Palace: Duterte may veto Security of Tenure bill if...

MANILA, Philippines — President Rodrigo Duterte may veto the Security of Tenure bill if he finds merit in the views of Socioeconomic Planning Secretary Ernesto Pernia, who had cited the need to tweak the measure to make it fair to businesses and workers, Malacañang said Thursday. 

The SOT bill, which aims to strengthen workers' rights by clarifying the existing ban on labor-only contracting, will lapse into law on July 27 if the president does not act on it. 

While labor groups are pushing for the measure, business groups have asked the president to veto it, saying it goes against employers' right to contract labor as part of management prerogative.

Business groups have also warned that the bill may prod employers to remove low-skilled work through automation and artificial intelligence. 

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Last Wednesday, Pernia said the SOT bill should be tweaked to ensure that it would benefit both the business and the labor sectors. He noted that the measure would not be good for workers if it deters investments and results in fewer job opportunities.

"If the president feels that the observation of Secretary Pernia is a good reason to vetoing the bill, he (would)," presidential spokesman Salvador Panelo said in a press briefing. 

"After all, if you veto the bill, members of Congress can always introduce amendments or pass another bill for the signature of the president – so it depends," he added. 

Panelo said it's the president’s call whether to heed the suggestion of Pernia. The SOT bill was passed by the previous Congress. The measure has to be refiled in the 18th Congress in order for it to be amended. 

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Asked how the president would balance the interest of the workers and employers, Panelo replied: "You have to find a win-win solution... You can find a compromise. So if you veto the bill, then a member of Congress can introduce another one with the win-win compromise solution."

"What I’m saying is that the president is always open to suggestion. He rationalizes. If he feels that signing the law will create not beneficial effects to the major players, he might consider vetoing it. But if he doesn’t feel that way, he will sign that into law," he added. 

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Duterte previously said he listens to his Cabinet members on economic issues. There was an instance, however, when the president signed a law despite the reservations of his economic team. 

Duterte signed the law providing free education in state colleges and universities despite claims of economic managers that the measure would have a serious impact on the government's budget.

The president certified the SOT bill as urgent last September.