DTI pushes stance on contractualization

In a text message to reporters Thursday, Lopez reiterated DTI’s position that legitimate contractualization is allowed by the Labor Code. (PNA photo)

MANILA –– Department of Trade and Industry (DTI) Secretary Ramon Lopez said the agency would push for its position on contractualization as the government drafts the final version of an executive order (EO) on job contractualization.

In a text message to reporters Thursday, Lopez reiterated DTI’s position that legitimate contractualization is allowed by the Labor Code.

“We continue to file our position. (I) heard that a draft EO banning contractualization is being pushed by the labor sector again. We wish to pursue (our) position that legitimate contractualization is allowed by the Labor Code,” he said.

The trade chief said that the bad labor practice is the “endo 5-5-5” or the practice of rehiring an employee for another five months after his/her five-month contract expires, an effort to avoid regularization.

“It is the ‘endo 5-5-5’ that was bad and was promised to be stopped, which PRRD (President Rodrigo R. Duterte) already stopped,” he said. “Even PRRD mentioned (the) reality that there should be a healthy balance between employers’ flexibility with employees’ security of tenure.”

In DTI’s position, the security of tenure will be given by the service providers or manpower suppliers, wherein there will be a direct employer-employee relationship.

“We should continue with the formula to allow legitimate contractualization and permanent status and benefits can be given either directly by employers or by the contractors,” Lopez said.

The DTI and Department of Labor and Employment are meeting for the final draft of the EO to be endorsed to the President.

Last Feb. 7, Duterte was expected to sign the EO on job contractualization, but he asked for more time to review the proposed EO. (PNA)