Thesis.docx

LABOR CONTRACTUALIZATION

I. II.

INTRODUCTION ........................................................................................... BODY Contractualization...............................................................................................

... DIFFERENT VIEWS ON LABOR CONTRACTUALIZATION................................ - Companies and the contracting agencies................................................... - Contractual workers..................................................................................... - Human resource (HR) practitioners............................................................. Contractualization under Dutertes period............................................................... Negative economics of No contractualization.............................................. - Reasons of some employers resort to contractualzations............................. III. Conclusion IV. Bibliography

Contractualization is a pivotal campaign issue in our country.It is adopted in other developed countries with a stable economy but for the country like Philippines, where the economy is still building we should not practice this contractualization.

Definiton of workers The terms workers and labourers are to be used interchangeably in this paper. The termsworker and laborer refer to an individual who is part of a particular field, activity or cause.The workers who areirregular or casual are part of the informal sector. These workers have casual or contractual jobs wherein they do not receive security of tenure or benefits. Regular workers, on the

otherhand, are part of the formal sector. Regular workers usually have their employee benefits andsecurity of tenure. The 1987 Labor Code of the Philippines aims to provide security for the formal andinformal workers. However, the Labor Code is still limited as most of its provisions arefocused on regular employees and overseas contractual employees. The casual employees have been included in the Labor Code, but the code did not elaborate on their right to representation and right to be regularized after due time. The Labor Code’s basic premise relies on the control exercised by the employers, or those who seek service over the employee and the work orservice rendered by him or her (Macaraya, 1997)

Duterte’s Administration. President Rodrigo Duterte threatened to shut down companies engaged in contractualization—the practice of hiring employees for five months in an attempt to circumvent labor laws providing benefits and job security for them. President Rodrigo Duterte said he would “stop” it as it prevents Filipinos from acquiring skills and experience to apply for better jobs both here and abroad.

Perspectives. Companies and the contracting agencies described contractualization as a means to promote cost efficiency and a way to avoid having labor unions. The contracting agencies also view contractualization as a means to provide services to companies. Therefore it is their duty to ensure that specifications requested or imposed by the company are strictly adhered to. Contractual workers, on the other hand, view contractualization as a means to diminish their control on their working condition and environment. Although this perception greatly lowers their job satisfaction and motivation as employees, they feel helpless and incapable of changing their situation. They are also unsure as to who or which

institution can help change their plight and take care of their well-being as employees.

The human resources (HR) practitioners clearly stated in theinterviews that the contractual workers are not their employees, all employee- or labor-related concerns and issues must be dealt with by the agency. However, the agencies also claim that they are not their employees since they only serve as a go-between. The issue of which organization should look after the welfare of contractual workers is highlighted even more if it involves fly-by-night agencies that do not have sufficient capital or resources. Both HR practitioners and worker interviewees emphasized that such agencies make the employment conditions worse for contractual employees. As this study shows, the varying perspectives on contractualization affect the working condition, environment, satisfaction and motivation of contractual employees. Given the growing prevalence of contractual employment in the country not only among blue-collar but professional employees as well, there seems to be a need for concrete interventions that can help this marginalized sector in Philippine society. For any contractualization-related government action to be widely acceptable and easily implementable, it is necessary to determine the reasons why some employers resort to contractualization. The reasons will determine whether the Department of Labor and Employment will experience much difficulty in enforcing a no-contractualization law. There are three reasons.

The first reason is, quite simply, an employer’s instinctive desire, in the absence of adverse government policy, to derive the maximum profit from his business operations. Additional costs reduce profit and SSS, Philhealth and PagIBIG coverage for employees are additional costs. Why, the typical businessman asks himself, should I provide benefits for my workers if with the use of legal savvy, I can get away with not providing them with such benefits? The tactic for such legal evasion is of course the hiring of workers for periods shorter than the six-months threshold for compulsory regularization. “Endo,” the shorthand for end of contract, usually comes after five months’ employment. The second reason for the resort of many employers to contractualization is pure-and-simple avoidance (not evasion) of the law. The choice for employers has been clear-cut. They can place their employees on regular status after six months in the establishment—and begin incurring the costs of the legally mandated

benefits—or they can avoid incurring those costs through the before-six-months “endo” arrangement. The third reason for many employers’ resort to labor contractualization is the most important because of its virtually certain negative impact on the economy, especially on investment and employment. Putting an end to contractualization has been declared to be one of the legislation priorities in the House of Representatives; the Duterte administration should be able to obtain passage of a no-contractualization law.

Conclusion: As this study shows, the varying perspectives on contractualization affect the working condition, environment, satisfaction and motivation of contractual employees. Contractual workers,contracting agencies and employers were interviewed regarding their perceptions on the end of contractualization process in Duterte’s administration. President Duterte wanted to protect Filipinos and shut down those companies engaged in contractualization in the Philippines . There are three reasons for the resort of employers to contractualization which are the employer’s instinctive desire, pure and simple avoidance of law and of its virtually certain negative impact on the economy, especially on investment and employment.

References http://www.academia.edu/14701985/A_SOCIAL_REPRESENTATIONS_STUDY_OF_CONTRACTUA LIZATION

http://business.inquirer.net/56467/different-views-on-labor-contractualization http://www.rappler.com/nation/politics/elections/2016/130640-presidentialbets-contractual-labor Philippine Daily Inquirer by By: Fille Cainglet, Jerome Zapata, Thea Elyssa Vega The Philiipine Star By Alexis Romero

Labor Contractualization

Almost 70% of Filipino workers are classified as contractual employee wherein they only have a limited time to enhance their working skills which is alarming to kill the development of Philippine Labor skills and economy which shouldn’t be practiced. Is it now the right time to implement the end of contractualization under Duterte’s period?. This research aims to discuss labor contractualization under dutertes period and different perspective of some people regading contractualization.