Job sub-contracting, a hot-button topic, is hounded by confusion and misunderstanding. Ruby Pacis, president and CEO of Faith in God Professional and Technical Services Corp.
(FIGRPMPTSC), one of the country’s job contracting and subcontracting companies, wants to clarify man of these misconceptions.
While the word “agency” has a bad reputation, not all subcontracting companies are run skirting legalities and ethics.
“We are one of the first few Subcontractors who were given a DO (Department Order) 174-17 Certification from the Department of Labor and Employment Office (DoLE),” said Pacis.
Job subcontractors across the Philippines have seen 4,580 companies downsized to 2,669 when the DO 18-A Rules and Regulations on Contracting was implemented. Of those, only 1,911 have successfully acquired the DO 174-17 license as of June this year. Pacis’ FIGRPMTSC is among the first to be licensed under the new rules.
“I do not like to be identified as an agency because there’s a wrong connotation with that word,” said Pacis, who went into the business 15 years ago. As a Human Resources professional, she doesn’t like seeing employees shortchanged.
“We were one of the first job subcontractors that implemented the regularization scheme. Since the start of our business operation, we include the payment for service incentive, leaves and separation pay in billing our clients. We provide security of employment and security of tenure” to all our employees,” Pacis said. “From day-one they work for us. They are already considered on probation.”
When a project ends, the employees are either transferred or are given separation pay.
“That’s the difference between FIG and other companies. It’s why we’re still here,” added Pacis. “We give our employees more than what the law mandates.”
The business subsidizes the health maintenance organization or HMO requirement by 70/30 and personal accident insurance also at 70/30, wherein FIGRPMPTSC subsidizes 30 percent of the premium.
The company also provides for Christmas Packages aside from the 13th month pay given every December. Employees are also involved in corporate social responsibility programs, where they are given the opportunity to find joy in giving, through sharing their talents and skills.
FIGRPMPTSC focuses on highest attendance rate and lowest attrition rate by having a dedicated employee/client hotline, talent online community, work-buddy system and other specialized employee engagement programs.
Pacis ensures that her company always contributes to the highest productivity and profitability of her clients by closely supervising her employees to deliver greater work performance.
“It’s a changing market,” said Pacis, explaining the need for subcontracting in the first place.
“The demands of principal’s major clients are not fixed, and sometimes when the business demand is low, the business of the principals is greatly affected due to higher number of regular manpower. It’s where the business flexibility that legitimate subcontractors offer and play a vital role in principal companies. We, in turn, can transfer the employees to another client while ensuring their security of tenure.”
Pacis emphasizes that the definition of legitimate subcontracting allowed under DO 174-107 of the DoLE has several stringent requirements. A legitimate subcontractor uses its own method and equipment while performing the project inside or outside the premises of the principal/client. It has over-all control and direct supervision to its own employees performing the tasks for a specific project. At the same time, the legitimate subcontractor has sufficient capitalization, which, under the law should be a minimum of P5 million. Pacis said the FIG is worth P70.5 million.
“We have a group of professionals and management team consists of technical services or account manager, account specialist, health and safety officers and finance personnel managing our workforce,” said Pacis.
“One thing that we consider our edge over the others is that we have our own training center equipped with world class facilities and modules where we provide soft and technical skills training to our employees. This enables our employees to be ‘employment ready’ before we assign them to the projects,” she added.
FIG provides for merchandizing support and services because they have their own product retail and distribution company. Housekeeping support and services among the “cream of the crop” because the company has complete housekeeping equipment and rigid training under their Property Management Support & Services Company, wherein they provide general housekeeping and property maintenance of hotels, condominiums, apartments, private buildings and the like.
With extensive experience in business process support and contract manufacturing, FIG is also an expert in providing back office support services like recruitment management, employee engagement using online platforms, productivity and performance management, marketing and sales management, process audit management and employee learning and training development and manufacturing, Pre and Post Operation Management Services like material handling services, warehouse management using their own equipment like hand tools and forklift.