Presidential bets vow to end labor contractualization

DAGUPAN CITY, Pangasinan – Presidential candidates at Sunday night's debate vowed to put an end to labor contractualization in the country, calling it a violation of the constitution and of workers' rights.

Davao City Mayor Rodrigo Duterte and former Interior Secretary Manuel “Mar” Roxas II promised to push for a bill that would prohibit the practice, popularly called "endo," a shortened term for end of contract.

"Immediately, what I will do is I will call the Speaker and the Senate President. I will call the majority, mostly Liberal (Party) Congressman. I will tell them you pass this bill immediately. I need this during the first week of my administration," Duterte said during the third leg of the PiliPinas presidential debates here.

"The moment I assume the presidency, contractualization will stop. We have to stop it," he added.

Roxas, for his part, said "endo" would be terminated within the first three months of his presidency.

"The current law has loophole. DOLE (Department of Labor and Employment) has a memorandum circular (about contractualization) but it is not being implemented because of the loophole," Roxas said.

"A bill should be filed in Congress to plug the loophole so that this directive will have sense," he added.

Roxas also cited the need to create permanent jobs by luring investors into the country.

"We have to lower power rates so that more factories will be established. We will add incentives to economic zones…We have to build more infrastructure," he said.

Sen. Grace Poe, for her part, said labor contractualization is an "injustice" that brings anxiety to workers. She believes the problems caused by "endo" can be resolved by giving more incentives to employers.

"Incentives should be given to owners of businesses. Since they are afraid of losing profits, I will ensure that their corporate income tax will be lower. We have to support those who are setting up businesses in our country," Poe said.

"The employees should be productive and they will be productive if their companies care for them and the government protects them," the senator added.

Sen. Miriam Defensor-Santiago is also in favor of reducing the corporate income tax, which may help increase workers' salaries.

"I am vehemently against contractualization. It's not only illegal but also unconstitutional. It places the employee under the power of the employer," Santiago said.

"I'm in favor of a lower income and corporate income tax," she added.

Santiago also cited the need to create new jobs and to invest in agriculture modernization and in infrastructure.

"If you create jobs, people will come to you. Millions of graduates do not have jobs because the government is not opening doors," she said.

Vice President Jejomar Binay, for his part, said he would support the scrapping of income tax for those who are earning 10,000 and below per month.

"Endo is prohibited but the prohibition against it is not being enforced. All workers should be protected at all times because that is what is provided for by the law," Binay said.

Some companies are hesitant to regularize their employees because it would require them to provide overtime and holiday pay, 13th month pay and social security benefits.

Article XIII, Section II of the 1987 Constitution states that the State "shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment opportunities for all."

The constitution also states that employees are entitled to security of tenure, a living wage and humane working conditions.