Jollibee ordered

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Posted

A welcome relief for some or price increases on the way ? 

Philippines orders Jollibee to make more than 6,000 workers permanent

MANILA, April 4 (Reuters) - The Philippine government on Wednesday ordered Jollibee Foods Corp to regularize more than 6,000 workers by making them permanent, sending shares of the country’s largest fast-food group down nearly 4 percent.

Ending the employ-on-contract practice was one of the many campaign promises of Philippine President Rodrigo Duterte, who shortly after assuming power in 2016 warned that any company that would not end short-term labour risked closure.

Jollibee was also directed to refund “illegally collected payments” worth 15.4 million pesos ($295,778) to 426 workers, the Department of Labor and Employment said in a statement.

Jollibee had a total headcount of 12,000 as of 2016, including permanent and contract staff.

It has a market value of $6.18 billion and operates the largest food service network in the Philippines with 2,875 restaurant outlets, including its eponymous chain of fast food stores with the ubiquitous smiling bee logo and Burger King.

Jollibee shares closed down almost 4 percent, the top loser among the 30 companies that comprise the Philippines’ broader index, which ended 0.63 percent lower on Wednesday.

The labour agency said it was also set to inspect Philippine stores of McDonald’s and Yum! Brands Inc’s KFC to ensure they were not violating employment laws.

Jollibee and KFC Philippines did not immediately respond to requests for comment.

McDonald’s Philippines does not practice contractualisation and has not used the services of manpower agencies since it started operations in 1981, Adi Timbol-Hernandez, the company’s senior communications manager, said in a statement.

The Philippines allows employers to hire workers to meet demand at peak times. These contracts typically span five months to avoid a six-month rule that would require employers to make an employee permanent.

The practice is popularly called “endo”, an abbreviation of “end of contract”.

In 2011, the labour agency allowed companies to engage contractors to supply workers for short-term jobs, helping spread the practice of “endo” to job-intensive sectors such as retailing and manufacturing.

Two-thirds of the country’s 39-40 million workforce are on short-term contracts, according to a 2016 government estimate.

Duterte had said he wanted to eradicate “endo” by 2017, but it proved a challenge as it required changing the law. ($1 = 52.0660 Philippine pesos)

https://www.reuters.com/article/philippines-jobs-jollibee/philippines-orders-jollibee-to-make-more-than-6000-workers-permanent-idUSL4N1RH2F0

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22 minutes ago, Jollygoodfellow said:

McDonald’s Philippines does not practice contractualisation and has not used the services of manpower agencies since it started operations in 1981, Adi Timbol-Hernandez, the company’s senior communications manager, said in a statement.

AHA.  I bet Mickey D's are the ones ratting out the Bee and pushing the issue. :571b119686cf7_1(72):

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2 hours ago, Dave Hounddriver said:

AHA.  I bet Mickey D's are the ones ratting out the Bee and pushing the issue. :571b119686cf7_1(72):

They and KFC are going to get it next.

 

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"Once hired, never fired."  I recall a close friend who owns a retail store in Makati.  An employee was caught stealing money from the cash register and she was terminated.  Being a permanent employee, she filed a case with the labor arbitration board.  The board ruled in her favor because the sum of money wasn't big enough to justify being fired.  The employer should have issued a warning that you should not steal.  The employee had to be reinstated with back pay.  However, casual employees could be terminated at anytime without cause.

What my friend did as a defense strategy is to limited access to the cash register to family members only. 

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JJ brings out a good point all regulations need to be adjusted for a fair and honest workplace. Oh, I see what I wrote there... Never-mind.

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4 hours ago, sonjack2847 said:

They and KFC are going to get it next.

 

It already says in the story that Mc Dogals do not hire 6 month staff so I doubt if they are next as long as thats true. :smile:

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2 hours ago, Jollygoodfellow said:

It already says in the story that Mc Dogals do not hire 6 month staff so I doubt if they are next as long as thats true. :smile:

I read a post that they were looking into them also.Journalism eh.

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IMO this will fall under the category of "be careful what you wish for". The big business men here are not stupid, once the contract system ends so will the level of customer service. How many of us have remarked upon the number of employees at most major stores and malls? I would wager that it was a factor (small maybe but still a factor) of a lot of us making the move here. Being treated like a king. If the large corporations have to pay them a "living" wage the stores will be just like those in the states or Australia, ready to buy and looking all over for help.

As a side note, I have noticed that the locals treat these employees like dirt. They always greet the customer, who normally just ignore them, I always return the greeting lol. I bet these same folks will cry the loudest when they disappear.

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8 hours ago, JJReyes said:

"Once hired, never fired." 

My dentist complains about this too.  She ends up doing all the work because she has a couple of useless assistants who show up late for work, if at all, and leave early and hardly work.  While I am in the chair and cannot reply, she talks about this "once hired, can never fire".

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Actually most of these opinions are simply not correct. It is possible and in fact not that difficult to terminate an employee here. Just because an employee steals say P30k (I have first hand experience here) is not grounds to fire him..her. If fired she will be reinstated with many penalties applied to the detriment of the employer. They're are other grounds which can be used but firing is not one.

One must go exactly by the guidelines set down by DOLE including the warnings and various other minor complications involving government officials. The easiest way by far is to play the blame shame game, let's remember even caught red handed these people will NEVER EVER admitt to any misbehavior. 

 

 

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