Duterte mulling ‘endo’ effect on business

July 18, 2019
Rodrigo Duterte

PRESIDENT Rodrigo Duterte will consider the opposition of major business groups in the signing of the Security of Tenure (SOT) bill, Malacañang said yesterday.

“The President is always appreciative and considerate on whatever opposition or concerns raised by any sector in this country relative to any bill passed in Congress and subject to his signature or veto,” Presidential Spokesman Salvador Panelo said in a Palace briefing.

In a joint statement, more than a dozen local and international business groups urged Duterte to veto the security of tenure bill since it is redundant as there are already laws that protect workers from “endo” or end of contract scheme.

The chambers argued that “the SOT Bill can have the opposite effect on job creation and security of tenure, as enterprises may choose to eliminate the low-skilled work currently contracted out to service providers by using automation and artificial intelligence, re-designing work processes, or transferring work to more investor-friendly foreign destinations.”

They also insisted that job contracting is “an exercise of management prerogative and business judgment [that] is anchored on two constitutional rights: right and freedom to contract and right to property.”

The proposed law was transmitted to Duterte’s office on June 27, and will lapse into law by July 27, if the President, who promised to end labor contracting during the 2016 elections, will not act on it.