A National Unity Party lawmaker is seeking a congressional investigation into an alleged on-the-job training (OJT) scam perpetrated by some manpower agencies, which charge students, rather than pay them, for work done.
Davao City Rep. Karlo Alexei Nograles, who chairs the House labor committee, said these manpower agencies are blatantly violating labor laws with or without the knowledge of the government office or private company where the students undergoing on-the-job training are deployed.
Nograles said he was appalled to learn that some manpower agencies are charging student-trainees between P7,000 and P15,000 to render work as part of their requirements in school.
Supplying the manpower requirements of private firms and even government offices have become a lucrative venture because of the growing number of businesses that want to avoid complying with labor laws, Nograles said.
“The practice of securing the services of manpower agencies has sometimes been abused by those who want to avoid the regularization and unionization of their labor force. Perhaps, some believe they can avoid spending extra costs for the benefits of their employees, such as bonuses, health insurance and SSS [Social Security System] contributions. But what about the manpower pooling agencies, are they exempted from complying with our labor laws? No, they are not exempted. They have to comply,” Nograles, a lawyer, said.
One report reaching his office involves a manpower agency using students to fill the requirements of a contract it has secured with the Ninoy Aquino International Airport (NAIA).
Students on OJT are being required to pay P7,000 to P15,000, instead of the other way around, so that they can work at the airport, Nograles noted.
He said this was similar to the unfair, abusive practice in the medical sector where nurses undergoing training are made to pay for the privilege to work in some hospitals.
Manila International Airport Authority General Manager Jose Angel Honrado has already ordered a similar investigation into the illegal practice of the manpower agency and stopped the use of 200 student trainees for summer jobs at the NAIA.
Nograles said he is seeking a wider probe into the OJT scam as this could involve students in other industries.