Labor and Employment Secretary Silvestre H. Bello III yesterday said that the Department will issue a memorandum which is aimed at reducing “endo” practice by 50 percent by the end of 2016.
“I plan to reduce contractualization by 50 percent by the end of 2016. Workers under “endo” or “555” receive less than the mandated minimum wage without social protection benefits such as Social Security System (SSS), Pag-ibig, and PhilHealth.
Bello said the Department of Labor and Employment (DOLE) is already finalizing a memorandum which will provide directives to the DOLE Regional Offices to start the clearing out of companies which are practicing “endo” employment.
“Establishments which practice unlawful contractualization deprive workers of overtime, holiday pay, and other benefits,” said Bello, adding that “endo” or “555” is a work arrangement whereby workers are only hired for only about five months without security of tenure, monetary, non-monetary, and social protection benefits.
During the first senior officials meeting (SOM) of the Department, Bello ordered the DOLE Regional Offices come up with a list of establishments which are into contractualization. From the said list, the DOLE Regional Offices can monitor which establishments are practicing “endo” employment.
“Alam naman nila kung alin ang mga kompanya o establisyamento na nagpa-practice ng contractualization sa kanilang region. I told the DOLE Regional Directors during our first meeting to be very vigilant and monitor these establishments. Makikita sa listahan kung alin ang legitimate at violators ng batas,” said Bello.
“If all the DOLE Regional Directors will do their job of implementing the provisions of the law, the number of establishments which are into “endo” employment will be significantly reduced,” he added.
Bello added there are already proposals from various labor groups on how to end unlawful contractualizaton or “endo” in the country. The proposals, which range from reviewing and revoking Department Order 18-A, are currently being studied by Usec. Joel Maglunsod and other officials of the Department.
The Labor and Employment Secretary said the Department is also coordinating with employers group to ensure that all sectors will be properly consulted.
Bello also said that the Department is studying several bills abolishing “endo” pratice which are pending at the Congress. “Pinag-aaralan namin ang mga bills na ito para mai-push namin sa Kongreso,” said Bello, who also mentioned a legislature bill he authored while in Congress “which did not touch first base because I am with the minority.”
“That bill provides penal sanctions against companies that violate the provision on contractualization,” he said.
The labor chief added that the goal to reduce the number of establishments that are practicing “endo” is part of the Department’s effort to realize the pronouncements of Pres. Rodrigo R. Duterte to abolish the unlawful contractualization scheme, which he described as unfair labor practice and tool for exploitation against Filipino workers.