Following the issuance yesterday by the DOLE Regional Office No. 3 of a cease-and-desist order after finding the sub-contractor of Kentex Manufacturing Corporation, CJC Manpower Services to be engaged in “labor-only” subcontracting, Labor and Employment Secretary Rosalinda Dimapilis-Baldoz said Regional Director Ana P. Dione could already issue early next week a compliance order to pay P7.8 million in underpaid wages to the 99 workers it has deployed to the rubber slipper manufacturer.
“A compliance order will be issued against Kentex and CJC Manpower Services directing them to pay the amount due the workers under the Labor Code, as amended, and other labor laws. Kentex will shoulder the liabilities as the direct employer, CJC Manpower Services, being a “labor-only” contractor,” Baldoz said.
The amount of P7.8 million is only an initial computation, and does not include yet other monetary benefits due to the workers, such overtime pay, night shift differential, 13th month pay, holiday pay, vacation and leave pay, refund of cash bond, and other emoluments, including social security benefits.
“It also does not include the amount due the workers of Kentex itself, which will be the subject of another compliance order to be issued by DOLE National Capital Region Director Alex Avila,” Baldoz explained.
“And since the establishment is unionized and has a valid collective bargaining agreement (CBA) until 2017, union members are entitled death benefits equivalent to 15 days of salary times the number of years in the service, as well as other benefits stipulated in the CBA,” she added.
She also said the officers and owners of Kentex and CJC Services may be held criminally liable for violation of R.A. 6727, as amended by R.A. 8188 for failure to pay any of the prescribed increases or adjustments in the wage rates, given the noted underpayments.
“The penalty for such could be a fine of not less than P25,000 nor more than P100,000, or imprisonment of not less than two years nor more than four years, or both such fine and imprisonment at the discretion of the court,” she said.
She further said Kentex and CJC Manpower Services may also be held criminally liable for violation of Article 116 of the Labor Code, as amended, which declares unlawful the withholding of any amount from the wages of a worker or induce him/her any part of his/her wages by force, stealth, intimidation, threat, or by any other means whatsoever without his/her consent, for which the penalty is a fine ranging from P1,000 to P10,000, or imprisonment of not less than three months nor more than three years, or both can be imposed under Article 288 of the Labor Code, as amended.
On occupational safety and health standards violations, the labor and employment chief said these are not criminal offenses under the Labor Code, as amended, but emphasized that fraud committed by Kentex in the course of the joint assessment can be penalized under Art. 288 of the Code, as amended, this being unlawful.