To the contractual workers, labor contractualization is a nuisance since the wages received can be seen as significantly lower than regular workers. 744 likes. Read on to learn more! Philippines, Japan affirm close cooperation over South China Sea. 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. MANILA -- The government should not outlaw all forms of labor contractualization, especially those that are practiced globally, an employers' group head said Thursday. 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. Some think that it’s a step in the right direction, albeit a small one. December 15, 2020. Contractualization therefore has no official or standard definition. 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. “Contractualization is when you farm out your employees. Different people have diverse views about the practice. It does not matter whether the temporary worker you are hiring has previous experiences with a similar company to yours. Aside from the fight against contractualization, the labor movement should also open a new front in 2020 — the struggle to end regional wages. 5 minute read. 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. 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. 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. Required fields are marked *. See: Reggae Shark, Tags: contractualizationend of contractendo, Your email address will not be published. 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. The loud public talk to ban contractualization suggests the need to be clear about its different meanings. 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 10, 2020. The senate version of the bill is still pending. “From a legal standpoint, his EO was nothing different because it actually just repeats what has been in the law consistently. Big corporations and companies in the Philippines have come under fire because of maintaining the practice of contractualization and endo. effect of contractualization in the economy . 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. Abolish contractualization in the philippines. For a time, this reassured labor workers that the president was “staying true” to his promise to end endo. Amelia H. C. Ylagan is a Doctor of Business Administration from the University of the Philippines. How about you; have you decided which stance to take on this very important issue? Photo c/o OCEG. 1746 Words 7 Pages. The Long Battle to End ‘Contractualization’ in the Philippines. 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 … Now, four years into his term, the problem still stands. Contractualization of labor is a strongly debated issue in the Philippines. Click here for instructions on how to enable JavaScript in your browser. 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. 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. 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. (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 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. He is an adventurer, taking on the world and everything it has to offer, may it be the good and the bad. DoLE and government regulators must just do their work based on provisions of current laws and regulations. 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. The provision was meant to protect workers but companies learned to circumvent it to save money, usually by outsourcing contract workers from an agency. THE DAY IN PHOTOS: December 14, 2020. 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 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 […] The practice of “contractualization” or “endo” has employees stuck in fixed-term jobs with no benefits. 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 … Like for example, in malls, the sales girls are not their employees. 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). It is upon these grassroots initiatives and struggles that the labor movement should base its campaign to abolish contractualization in 2020 and beyond. Some of them Anti Contractualization Essay lucky enough and landed in their dream jobs and earned a living. “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. A worker stands on scaffolding at a construction site in Manila. All Rights Reserved. Best for government to stop promising and bragging — and raising expectations of workers on an unreachable total ban on contractualization. ⭐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. “Government should really protect the laborers because they have no bargaining power,” she said. Failon Ngayon learns more about the DOLE's Department Order 174 that aims to regulate contractualization practices of employees. The origin of this term can He also has a weird love for reggae and sharks. 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. VICE - The practice of “contractualization” or “endo” has employees stuck in fixed-term jobs with no benefits. Some of the benefits that they are not receiving include: PhilHealth, SSS, Pag-IBIG, Home Development and Mutual fund along with many others. During his campaign for the presidency, Rodrigo Duterte promised that if he wins, he would end “contractualization” and improve labor conditions for all. 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. Abolish contractualization in the philippines. Labor Lawyers in the Philippines have been occupied with labor-related issues since the signing of the new department order. In order to post comments, please make sure JavaScript and Cookies are enabled, and reload the page. Contractualization is inherently exploitative, it dilutes the core labor standards and undermines the workers' right to a decent life. 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. Click here for instructions on how to enable JavaScript in your browser. A worker stands on scaffolding at a … There has been a lot of buzzing going on in regards to the news of contractualization in the Philippines as of lately. 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. December 15, 2020 ‘Family is everything’: Pacquiaos share tender moment on Michael’s 19th birthday. 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). Shares. In September 2018, Duterte certified as urgent the Security of Tenure Bill, a proposed law against contractualization. There are pros and cons that should be considered when it comes to keeping the practice of contractualization in the Philippines. He said that what the Philippines needs is a law that inhibits employers from blurring their relationship with employees, to prevent abuse and exploitation. [That] labor is dispensable — it’s not important. The House of Representatives recently passed a security of tenure bill, but the fight to end contractualization continues. December 15, 2020. She adds that this practice also leads to a flexible     job market that presents greater prospects for both companies and workers. It’s more like they decided to be stricter.”. “I think what changed was the implementation on the part of DOLE. 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. 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. After five months, employers rehire employees for another fixed-term, and the cycle continues. 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. Labor contractualization has long been a contentious issue in the Philippine socio-politico-economic discourse. 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. 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. “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. “[Endo sheds light] on the way employers look at labor. 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. 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 … After Duterte signed the EO, 20 companies suspected of practicing endo were identified and urged to regularize employees on fixed contracts. Labor Contractualization In The Philippines. 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. “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?”. 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. 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. 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. 0. Critics said the EO “backs employers” and not Filipino workers. Among these, 61.7 percent were in the labor... Read more about Employment Situation in January 2020. 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. In January 2020, the working age population (15 years old and over) was estimated at 72.8 million. by Vice. There has been a lot of buzzing going on in regards to the news of contractualization in the Philippines as of lately. They are being sourced from agencies,” Bello explained. In one of the presidential debates, all the then candidates for president, including now President Rodrigo Duterte, vowed to end contractualization. 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. That means our livelihood is secured,” she said. {"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. Labor groups are divided on this new bill. 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