On top of the P8.3 million that DOLE Regional Office No. 3 ordered Kentex Manufacturing Corporation subcontractor CJC Manpower Services to pay its 99 workers – which Kentex itself may end up paying because CJC Manpower Services is not a DOLE-registered sub-contractor – the DOLE National Capital Region last Friday has ordered Kentex to pay 57 workers an aggregate amount of P1.4 million in money claims.
Labor and Employment Secretary Rosalinda Dimapilis-Baldoz announced this yesterday after DOLE National Capital Region Director Alex V. Avila had submitted to her a report on the issuance by the latter of a compliance order in the matter of general labor standards and occupational safety and health investigation at the company razed by fire on 13 May 2015.
“I have issued the Compliance Order to Kentex Manufacturing Corp. and Messrs. Beato Ang and Ong King Guan in their capacities as Chairman/CEO and Chief Finance Officer of Kentex, respectively, ordering them to pay the total amount of P1,440,641.39 million to 57 workers who executed affidavits before the DOLE. Of the awardees, five (5) are also included in the Compliance Order issued by Director Ana Dione last June 8. Our Order was already served to the respondents, including Atty. Renato Paraiso and Atty. Edward Sipin who are representing Kentex as its legal counsels,” said Regional Director Avila in his report to the Secretary.
Based on the compliance order, the amount represents underpayment of basic wages; underpayment of premium pay on rest day; non-payment of cost-of-living-allowance; non-payment of regular holiday pay; underpayment of overtime pay on regular day; underpayment of night shift differential pay on regular day; non-payment of 13th month pay; unauthorized deduction of cash bond; and non-payment of service incentive leave pay.
Of the 57 workers, Jay-Ar Dayon has the biggest claim and is expected to receive P228,444.16, while Virgilio Raro has the smallest amount of claim of P557.65.
Others workers who have six-digit money money claims are Celso Clemena, P138,076.43 and Ace Pagonsaga, P100,892.53. The claims of the other workers range from tens of thousands to hundreds of pesos only.
Baldoz said the money awards is only for claims for general labor standards and does not include other claims that the workers have arising from the criminal and civil cases they may have filed or to be filed against Kentex.
In issuing the compliance order, the DOLE-NCR rules in the negative on the position of Kentex that there is no employer-employee relationship between the workers and Kentex and that the DOLE has no jurisdiction over the labor standards benefits of the workers.
In the compliance order, Regional Director Avila has given Kentex ten days to pay the money claims upon receipt of the order.
“Failure to pay said workers within ten days shall cause the imposition of the penalty of double indemnity pursuant to R.A. 8188, otherwise known as “An Act Increasing the Penalty and Imposing Double Indemnity for Violation of the Prescribed Increase or Adjustment in the Wage Rates,” he said.
Meanwhile, Secretary Baldoz said she had already submitted to Secretary Leila De Lima of the Department of Justice an endorsement for the filing of criminal case/s against the owner/s or responsible officers of Kentex Manufacturing Corporation and CJC Manpower Agency relative to the Valenzuela fire incident.
“I have submitted a briefer on the violations of labor laws, detailing possible documentary evidence to support probable cause for the institution of criminal action against Kentex Manufacturing Corporation and CJC Manpower Services,” she said.
Kentex and CJC, according to Baldoz can be held criminally liable, based from the DOLE’s case-building investigation and documents gathered for (1) underpayment of minimum wage, defined and penalized under Sec. 12 of R.A. 6727 as amended by R.A. 8183 in relation to Art. 106 of the Labor Code of the Philippines, as amended, and (2) illegal recruitment in large scale, defined and penalized under Art. 13 (b) in relation to Art. 38 (a) and (b) and Art. 39 (c) of the Labor Code of the Philippines, as amended.