FFW slams DOLE for allowing contractualization of 599 workers in Palawan, rejecting union

Labor group Federation of Free Workers (FFW) slams the Department of Labor and Employment (DOLE) central office for reversing the order of its MIMAROPA Regional Office favoring the regularization of 599 workers in Palawan.
“Ang security of tenure ay hindi palamuti lamang sa Konstitusyon. Karapatan ito na dapat maranasan ng mga manggagawa sa araw-araw nilang buhay,” said Leo D. Aungon, Acting President of the JGC Workers’ Union-Federation of Free Workers (JGCWU-FFW), whose members were unjustly deprived of regular status, following the order of DOLE.
“Maraming manggagawa ang biktima ng illegal contractual arrangements, labor-only, project, endo at 555,” Aungon added, who was both surprised and enraged by the order.
“Maliban sa impeachment for accountability, dapat seryosohin rin ni PBBM at ng Kongreso ang proteksyon ng manggagawa laban sa mababang sahod at abuso sa kontraktwalisasyon.”
The JGCWU-FFW strongly criticized the Office of the DOLE Undersecretary for rejecting the intervention of the union and reversing the earlier Compliance Order of DOLE MIMAROPA Regional Director Naomi Lyn C. Abellana, dated 11 June 2025, which directed the regularization of 599 workers of JGC in Palawan.
On February 4, 2026, DOLE Undersecretary Felipe N. Egargo Jr. reversed the ruling of Regional Director Abellana in the labor inspection case involving JGC Phils., Inc. and Coral Bay Nickel Corporation at the Rio Tuba Export Processing Zone in Bataraza, Palawan.
The union filed an intervention and motion for reconsideration.
The FFW received on May 7, 2026 the Resolution denying its intervention and motion for reconsideration.
“Paano masasabing walang personalidad ang unyon na kuwestiyunin ang reversal, gayong kami ang certified bargaining agent ng mga manggagawa?” asked Aungon.
The union said the Compliance Order was issued after labor inspection by DOLE personnel and evaluation of evidence by the DOLE Regional Office. “Bina-balewala ng reversal na ito ang presumption of regularity ng opisyal na gawain at ang substantial evidence na nasa record ng evaluation ni RD Abellana,” Aungon said.
The Regional Director correctly found that JGC failed to establish valid project employment. The workers’ contracts were generic, not project-specific, not coterminous with project completion, and repeatedly renewed. Under Article 295 of the Labor Code, these workers are regular employees.
The inspection findings revealed that workers had been repeatedly rehired year after year despite the company’s attempt to classify them as “project-based,” exposing what the Regional Office described as a circumvention of labor laws on regularization.
“Nagpapadala ito ng chilling effect sa mga manggagawa. Kung kahit ang certified bargaining agent na aming Unyon, ay hindi pahihintulutang makialam upang ipagtanggol ang mga manggagawang idineklara nang regular ng sariling inspection machinery ng DOLE, sino pa ang poprotekta sa kanilang karapatan sa security of tenure?” Aungon asked.
FFW warned that contractualization disguised as “project employment” has long been used to prevent workers from attaining regular status despite years of continuous service.
“Hindi puwedeng manatiling perpetual ‘project employees’ ang mga manggagawa habang tuloy-tuloy naman ang operasyon ng kompanya. Hindi maaaring tawaging pansamantala ang trabahong matagal nang pinaglaanan ng mga manggagawa ng maraming taon ng kanilang buhay,” Aungon said.
FFW likewise said it has requested DOLE to conduct labor inspections in several companies in Metro Manila, Central Luzon, CALABARZON, and MIMAROPA, as part of its continuing campaign against contractualization and other violations of labor standards.
“The JGC case is not isolated. Kaya hinihiling namin sa DOLE na seryosohin ang mga inspection request ng FFW sa iba’t ibang rehiyon. Ang inspeksyon ay dapat maging tulay sa katarungan, hindi daan para baligtarin ang karapatan ng manggagawa,” FFW President Atty. Sonny Matula said.
The labor group is now studying all available legal remedies, including elevating the matter to higher authorities or to the Court of Appeals on petition for certiorari for grave abuse of discretion on the part of DOLE.
In its 2025 Report on the State of Freedom of Association in the Philippines, the Workers Rights Watch (WRW) noted that unabated contractualization of workers and other precarious forms of employment has perpetuated abuse of workers’ rights, including the right to freedom of association.
The report, launched before Labor Day, was prepared by WRW, FFW In cooperation with the Danish Trade Union Development Agency, with the support of the European Union in the Philippines.