Jollibee set to appeal DOLE order regularizing workers

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Metro Manila (CNN Philippines, April 4) - Fast food giant Jollibee Foods Corporation (JFC) is set to appeal on the order of the Department of Labor and Employment (DOLE) to regularize some 6,000 of its workers.

In a statement sent to CNN Philippines on Wednesday, Jollibee said it has received the order from DOLE and isĀ  "following the process DOLE prescribed to appeal this order."

It added that: "JFC remains committed to complying with the law and DO 174, which allow contracting arrangements with legitimate Service Providers. In compliance with regulations, we only deal with reputable Service Contractors that have been duly accredited and registered with DOLE."

Jollibee said it will continue to cooperate with DOLE on this matter.

Barely a month ahead of Labor Day, DOLE has ordered Jollibee Foods Corporation to regularize its 6,482 workers deployed by two contractors. The Labor Department also directed Jollibee to refund P15.4 million worth of illegally collected payments to its 426 affected workers.

DOLE also revealed that they have ordered five Jollibee contractors to return "unlawful wage deductions, bonds, donations, shares and other illegal payment collections" worth P4,137,158.15 to 412 affected workers. These are Citiwide Basic Commodities and Manpower Services (P1,853,578), Generation One Resource Service and Multi-Purpose Cooperative (P1,180,363.15), Integral Care Formation Service Cooperative (P440,300), Toptrend Service Corporation (P464,012) and MetroGuards Security Agency Corporation (P199,905).

After the DOLE order was announced, shares of Jollibee were down 3.95 percent to P285 as of 3:20 p.m. today.

Burger King

DOLE also ordered Perf Restaurant, also known as Burger King, to regularize 704 workers from three contractors. Jollibee Foods Corporation currently holds the master franchise of Burger King in the Philippines.

As part of its crackdown on labor contractualization, DOLE said it would soon inspect McDonald's and KFC for compliance with labor laws.

TUCP to Jollibee, Burger King: Comply with DOLE order

The Trade Union Congress of the Philippines (TUCP), meanwhile, is asking both Jollibee and Burger King to comply immediately with the order.

"This is an example of the worst form of contractualization, where a co-op or agency, in many cases without capital, equipment or direct control of the workers, poses as the employer, while the true employers-in this case, Jollibee and Burger King-evade their legal and financial responsibilities. This is economic sabotage of our social contract with our workers," said TUCP President Raymond Mendoza.