The Philippines’ Labour Department has ordered three technology companies to change the status of 737 employees to “regular,” saying the employers have violated the workers’ right to job security.
The labour agency found that Cirtek Advanced Technologies Solutions, Du Pont Far East and Fuji Electric Philippines -- all based in Laguna province in the southern part of Luzon island -- have been using the labour-only contracting mode to avoid providing proper benefits to their workers.
In labour-only contracting, workers are supplied by contractors to perform a job. Contractors do not have substantial capital for tools, equipment, machines, or work premises.
A series of inspections in 2017 also revealed that the three companies did not have a valid license to run mechanical and electrical equipment, as prescribed by Occupational Safety and Health Standards.
Cirtek and Fuji did not have valid fire safety inspection certificates.
Cirtek is a manufacturing solutions partner for telecom, satellite and semiconductor test boards. Du Pont repackages fungicides, herbicides and insecticides. Fuji Electric manufactures power semiconductors and other electronic devices.
In a similar order, the Labour Department ordered Viewers Mobile Inc. – a mobile service provider – to pay employee benefits as prescribed by law.
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