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PIA Press Release
Sunday, January 22, 2012

Bogus subcontractors, target of new DOLE order

CITY OF MALOLOS, Bulacan, Jan. 22 (PIA) -- A new directive protecting employees from bogus and unscrupulous subcontractors is currently being fielded around Central Luzon as the Department of Labor and Employment (DOLE) runs a series or orientations to tackle queries.

DOLE-Regional Office III kicked off recently its discussion on Department Order No. 18-A, also known as the Rules Implementing Articles 106 to 109 of the Labor Code which defines where the practices of contracting and subcontracting are considered legitimate.

Some 79 delegates from 71 subcontracting companies like Hanjin Heavy Industries, Inc. and Keppel Philippines attended the first orientation of DOLE in its Sugar Workers Livelihood and Training Center at the City of San Fernando, Pampanga.

DOLE Regional Director Leopoldo de Jesus said that the amended directive was forged to further safeguard workers from being employed in “bogus subcontracting companies” that do not confer them their proper monetary and social benefits.

D.O. 18-A directs subcontracting companies to have a minimum fully paid up capital of P3 million while a single proprietorship must have a net worth of at least P3 million. Also, all contractors must be registered with DOLE regional offices where they principally operate.

According to information officer Jerry Borja, some participants expressed sentiments over the said requirements because of the additional fees that their companies are asked for.

“Others felt it is a bit unfair because they are legitimate subcontractors,” said Borja.

With this, Assistant Regional Director Geraldine Panlilio said the new department order was established by a series of tripartite consultations for the past five years. She advised companies to first comply and assured them that consultations will be held with all concerned stakeholders about the implementation of the new directive.

DOLE-Region III is set to conduct another orientation at their office on Jan. 25 for the next batches of subcontractors in Central Luzon.

“With the D.O. 18-A implemented in full blast, gone are the days of the ‘Fly-by-Night’ subcontractors that continue to exploit workers and circumvent existing labor standards set by law,” said De Jesus. (CLJD/JMG-PIA 3)

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