|Rep. Scott Davies S. Lanete (3rd District, Masbate)|
Lanete, author of House Resolution 2391, said ordinary employees have not been given the full benefit of their labor compare to the profits enjoyed by their employers.
He said the globalization of the market has resulted in increased competition among business entities.
"This lead to implementation of various devices aimed at reducing the cost of producing goods to enable every business entity to remain competitive," said Lanete, vice-chairman of the House Committee on Appropriations.
He said the common worker has seemingly been left forgotten as the competition grew and the quality of goods improved.
Lanete said one of the devices or schemes that has been increasingly adapted nowadays is service contract employment.
"This scheme, which is now a globally accepted practice, involves the outsourcing of the direct hiring of employees by service contract employers which is already an improvement of the fixed term employment or contractualization," Lanete said.
Lanete said a service contract employee could not be qualified for a retirement pay since the entitlement for such benefit needs service of employment for at least five years.
"Thus, a service contact employee is at a disadvantage compared to other types of employees," Lanete said.
Lanete said there is an urgent and absolute need to remedy this miserable condition suffered by service contract employees in order to tip the scales of justice to a more equitable condition.
Lanete said one of the remedies looked into is to accord the service contract employees compensation to include retirement pay consistent with Article 287 of the Labor Code, which they would be receiving had they been hired as regular employees.
"Another way or remedy looked into is for employers to provide these service contact employees with lump sum cash incentives at the expiration of their contracts," he recommended.
Lanete said there is no need to pass a law to implement these solutions, as the pertinent provisions of the Labor Code are sufficient to authorize the DOLE to enforce these by virtue of issuing the necessary guidelines. (by Ma. Victoria I. Palomar, Media Affairs and Public Relations Service)