Outsourcing attacks job security, solon says

A militant lawmaker yesterday criticized the Department of Labor and Employment (DoLE) for endorsing a management practice that violates international labor standards with its position on the outsourcing program of the Philippine Airlines (PAL).

“Outsourcing is essentially a flexible labor scheme that has infringed on workers’ rights and violated international labor standards,” said Anakpawis Rep. Rafael Mariano.

Mariano said, “it is unacceptable that Labor Secretary Rosalinda Baldoz viewed PAL’s outsourcing program as ‘legal, just and humane’ when it stands to violate core labor standards such as just wages, job security, right to self-organization and the right to freedom of association.”

Citing studies by labor research institution Ecumenical Institute for Labor Education and Reasearch (EILER), the congressman said that under outsourcing, “the right to living wage will
be violated.”

“It will result to further lowering of wages for rehired and outsourced employees. Outsourced workers who do the same job as regular workers receive 25% to 40% less than their regular employed counterparts,” he said.

Mariano added that “lower wages of outsourced workers creates a strong downward pull for wage rates of regular workers, producing a general impact of decreasing wage rates in the labor market.”

Mariano said that outsourcing comprehensively “attacks job security” as most third-party service providers operate under contractual-based employment.

“Outsourcing blurs the employer-employee relationship. Buyers of outsourced labor are spared from accountability on workers conditions,” he said. “There is also no limit on multi-levels of outsourcing to other agencies or subcontracting out jobs.”

In the case of PAL, Mariano said there is a need to probe on the real ownership and relations of third-party service providers Skykitchen and Skylogistics to PAL Chairman Lucio Tan.

“Sitting as executives of Macro-Asia Corp., a long-time service provider of PAL’s engine and maintenance units are Tan’s relatives and business partners, namely, Lucio K. Tan Jr. Harry C. Tan, Joseph T. Chua and PAL president Jaime Bautista himself. (D’Jay Lazaro)

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