Contractualization: Pros and cons

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. Despite several attempts to weed out this very contentious labor scheme, it has remained in effect until now.

The capitalist nature of the outgoing regime has not given emphasis on this supposed anti-poor policy of employment for reasons that may be both beneficial and otherwise to labor matters and stakeholders. But then we also have to acknowledge that many investors deem it wise to put their money in the Philippines because of the relatively cheaper labor cost, which to an extent is brought about by contractualization.

The termination of “endo”(end of contract) as a campaign promise of incoming president Rodrigo Duterte will create various repercussions to the Philippine economy. The labor force especially the proletariat sees endo as a tool of the capitalist to manipulate and exploit the vulnerability of laborers. The laborers, as an offshoot of prolonged unemployment and uncompetitive nature, would rather accept a below par employment contract without full benefits enjoyed by a regular worker than have no paid employment.

By Emmanuel J. Lopez Article first appeared at https://www.philstar.com/business/2016/05/27/1587537/contractualization-pros-and-cons