Workers in export zones asking brands to facilitate reinstatement to work

 

Millions of workers in the Philippines were affected by one of the longest lockdowns imposed anywhere in the world. More than six months after the start of the lockdown in the middle of March this year, an untold number of workers remain either of forced leave or on floating status since they have not been allowed to return to work.

 

In many cases, workers in the export processing report that the companies are already operating but their positions have apparently been taken over by new hires or by contract or agency workers. This means that companies have taken advantage of the covid-19 pandemic to cheapen labor cost by exploiting new hires and non-regular workers.

The labor law in the Philippines only allows workers to be put in floating status for a maximum of six months. Beyond six months, workers must be reinstated or paid separation pay. A new administrative rule released by the Labor Department controversially extends the floating status to one year but with the proviso that workers must agree to the extension. This means, if workers do not agree to extend the six-month floating status then they can still file complaints at the Labor Department. Labor groups in Philippines are calling for the repeal of this new rule as it unfairly disadvantages workers and is contrary to law.

Among those seeking redress of this grievance over being put on floating status for more than six months are workers in two companies, one in the Freeport Area of Bataan (an export zone) and another in the industrial province of Cavite.

 

A group of workers in the quality control department of FPF Corporation, located in the Freeport Area of Bataan, are preparing to file a complaint for constructive dismissal since they have not been reinstated after the lapse of six months on floating status. They are also calling on brands for assistance in remediating their grievance. FPF Corporation produces luxury bags for global brands Brahmin, Fossil, Michael Kors and Kate Spade. As of the moment, Brahmin is the main customer of FPF but on occasion, the factory also makes bags for Coach if its sister factory FCF Corporation has excess orders.

Meanwhile some 50 workers of Rainbow 21 in Imus, Cavite have filed cases of illegal closure, illegal dismissal and labor standards violation (under payment of wages, overtime and holiday pay and non-remittance of social security contributions). The factory shutdown at the height of the lockdown but instead of reopening, workers learned that machines were taken out and relocated in an attempt at runaway shop. Rainbow 21 produced for US brands "Amy Byer," "By and By Girl" and "BCX Girl" before the factory unceremoniously closed down without giving the last salary and other benefits, including separation pay. Rainbow 21 was formerly named Dong Han Philippines Inc. and the Korean owner apparently has a penchant for closing down and changing names to avoid accountability to its workers.

DOLE asked to recall order extending floating status

The Department of Labor and Employment (DOLE) is being asked by the labor group Partido Manggagawa (PM) to recall the order extending the floating status of workers to one year. The group called on the DOLE to re-submit the proposal to the deliberation of the National Tripartite Industrial Peace Council (NTIPC) where labor, employers and government are represented.

 

“We appeal to Labor Secretary Silvestre Bello to recall DO 215. DOLE orders should be subject to tripartite agreement and not be unilateral decisions of government,” asserted Renato Magtubo, PM national chair.

 

He wondered why the DOLE pushed through with extending the floating status of workers when labor groups were firm in their opposition to the proposal when it was tabled in an NTIPC meeting.

 

PM countered the position of Labor Undersecretary Benjo Benavidez that extending the floating status is a measure to protect workers. “DO 215 is pro-employer as it allows them to evade payment of separation benefits to workers who are now more than six months on forced leave,” insisted Magtubo.

 

According to PM, thousands of workers have already filed complaints for constructive dismissal because their employers have not reinstated them since the lockdown started in March. “Who will benefit from the dismissal of these cases because of DO 215? Thus the DOLE is being disingenuous when it says that DO 215 is protective of workers,” Magtubo stated.

 

He also answered DOLE’s claim that the Labor Code is silent on the floating status of workers: “Article 310 provides that workers are deemed not terminated—meaning employees are put on forced leave or floating status—when the operations of a company are suspended, which is the scenario at present. But Article 301 explicitly mandates that such suspension cannot exceed six months—and for good reason more than half a year is too long for workers to suffer on no work, no pay.”

 

He recalled that the DOLE earlier floated the deferment of the 13^th month pay but backtracked because of outrage over the proposal. PM is calling on workers to similarly express opposition to DO 215.

 

Magtubo maintained that “DO 215 is another example of DOLE’s social distancing from workers in the time of covid. Earlier DOLE released a series of orders and advisories such as DO 213 that suspended complaints and inspections and LA 17 that allowed diminution of wages and benefits. All these disadvantaged workers impacted by the lockdown and opened them to abuse by employers. Labor’s challenge finally led to DO 213’s repeal by DO 214 which permitted the operation of the dispute resolution mechanisms for workers.” 

October 30, 2020

Labor group slams new DOLE order extending forced leave

The militant labor group Partido Manggagawa (PM) today slammed a new order from the Department of Labor and Employment that effectively extends the floating status of workers beyond the maximum of six months provided for in the Labor Code. DO 215 entitled “Rule Amending Section 12 Rule 1, Rules Implementing Book VI of the Labor Code on Suspension of the Employment Relationship” was signed on October 23, 2020 by Labor Secretary Silvestre Bello.

 

“Extension of the floating status of workers beyond the six months maximum through a DO is illegal as it is tantamount to executive legislation. The water cannot rise above its source,” declared Rene Magtubo, PM national chair.

 

Magtubo cited that Article 301 of the Labor Code does not provide for an extension of the six month maximum of forced leave or floating status: “When Employment Not Deemed Terminated—The bona fide suspension of operation of a business or undertaking for a period not exceeding six (6) months, or the fulfillment by the employee of a military or civic duty shall not terminate the employment. In all such cases, the employer shall reinstate the employee to his former position without loss of seniority rights if he indicates his desire to resume work not later than one (1) month from the resumption of operations of his employer or from his relief from the military or civic duty.”

 

The PM leader revealed that the labor coalition Nagkaisa labor groups is coordinating for a campaign for the repeal of the “blatantly pro-employer” DO 215 and to file a legal challenge at the Supreme Court.

 

“DO 215 is deceptively presented by the DOLE as an amendment to the existing implementing rules and regulations when in truth it revises the clear mandates of Article 301 of the Labor Code. In a tripartite dialogue, labor groups had expressed the opposition to the proposal on the grounds that it contravenes existing law and that it opens workers to employer abuse,” Magtubo elaborated.

 

He added that “This is another instance of DOLE’s social distancing from workers in the time of covid. Earlier DOLE released a series of orders and advisories such as DO 213 that suspended complaints and inspections and LA 17 that allowed diminution of wages and benefits. All these disadvantaged workers impacted by the lockdown. Labor’s challenge finally led to DO 213’s repeal by DO 214 which permitted the operation of the dispute resolution mechanisms for workers.” 

October 27, 2020