THE Department of Labor and Employment (DoLE) has ordered three Calabarzon-based technology firms to regularize 737 of their workers after they were found to be engaged in illegal labor-only contracting.
In a report to Labor Secretary Silvestre Bello 3rd, the DoLE Region 4A office identified the erring companies as Cirtek Advanced Tecnologies Solutions Inc., Du Pont Far East Inc. and Fuji Electric Philippines Inc.
Based on reports that compliance officers submitted, violations include lack of substantial capital on the part of the contractors as the employees use the principals’ equipment and tools in the actual performance of their outsourced services.
The principals also exercise control and full authority over the deployed workers’ performance as they work alongside regular employees of the principals and perform the same functions that are directly related to the main businesses.
Other findings include non-compliance with occupational safety and health standards as the three principals do not have valid permits to operate mechanical and electrical equipment.
Cirtek and Fuji also do not have valid fire safety inspection certificates, the reports said.
Cirtek is a manufacturing solutions partner for telecommunications, satellite communications and semiconductor test boards while Du Pont is a science-driven innovation firm that repackages fungicides, herbicides and insecticides.
Fuji Electric Philippines Inc. is a Japanese electronic firm engaged in the manufacture of power semiconductors and other essential electronic devices for industrial equipment, automobiles, information equipment and new energy.
The Labor department also ordered Viewers Mobile Inc., a mobile provider based in Lucena City, Quezon, to settle unpaid benefits to its workers after it was found to be violating general labor standards of non-payment of workers statutory benefits based on assessments by compliance officers.
Earlier, it also ordered telecommunications giant Philippine Long Distance Telephone Inc. and its 45 contractors to regularize 8,720 employees who are under contracting and sub-contracting arrangements but are performing jobs that are directly related to PLDT’s business.
The compliance order, which was based on findings of the Special Assessment or Visit of Establishment (SAVE), also directed PLDT and its 47 contractors to pay the monetary claims including overtime pay, holiday pay, 13th month pay, service incentive leave pay and unauthorized deductions amounting to P77.5 million to 2,500 contractors’ employees.