DTI, bizmen no to ‘illegal’ contractualization, yes to outsourcing

FILE: Department of Trade and Industry (DTI) Secretary Ramon Lopez tells the media that DTI is encouraging malls nationwide to provide exhibit space for micro, small, and medium enterprises (MSMEs) during a press briefing in Malacañang on Thursday (Sept. 22, 2016). (Photo by Albert Alcain/PPD/PNA)
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MANILA — The Department of Trade and Industry (DTI) threw its support to President Rodrigo Duterte’s call for legislation that will end labor contractualization, which he reiterated in his third State of the Nation Address (SONA).

In a text message to reporters Tuesday, Trade Secretary Ramon Lopez stressed that his department has always been in favor of the protection and security of tenure of workers.

But Lopez noted that the regularization may take place in the company client or the contractor.

“What cannot be discontinued is the option to outsource or contract out certain functions or activities to achieve efficiencies and effectiveness. This is done worldwide,” said Lopez.

“[T]he discussions on the matter like the definition of contractualization will be tackled in Congress in consultation with all stakeholders,” he added.

Business groups like Employers Confederation of the Philippines (ECOP), Philippine Chamber of Commerce and Industry (PCCI), and Korean Chamber of Commerce Philippines (KCCP) have also expressed support to legislative measures ending the practice of “illegal” contractualization.

In a text message to the Philippine News Agency, Hong Kong Chamber of Commerce of the Philippines, Inc. (HKCCPI) President Anthony Chan said the legislation to end the practice of illegal contractualization “is beneficial to end industrial peace”.

Meanwhile, HKCCPI also welcomed the developments in the Bangsamoro Organic Law (BOL), noting that this will bring prosperity and sustainable growth in Mindanao.

“The determination of the administration to weed out illegal drug and put an end to corruption is very crucial to peace and economic growth of the Philippines,” Chan added.