Why Do Workers Oppose Contractualization

They propose that contractualization—or the practice of hiring workers as “contract workers” rather than “normal” workers to avoid obtaining the benefits they are legally required to make—allows capitalists to increase their profits, hire more workers, contribute to economic growth, and thus benefit all Filipinos. Jollibee Food Corporation (JFC) employs the largest number of contract workers in the country with 14,000 unregulated employees in 2018. With this in mind, the Ministry of Labour and Employment (DOLE) ordered JFC in April 2018 to regularise 6,000 of its contract employees. If the contract is lower than the existing parameters of the law, companies should not be obliged to automatically regularize their contract employees, provided that they correctly comply with the DOLE Regulation 18-A series of 2011, which stipulates that employees must be entitled to the same benefits granted by the Labor Code under a legal contractual agreement, the right to job security, and the right to bargain collectively. As expected, business groups such as the Philippine Employers` Association and business leaders say the contraction epidemic in the country is actually good for workers and for Filipinos. For many, the effects of contracting are far worse than the benefits. In summary, here are the advantages and disadvantages of contracting: weeks before the 18th. In April, labour and management were on their guard and wondered if Mr. Duterte would sign an executive order (EO) that would govern the legal drafting of contracts. After Malacañang announced that day that the president would no longer sign the PO and would simply let Congress pass a contract law, business leaders defended the benefits of the practice of legally hiring contractors. The word Endo is derived from an abbreviated version of the term “termination of contract”. Endo is sometimes referred to as “5-5-5,” which refers to the number of months before a non-regular employee terminates or terminates the contract.

According to the Philippine Labor Code (PD 442), employers can employ people for a probationary period not exceeding six months. Under this system, the employee`s employment contract ends before the expiry of the six months by his employer. At the end of the six-month period, employees then become regular employees who are entitled to several health, safety and insurance benefits required by law. According to the Philippine Bureau of Statistics` (PSA) 2015 Integrated Labour and Employment Survey (ISLE), about 7 million Filipino workers in the country are in precarious employment conditions, typically covered by the termination of operating contract (ENDO) or employment contracts (LOC). Therefore, to the extent that liberation from poverty and insecurity allows or enhances the ability or self-confidence of workers to engage in politics, capitalists also deprive workers who could use them to improve their ability to fight for their interests, to resist exploitation, to assert their democratic right, to determine their own destiny and build another type of society. Some employers prefer to hire contract workers when their workload fluctuates or when they want to test workers` skills before hiring them permanently. Contract workers often receive a lump sum at the end of the project, but some receive payments during the mission. The European Chamber of Commerce of the Philippines (ECCP) called the drafting of the legal contract “common ground” for management and workers.

I could imagine that their situation would darken from the day their contract is about to expire. In a country where the problem of unemployment is pronounced – about 2 million – it is quite understandable that workers have a high degree of fear of whether their contract will be renewed or, if not, whether they will be able to find a job elsewhere. Their concern is repeatedly exacerbated as they have to worry about their family`s care, especially if they have extraordinary circumstances, such as illnesses in the family that require expensive medications, children with special needs and others. It is also in these times that these unfortunate employees are most susceptible to abuse by malicious individuals who exploit them. Tulfo`s remarks add only one more insult to the violation given the precarious conditions of many Filipino workers who are constantly confronted with illegal practices and legal loopholes for drafting contracts. Simply put, workers facing the axe are less likely to do something that could cause employers to remember their names. All this can be “good” for individual capitalists who want to crush unions or groups of workers so that they can keep their own workers` wages low and increase their profits. With the government`s decision to legalize more contract workers, the Philippine Employers` Association (Ecop) said it would come at a price for companies. The issue of labour contracting remains particularly interesting in the discussions on Labour Day. This practice, popularly known as “endo” or 5-5-5 arrangement, began in the mid-70s in response to alarming unemployment. For the uninitiated, the term “endo” was coined as “end of contract”.

On the other hand, 5-5-5 represents three five-month contract cycles, a ruse that discourages workers from being regulated in the company for one month in each contract, as the law requires that workers who have stayed for six months be permanent. Right away, you can understand why this is such a controversial topic. To buy this labor power from the workers, the capitalists pay the workers a wage that is more or less equal in value to the goods and services (food, clothing, housing, etc.) needed to produce the labor power that the workers sell to the capitalists – value that the workers can usually produce only for part of the working day. .