There was a labor dispute between the feedmill workers vs SIDC and DCMM

Manpower Agency. Why SIDC and DCMM Manpower Agency? Before this case to
be resolved first we should determine whether SIDC or DCMM Manpower Agency
is the employer of those feedmill workers.
SIDC has 24,000 members. They have an existing contract with DCMM, a
legitimate manpower agency. We are paying that agency for the service they are
giving us. Employees of the said agency receive pay, service incentive leave, and
benefits duly entitled to them, as per SIDC Statement.
However, the dispute arose when their workers illegally dismissed from their job.
As a results of this, the workers conducted a strike demanding for regularization,
reinstatement, payment and remittance of benefits, return of dubious fees (Why?
Because the DCMM Manpower Agency remove an amount to the wages of the
workers for payment of their utilities expense), and recognition of their labor
association Samahan ng Manggagawa sa SIDC-LIGA.
Due to the strike, the Labor Department conducted an inspection with regard to
the labor dispute. And as they found out that, the DCMM Agency does not
exercise control over the performance of the work of the workers. Under the PD
442, it means DCMM is not their employer but rather, the one who has been
supervising them, and that is SIDC.
Under DO 18-A, the countrys policy with regard on contractualization, Section 6.
Labor only contracting is hereby declared prohibited. For this purpose, Labor
Only Contracting shall refer to an arrangement where:
(a) The contractor does not have substantial capital or investments in the form of
tools, equipment, machineries, work premises, among others, and the employees
recruited and placed are performing activities which are usually necessary or
desirable to the operation of the company, or directly related to the main
business of the principal within a definite or predetermined period, regardless of
whether such job, work or service is to be performed or completed within or
outside the premises of the principal.
(b) The contractor does not exercise the right to control over the performance of
the work of the employee.
In this case, DCMM is merely constitutes labor-only contracting to SIDC, which
was also stated in the SIDCs statement, therefore, DCMMs acts are illegal in the
country.
Furthermore, during the inspection of DOLE, the said agency failed to present
proof of registration, and they found out that their license was already expired.
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Are they entitled to overtime Pay?
Of couse, because the law states that the only exception for the entitlement of
13th month pay are:
1. Managerial Employees
2. Domestic servants and persons in the personal service of another.
3. Government employees whether employed by the National Government or
any of its political subdivisions, including those employed in government
owned and or controlled corporations.
4. Officers of members of a managerial staf
5. Workers who are paid by results
6. Non-Agricultural field personnel