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As a result, these non-regular employees are deprived of the opportunity to get secure, long-term employment. 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. It does not matter whether the temporary worker you are hiring has previous experiences with a similar company to yours. “Contractualization is when you farm out your employees. “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?”. During his campaign for the presidency, Rodrigo Duterte promised that if he wins, he would end “contractualization” and improve labor conditions for all. effect of contractualization in the economy . Photo c/o OCEG. 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. Others, like Trade Union Congress of the Philippines (TUCP) spokesperson Alan Tanjusay, have “grave reservations and serious concerns over the bill.”. In January 2020, the working age population (15 years old and over) was estimated at 72.8 million. “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. There has been a lot of buzzing going on in regards to the news of contractualization in the Philippines as of lately. 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. After five months, employers rehire employees for another fixed-term, and the cycle continues. December 15, 2020. 744 likes. How about you; have you decided which stance to take on this very important issue? Required fields are marked *. 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. In order to post comments, please make sure JavaScript and Cookies are enabled, and reload the page. 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. Click here for instructions on how to enable JavaScript in your browser. A law that allows some forms of contractualization won’t satisfy labor groups, while one with a sweeping ban will be against business interests. 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. He said that what the Philippines needs is a law that inhibits employers from blurring their relationship with employees, to prevent abuse and exploitation. 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. 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. (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 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). 1746 Words 7 Pages. 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. 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. Read on to learn more! Creating job opportunities albeit temporarily will help cater into the growth of economics here in the Philippines even more. 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. by Vice. All Rights Reserved. Total. Aside from the fight against contractualization, the labor movement should also open a new front in 2020 — the struggle to end regional wages. VICE - The practice of “contractualization” or “endo” has employees stuck in fixed-term jobs with no benefits. That means our livelihood is secured,” she said. December 15, 2020 ‘Family is everything’: Pacquiaos share tender moment on Michael’s 19th birthday. Contractualization therefore has no official or standard definition. 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. “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. 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. 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. US Electoral College to confirm Biden's presidential win. 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. Click here for instructions on how to enable JavaScript in your browser. Critics said the EO “backs employers” and not Filipino workers. ⭐CONTRACTUALIZATION⭐ is a form of temporary employment common in the Philippines. “I think what changed was the implementation on the part of DOLE. Some of them Anti Contractualization Essay lucky enough and landed in their dream jobs and earned a living. Shares. It prevents them from progressing faster into a better lifestyle since there is not enough money. 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. 0. 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 … 0. {"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. After much delay and many amendments, Duterte filed an Executive Order (EO) against contractualization on May 1, 2018, Labor Day. 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. She adds that this practice also leads to a flexible     job market that presents greater prospects for both companies and workers. For Gana, meeting those expectations will be difficult, but necessary. 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. It is upon these grassroots initiatives and struggles that the labor movement should base its campaign to abolish contractualization in 2020 and beyond. It’s more like they decided to be stricter.”. 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. Contractualization is inherently exploitative, it dilutes the core labor standards and undermines the workers' right to a decent life. They are being sourced from agencies,” Bello explained. The origin of this term can A worker stands on scaffolding at a construction site in Manila. 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. contractualization in the philippines 2020 . Different people have diverse views about the practice. 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. Currently you have JavaScript disabled. 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. 5 minute read. Some of the benefits that they are not receiving include: PhilHealth, SSS, Pag-IBIG, Home Development and Mutual fund along with many others. DoLE and government regulators must just do their work based on provisions of current laws and regulations. The Long Battle to End ‘Contractualization’ in the Philippines. 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. “They leave it to the government to make sure that employers are looking out for what’s best for them.”. The provision was meant to protect workers but companies learned to circumvent it to save money, usually by outsourcing contract workers from an agency. Best for government to stop promising and bragging — and raising expectations of workers on an unreachable total ban on contractualization. [That] labor is dispensable — it’s not important. Mar 9, 2020. The senate version of the bill is still pending. 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. Like for example, in malls, the sales girls are not their employees. Big corporations and companies in the Philippines have come under fire because of maintaining the practice of contractualization and endo. 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). Philippines, Japan affirm close cooperation over South China Sea. He also has a weird love for reggae and sharks. 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. The House of Representatives recently passed a security of tenure bill, but the fight to end contractualization continues. 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. Photo: Noel Celis, AFP, passed another version of the Security of Tenure Bill. 731 likes. He was referring to the practice of … “From a legal standpoint, his EO was nothing different because it actually just repeats what has been in the law consistently. To the contractual workers, labor contractualization is a nuisance since the wages received can be seen as significantly lower than regular workers. Failon Ngayon learns more about the DOLE's Department Order 174 that aims to regulate contractualization practices of employees. 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 … The practice of “contractualization” or “endo” has employees stuck in fixed-term jobs with no benefits. 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. In one of the presidential debates, all the then candidates for president, including now President Rodrigo Duterte, vowed to end contractualization. In September 2018, Duterte certified as urgent the Security of Tenure Bill, a proposed law against contractualization. “Government should really protect the laborers because they have no bargaining power,” she said. On Dec. 2, the House of Representatives passed another version of the Security of Tenure Bill on its third and final reading. 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 […] 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. 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. Labor contractualization has long been a contentious issue in the Philippine socio-politico-economic discourse. They wanted the government to make direct hiring the norm, and labor contracting an exception. 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. Labor Contractualization In The Philippines. Jeric is a freelance writer that features food, lifestyle, travel, DIY subjects, and nature. A worker stands on scaffolding at a … “Contractualization” was one of the hot issues in the May 2016 Philippine elections. Today, big and small corporations are being asked to supply several requirements which include flexible working arrangements for their employees. Contractualization of labor is a strongly debated issue in the Philippines. 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. Among these, 61.7 percent were in the labor... Read more about Employment Situation in January 2020. Abolish contractualization in the philippines. 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