Chapter 1 The Problem Introduction The benefits and privileges of every contractual worker are very essential to the workers in order to ensure that the toil and labor of these workers are being paid back. The House of Representatives recently passed a security of tenure bill, but the fight to end contractualization continues. On Dec. 2, the House of Representatives passed another version of the Security of Tenure Bill on its third and final reading. The loud public talk to ban contractualization suggests the need to be clear about its different meanings. Article 296 of the Philippine Labor Code states that employees who continue to work after a six-month probationary period must be regularized, and as such, given benefits like medical insurance, paid leaves, and security of tenure. The issue, while two-pronged, is more commonly associated with Endo. “[Endo sheds light] on the way employers look at labor. Some think that it’s a step in the right direction, albeit a small one. The debate on whether contractualization should be removed altogether in the Philippines is still being discussed and continued not only in the Senate but also in multimedia platforms everywhere. The senate version of the bill is still pending. It is by no means synonymous to endo, which is being implemented by employers in order to get rid of their workers before their regularization to avoid paying for benefits and bonuses; unfortunately though many cannot disassociate the two terms from one another. contractualization in the philippines 2019 . A study by the Philippine Institute for Development Studies (PIDS) published in 2016 reported that ending contractualization altogether would be more expensive for companies by about 30 to 40 percent. Total. Labor Contractualization In The Philippines. It does not matter whether the temporary worker you are hiring has previous experiences with a similar company to yours. It is upon these grassroots initiatives and struggles that the labor movement should base its campaign to abolish contractualization in 2020 and beyond. VICE - The practice of “contractualization” or “endo” has employees stuck in fixed-term jobs with no benefits. Employees who should be regularized — meaning those who have performed essential services with the same company for years — should be acknowledged as such in the terms of their employment. December 15, 2020. “Workers have long fought for an end to contractualization, even after an initial Presidential veto in 2019, only to be presented now with a further watered-down version, which will further betray their hopes,” he told VICE World News. Philippines, Japan affirm close cooperation over South China Sea. Gana emphasized the value of job security in developing countries like the Philippines, where so much of a citizens’ basic needs are not covered by the government. contractualization in the philippines 2020 . It prevents them from progressing faster into a better lifestyle since there is not enough money. Many individuals like Cid Tereso from the Economics Program at the University of Asia and the Pacific have argued that the time is right to end this practice because of the improving status of the Philippine economics but there are also others who have debated that it is simply not enough to sustain the country in the long term. Abolish contractualization in the philippines. You are lucky if you manage to employ someone who is verse enough with your particular industry that they will not need so much training. The new term of government, headed by President Rodrigo Duterte, has made sure it gained the spotlight by pledging that they will be ending the practice of “endo” or … by Vice. {"cookieName":"wBounce","isAggressive":false,"isSitewide":true,"hesitation":"","openAnimation":"rubberBand","exitAnimation":"fadeOut","timer":"","sensitivity":"","cookieExpire":"","cookieDomain":"","autoFire":"","isAnalyticsEnabled":false}, LAMUDI LAUNCHES BIGGEST HOUSING FAIR THIS NOVEMBER, In-Demand Course Graduates in the Corporate World. Click here for instructions on how to enable JavaScript in your browser. As a result, these non-regular employees are deprived of the opportunity to get secure, long-term employment. THE DAY IN PHOTOS: December 14, 2020. [That] labor is dispensable — it’s not important. They include the following: Contractualization has been devised by previous lawmakers in order to address and tackle the issue of poor economic growth in the country. DAVAO CITY, Philippines — The progressive labor center Kilusang Mayo Uno (KMU) believes that the continued practice of labor contractualization as well as the country’s lack of basic industries are the real causes of the high unemployment in the Philippines. After Duterte signed the EO, 20 companies suspected of practicing endo were identified and urged to regularize employees on fixed contracts. How to Start A Business Using Your Backyard? Some of them Anti Contractualization Essay lucky enough and landed in their dream jobs and earned a living. In all the different department orders of DOLE and all the Supreme Court decisions, it has been very clear that endo is prohibited,” Gana said. There are certain things [companies] are willing to spend on, but they are not willing to spend on labor or their employees,” Dominique Gana, a corporate attorney told VICE World News. Labor Lawyers in the Philippines have been occupied with labor-related issues since the signing of the new department order. DoLE and government regulators must just do their work based on provisions of current laws and regulations. A worker stands on scaffolding at a construction site in Manila. In January 2020, the working age population (15 years old and over) was estimated at 72.8 million. December 15, 2020. Photo: Noel Celis, AFP, passed another version of the Security of Tenure Bill. MANILA -- The government should not outlaw all forms of labor contractualization, especially those that are practiced globally, an employers' group head said Thursday. For Gana, meeting those expectations will be difficult, but necessary. “I think what changed was the implementation on the part of DOLE. 731 likes. Photo c/o OCEG. There has been a lot of buzzing going on in regards to the news of contractualization in the Philippines as of lately. In order to post comments, please make sure JavaScript and Cookies are enabled, and reload the page. A study by the Philippine Institute for Development Studies (PIDS) published in 2016 reported that ending contractualization altogether would be more expensive for companies by about 30 to 40 percent. only in the philippines During his campaign for the presidency, Rodrigo Duterte promised that if he wins, he would end “contractualization” and improve labor conditions for all. All Rights Reserved. effect of contractualization in the economy . Mar 9, 2020. In colloquial terms, the practice is called “endo,” short for “end-of-contract,” or “5-5-5,” because contracts usually span five months at a time. 0. “From a legal standpoint, his EO was nothing different because it actually just repeats what has been in the law consistently. Read on to learn more! This joint circular allowed government agencies to hire new and renew contracts of existing contract of service and job order workers until Dec. 31, 2018, which was later extended until end of 2020. After much delay and many amendments, Duterte filed an Executive Order (EO) against contractualization on May 1, 2018, Labor Day. Contractualization In The Philippines 987 Words 4 Pages Contractualization, also known as the 5-5-5, is a habitual practice by companies to replace temporary workers who have low skills set every 5 … “They leave it to the government to make sure that employers are looking out for what’s best for them.”. Abolish contractualization in the philippines. Your email address will not be published. Shares. But instead of hiring employees full time, per the government’s directive, several of the country’s largest companies chose to lay off around 200,000 workers, according to Ariel Casilao, who represented the pro-labor group Anakpawis in Congress. Jeric is a freelance writer that features food, lifestyle, travel, DIY subjects, and nature. Required fields are marked *. Today, big and small corporations are being asked to supply several requirements which include flexible working arrangements for their employees. There are times when you will have to exert more training periods to some of your temporary employees which will waste so much time and effort, coming from the perspective of the company. The Philippine economy, as measured by the gross domestic product (GDP), contracted by 11.5% in the third quarter of 2020 from an expansion of 6.3% in the same period in 2019 (Figure 1). Contractualization therefore has no official or standard definition. In one of the presidential debates, all the then candidates for president, including now President Rodrigo Duterte, vowed to end contractualization. Among these, 61.7 percent were in the labor... Read more about Employment Situation in January 2020. MANILA, Philippines — President Rodrigo Duterte on Tuesday signed an executive order which puts an end to illegal contractualization and provides security of tenure for Filipino workers. Labor groups are divided on this new bill. He was referring to the practice of … The Long Battle to End ‘Contractualization’ in the Philippines. A worker stands on scaffolding at a … Pinoy Bisnes Ideas © 2021. December 15, 2020 The new term of government, headed by President Rodrigo Duterte, has made sure it gained the spotlight by pledging that they will be ending the practice of “endo” or end of contract as others would like to call it. ⭐CONTRACTUALIZATION⭐ is a form of temporary employment common in the Philippines. A law that allows some forms of contractualization won’t satisfy labor groups, while one with a sweeping ban will be against business interests. How to Choose a Web Designer for Your Small Business Website, How to Start an e-Commerce Business in 8 Easy Steps, 7 Critical eCommerce Mistakes to Avoid When Selling Online, Value Added Products from Garlic (Food Business). Many organizations working for the welfare of workers and employees being subjected to them have made their thoughts known and protested about the lack of benefits and bonuses workers are receiving because they are not being regularized. She adds that this practice also leads to a flexible     job market that presents greater prospects for both companies and workers. It prohibits fixed-term employment but identifies specific exceptions, namely overseas Filipino workers, workers on probation, relievers who are temporary replacements of absent regular employees with engagements not exceeding six months, project employees, and seasonal employees. There are pros and cons that should be considered when it comes to keeping the practice of contractualization in the Philippines. Critics said the EO “backs employers” and not Filipino workers. Contractualization is inherently exploitative, it dilutes the core labor standards and undermines the workers' right to a decent life. 0. He also has a weird love for reggae and sharks. According to Denise Ridenour from Kelly Services, employing both a mix of permanent and temporary workers will result into a more efficient and effective workplace. While the promise to “end endo” was paved with good intentions, it became clear that both a tepid and a sweeping approach to the issue will result in unfavorable outcomes. 1333 Words 6 Pages. It’s more like they decided to be stricter.”. Now, four years into his term, the problem still stands. Under the bill, all employees except those defined under probationary, seasonal, or project employment, would be deemed ‘regular.’ But in 2019, Duterte acknowledged that this would “place capital and management at an impossibly difficult predicament with adverse consequences to the Filipino workers in the long-term,” and ultimately vetoed the bill after businesses said that it would be too difficult to follow. Contractualization of labor is a strongly debated issue in the Philippines. The origin of this term can There is also a PHP30,000 ($624) penalty for each victim employee by businesses engaging in endo, which is a leap from the PHP1,000 ($21) - PHP10,000 ($208) fine per business stated in current law. Labor contractualization has long been a contentious issue in the Philippine socio-politico-economic discourse. “Contractualization” was one of the hot issues in the May 2016 Philippine elections. “Government should really protect the laborers because they have no bargaining power,” she said. Currently you have JavaScript disabled. Providing temporary work is probably the best step they could take in order to offer the required flexibility while meeting their own needs as well. (4th UPDATE) Despite the setback, labor groups say President Duterte's veto won't stop workers' struggle to end contractualization Duterte vetoes anti-endo bill Jul 26, 2019 - 10:45 AM 744 likes. After five months, employers rehire employees for another fixed-term, and the cycle continues. There has been a lot of buzzing going on in regards to the news of contractualization in the Philippines as of lately. “At the end of the day, the government [needs to] make a stand and would have to choose to be more beneficial to the workers, because who’s going to take care of them?”. “Contractualization is when you farm out your employees. He said that what the Philippines needs is a law that inhibits employers from blurring their relationship with employees, to prevent abuse and exploitation. Gana said that ideally, there should be a balance between protecting employers and employees, but also noted that the government ought to prioritize the latter. Amelia H. C. Ylagan is a Doctor of Business Administration from the University of the Philippines. One of the ticklish issues that will confront the Duterte administration when its term finally commences at midday of June 30, 2016 is the continued existence or demise of job contractualization. The practice of “contractualization” or “endo” has employees stuck in fixed-term jobs with no benefits. During his campaign for the presidency, Rodrigo Duterte promised that if he wins, he would end “contractualization” and improve labor conditions for all. You will still end up training them so that they can perform their assigned tasks and responsibilities to best fit the specific needs of your company where they are currently being employed. Failon Ngayon learns more about the DOLE's Department Order 174 that aims to regulate contractualization practices of employees. 0. It imits the choices Of workers to freely shape thelr own future This Bill aims to totally prohibit contractualization and all its forms including all fixed-term employment. 1746 Words 7 Pages. See: Reggae Shark, Tags: contractualizationend of contractendo, Your email address will not be published. Creating job opportunities albeit temporarily will help cater into the growth of economics here in the Philippines even more. They wanted the government to make direct hiring the norm, and labor contracting an exception. By signing up to the VICE newsletter you agree to receive electronic communications from VICE that may sometimes include advertisements or sponsored content. For a time, this reassured labor workers that the president was “staying true” to his promise to end endo. He was referring to the practice of businesses hiring employees under a fixed-term contract, which is prevalent in various industries and a cause of concern for low-income Filipino workers. And as long as we’re good employees [or] we don’t do any of the ‘just causes’ for termination, then we would still be an employee. US Electoral College to confirm Biden's presidential win. Contractualization is the practice of hiring a worker continuously for a period not exceeding five months for a specific job, after which a new worker is […] Different people have diverse views about the practice. Big corporations and companies in the Philippines have come under fire because of maintaining the practice of contractualization and endo. Best for government to stop promising and bragging — and raising expectations of workers on an unreachable total ban on contractualization. After months of consultation and research, the Department of Labor and Employment of the Philippines through Secretary Silvestre Bello III signed the new contractualization order which hopes to regulate contractualization and protect workers rights in the country. There are many companies in the Philippines who have resorted to hiring people on a contractual basis even if they are working on regular, ongoing tasks like normal employees would in a company. Labor groups were disappointed with the EO, saying it was not the draft they prepared, nor did it reflect their negotiations with the Department of Labor and Employment (DOLE). December 15, 2020 ‘Family is everything’: Pacquiaos share tender moment on Michael’s 19th birthday. Aside from the fight against contractualization, the labor movement should also open a new front in 2020 — the struggle to end regional wages. CONTRACTUALIZATION, a word we read in the newspapers and a topic of discussion in media when the employment of Filipino workers comes to fore in commercial and industrial operations. December 15, 2020. He is an adventurer, taking on the world and everything it has to offer, may it be the good and the bad. Contractualization actually broadly refers to the practice of Philippine firms and companies to outsource the process of hiring their staff and employees to other organizations or agencies. Like for example, in malls, the sales girls are not their employees. That means our livelihood is secured,” she said. MANILA-- Various groups advocating for the complete end of contractualization on Tuesday converged in Mendiola and other parts of Metro Manila to celebrate Labor Day.. Kilusang Mayo Uno (KMU), Nagkaisa Labor Coalition, Sentro and several groups gathered at assembly points around the metropolis and marched to Mendiola Peace Arch, where their leaders aired their views about the … The provision was meant to protect workers but companies learned to circumvent it to save money, usually by outsourcing contract workers from an agency. Contractualization has been a system long practiced by a lot of companies in the country, especially large companies who want to keep their profits up. Labor Contractualization In The Philippines. Snake Oil: In Q2 Spammers cashed in on WannaCry epidemics to promote fraudulent services for protection against the notorious ransomware attack, Old Android devices at risk from automatically downloaded and executed malware, Tips For Organising A Successful Business Event. Contractualization: The Employers’ Perspectives The term “Contractualization” is a termof current notoriety, emblazoned on the headlines of various newspapers and shouted with derision at political sorties, to arouse the anger of the general public. Others, like Trade Union Congress of the Philippines (TUCP) spokesperson Alan Tanjusay, have “grave reservations and serious concerns over the bill.”. only in the philippines How about you; have you decided which stance to take on this very important issue? Now, policymakers face the challenge of protecting employees and closing loopholes that could make them vulnerable to exploitation, while not alienating the businesses that keep the economy running. Click here for instructions on how to enable JavaScript in your browser. Anne Marxze Umil May 4, 2018 contractualization in the Philippines, Courage The bill proposes to provide security of tenure and civil service eligibility to all non-regular employees who are working continuously in any government agency for at least six months. How to Benefit from Multichannel World for Your Business, Know the best designs and most common benefits of rounded corner business cards, 10 Points of Protocol for a Promotional Video, 10 Notable Online Video Makers That is Sure to Give Your Business an Edge, Cost-effective Techniques to Promote Your eCommerce Business in 2020, Halo-Halo: Business and Recipe for Success, San Miguel Purefoods’ Franchising Opportunity, Dealer of Softdrinks, Beer, Cigarettes, Liquors, Prepaid Cards. The practice of “contractualization” or “endo” has employees stuck in fixed-term jobs with no benefits. In September 2018, Duterte certified as urgent the Security of Tenure Bill, a proposed law against contractualization. 5 minute read. “Security of tenure is so important to [Filipinos] because it means that we are getting a regular salary every day for a certain period that we’re working. December 10, 2020. Contractualization is the practice by employers of hiring workers for a period short of the six months required before they could become regular employees with full benefits. Some of the benefits that they are not receiving include: PhilHealth, SSS, Pag-IBIG, Home Development and Mutual fund along with many others. They are being sourced from agencies,” Bello explained. To the contractual workers, labor contractualization is a nuisance since the wages received can be seen as significantly lower than regular workers. Still stands growth of economics here in the labor movement should base its campaign to abolish contractualization the. 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