Palace says vetoing of endo bill just a temporary setback for workers

MANILA, Philippines — The vetoing of the Security of Tenure bill is just a "temporary setback" for workers as the measure could still be passed before President Rodrigo Duterte steps down in 2022, Malacañang said Sunday. 

Duterte vetoed the bill last week, citing the need to strike a balance between the interests of businesses and workers.

The measure, which would have removed ambiguities that allowed employers to skirt laws against labor-only contracting, is one of the bills certified as urgent by the president. 

READ: Upsetting key campaign promise, Duterte officially vetoes anti-endo bill

Presidential spokesman Salvador Panelo claimed efforts to prohibit illegal contractualization — a campaign promise of Duterte — have started and would continue under the president's watch. 

"It's just a temporary setback on the part of the working class because the president is also looking at the side of the management," Panelo said in a radio interview.

"Ultimately, our workers will suffer. Many will lose their jobs. If companies stop their operations, where will they go?" he added. 

READ: What's next for anti-endo bill after Duterte's veto?

Panelo said Congress may introduce a new Security of Tenure bill that does not totally prohibit labor-only contracting.

He said many businesses would cease operations if there is no "definite classification" of the companies that are not covered by the ban on labor-only contracting. 

"The labor contracting prohibition cannot be absolute," he said. 

READ: Why Duterte vetoed the anti-endo bill

Asked whether a bill on security of tenure could still be enacted within the next three years, Panelo replied: "Definitely, if you really want to have that law, Congress can do that." 

Under the measure transmitted to Malacañang, labor-only contracting exists when the job contractor merely supplies, recruits and places workers to a contractee.

Workers supplied to a contractee perform tasks that are listed by the industry to be directly related to the core business of the contractee, and the contractee has direct control and supervision of the workers supplied by the contractor.

Business groups have welcomed the veto of the bill and have vowed to comply with laws protecting workers' rights. Employers groups previously urged Duterte to reject the bill, saying it would intrude into management prerogatives and deter investments. 

READ: Senators unhappy, confused over Duterte’s rejection of ‘End Endo’ bill

Lawmakers who support the bill have expressed disappointment over the veto, saying it allowed the interests of businesses to prevail over the rights of workers.

Labor groups have also accused Duterte of reneging on his promise to end contractualization.

Panelo stressed that lawmakers should not feel betrayed by the veto, saying the president was just balancing the interests of the management and the rights of workers. 

"While the Constitution states that we should look after our working class, it does not mean we have to destroy the employer. If there are no employers, there would be no working class," the presidential spokesman said. 

Panelo said lawmakers should have made their proposals public so stakeholders could debate on them. 

"Even if you are good, if you are focused on just one situation or position, you won't be able to see the other side," 

Panelo also disputed the statement of Senate Majority Leader Juan Miguel Zubiri, who called on Cabinet members to get their act together and to refrain from making lawmakers look stupid. 

"It's not true. They should be thankful that we have a president who thinks and who is not reckless," Panelo said. 

"We have to be open to all suggestions," he added. 

Panelo claimed Duterte remains committed to protecting workers' rights, citing the president's issuance of an executive order that implemented labor law provisions against illegal contracting.

"It never happened under previous presidents. That means, his (Panelo) focus is to uplift the welfare of workers and to provide them security of tenure," he said.