Why is Endo bad for the economy?

According to PALSCON President Rhoda Caliwara, outlawing the practice of contractualization can throw about a million workers out of a job. Because businesses cannot hire them contractually, this will also cause a drought for companies as the latter will lose an option to hire workers for the short term.

What is the problem with endo?

The problem of endo involves three parties in general: the enterprise that uses the labor; the labor service supplier who hires and supplies the the labor; and the laborers who are hired. Under the current setup, as contractualization has developed, the company using the labor is not the direct hirer of the worker.

Why should contractualization stop?

It slows down the economy due to the termination of workers every five to six months, making them jobless. No employee benefits. Low pay and employee manipulation. It creates a disruptive workplace environment.

Will ending contractualization be bad for business?

High cost of regularizing employees. Many from the anti-endo camp argue that many businesses will die if government mandates that contractualization be abolished. They say it will hit the small and medium sized enterprises and many of them will not be able to afford regularizing employees.

Why is contractualization a problem in the Philippines?

Contractualization is one of the biggest problems our country facing right now. In this kind of system of work, you do not have permanent job you can only work for a company for only five to six months. Many Filipinos are suffering from it because they do not get what they deserve.

Are Big Companies Damaging the Economy?

Is Endo contractualization illegal in the Philippines?

Legal contractualization (without “endo”) or job contracting happens, according to Article 106, “(w)henever an employer enters into a contract with another person for the performance of the former's work.” However, “labor-only” contracting is prohibited.

Why contractualization is harmful to everyone not just for employees?

By allowing capitalists to intensify their exploitation of workers, contractualization actually enables capitalists to pay workers less for the same work, stunt economic development, and therefore harm the interests of all Filipinos – including of capitalists themselves.

Why contractualization is a problem?

In reality, contractualization has detrimental effects on their operations too. A company that engages in this practice would have a very high turnover rate of personnel. This, in turn, creates a disruptive operational environment and actually leads to higher costs of training and higher incidence and costs of errors.

Is Endo contractualization legal?

Labor contractualization, also known as “end-of-contract” or endo, denies workers a pathway to permanent employment via five-month contracts. Workers by law are required to be granted permanent status after six months.

How many workers are affected by contractualization?

Out of this total, the DOLE has confirmed that 767 companies practice labor-only contracting. This initial list also notes that over 224,000 workers are affected by illegal contracting practice, and a total of 176,286 workers have already been regularized.

Is contractualization labor a part and parcel of the big economic landscape?

Contractual labor is and has been thee as part and parcel of the big economic picture – in agribusiness, sweatshops, construction, and retail business. Nevertheless, the fact that it has been with us for a long time does not make it correct.

What is end Endo?

Significance. Endo is a colloquial expression meaning end-of-contract and refers to the practice of hiring and re-hiring workers on contracts lasting less than six months, the period after which companies must take on contract workers as employees.

What is contractualization Why do workers oppose the practice?

“Contractualization has violated workers' rights to organize and collectively bargain for higher wages, economic benefits, social security, better terms of employment, and better work conditions. It has also forced workers into accepting unfair labor practices and violations of their political rights.

Why is labor only contracting illegal?

In labor-only contracting, the statute creates an employer-employee relationship for a comprehensive purpose: to prevent a circumvention of labor laws.

What are the basic benefits Endo employees are not entitled to receive?

Through the endo scheme, they avoid regularizing workers, and therefore avoid the act of granting benefits like 13th month pay, annual leaves, health benefits, social security benefits, and other similar perks, which in turn reduces employment costs and company spending.

How does contractualization affect the Philippine economy?

According to PALSCON President Rhoda Caliwara, outlawing the practice of contractualization can throw about a million workers out of a job. Because businesses cannot hire them contractually, this will also cause a drought for companies as the latter will lose an option to hire workers for the short term.

What is the problem of just wage?

Common Issues on Wages

Wage indexation to cost of living, where wage is automatically adjusted with the increases of cost of living, is not usually met by majority of the employers. Companies have different interpretations of the justifiable pay for certain job positions, skills and tasks.

What are the disadvantages of contractualization?

Some of the disadvantages of contractualization include unemployment, no employer benefits and lack of job security. It prevents them from enjoying the full benefits of regular employment (e.g. 13th month pay).

Is there still contractualization in the Philippines?

The House of Representatives recently passed a security of tenure bill, but the fight to end contractualization continues. 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.

What is the difference between mandatory benefits and voluntary benefits?

What is the difference between mandatory benefits and voluntary benefits? Mandatory benefits are those that are required by law. Typically, the costs of these benefits are shared by employees and employers. On the other hand, voluntary benefits are not required by law but may be offered at the discretion of employers.

How do you understand contractualization?

Contractualization refers to the practice of hiring employees who would render their services for a finite amount of time, usually, for a few months only. This is a system that has been practiced and used by many companies, including large corporations.

How many are contractual workers in the Philippines?

Recto said the government had 600,000 contractual employees as of August 2020, citing the Civil Service Commission (CSC), "At 600,000, the 'contractuals' are bigger than the Army, and second in size to the almost million-man DepEd workforce."

Do contractual employees get benefits Philippines?

Hence, contractual employees are indeed entitled to receive 13th-month pay with all the rights and privileges mandated under the Labor Code. With respect to this specific benefit, contractual employees should not be treated differently from regular employees.

What are the benefits of a contractual employee Philippines?

(a) Safe and healthful working conditions; (b) Labor standards such as service incentive leave, rest days, overtime pay, holiday pay, 13th month pay and separation pay; (c) Social security and welfare benefits; (d) Self-organization, collective bargaining and peaceful concerted action; and (e) Security of tenure.

What are the benefits of contractual employees?