, we are expecting the President to sign an Executive Order
regarding the issue of contractualization,” Bello says.
February 7

Duterte meets with labor groups and asks for more time to study the proposed EO as
this will have to be first studied by his legal advisers.

February 28

DOLE denies allegations it is delaying the signing of an EO against contractualization.

"They have to have [a] little patience as the President is doing his best to address the
problems of labor contractualization," Labor Undersecretary Joel Maglunsod says.

March 15

Duterte misses his deadline to sign an EO ending contractualization.

Labor groups march to Mendiola to denounce the delay. “Paulit-ulit lamang [ang pag-
extend ng deadline] at tuloy ang pambobola. Eh taon na ang inabot nito at wala pang
konkretong, seryosong pag-address sa usapin ng mga manggagawa at seryosong
pagbasurang tuluyan ng kontraktwalisasyon," says Kilusang Mayo Uno leader Bong
Labog.

(The deadline has been moved repeatedly and the bluffing goes on. It's been a year
since talks started, but labor issues have not been concretely, seriously addressed and
contractualization has yet to be junked completely.)

April 2

Malacañang tempers expectations about the new EO.

Then Senior Deputy Executive Secretary Menardo Guevarra says, "The total ban itself
is something we cannot do by EO.” Guevarra says the “main problems” of the
EO include substantial provisions that can only be achieved by amending the country’s
Labor Code – an act the legislative branch can do, but not the executive branch.

April 3

Labor groups argue that while a law is needed to prohibit all forms of contractualization,
issuing an EO would serve as a “stop-gap measure.”

NO CONTRACTUALIZATION. Labor groups want all forms of contractualization to be prohibited. Photo

by Patty Pasion/Rappler
Groups also express disappointment after Malcañang admitted it could not end
contractualization by itself. "Ending contractualization is a political promise of the
President. It is sad that Malacañang is now expecting that promise to be fulfilled by
Congress," Sentro secretary-general Josua Mata says.

April 13

Bello, along with labor groups, finalize the 5th version of the draft EO on
contractualization. President Duterte is scheduled to sign this version on April 16. Bello
brings the draft to Malacañang, where Department of Trade and Industry (DTI)
Secretary Ramon Lopez is also present.

According to Maglunsod, DTI wanted adjustments to some words added by workers in

Section 2, a key provision of the proposed EO. For labor groups, this contested
provision is what would "free contractual workers from labor slavery.”

April 14

Maglunsod says they were informed by Malacañang through a text message that
the signing will be postponed. In a text message to Rappler, Bello also says he "cannot
confirm yet" whether the signing would push through.

April 15

Labor groups urge President Duterte to fulfill his promise to end contractualization.

"We urge the President to finally stand up, make a statement, and fulfill his promise to
end contractualization. He shouldn't give false hopes to contractual workers. This is long
overdue," says Alan Tanjusay, spokesperson of the Associated Labor Unions-Trade
Union Congress of the Philippines (ALU-TUCP).

April 16

Presidential Spokesperson Harry Roque says the EO may possibly be signed by

Malacanang on May 1.

Although labor groups earlier claimed President Duterte was set to sign the EO on this
day, Roque says this was not in the President’s schedule. He also says the final version
was not yet agreed upon by labor, management, and government.
Roque also reiterates President Duterte is keen on ending contractualization. “He has
mentioned to me personally that this is a campaign promise he wants to deliver to the
people very soon," he says.

RESIGNATION. Labor Undersecretary for Employment and Policy Support Dominador Say (left) and
Labor Secretary Silvestre Bello III in a press conference in August 2017. File photo by Patty
Pasion/Rappler

April 17

Labor Undersecretary for Employment and Policy Support Dominador Say resigns amid
talks to end contractualization. Say was responsible for crafting DO 174, which labor
groups had earlier opposed.

"Simple lang para sa 'kin. Tapos na ang panahon ko. (It's simple for me. My time [with
the department] is done.) Majority of my career is devoted to practicing management
law. I want to save the department from undue criticism that I am 'pro-management' just
because of my legalese language," Say tells Rappler.

Meanwhile, President Duterte signs a Memorandum instructing Bello to submit a lists of

companies "engaged and/or suspected to be engaged in" labor-only contracting in 30
days.

April 19

Bello says there will no longer be an EO against contractualization as it will be “better

not to issue” this if it will not be implemented strictly anyway. He leaves the task to
Congress.

In response, Senator Joel Villanueva, who chairs the Senate committee on labor
employment, says he still expects Malacañang to issue an EO and welcomed the
“President’s certification” as it would “help in the passage of a new law governing endo.”

May 1

After nearly two years of delays, President Duterte on Labor Day finally signs an EO
against contractualization at the start of his speech during a Labor Day event in Cebu
City.

"[I hope] that with all I can do legally, there will be an impact on your complaint on
security of tenure," he says. Duterte also repeats the EO will "not be enough" and that
Congress should pass pending bills on security of tenure.
But labor groups criticize the move, saying the signed EO was not the draft they
prepared and negotiated on with the labor department. A crucial and contested
sentence in Section 2, a key provision of the order, is left out.

"The EO that was signed definitely is an EO for the employers, not for the workers. We
will not waver, we will continue to fight to give justice to workers affected by the
widespread contractualization of labor," says Rene Magtubo, Nagkaisa labor coalition
spokesperson.

July 23

Duterte acknowledges the limitations of his executive order and calls on lawmakers to
amend the outdated Labor Core during his third State of the Nation Address (SONA).

"Much as I would like to do the impossible, that power is not vested upon me by the
Constitution. And neither will I make both ends meet even if I violate the laws to achieve
that purpose. Simply, it is not part of my territory," the President said.

September 25

Months later, Duterte, in a letter to Senate President Vicente Sotto III, certifies as
urgent Senate Bill (SB) No. 1826 or the Security of Tenure and End of Endo Act of
2018.

Labor groups take the certification as a sign the President is "staying true" to his
promise to end contractualization.

2019
May 22

After months of deliberations, the Senate passes on third and final reading its version of
the measure seeking to amend the existing Labor Code and stop abusive forms of
contractualization.

The bill reiterates the ban on labor-only contracting and clarifies uncertainties in existing
laws which have allowed employers to circumvent the prohibition.
ENDO BILL. Workers stage a protest at the Senate on August 7, 2018, calling for the immediate passage
of the Security of Tenure bill. Photo by Angie de Silva/Rappler

May 28

The House of Representatives agrees to adopt the provisions of SB No. 1826 or the Act
Strengthening Workers' Right to Security of Tenure, thus doing away with the bicameral
conference on the measure. The bicam was supposed to thresh out differences
between the two versions of the House and the Senate.

The anti-endo bill is instead transmitted directly to Malacañang for the President to sign
into law.

May 29

Workers reject the Senate-approved version of the security of tenure bill, saying it is
"not worthy of support" as it fails to address key issues.

Among those that reject the bill are the following groups:

 Alliance of General Unions, Institutions, and Labor Associations

 Federation of Free Workers (FFW)
 Partido Manggagawa (PM)
 Philippine Airlines Employees Association
 Sentro ng mga Nagkakaisa at Progresibong Manggagawa
 Trade Union Congress of the Philippines (TUCP)

ENDING ENDO. Workers from various companies stage a rally calling for the passage of the security of
tenure bill at the main gate of the Senate on August 7, 2018. File photo by Angie de Silva/Rappler

July 18

Business groups voice their opposition towards the security of tenure bill, saying it is
redundant and could have a negative impact on the Philippine economy.

They argue job contracting is an exercise of management prerogative and business

judgment, anchored on two constitutional rights: right and freedom to contract, and right
to property. Groups warn that the measure may increase the cost of doing business and
lead to job losses.
In a joint statement, the following groups sign a last minute appeal urging Duterte to
veto the bill:

 American Chamber of Commerce of the Philippines

 Australian-New Zealand Chamber of Commerce
 Canadian Chamber of Commerce of the Philippines
 European Chamber of Commerce of the Philippines
 Foundation for Economic Freedom
 IT and Business Process Association of the Philippines
 Japanese Chamber of Commerce and Industry of the Philippines
 Korean Chamber of Commerce Philippines
 Makati Business Club
 Management Association of the Philippines
 Philippine Association of Multinational Companies Regional Headquarters
 Philippine Chamber of Commerce and Industry
 Semiconductor and Electronics Industries in the Philippines

July 22

Duterte makes no mention of workers or the anti-endo bill in his fourth SONA.

In an interview with reporters after his speech, the President fails to give a categorical
answer on whether or not he would sign the bill. He only says he is "still studying" the
measure.

July 23

TUCP questions Duterte's failure to address workers in his SONA, saying this caused
workers to worry and wonder if the President has turned his back on them.

PROMISE. President Rodrigo Duterte has made a campaign promise to end labor-only contracting. File
photo by Jire Carreon/Rappler

July 24

Days before the SOT bill is set to lapse into law if left unsigned, Socioeconomic
Secretary Ernesto Pernia says the proposed measure needs some tweaking. He says
the legislature should strike a balance between business and workers' interests.
This prompts Senator Joel Villanueva who sponsored the bill to ask if Pernia is setting
up the bill for Duterte's veto.

"We wonder why it's only now that NEDA is raising these alleged 'concerns' when the
proper time to do so was as early as 3 years ago when discussions on this bill started,"
Villanueva says.

July 25

Labor groups that earlier rejected the bill urge Duterte to sign the SOT bill, saying that
although it is a much more watered down version of what they fought for, it is still "better
than nothing."

FFW, PM, and TUCP argue that while the bill has its weaknesses, it can still be used to
improve the situation of millions who suffer from contractualization schemes.

Close to midnight, word of Duterte vetoing the anti-endo bill spreads after Presidential
Spokesman Salvador Panelo confirms the news to reporters, only to take it back
minutes after. Panelo apologizes for his error, saying the President is "still studying the
pros and cons" of the bill.

VETOED. Senators hit the executive department after President Rodrigo Duterte vetoed the security of
tenure bill. File photo by Jire Carreon/Rappler

July 26

Duterte officially vetoes the security of tenure bill.

In his veto message, the President echoes the line of major business groups against the
bill saying "businesses should be allowed to determine whether they should outsource
certain activities or not.”

Duterte gives assurances, however, that he continues to stand by his commitment to

"protect the workers’ right to security of tenure by eradicating all forms of abusive
employment practices.”

Senators hit the Duterte adminsitration's flip-flop over the measure, saying it should "get
its act together" before certifying measures as urgent only for them to be vetoed in the
end.
Labor groups, meanwhile, slam Duterte for turning his back on workers. Groups say
workers feel "taken for a ride" as Duterte delivers his death blow to a bill that "would
have started their emancipation from the clutches of abusive contractualization."

Despite the setback, workers vow to continue their fight against all forms of
contractualization.

Responding to the veto, PM national chair Rene Magtubo cries, “Hangga’t buhay ang
endo, tuloy ang laban! (As long as endo exists, the fight continues!)." – Rappler.com

Villanueva refiles exact copy of vetoed

Security of Tenure bill
Published July 29, 2019, 6:04 PM

By Vanne Elaine Terrazola

Making good his vow not to give up his fight against contractualization or “endo”, Senator Joel Villanueva on
Monday refiled the Security of Tenure bill.

Sen. Joel Villanueva

(Senate of the Philippines / MANILA BULLETIN)

Villanueva said his Senate Bill No. 806 was the exact same copy of the enrolled Security of Tenure bill that
President Duterte had certified as urgent but vetoed just last week.

He said he did this so that the Senate will be clarified on the specific provisions that prompted the Chief
Executive’s rejection of the bill.

“We wanted to find out from the President’s men or the officials that influenced the President to veto this and
pinpoint what particular provisions were problematic for them; what particular provisions were, according to
them, would not help or hurt our economy; would not create jobs; and expand the definition of labor-only
contracting,” Villanueva said in an interview after filing the SB 806 in the Senate’s Bills and Index office.

Villanueva is the Senate labor committee chairman who sponsored the vetoed Security of Tenure bill during
the 17th Congress.

Pondering on the Duterte’s veto message, he said the President may have been “misinformed” by his advisers.

The Senate labor committee chairman said he will make sure that the officials of the National Economic and
Development Authority (NEDA) are present in the panel’s discussion of the refiled Security of Tenure bill.

To recall, the NEDA recommended the veto of the enrolled anti-endo bill. In its position submitted to
Presidential Legislative Liaison Office, the NEDA described the Security of Tenure bill as “anti-employment,
anti-small business, and anti-new business”.

It added that the measure “fails to address the major cause of the ‘endo’ practice.”

“I’m more than willing to talk to them (NEDA),” Villanueva said.

In refiling his Security of Tenure bill, Villanueva reiterated that the proposal only prohibits and imposes
penalties on the “illegal” practice of contractualization. He said he agrees with the Palace’s position that the
government cannot ban all forms of job contracting.

Negating the grounds cited for the veto, Villanueva said business sectors, under the bill, were allowed to
determine what services they can outsource.

Villanueva said he will also seek clarification as to how the supposed expansion of the definition of labor-only
contracting would be detrimental to the “delicate balance” between employers and their workers.

“Kung ako po ang tatanungin (If you ask me), I don’t think there [is] such thing as ‘delicate balance’ because
everytime the management and the laborers ay mag-uusap sa mga usaping ganito, lagi nga pong nanalo ‘yong
management (meet to discuss such issues, the management always wins). Wala naman laging laban ‘yong
labor doon sa management (The laborers always lose to the management),” he lamented, referring to the veto
message.

He explained that the definition of labor-only contracting provided under the measure sought to clarify the
arbitrary discretion of labor inspectors.

The President vetoed the Security of Tenure bill days before it was supposed to lapse into law.

Read more: Duterte vetoes Security of Tenure bill

Senate President Vicente Sotto III earlier assured to prioritize the measure once refiled in the Upper Chamber.

Villanueva said he does not mind getting heartbroken anew should Duterte veto the Security of Tenure bill for
the second time.

“I’d rather fight for it because this is what is right,” he said.

Take two for security of tenure measure

July 30, 2019 | 12:32 am

THE LABOR department and the Senate have taken steps to revive a
proposal that would tighten controls on labor contracting, a few days after
President Rodrigo R. Duterte struck down a similar measure just before it
would have lapsed into law last Saturday for unduly burdening business.

Labor Secretary Silvestre H. Bello III told reporters in a briefing in Manila on

Monday that the Department of Labor and Employment (DoLE) will submit a
“clearer and more focused” measure to the Legislative-Executive
Development Advisory Council (LEDAC) which, he said, will meet next
Monday.
“We will come up with a clearer and more focused provision to provide
security of tenure to our workers… I understand that there is LEDAC [meeting]
this Monday, so probably we hope to have a new version on formulation
before Monday so that it can be presented to the LEDAC,” Mr. Bello said.

He added that DoLE’s version will seek to “strike a balance” between assuring
workers’ security of tenure and making sure it will not erode business viability.

“The bill will give employees security of tenure (SoT) but it shouldn’t be at the
expense of employers because kung nagawa ’yan, baka mawala
ang viability ng business (if that is done, businesses might lose viability) and it
might result in losing employment opportunities.”

Chaired by the President, LEDAC — formed under Republic Act No. 7640 of
December 1992 to ensure close coordination between the Executive branch
and Congress on priority measures — also consists of the Vice-President, the
Senate President, the Speaker of the House of Representatives, seven
Cabinet members designated by the President, three senators designated by
the Senate President, three members of the House designated by the
speaker, as well as a representative each from local government, the youth
and the private sectors.

LEDAC last met in September 2017, according to its Web site.

In his July 26 veto message, Mr. Duterte had said Senate Bill No. 1826/House
Bill No. 6908 “unduly broadens the scope and definition of prohibited labor-
only contracting, effectively proscribing forms of contractualization that are not
particularly unfavorable to the employees involved.”

Senator Emmanuel Joel J. Villanueva on Monday re-filed the same measure,

telling reporters that he will ask state economic managers — including
Socioeconomic Planning Secretary Ernesto M. Pernia and Finance Sec.
Carlos G. Dominguez III who had expressed reservations about the bill a few
days before it was vetoed — to point out objectionable provisions.

The move was supported by the Trade Union Congress of the Philippines
(TUCP), which is set to file a counterpart measure at the House of
Representatives through Rep. Raymond Democrito C. Mendoza.

“This is exactly the same measure that was certified as priority measure and
urgent by the President himself,” Mr. Villanueva told reporters after filing
Senate Bill No. 806, or the proposed “Security of Tenure and End of Endo
Act,” referring to “end of contract” (endo).

“… [T]he same because we wanted to find out from the President’s men, the
officials na nag-influence sa ating Pangulo (the officials who influenced the
President to veto the past measure), para i-pinpoint nila anong particular
provision ‘yung may problema sila (so they will pinpoint particular provisions
with which they have reservations).”

The bill will amend Presidential Decree No. 442, or the “Labor Code of the
Philippines,” by prohibiting labor-only contracting and provides penalties for
noncompliance.

The bill considers a working arrangement to be labor-only contracting when: a

job contractor merely recruits and supplies workers to a contractee,
regardless of whether he or she has substantial capital; workers recruited
perform functions are directly related to the principal business of an employer;
and if workers of the job contractor are under the control and supervision of
the contractee. The bill also requires job contractors to secure a DoLE license.

Mr. Villanueva said it was the inclusion of performance of tasks directly related
to the principal business of a contractee that proved unpalatable to business.
Thirteen local and foreign business chambers asked Mr. Duterte on July 17 to
veto the measure, arguing that its provisions were already in place through
DoLE’s Department Order No. 174, issued in March 2017, and Executive
Order No. 51, issued in May 2018.

“We expected them to refile, but I think what the President did is obvious: the
proposed law as it is right now needs to be worked on a bit. It’s quite
restrictive,” Philippine Chamber of Commerce and Industry Chairman George
T. Barcelon said in a telephone interview on Monday, citing for example that
contractual workers should not perform functions directly related to the
principal business of a contractee.

Moreover, he noted, “in present form, any one of the conditions that is not
met, you’re already in violation.”

“What management is asking is that all the conditions must be there before
that would trigger having the law take into effect.”

Associated Labor Unions-TUCP Spokesman Alan A. Tanjusay said separately

“if we read and examine the bill carefully, the SoT bill that President Duterte
already vetoed, the proposed measure already contains the provisions that he
wanted to have.”

“The SoT measure, if approved into law, would also mandate the creation of
tripartite councils per industry which would fairly determine which… [tasks] are
deemed necessary and desirable to the core business and therefore…
‘directly hired’ by the principal business owner.” — Charmaine A.
Tadalan and Gillian M. Cortez
 Senators hit Duterte veto of
anti-endo bill: 'Get your act
together'
(UPDATED) Senators express dismay over President Rodrigo Duterte's veto of the
security of tenure bill, noting the measure was certified as urgent months before

Sofia Tomacruz
Published 6:33 PM, July 26, 2019

Updated 3:39 PM, July 27, 2019

VETOED. Senators hit the executive department after President Rodrigo Duterte vetoed the security of
tenure bill. File photo by Jire Carreon/Rappler

MANILA, Philippines (UPDATED) – Senators on Friday, July 26, hit the Duterte
administration after the President vetoed the security of tenure (SOT) bill a day before it
was scheduled to

Senators admitted they were dismayed and confused over President Rodrigo Duterte's
veto of the security of tenure bill considering that it was a declared priority measure in
the 17th Congress, with the President himself certifying it as urgent in September 2018.

Senator Joel Villanueva, who had sponsored the Senate version of the bill, said
lawmakers since the 12th Congress considered "every implication" illegal forms of
contractualization had on workers and ensured "businesses will not be at a
disadvantage."

"We knew right from the start that the odds were stacked against the measure.... We
are expected to rise above politics to favor the powerless, and do what is just. Most of
the time, those in the corridors of power win. Unfortunately, this is one of those times,"
Villanueva said.

Senators Franklin Drilon and Miguel Zubiri, meanwhile, hit the executive for its flip-flop
on the measure, saying departments should align on what they want before pushing for
a policy that would stop abusive forms of contractualization – a campaign promise of
Duterte.
The Department of Labor and Employment (DOLE) was generally supportive of the
SOT bill but Socioeconomic Planning Secretary Ernesto Pernia said on Wednesday,
July 24, that the proposal still needed some tweaking.

"The bill can be refiled but the executive must first get its act together. We have frontline
departments (DOLE and NEDA) with opposing views. We are unclear as to what the
policy is," Drilon said.

Zubiri added Malacañang should likewise clarify what its priority measures are, as
Duterte's veto of the SOT bill put such measures into question.

"I'm totally bewildered on this new development. Does that mean that a certification
from the Palace no longer means that it's a priority? .... The Cabinet should get their act
together as it would make us legislators look stupid and embarrass the President as
well as he mentions these measures during the [State of the Nation Address]," Zubiri
said.

Betrayed workers: Labor groups had earlier rejected the SOT bill but later on urged
Duterte to sign it, saying that though it was a much watered down version of what they
wanted, the measure was still "better than nothing."

Senator Risa Hontiveros said it would have been "acceptable" for Duterte to veto the
measure as it was "insufficient" in defending workers, but she noted that his veto
message revealed he "thought it was remarkably biased to the workers."

"That President Duterte vetoed a law that would have been weak in protecting workers
and would have required too little from management showed his deep prejudice and
apathy against the Filipino working class. The President who fashioned himself as the
so-called defender of the working class has been fully exposed as their enemy,"
Hontiveros said.

The veto was unexpected given how Duterte had certified the bill as urgent and asked
Congress to pass it during his 2018 State of the Nation Address (SONA).

In his 4th SONA last July 22, however, Duterte made no mention of the matter and told
reporters in a press conference after the speech that he was "still studying" the
bill. (READ: TIMELINE: Duterte's promise to abolish endo)

Take two on the measure? Despite the President's veto, Villanueva vowed to
continue efforts to pass legislation combating abusive forms of contractualization.
"Make no mistake about it. We will persevere until we see that no worker will
involuntarily lose his or her job because of contractualization," Villanueva said.
(READ: After Duterte's veto, labor groups vow to continue fight vs endo)

Senate President Vicente Sotto III said that if the bill would be refiled in the 18th
Congress, it would be included in priority measures of the Senate.

"I'm crestfallen but that's how democracy works. And Congress being dynamic, can
refile and repass the bill," Sotto said.

In a statement Saturday, July 21, Senator Ralph Recto said that if Malacañang wanted
to continue with efforts to end contractualization, it should write its own version of the bill
and send it to Congress for review, as Duterte's veto message was "unclear" on which
provisions were in question.

Recto said this would only be for the information of lawmakers and that they would not
need to pass the proposed measure from the Palace in total.

Recto likewise suggested that Malacañang hold a summit on endo with labor groups,
businesses, and government for a "frank exchange of views."

"Hindi p'wedeng kung kailan tapos na ang boxing, doon pa lang mag-iingay ang ibang
taga-executive. Hindi pwede 'yung laban-bawi. (It cannot be that those from the
executive will only make noise when the fighting match is already over. You cannot be
fickle-minded.) This was not an easy bill to write. Joel [Villanueva] made sure that it was
a balanced one. It was a tightrope act under stormy conditions," Recto said.

Drilon, however, argued that with Duterte's veto which mirrored Pernia's position, "it
seems like the policy direction has been set." Efforts to address contractualization, he
said, would fall on DOLE.

He added, "Any attempt to refile the bill could be an exercise in futility without the
administration's support. Having said that, I've mentioned in the past that the DOLE can
prohibit contractualization even without amending the Labor Code, if indeed, the
administration wants to end 'endo'." – Rappler.com

IT’S FINAL | Security of Tenure bill

has been vetoed—Palace
By

Bernadette D. Nicolas
Workers prepare to burn an effigy of President Duterte during a rally near Malacañang in
celebration of International Labor Day on May 1, 2019. The workers scored Duterte for
allegedly reneging on his campaign promise three years ago to end temporary hiring,
known as “contractualization” or “endo” (end of contract).

PRESIDENT Duterte has indeed vetoed the Security of Tenure (SOT) bill, Malacañang
confirmed on Friday morning, after issuing conflicting advisories late Thursday.

Panelo confirms – then retracts – ‘veto’ of security of tenure bill

“Security of Tenure bill vetoed by the President,” Panelo said in a text message shared to
reporters.

This comes after Panelo backtracked at past 11 pm on Thursday, minutes after

confirming that the bill, objected to strongly by local and foreign business groups, had
been vetoed.

While there was a purported copy of the veto message of the President released by
Inquirer.net, an official copy from the Palace has yet to be released as of press time.
Copy of the President’s veto message

In a phone interview with the BusinessMirror Friday morning, Presidential Legislative

Liaison Office Secretary Adelino B. Sitoy still could not confirm nor deny the
authenticity of the document.

“I cannot confirm it. I am in Cebu. I will contact [my office] in Manila if they already
received the veto message,” Sitoy said.

The end-of-contract scheme, popularly known as “Endo,” is an illegal form of

contractualization wherein workers are repetitively hired and rehired by employers for the
purpose of circumventing their right to be regularized.

The SOT bill, which was supposedly aimed at ending Endo, was even certified as urgent
by the President since it was one of his campaign promises in 2016.
Socioeconomic Planning Secretary Ernesto M. Pernia also said on Wednesday that the
bill needs some “tweaking.”

While Pernia did not categorically say if he recommended the veto of the bill to the
President, he described the measure as “not perfect.”

Business groups have said the manufacturing

industry will spend an additional P49 billion
annually on labor cost if firms were to absorb
the over 300,000 contractual workers if the
President signs the SOT bill.
In a computation done by businessmen earlier obtained by the BusinessMirror, the
employers projected an additional labor cost of P48.83 billion yearly for manufacturing
should it absorb all of its agency-hired workers. This is estimated to climb to as much as
P52.53 billion when the 13th-month pay is accounted for, and has yet to cover incentive
leave, overtime pay, night differential and holiday and weekend pay.

A highly placed source told the BusinessMirror earlier that the Office of the President
requested the business sector to provide its assessment of the SOT bill, especially on its
impacts and investments and employment in the country.

The computation was transmitted to the OP, the source said, and was reviewed by
President Duterte before he delivered his State of the Nation Address (Sona) on Monday.
The President was expected to approve the SOT bill on Sona day, but he did not do so.

During last year’s Labor Day, the President signed Executive Order (EO) 51 prohibiting
illegal contractualization, after mounting pressure from workers for the President to
make good on his promise to end contractualization.

However, critics have since said this EO will not really end contractualization in the
country.
 NEDA says security of tenure bill requires more ‘balance’
July 24, 2019 | 10:24 pm BERNARDINO P. TESTA

THE National Economic and Development Authority (NEDA) said Senate Bill
1826, the proposed Security of Tenure (SoT) Act, needs to be “tweaked” to be
more balanced and consider the possible impact on investment.

In a briefing Wednesday, NEDA Secretary Ernesto M. Pernia said, “Our view

is that the legislation should do something that would benefit not only the
employers but also the workers.”

He added, “I think the SoT is not perfect. Also from the employee side, they
said it’s not adequate.”

The SoT Bill is awaiting the signature of President Rodrigo R. Duterte and is
set to lapse into law by July 27. According to Labor Secretary Silvestre H.
Bello III, Mr. Duterte is still studying the measure.

Mr. Pernia said that the SoT Bill should be balanced, considering the interests
of workers as well as the potential impact on investment and jobs to be
generated by businesses. “Essentially there is a need for tweaking to address
some of the provisions. As I’ve said, you have to be sure that the law benefits
not only workers but also investment… it has to be fair between workers and
employers because if you want jobs to be available, you need investment.”

On July 17, foreign business chambers and employer groups called on the
President not to sign the SoT Bill, warning that it will weaken investment if
businesses are not given the option of engaging contract labor. The groups
said that current laws already have provisions against labor-only contracting
which are also reinforced through Department Order 178 series of 2017
issued by the Department of Labor and Employment (DoLE) and Executive
Order 51 series of 2018 signed by the President.
The Trade Union Congress of the Philippines (TUCP) warned foreign
chambers that they are committing a crime in calling on the President to veto
the SoT Bill, because they are not registered lobbyists and cannot interfere in
domestic matters.

In a statement Wednesday, TUCP President Raymond C. Mendoza said: “The

Trade Union Congress of the Philippines warns foreign businessmen and their
chambers that they are engaged in illegal lobby(ing) in calling for a
Presidential veto of the Security of Tenure bill. They are engaged in an
unwarranted interference in the purely domestic affairs of the Filipino people.
They are also infringing into our sovereignty.”

He added that foreign organizations cannot lobby Congress, saying that the
foreign chambers “are now skirting a thin line between legality and real crimes
against the Filipino people.”

Mr. Mendoza said that the SoT Bill allows flexibility since some contracting
activities such as seasonal and project-based contracting will still be legal.
The bill will also ensure workers’ right to a pathway to permanent
employment.

He added, “While the SoT bill does not totally end contractualization, it
nonetheless provides for an easier way to… regularize workers. It also
provides penalties and a fine of up to P5 million and sanctions which include
closing down manpower agencies and contractors. We intend to further
strengthen this through amendments in the 18th Congress by reiterating the
lost provisions of the House version, which prohibits all fixed-term contracts.”
— Gillian M. Cortez