Workers Call on Lawmakers to Repeal provisions of Labor Code

23 February 2017

PRESS RELEASE

Workers call on lawmakers to repeal provisions of Labor Code

DAVAO CITY – Labor group Kilusang Mayo Uno Southern Mindanao pressed Congress to repeal provisions of the Labor Code in order to do away with contractualization for good.

In a picket protest outside of the University of Southeastern Philippines (USeP) where the House of Representatives Committee on Labor and Employment is conducting a hearing on labor issues in the region, workers called on legislators and the Department of Labor and Employment to work for the repeal of Articles 106-109 of Presidential Decree No. 442 or the Labor Code which accommodates the practice of contracting out jobs. Articles 106 to 109 of the Labor Code are provisions which allow subcontracting, contracting, and outsourcing of jobs as a legitimate employment arrangement.

According to Carlo Olalo, the proliferation of contractualization today is caused by two factors – the law itself and the implementation of the law.

“Articles 106 to 109 give life to contractualization. This is why ending contractualization necessitates not just the passage of stricter implementing rules to regulate Articles 106 to 109, which has been the response of past administrations, We need to get rid of these provisions and instead have employers directly hire workers instead of coursing them through these contractors and labor agencies,” Olalo said.

The labor group said that there are several categories of employment which employers can place workers performing non-core functions in, such as seasonal, casual, project-based, and others.

“What we want to eliminate is the practice today of indiscriminately hiring workers needed in performing essential or core functions as contractual workers, and depriving them altogether of the chance to become regularized,” explained Olalo.

The labor group also called on lawmakers to immediately pass House Bill 556 or the Regular Employment Bill as the alternative to end contractualization.###

Reference: Carlo Olalo, secretary general, KMU-SMR, 0912386100

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