Press Release
May 2, 2018

ANGARA SAYS EO VS "ILLEGAL CONTRACTING" A STEP IN THE RIGHT DIRECTION

Senator Sonny Angara lauded President Rodrigo Duterte for upholding the constitutionally guaranteed right of workers to security of tenure by signing an executive order (EO) prohibiting contracting in workplaces, or more commonly known as end-of-contract or "endo."

"Such presidential policy directive gives flesh to the provision of the Constitution that guarantees security of tenure of workers," Angara said.

Angara noted that no less than the 1987 Constitution in Section 3, Article XIII provides that workers are "entitled to security of tenure, humane conditions of work and a living wage."

The lawmaker expressed hope the EO would help eliminate or put a stop to the prevalent practice of labor contractualization to provide workers with regular employment.

"The EO is a good start, but more must be done. The government must ensure that the provisions of the presidential directive are effectively and efficiently enforced," Angara said.

He said the government "should make good on its promise to crackdown on employers that practice labor-only contracting."

Angara also welcomed the President's call for Congress to pass a legislation that would amend Presidential Decree No. 442 or the Labor Code of the Philippines.

"I couldn't agree more with the President on the need to amend the country's four-decade-old Labor Code," Angara said. "We'll definitely support the approval of this measure in the Upper Chamber."

He added: "Congress needs to strengthen the prohibition against labor-only contracting and provide stricter penalties against employers who circumvent labor laws through a system that is design to prevent workers from attaining regular employment and security of tenure."

At the same time, Angara said that the President and Congress must continue to pursue pro-worker policies to ensure that workers, who are the driving force of economic development, "get their fair share of the gains they have helped to generate."

The former Senate labor committee chair had authored a number of legislative measures for the benefit of workers, including a provision in the Tax Reform for Acceleration and Inclusion or TRAIN law reducing income tax rates.

Lower income tax rates resulted in higher take-home pay for workers, helping them cope with the rising cost of living.

Angara is the author and sponsor of Republic Act No. 10801, which strengthened government's support to OFWs and their families by introducing reforms to the Overseas Workers Welfare Administration (OWWA).

Under RA 10801, also known as the OWWA Act, OWWA is declared a national government agency and an attached agency of the Department of Labor and Employment, and now receives government funding instead of relying solely from the contributions of its OFW members.

Enacted in May 2016, the law further boosts the government's capacity to assist migrant workers who lost their jobs by making the reintegration of OFWs one of the core programs of OWWA, which is funded with not less than 10 percent of its total annual collection.

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