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

Employers can evade separation pay via extension of floating status—labor group

 

The militant group Partido Manggagawa (PM) countered the position of the Department of Labor and Employment (DOLE) that DO 215 extending the floating status of workers to one year 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 Rene Magtubo, PM national chair.

 

PM is calling on the DOLE to recall DO 215 and submit the proposal to the deliberation of the National Tripartite Industrial Peace Council 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,” Magtubo asserted.

 

He 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.”

 

PM avers that 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 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 29, 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

Lockdown order lack guarantees for workers’ welfare, civil liberties

Photo from autoindustriya.com

The labor group Partido Manggagawa (PM) asked that guarantees be put in place in the so-called ‘community quarantine’ imposed on Metro Manila in order to protect workers’ welfare and civil liberties.

“President Duterte’s order to lockdown Metro Manila for 30 days opens the way for workers’ rights and civil liberties to be violated. Freedom of assembly should not be sacrificed since community organizations and civil society groups should be able to meet and deliberate on urgent matters including a proper covid response,” stated Rene Magtubo, PM national chair.

He added that “We wanted to hear President Duterte mobilize public and private resources, especially health personnel, to combat covid but instead all we heard is the mobilization of police and soldiers. Will checkpoints be manned by health workers with test kits or just police with guns?”

Magtubo explained that “Workers’ welfare is also bound to be sacrificed in the lockdown order that lacks clear guidelines and a labor-first perspective. Workers living outside NCR are supposed to allowed to enter and leave the capital as long as they have company ID’s. But informalization of labor—like the practice of endo—means there are numerous workers without proper ID’s and employment contracts. Many construction workers who are employed on an informal basis do not have proper documentation. Finally, informal workers like street vendors obviously do not have ID’s. The lockdown means they will not be able to travel to work and earn a living which will lead to health issues and vulnerability to covid.”

The group reiterated its call for the DOLE to issue an order mandating a worker-first policy on the employment impact of covid. “We do not accept management prerogative in implementing dismissals or flexible arrangements like forced leaves or work rotation. First of all, the DOLE must issue a determination that there is a real impact on the company. After which, any flexible work arrangement must be negotiated with duly-elected workers’ representatives or the union in case the company is organized,” Magtubo insisted.

 The group also proposed the following concrete measures:

1.      Paid leave for workers to be shouldered by employers and the government;

2.      Pay for workers put on forced quarantine to be shouldered by employers and the government;

3.      Implement work from home arrangements, in applicable jobs, without diminution of wages and benefits;

4.      Provision of personal protective equipment for all health and allied workers in the frontline of covid response;

5.      Living pension for senior citizens since the elderly are more prone to infection;

6.      Shift build-build-build budget to health in order to build more hospitals, provide testing and treatment facilities, hire more health workers;

7.      Health tax on the wealthy—as part of CITIRA—to fund universal health care.”

March 13, 2020

DOLE must issue order on covid embodying worker-first policy—labor group

Photo from Inquirer.net

In the face of reports of actual and potential mass layoffs due to covid, the labor group Partido Manggagawa (PM) called on the Department of Labor and Employment (DOLE) to issue a department order on covid embodying a “worker-first” policy. “In view of DOLE’s own report of 300 employees jobless due to closure of tourism companies and more than 4,000 workers put on flexible work arrangements, a DOLE order is an urgent necessity. But order must put the interests of workers first. Manggagawa naman,” asserted Rene Magtubo, PM national chair.

He added that “We do not accept management prerogative in implementing dismissals or flexible arrangements like forced leaves or work rotation. First of all, the DOLE must issue a determination that there is a real impact on the company. After which, any flexible work arrangement must be negotiated with duly-elected workers’ representatives or the union in case the company is organized.”

The group stated thousands of workers are affected by actual and threatened mass layoffs, starting with the high profile dismissal of 300 employees at Philippine Airlines allegedly due to the impact of the covid epidemic. PM’s chapter in Cebu has reported that workers are being laid off or put on forced leaves in the Mactan Cebu ecozone. Likewise, hotels and restaurants in Region 7 are reeling from reduction in tourism.

Magtubo insisted that the DOLE’s existing advisory on flexible work arrangement must be replaced with a department order. “An order has the force of regulation that companies are mandated to follow while an advisory has no teeth and practically useless. Violation of the order should be subject to penalty.” he explained.

The group also proposed the following concrete measures:

1.      Paid leave for workers to be shouldered by employers and the government;

2.      Pay for workers put on forced quarantine to be shouldered by employers and the government;

3.      Implement work from home arrangements, in applicable jobs, without diminution of wages and benefits;

4.      Provision of personal protective equipment for all health and allied workers in the frontline of covid response;

5.      Living pension for senior citizens since the elderly are more prone to infection;

6.      Shift build-build-build budget to health in order to build more hospitals, provide testing and treatment facilities, hire more health workers;

7.      Health tax on the wealthy—as part of CITIRA—to fund universal health care.

March 11, 2020

DOLE asked to issue order on covid embodying worker-first policy

Photo from Philstar.com

The labor group Partido Manggagawa (PM) called on the Department of Labor and Employment (DOLE) to issue a department order on covid embodying a “worker-first” policy. “In the face of an increasing number of mass layoffs by companies due allegedly to covid, a DOLE order is an urgent necessity. But order must put the interests of workers first. Manggagawa naman,” asserted Rene Magtubo, PM national chair.

He added that “We do not accept management prerogative in implementing dismissals or flexible arrangements like forced leaves or work rotation. First of all, the DOLE must issue a determination that there is a real impact on the company. After which, any flexible work arrangement must be negotiated with duly-elected workers’ representatives or the union in case the company is organized.”

The group stated thousands of workers are affected by actual and threatened mass layoffs, starting with the high profile dismissal of 300 employees at Philippine Airlines allegedly due to the impact of the covid epidemic. PM’s chapter in Cebu has reported that workers are being laid off or put on forced leaves in the Mactan Cebu ecozone. Likewise, hotels and restaurants in Region 7 are reeling from reduction in tourism.

Magtubo insisted that the DOLE’s existing advisory on flexible work arrangement must be replaced with a department order. “An order has the force of regulation that companies are mandated to follow while an advisory has no teeth and practically useless. Violation of the order should be subject to penalty.” he explained.

The group also proposed the following concrete measures:

1.      Paid leave for workers to be shouldered by employers and the government;

2.      Pay for workers put on forced quarantine to be shouldered by employers and the government;

3.      Implement work from home arrangements, in applicable jobs, without diminution of wages and benefits;

4.      Provision of personal protective equipment for all health and allied workers in the frontline of covid response;

5.      Living pension for senior citizens since the elderly are more prone to infection;

6.      Shift build-build-build budget to health in order to build more hospitals, provide testing and treatment facilities, hire more health workers;

7.      Health tax on the wealthy—as part of CITIRA—to fund universal health care.”

March 10, 2020

Employers asked to bear losses due to covid instead of passing costs to workers

Photo from esquiremag.ph

The labor group Partido Manggagawa (PM) called on employers to shoulder temporary losses instead of laying off workers, implementing forced leaves or putting them on work rotation since these all result in income losses. This was their call in time for a tripartite meeting this afternoon convened by the Department of Labor and Employment on the employment impact of the covid outbreak.

“Employers have benefited from recent economic growth without sharing the bounty with their workers. This was revealed in a Department of Finance study showing labor productivity grew by at least 50 percent, yet real wages were stagnant from 2001 to 2016. Moreover, companies are about to benefit from less taxes with the CITIRA proposal. Now that there is a crisis, employers are morally obliged not to pass on the burden to their hapless workers,” asserted Judy Ann Miranda, PM Secretary-general.

She insisted that “We cannot accept that workers are the last to benefit from economic progress but the first to sacrifice in time of crisis. Women workers are also disproportionately impacted by permanent or temporary loss of employment and income.” This was also the demands of the International Women’s Day commemoration yesterday.

The group is also proposing the following mitigation measures to lessen the impact of covid on workers and the people:

1.      Release of a DOLE order—not just labor advisory—to mandate prior negotiation with workers before any flexible work arrangement is implemented;

2.      Paid leave for workers to be shouldered by employers and the government;

3.      Pay for workers put on forced quarantine to be shouldered by employers and the government;

4.      Implement work from home arrangements, in applicable jobs, without diminution of wages and benefits;

5.      Provision of personal protective equipment for all health and allied workers in the frontline of covid response;

6.      Living pension for senior citizens since the elderly are more prone to infection;

7.      Shift build-build-build budget to health in order to build more hospitals, provide testing and treatment facilities, hire more health workers;

8.      Health tax on the wealthy—as part of CITIRA—to fund universal health care.

Miranda also reported increasing number of workers are being put on forced leaves in the Mactan Cebu ecozone due to the global supply chain connection to China. Likewise, hotels and restaurants in Region 7 are reeling from reduced tourism and thus the threat of layoffs is looming.

March 9, 2020

DOLE asked to act on factory closures, forced leaves

The labor group Partido Manggagawa (PM) called on Labor Secretary Silvestre Bello to act with dispatch on other cases of factory closures and even forced leave of workers. The other day, it was announced by management that the Honda plant manufacturing cars in Laguna was to be closed down.

“Other than the 387 Honda workers in Laguna that will be laidoff as a result, Secretary Bello should also look into the thousands of workers who are also victims of forced leaves and factory closures in Cavite and Cebu,” asserted Rene Magtubo, PM national chair.

“The Department of Labor and Employment (DOLE) should prepare relief and assistance to the displaced workers together with an investigation into the causes of the forced leaves and factory closures, including compliance with labor laws,” Magtubo explained.

He added that “Under the radar, there are more cases of workers losing incomes.” PM said that the Sports City group of companies in the Mactan Economic Zone (MEZ) in Cebu that produce for global garments brands have been putting workers on forced leave due to reduced production.

The group also cited the declaration of electronics locators in MEZ that production is due to be affected by the ban on flights from China where parts and supplies come from. MEZ Deputy Administrator Atty. Rufino Ranulfo San Juan IV was quoted that at least one electronics company has said that it may close down if supplies from China do not arrive due to the impact of the CoVID-19 epidemic.

PM also cited the repeated temporary closure of a garments factory in Cavite which made 348 workers jobless since late last year. “DOLE should look into the Sejung Apparel Inc. firm which has closed down three times in October 2019, January 2020 and again this month. We believe this is intended to bust the union formed last year,” Magtubo insisted.

He furthered that “DOLE is also dragging its feet on releasing a compliance order on the dispute about Sejung management’s non-payment of 13^th month pay and the last salary of workers. The rule is crystal clear that the 13^th month pay should be given at most by December 24. Is the DOLE waiting for Holy Week before compelling a company to pay mandated Christmas benefits?”

February 24, 2020