Issue: Labor Contractualization

Also known as "Endo," short for end of

contract
Under a labor contract, an employee works
for a fixed period; when the contract ends,
the employer-employee relationship ends.
Companies use labor contracts as a means to
avoid making certain employees attain
security of tenure.
 Regular employees get more benefits, such as:
social security contributions for pensions, 13th
month pay, allowances and benefits negotiated
through a collective bargaining agreement (CBA)
with management, etc.
To avoid regularizing employees, companies
resort to labor conceptualization for a period of
less than 6 months, then rehire the employee
after a lapse of time (from 2 weeks to 2
months), so that there is a gap between
employment periods.
 The Duterte administration has called on the
business sector to end the practice of labor
contractualization.
However, the business sector responded that
the government should distinguish between
"endo" and the legitimate use of labor
contracts, such as for project-based or
seasonal employment.
 Rappler reports: "The Department of Labor
and Employment (DOLE) revealed on
Tuesday, October 4, 2016, that about 10,532
workers have been regularized by 195
employers so far during the first 100 days of
the Duterte administration."
"This means that we are on track in our
objective to reduce illegitimate
contractualization practices and 'endo' by
50% by the end of 2016, and abolishing it by
2017," Labor Secretary Silvestre Bello III said.
 Reflection Questions
What is your personal stand on the practice
of labor contractualization?
If you were the CEO of a large company or
business owner employing thousands of
"endo"employees, what justifications can
you cite for your company's labor practice?
If you were an "endo" employee, what
reasons could you cite for accepting such
employment? How would you feel, knowing
that you do not have job security?