3 senators express disappointment with trade official remark on “endo”

April 19, 2018

Three senators expressed their disappointment on Wednesday with a statement by Trade Secretary Ramon Lopez that ending "endo", where companies let go of workers before a six-month period would scare off investors.

"We need investments but we also need our workers to make the sector grow. The life of any business is its workers so we have to recognize that they are equally important. That’s why what I really want to achieve is to produce a law that will encourage investment but will equally protect the rights of our workers," said Senator Joel Villanueva, chairman of the committee on labor, in a text message to reporters.

"But we will need the guidance of Department of Labor and Employment (DOLE) to achieve this," he added.

Senator Ralph Recto, a former socioeconomic planning secretary, said: "I would support a balance. We must protect labor rights and at the same time create jobs."

On Wednesday, a news report quoting Lopez said "to insist that they all get hired by the company can only lead to lesser investments and lower job generation, which I fear most."

Senator Sherwin Gatchalian, speaking at a senate media forum, said "endo" is being used by companies to save since 30 percent of benefits to employees are not given.

"I think this is a wrong concept by the DTI (Department of Trade and Industry). 'Endo' is illegal...  but the labor department should examine this according to industry," said Gatchalian.

Gatchalian claimed two fast-food chains have different employment policies. He said one makes their contractual employees as regulars after six months. The other, he says, doesn't.

He said companies' use of "endo" is widespread. " Many companies are doing  'endo' to save on 30 percent of their business cost which is illegal because you save but at the expense of your workers," he said.

Gatchalian said a law to end contractualization would have to "make a distinction. One of the basic principles to take into account is the different forms of business and the different sectors of industry," he said. DMS