No contractualization in SM group, conglomerate says | Inquirer Business
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No contractualization in SM group, conglomerate says

/ 12:24 AM September 08, 2016

The SM group has refuted accusations of involvement in contractualization—the practice of hiring workers without security of tenure—as a means to maximize profits.

“It is SM’s policy to be compliant with existing labor laws and regulations in the conduct of its business,” the SM group said in a statement Wednesday.

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The statement was issued in reaction to reports accusing SM of being engaged in contractualization, a labor practice that President Duterte has so strongly denounced and vowed to eradicate.

“Our store operations are manned by regular employees.  All of our employees are compensated at or paid above government mandated salaries and benefits,” SM said.

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“We have vendors inside our stores that provide their own employees.  These vendors are required to comply with all labor laws and regulations particularly on the rights, salaries, benefits and security of tenure of their employees.”

SM—the biggest retailer and shopping mall operator in the country—said it was unfortunate that there were accusations of contractualization against SM alongside allegations that it had only 355 regular employees out of its over 90,000-workforce.

“The fact is the 373 is merely the number of employees of SMIC (SM Investments Corp.), the holding company. Group-wide employee head count as of 2015 is 94,516, employed in various companies under the SM Group which include companies engaged in banking, financing, property, retail, malls, hotel, resorts and entertainment,” the group said. Doris Dumlao-Abadilla

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TAGS: Business, Contractualization, economy, News, SM Group
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