Duterte OKs new DOLE policy on

contractualization
By Mayen Jaymalin (The Philippine Star) | Updated January 4, 2017 - 12:00am

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MANILA, Philippines – Despite objection from labor groups, President Duterte has approved the
implementation of a new regulation issued by the Department of Labor and Employment (DOLE) on
contractualization.

Duterte did not oppose the newly drafted DOLE Department Order No. 168 banning “endo” or end-of-contract
and other “labor only” contracting practices, DOLE Undersecretary Dominador Say reported yesterday.

According to Labor Secretary Silvestre Bello III, the DOLE policy was submitted to the President on Dec. 29.

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“There was no resistance or objection from the President,” Say said.

Say said the Office of the Executive Secretary cited minor administrative concerns about the new policy,
replacing rules governing contractual employment.

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“The Office of the Executive Secretary did not recommend changes and merely asked questions such as how
will the DOLE be able to compute or monitor compliance with the requirements,” Say said.

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The DOLE will publish a copy of the DOLE policy in a national newspaper as required by law prior to its
implementation.

According to Say, the new DOLE policy would protect workers as sub-contracting would be prohibited.
Under the new DOLE regulation, the old practice of manpower agencies and cooperatives of supplying only
labor is prohibited.

“The new policy also imposes higher financial requirements in order to eliminate ‘fly by night’ contractors,” Say
said.

Labor groups will hold protests today to express their opposition to the new DOLE policy.

Alan Tanjusay, spokesman for the Associated Labor Union (ALU), said the new policy is worse than the
existing DO No. 18-A, which legitimizes contractualization.

Tanjusay said they have received information that employers and labor contractors were lobbying to stop the
President from fulfilling his campaign promise to end all forms of contractualization.

He said they would seek a meeting with the President regarding the implementation of DO 168.

“We feel that the President will reject the current DO and certify as urgent a measure banning and criminalizing
contractualization,” Tanjusay said.

Tanjusay said the new DO would allow illegal endo scheme to take a new form through “seasonal” and project-
based employment.

The problem with seasonal workers is that remittances to social protection benefits such as SSS, PhilHealth
and Pag-IBIG will be forced to move from one principal employer to another, Tanjusay explained.