The Union of Legitimate Service Contracting Cooperatives (ULSCC) was established at the time when cooperatives engaging on labor service were badly misunderstood. Regulators implement conflicting priorities in regulating the labor service industry. BIR was contesting the legitimacy of cooperatives to engage in labor service. DOLE was demanding the return of share capital of members of cooperatives. Labor service cooperatives were being criticized by different interest groups that were affected by their entry to the industry. Labor unions were demanding to prohibit the contractual arrangement altogether. Private manpower agencies were questioning the tax exemption of cooperatives and the practice of members contributing share capital to their cooperatives. While all of these were happening, no labor service cooperative was taking a stand to defend its position. This was the situation that gave birth to the establishment of ULSCC. It was first organized under the name, Union of Labor Service Cooperatives (ULSC). However, there were instances when it was mistaken to be a labor union rather than a cooperative union so it was later changed to Union of Legitimate Service Contracting Cooperatives (ULSCC). 

ULSCC’s obective was to serve as the voice of the cooperative sector engaged in labor service. Its main purpose was to clarify the poor perceptions and misunderstanding of regulators and interest groups. ULSCC was established in October 30, 2014, initially with 5 members. As of 2023, ULSCC have 26 active members. It promotes legal compliance, education, and professionalism. ULSCC is an active member of International Co-operative Alliance (ICA) and CICOPA.