MANILA, Philippines — Jollibee Foods Corp. on Tuesday maintained it is compliant with labor laws and regulations months after the Department of Labor and Employment ordered the homegrown food giant to give more than 7,000 workers permanent employment status.
“All of our workers are regular — either through direct hiring or DOLE-licensed service providers,” JFC told the stock exchange.
“They have security of tenure, proper wages and benefits such as 13th month pay, paid leaves, health insurance and other benefits that they are entitled to under the Labor Code,” the company added.
Among President Rodrigo Duterte’s campaign promises was to bar the abusive practice of hiring employees on short-term contracts.
On Labor Day, Duterte signed a much-awaited executive order prohibiting “illegal contractualization,” which various labor groups rejected and described as “pro-employer.” The government is still to amend any of the labor laws.
Last April, DOLE told JFC “to regularize 6,482 workers” as well as 704 others employed by contractors operating branches of Burger King, which is one of the brands under the same company. JFC said it would appeal DOLE’s decision.
JFC—which has a market capitalization of more than P282 billion—has allotted P12.0 billion in capital expenditures for 2018, up 33.3 percent from last year. As of 2016, there are 978 Jollibee stores nationwide that serve the company’s hugely popular sweet-style spaghetti and fried chicken.