MANILA -- Century Pacific Foods, the Philippines largest canning company, is "definitely not practicing endo" or illegal contractualization, its president said Tuesday.
The maker of Century Tuna, Argentina corned beef and 555 sardines subcontracts parts of its operations, but only to "legitimate" firms, company president and CEO Christopher Po said.
The outsourced workers are of regular status, he said on the sidelines of a shareholders' meeting.
"Let’s take that off the table. We are definitively not practicing endo," Po said.
"We are outsourcing some of our operations, this is due to our desire for flexibility. There are parts of the year when business is less busy," he said.
Po said the company "initiated" discussions with the labor department "on what part of the business can be outsourced."
"We are pretty confident we can come up with a win-win arrangement," he said.
Labor accounts for 5 to 10 percent of costs, Po said. While regularization won't affect margins, the company "might lose a little bit of flexibility," he said.