DOLE suspects 42 companies of labor-only contracting

THERE are 42 commercial establishments in Central Visayas being monitored by the Department of Labor and Employment (DOLE) for being suspected of being engaged in labor-only contracting (LOC).

“This is based on the result of inspections conducted by our labor inspectors, after elements of labor-only contracting were found to be present,” said Luchel Taniza, information officer of DOLE-7.

Taniza said there is LOC if the function of the workers is directly related to the main business of the establishment; if the worker performs functions alongside the regular employees; and if the labor contractor has no sufficient capital to maintain his own work force or work equipment to be used by the employees and laborers he hires and deploys to work with the genuine employer.

She added they sent their list to their central office last April 27.

Taniza, however, clarified that the list is not yet final and that they are still inspecting different establishments.

“But we will do our best to complete the list before its deadline of submission on May 10,” she said.

She said Labor Regional Director Alvin Villamor will still evaluate the list, before approving it.

President Rodrigo Duterte ordered DOLE to conduct an inventory of companies engaged in LOC.

The memorandum signed by the President on April 17, 2018, directed the Labor secretary to submit to the Office of the President within 30 days, a comprehensive report on the implementation of DOLE Department Order Nos. 174 and 183, including violations thereof, and a list of companies engaged and/or suspected to be engaged in LOC.

“Further, the National Labor Relations Commission is directed to coordinate with the DOLE Secretary and submit list of cases involving respondents found to be engaged in labor-only contracting, and/or have committed violations of the above stated department orders,” the memorandum read.

Department Order 174 prohibits labor-only contracting but still allows strict regulation of “legal” contracting and subcontracting arrangements.

Department Order 183, on the other hand, authorizes the DOLE to conduct routine inspections on establishments engaged in contracting and subcontracting arrangements.

Meanwhile, Taniza revealed that since 2016, about 8,739 workers have been given regular status by different companies in the region.

“Majority of these companies are engaged in export processing, manufacturing and among others, who responded to our call,” she added.

She added DOLE continues to advocate for the regularization program, by way of encouraging companies to voluntarily comply with different labor laws.