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Chapter 1

THE PROBLEM AND ITS SCOPE

Rationale

Testa (2016) defined contractualization as a work arrangement whereby

workers are only hired for only about five months without security of tenure,

monetary, non-monetary, and social protection benefits. According to Business

Inquirer net (2015), this is a system that is continuously practiced by a lot of

businesses especially large corporations and they operate this kind of program to

maintain and make their revenues up. This will help cut costs and avoid the hassle

of regularizing workers who have worked in the business perpetually for five to six

months in counting time. Also, this helps the business to evaluate their employees

if s/he has met the standards the employer is seeking and it would be easy for

them to find a replacement in a minimum cost until they find the one that the

company is looking for. Thus, contractualization is an open opportunity for the

business operations and economy because it has resulted to an acceleration of

demand especially for outsourced workers, most particularly workers within

demand and acceptable skills, that made their salaries increase over time.

However, the information and feedbacks of this system receive different reactions.

This kind of system is an advantage to the part of the employers, however

contractual workers, on the other hand, view contractualization as a means to

diminish their control over their working condition and environment. That is why

contractualization is a controversial and prevalent issue not just in our society but

also to the whole world. For instance, in Malaysia, according to The Star (2018),
 2

Although the income levels of Malaysians have increased significantly over the

years, voices of discontent are mounting over the decline in purchasing power.

Low and depressed salaries area unit among the grouses of executives and non-

executives amid the apparent lifestyle changes of Malaysians. With the rising value

of living, they lament that there is currently less area for long-run savings and

investments.

In addition, in the Philippines, the past few months have several news

reports and talk about contractualization; the rallies and campaigns of contractual

workers against police resulted in chaos, violence, and harassment to one another.

According to Bulatlat (2018), Gerola, who has been an employee of NutriAsia for

14 years now, received payment for Service Incentive Leave (SIL) only once.

Although NutriAsia requires workers to render work for 12 hours, overtime pay is

still irregular, and they are paid less than the expected amount of their 13th-month

pay. The union leader described how working conditions inside the factory make

workers prone to accidents and illnesses. Also, contractual workers lack benefits

and bonuses that they should be receiving due to being not regularized. Some of

the benefits that they are not receiving include PhilHealth, SSS, Pag-IBIG, Home

Development and Mutual fund along with many others.

Furthermore, workers in Southern Mindanao have voiced out their lament

against contractualization, especially that the President, Rodrigo Duterte, have

signed an executive order where an immediate action in ending “endo” or end of

contract is ordered. According to them, the majority of workers in the Davao region

still have no security and safety in their work. This was led by Sustined Bantayan,
 3

the chairperson of Kilusang Manggagawa sa Coca-cola-Kilusang Mayo Uno

(KIMACO-KMU).

“Most of us worry about our situation. We don’t know when our contracts

would be terminated. That’s why we are asking the DOLE to act on this matter

urgently,” said Bantayan.

In this study, the purpose of this research is to understand and acknowledge

the perception of workers towards contractualization in Malate area. By this, we

would be able to help them voice out what they feel and what interventions do they

want regarding contractualization. Thus, we are conducting this research so that

we could also apprehend how contractualization affects the way of living of

contractual workers residing in Malate. This will help us discover if they agree or

disagree on the said issue and if it affects them positively or negatively; for

instance, if they have enough income to provide for their families etc. In this way,

our research would be able to know how the selected people perceives

contractualization and how it affects them in their lives.

If the employment of contractual workers persists, then the issue of

contractualization and the goal of the research may be difficult to achieve.

Furthermore, the need to conduct this research is because the researchers want

to address and investigate why there are still businesses that continue to

implement contractualization despite contractual workers’ efforts to stop it. In this

case, we will be using a qualitative type of research where we will conduct in-depth

interviews to have a deeper understanding of the phenomena that our respondents

are facing. Thus, being able to interview the people affected by it, our research
 4

would be able to propose probable suggestions, solutions or to even improve the

contractualization issue in the Philippines.

The given data would be most beneficial for contractual workers and is also

applicable to all of the people living in the society considering that almost half of

the population is engaged and incorporated into contractualization. With the

continuous demand for manpower in different business sectors and corporations,

this study would be able to let workers, not just contractual workers, have a better

treatment and relationship between the employer and the employees. Thus, the

businesses and corporations that would apply the recommended perceptions of

workers in our research would be guided on how to treat their employees better

that would result to the betterment of the business, economy, and society.

Statement of the Problem

This study aims to explore the perception of contractual workers in Malate

area. Specifically, this seeks to find out:

1. How do they view contractualization?

2. How does contractualization affect them as contractual workers?

3. What are the problems that they encounter as contractual workers?

4. Does their status as contractual worker help them perceive job satisfaction?

5. What are your probable suggestions that can help you improve your status

as contractual workers?
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Scope and Delimitations

Out of 46,313 contractual workers in Malate area, 10 contractual workers

will be used as respondents in conducting the research. There will be 10

respondents from different contractual work and related industries. Some

respondents are from the institution of Malate Catholic School and the other

participants are from other contractual establishments located in Malate Manila.

The study limits its coverage on contractual workers in Malate area only. It

will be conducted through an in-depth interview. Its main purpose is to explore their

perception towards contractualization and to help them voice out what and how

they feel towards it. This will also help the researchers to discover if their

perception affects their motivation, job satisfaction and performance in their

respective field of works so that we will be able to propose possible solutions

regarding the problems that they encounter towards it.

The study also considers and protects the contractual workers’ personal

and confidential information. All gathered data will not be shared with the public to

keep their identities safe and anonymous.

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Significance of the Study

The results of the study will be of great benefit to the following:

CONTRACTUAL WORKERS: The findings of this study would be beneficial for

contractual workers as they will be the bases of providing interventions to help

change their plight and take care of their well-being.

EMPLOYERS/BUSINESS OWNERS AND GOVERNMENT: The findings will be

the bases for them to provide support to value the rights of the contractual workers.

PEOPLE IN THE SOCIETY: The given data would be beneficial and applicable to

all of the people living in the society considering that almost half of the population

is engaged and incorporated into contractualization. With the continuous demand

for manpower in different business sectors and corporations, this study would be

able to let workers, not just contractual workers, have a better treatment and

relationship between the employer and the employees. Thus, the businesses and

corporations that would apply the recommended perceptions of workers in our

research would be guided on how to treat their employees better that would result

to the betterment of the business, economy, and society.

RESEARCHERS: The disposed results of the data will be beneficial for the

researchers because they will be knowledgeable and become aware of the issues

concerning contractualization not just in the country but also to the world. Also,

they will have the chance to be updated about the current issues the country is

facing.
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FUTURE RESEARCHERS: The result of this study would be beneficial and of

great help to future researchers because it will serve as their guide and or

reference for their study.

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Definition of Terms

The following terms are used in the current study and are defined

operationally for purposes of the research:

Contractual Workers refers to the workers under

contractualization. The term contractual workers are used to mean that

these workers are not regularized and hired without benefits.

Contractualization refers to the practice in which companies hire

workers in a short period of time, mostly 5 to 6 months only.

Job satisfaction refers to the measure of workers' contentedness

with their job, whether or not they like the job or individual aspects of jobs

Motivation refers to the overall need or temperament of somebody

to try something

Renumeration refers to the money or pay in exchange of the work

or service

Working Condition refers to the state of an individual or workers,

including but not limited to such things as amenities, physical

environment, stress and noise levels, the degree of safety or danger, and

the like.

Working Environment refers to describe the surrounding condition

in which where an employee is operating or working. This can also be

 9

composed of physical conditions, equipment and processes or

procedures.
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Chapter 2

REVIEW OF RELATED LITERATURE

This chapter conveys the related literature and studies after the researchers

reviewed literature and studies related and relevant to the study. The first part of

this study focuses on literature about the meaning of contractualization and the

positive and negative effects of it towards contractual workers and employers. By

knowing and exploring the meaning and situation of employees towards the issue,

the perception of contractual workers; their view and stand towards the matter,

would be voiced out as they are the primary people affected and is continuously

experiencing it. This section also includes the stand and plan of action of the

Government towards the intriguing and continuous wholesome issue of short-term

employment to the country as there are researches conducted about the welfare

and working conditions of these types of employees. The second part focuses on

the research studies that examine the studies related to contractualization,

specifically, the perception of contractual workers and how it hinders their

motivation and job satisfaction as workers in their respective fields.

Related Literature

Contractualization

Contractualization, in lay man’s term, is an agreement and exercise of

employing a worker who would work for a specific company in a limited amount of
 11

time, normally, for a few months only. This kind of practice has been usually used

by different companies, even involving large corporations, in which the employees

hire contractual workers for a for a finite time only in an aim to perpetuate or make

their revenues up (Hacker, S. 2016). Pinoy Bisnes Ideas 2016, stated that several

lawmakers have been devised contractualization in order to address and tackle

the issue of poor economic growth in the country. Individuals such Od Teroso from

Economic Program at the University of Asia and the Pacific have argued that this

is the right time to end this practice because of the improving status of the

Philippine economics, however, there are also others who have debated that it is

not enough to sustain the country in the long term. Moreover, according to Aya,

2016, contractualization is needed during a crucial time for the company wherein

they have to hire contractual workers for the survival of their company. But the

consequence of that is during their short stay in the company, they get lower wages

than regular workers receive and even no benefits at all.

As stated by Galolo, 2016, contractualization is not entirely bad because it

has it's both good and bad. It is not actually completely unlawful or wrong per se.

While it is widely perceived as a negative practice by many some labor sectors,

the practice is actually globally accepted by many. But the main issue in it is putting

employees or workers in an uncertain and unstable situation that is not acceptable

in a humane society. Lopez et al (as cited in Michelle, 2016) stated that

contractualization may have a lot also both negative effects on the company and,

especially, to the workers. First, the vital reason is that contractual workers are not

getting paid accurately, meaning they are not getting their salaries in full. They are
 12

paid less than those who are regular workers. Aside from that, they are also

deprived of benefits that should be rightfully provided by the company. This is a

clear exploitation of their workers and this shows how they use contractualization

to their advantage. Companies are more on hiring contractual workers just to avoid

providing benefits such as Phil Health, SSS etc. that costs a lot more money and

expense. Thus, an official of the Civil Service Commission (CSC) said that the

government has proposed laws that aim to stop contractualization in the

government. Especially that the rigorous order by the President, Rodrigo Duterte,

administrative order towards the abolishment of the “end of contract” scheme

(endo) is very firm and resistant (Aguilar, 2019).

Perception of Contractual Workers

Contractual workers, on the other hand, perceive contractualization as a

means to the decline of their own domain and working situations and conditions.

Although they feel unhappy, resigned and it deeply affects their perception and job

satisfaction and motivation; they feel hopeless and incompetent in changing their

working conditions (Angeles, 2016). As stated by Azucena, 2016, contractual

workers are also subjected to uncertainty in which institutions can help and raise

their concerns about their plight and concerns to their well-being as employees.

Thus, workers or employees wish to have a system that distinguishes fair and

equal rights with their specialized skills and own expectations.

As stated by Vega and Cainglet, 2018, The conflict perception of contractual

workers towards contractualization plays a crucial role in how it affects their

satisfaction, inspiration, job condition etc. of contractual employees. With the

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numerous and continuous arising in numbers related to contractual-job related

employment in the Philippines not just in blue-collar workers but also towards

white-collar or professional employees as well, this is an obvious issue in our

society and there is a need for some intervention for the betterment of the

marginalized sector in our country and to uphold the rights and well-being of

contractual employees.

Welfare of contractual Employees

According to Ramos et al. (as cited in Wanderu, 2018), the welfare and

working conditions of contractual employees are very crucial because they lack

bargaining power, have little or no social security and benefits received from their

respective companies. They are even compromised to hazardous jobs which

mostly results in overworked employees. Furthermore, since they are only

temporary workers, the employers do not provide proper training and supervision

for them. These rise to a risk to their health and being as an individual. Therefore,

contractual employees are prone to work stress and may suffer physical and

mental weakening. In which can result in sickness and may lead to absenteeism

of the contractual workers. Contractual workers also lack tenure of salaries

received and overtime pay that hinders their right as a human being. Benefits, such

as Phil Health and SSS and other incentives are not provided, as it is a significant

driving force for an employee’s performance and development.

Moreover, according to National Anti-Poverty Commission (NAPC), 2018

discovers that contractualization cause violations of women’s rights. Contractual

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women workers who have inadequate knowledge for their rights make them

susceptible to oppression comprising physical and sexual abuse in the workplace.

Related Studies

Contractualization is a timely and prevalent issue in our society today.

Because of this, it garnered a lot of attention from people, especially in the

concerned labor sectors, to investigate the continuous and rapid issue that tackles

and explored about the employment of workers; considering that the majority of

workers in engaged with contractual agreements. There are many researchers

conducted in academic papers which aims, if not eradicate or solve, but to give

probable solutions and suggestions that would lead to the fair and betterment

treatment and working conditions for contractual employees.

A study conducted by Octavio, R. (n.d.) examined how contractualization

mostly affect the employees based on the gathered related studies. Employers

used contractualization as an advantage to exploit their workers. The results

collected shows that contractual employees are usually not getting paid correctly

and accurately that is why they ask for benefits according to their skills and degree

to have a fair and equal salary. Those benefits include all monetary and non-

monetary rewards received by the workers for the performance of their jobs.

However, it is not being implemented which influence and affect their job

satisfaction, behavior, and performance of the contractual employees. With those

poorly paid contractual workers, job strain is created that affects their job

satisfaction and performance.

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A research study found a fairly small proportion of temporary employees

said they were working in a temporary job because they were not able to find a

suitable permanent job, 13 percent. However, a considerably larger cluster, 40

percent, indicated they might ideally like a permanent job. Most of the other 60

percent preferred to work in a temporary job (Dixon, 2013, as cited in Albert, 2015).

In a study conducted by Angeles (2014, as cited in Peach 2016), the result states

that contract workers are driven by hopelessness and desperation that is why they

enter jobs just for the sake of being employed and survive even if they would only

earn a small amount of money. This is the time where capitalists and employers

seize this as a way to gain profit from contractualization. Also, this is also a method

to exploit and manipulate their workers due to the low employment rate. Workers

believed that receiving below minimum wage is better than not receiving any

salaries at all. The acquired and collected available studies based on research

results shows how contractualization profoundly affects the perception of workers,

with income below the poverty line, and how these factors affect how they perceive

and affect their job satisfaction, working conditions, and expectations during

employment. In the majority, the data collected and results institute that there are

both positive and negative effects of contractualization towards both the

employees and employers; but most especially to contractual employees, and

these results to either a positive or negative perception and response towards it.

and the capitalists and employers seize this as a way to gain profit from

contractualization.
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Chapter 3

RESEARCH METHODOLOGY

This chapter describes the research design, respondents, environment,

instruments, data gathering procedure, data analysis and sampling procedures

used in this study.

Research Design

The researchers will use a case study design to explore the perception of

contractual workers towards contractualization. The collected data will be gathered

through direct observation, interaction and through interviews in which it is suitable

in terms of examining the synthesis of experiences and emotions of the

respondents. Since the research design to be used is case study, the chosen

respondents will describe in- depth to what are their experiences regarding

contractualization. This will help the researchers to focus on the lives of the

respondents and as told by their own stories as they are the evident representation

of contractualization. The researchers will first ask some personal information in

each respondent to be able to acquire ample data for the study. Moreover, the

researchers will use an interview guide to ensure that the responses are relevant

to the research. The researchers will video and audio record the whole interview

and during the process of the interview, the researchers will takedown notes to the

things they observe in the interview, specifically the facial expressions, body

language and the tone of the respondents while responding to the research

questions.
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Research Respondents

The respondents of this research will be selected contractual workers in

Malate area only. There will be a total of ten respondents or participants in the

research. Some respondents will be coming from the institution of Malate Catholic

School and the other respondents will be contractual workers in selected

companies around Malate area.

Research Environment

One of the research environments will be in MCS, one of the premier

Catholic schools found in Malate, Metro Manila. It is a private PAACSU accredited

institution located in 1030 A. Mabini St. cor. San Andres St. Malate and is

established in 1917. Also, it continues to produce achievers and stay true to its

motto; “True to my Faith”. In addition, selected contractual worker respondents

working outside the institution of Malate Catholic School but within the residence

of Malate Manila will be interviewed for the study.

Research Instruments

The following instruments will be used in the study:

1. Interview Guide

This interview guide will be used to know the respondents’ comments and

feedbacks on contractualization through open-ended questions.

2. Interview
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A semi-structured interview will be used in order to understand further the

perception of contractual workers towards contractualization. The interview will be

conducted by asking open-ended questions to the selected respondents. Thus, the

researchers will be able to obtain a wide range of data regarding the study.

3. Audio Recorder

This will be used with the consent of the respondents and permission to

record all the responses during the interview which will serve as a guide for the

researchers to have an accurate transcribing.

4. Video Recorder

The Video Recording will be conducted with their consent and permission.

The respondents in the video will be blurred to conceal their faces and identity. All

respondents will be anonymous to hide and protect their identity. The video

recording will be used to document the whole interview which will help the

researchers in transcribing the responses correctly and accurately.

Sampling Procedure

The method that the study will be using is a purposive sampling procedure.

Respondents are selected based on the basis that the researchers will be needing;

contractual workers. They are also selected based on their convenience and

availability. Out of the population of contractual workers inside the institution of

Malate Catholic School and establishments located in the research environment,

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10 contractual worker participants will be purposively selected to form the

respondents the study will be needing. They will be chosen based on the type of

work they are into; contractuals, that the study needs.

Data Gathering Procedures

The researchers will first seek for willing and available participants inside

the institution and within Malate area. Once they were able to get the target

participants, they will then get their consent using the consent form that will be

given to them by the researchers. Once the consent is given, they will discuss the

study and its objectives. After which, interview guides will be given in order for

them to prepare for the interview. This is where the researchers will explain the

purpose of the study that they are conducting. In the interview process, the

participants will be the one to decide when and where the interview will take place.

S/he will be the one to choose a convenient place and time for him/her during the

interview process. The respondents will also be assured that their identity will not

exposed during and after the presentation of the findings. This is to observe and

respect the confidentiality and identity of the participants.

During the individual interviews of the respondents, the researchers will

first ask if the respondents will agree if they will audio or video record the interview.

Once the respondent has made a decision, the researchers will then either audio

or video record the interview process and keenly observe the responses of the

participants; they will particularly take note of how the of the tone, body language,
 20

and facial expression of the participant changes during the duration of the

interview. The research questions will be translated, if needed, for the participants

to better understand and answer the research questions. The responses can also

be either in the Filipino or English language, as long as where the participants are

comfortable in conversing. Moreover, the researchers can also add further

questions to the respondents so that the researchers will be able to also add

significant data’s the study may be needing. The interview guide that the

interviewer/s will be using includes open-ended questions regarding the

perceptions of contractual workers towards contractualization that will be of great

help for discovering factors that affects their perceptions towards it.

Data Analysis

The data gathered from this study will be collected, organized and

comprehensively analyzed concerning the perceptions of contractual workers

towards contractualization. In the study, the data perceptions of the respondents

will be gathered through a semi-structured interview, their views and life

experiences will be carefully analyzed in order to further analyze the problem that

the respondents are facing. In addition, comparative analysis will be applied to

analyze the data. It will be used in the research to assess and identify the

similarities and differences of the perceptions of contractual workers on

contractualization in Malate area and to help form patterns to know the reasons

why they differ from one another.

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Chapter 4

PRESENTATION, ANALYSIS, AND INTERPRETATION OF DATA

This chapter discusses the analysis, findings and interpretation of data

gathered from the interview regarding the perceptions of contractual workers

towards contractualization. This aims to explore the perceptions of contractual

workers towards contractualization and to know their views and voices regarding

the topic. The findings are organized and presented based on the research

questions:

1. How do they view contractualization?

2. How does contractualization affect them as contractual workers?

3. What are the problems that they encounter as contractual workers?

4. Does their status as contractual worker help them perceive job

satisfaction?

5. What are their probable suggestions that can help you improve your

status as contractual workers?

How do they view contractualization?

Based on the answers of the respondents, it was found that they have

different views towards contractualization. Respondents have agreed, disagreed

and have a neutral say about the topic of the study. Based on the gathered data,

the majority of the respondents have a negative view of contractualization. Only

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three respondents have a positive view and one respondent that have a neutral

perspective about the topic. While one respondent did not exactly answer the

question because s/he does not want to personally give his/her view regarding the

issue of the study.

According to the findings, it was inferred that the majority of respondents

that disagrees towards contractualiztion are because of the following; they believe

that they should be regularized; especially for those workers who have spent their

working arrangement as contractual workers for a long time. Respondent A said

that “Hmmm hindi ako agree kasi matagal na ako dito sa xx company pero hindi

pa rin ako regular.” (I do not agree because I have been an employee here in xx

company for a long time but I am still a contractual worker). In addition, the

respondents disagree because of the lack of benefits that they should be receiving.

Respondent G stated that, ““kulang kulang sa benefits like walang medical

allowance, wala kang food allowance or kahit transportation allowance and wala

rin yung mga healthcard na katulad na natatanggap ng mga regular” ( The benefits

that we are receiving are insufficient. It lacks medical, food and transportation

allowance, also there is no health card, unlike what regular workers receive) Next

is the insufficient wages that they receive based on their status in life, For example,

Respondent E shared that “bale pwede para sa walang pamilya (yung sweldo),

pero hindi siya sasapat kapag may pamilya ka na”. (The wages that I receive is

enough if I do not have a family of my own, but now that I have, it is insufficient).

Lastly is the lack of security of tenure, this is where workers are not given security
 23

for what job they have now. They can be dismissed within the 3-6-month period of

their employment. Respondent I said that “hindi ako sang ayon kasi hindi mo alam

kung matatanggal ka sa trabaho mo kasi nga ayun nga contractual ka, bale

depende sa agency namin.” (I do not agree because you will not know when will

you be dismissed in your job because you are a contractual worker, and that

depends on our agency). #RRL

On the contrary, the other two respondents have stated their views as to

why they agree on contractualization. Respondent B said that “ A-ah ako agree

ako kasi dito ako nakakakuha ng mga experience na magagamit ko sa susunod

kong trabaho.” (I agree because this is where I gain experiences that I can use in

my other future jobs). Another reason is that “Magagamit ko siya a-as training

ground for improvements.” (It can serve as my training ground for improvements

as a worker) said Respondent F.

Respondent C have shared that s/he has a neutral view about the topic

because s/he believes that contractualization both affects the workers and

employers. S/he said that “ Ah ayun nga, agree naman ako sa contractualization

kasi within 3-6 months nga under probation yon kasi diba titignan yung perfomance

nung worker at kailangan yun ng company, pero tingin ko after non kailangan na

nila i-permanent yung worker at dun ako dumi disagree sa contractualiation, kapag

hindi nila ipe-permanent yung contractual worker after nila matapos yung 3-6
 24

months na under probationary sila.” (I agree with contractualization because the

company will be needing to evaluate their workers for 3-6 months that is why they

are under probationary but I think that they should regularize the worker after that,

and if the employer does not regularize the worker after finishing the 3-6

probationary months, that is where I disagree with contractualization)

One of the respondents was not able to answer the question directly

because s/he does not want to share his/her personal view regarding the topic.

S/he was very careful and has kept saying that it is in the management’s decision

amidst the confidentiality that we have promised since the beginning. Respondent

J said that “ Ayaw ko magbigay ng saloobin ko sa contractualization kasi nasa

management naman lagi ang decision.” (I do not want to give my personal view

regarding contractualization because it is always in the management’s decision.)

Based on the findings of this study, it was evident that the majority of the

selected respondents disagree regarding their view of contractualization. This

means that their view of contractualization is mainly negative. These are because

of the reasons that they want to be regularized, the insufficiency of benefits that

they receive, their insufficient wages and the lack of security of tenure as workers.

Findings confirm the related study conducted by ####

 25

How does contractualization affect them as contractual workers?

According to the findings that have emerged from the study, there are three

answers that have become visible in the study; the majority of the respondents are

affected by contractualization negatively while three of the respondents are

affected positively. Additionally, there is one respondent who answered that s/he

is affected by contractualization both positively and negatively.

The majority of the findings presents that contractualization affects them

negatively because according to them, being a contractual worker is difficult.

Respondent A said, “Hmm mahirap maging contractual lalo na- at mahirap na

maghanap ng panibagong trabaho ngayon.” (It is difficult being a contractual

especially now that it is hard to get employed and find another job). Responded H

also stated that, “Ahmm- mahirap (maging contractual) kasi lalo na at first year

college lang natapos ko at matagal na rin ako sa contractual (sa trabahong ito),

tapos yung pasahuran pa naming parang balewala.” (It is difficult to be a

contractual especially that I was only able to reach first year college and I have

long been a contractual worker in this type of job, also they do not give much

attention to the pay that they give to us). Additionally, respondent I answered that,

“ mahirap din kasi iniisip ko baka bigla akong matanggal, ayun, tas bigla kaming

mawala dito-.”” (It is difficult when I think that I can be dismissed here anytime and

then we will all just abruptly be removed here).

 26

Meanwhile, the three respondents have explained why contractualization

positively affects them. Mostly, their answers are because they are treated well

since they are working at private companies and they give a fair amount of salary

for contractual workers and also because they were able to graduate from college.

Respondent C said that “Maayos yung patakaran dito sa xx company, above

minimum (wage) kami at kapag contractual ka kasi mas flexible kasi diba pwede

ka pang makapili ng ibang trabaho.” (The policies here in this company is okay

especially that they pay us above the minimum wage. Also, being a contractual is

being able to be flexible; because you can always pick another job) **RRL.

Additionally, Respondent F added “Ahmm.. Noong nakapagtapos ako ng college,

ginusto ko talaga na magtrabaho sa corporate world balang araw kaya- naka

tatlong contractual na trabaho na ako and so far okay naman lalo na at private

company ito (pinagtatrabahuhan ko)” (When I was able to graduate in college, I

have long wanted to work in the corporate world and this is actually my third

contractual job, and so far, our condition here is okay especially that the company

I am working in is a private organization).

Based on the majority of their responses, it can be inferred that

contractualization affects contractual workers negatively. This is because of the

experiences that lead them to describe their working conditions as contractual

workers. They have stated that being a contractual worker is difficult to be because

of instances where they were not able to receive their sufficient remuneration for

their service rendered and security of tenure.

 27

What are the problems that they encounter as contractual workers?

The findings gathered from the interviews show that the selected

respondents have encountered problems as contractual workers. These problems

are; their remuneration as contractual workers are insufficient to provide for their

families, the lack of funds to support them in case of emergencies, and their lament

towards the regularization of employees.

The insufficient remuneration received by contractual workers

The remuneration is what the workers receive as payment for the service

rendered to the business. This is where the compensation is given to the workers

and the business is expected to follow the minimum wage implemented by the

Department of Labor (DOLE). *RRL* However, the gathered data from the findings

reveals that one of the problems that respondents face as contractual workers is

the insufficient wages given by the companies and this affects their perception

towards contractualization.

The perception of the respondents towards contractuazalition are affected

by the insufficient remuneration that they receive especially when it comes to the

status the participant is part of; whether they are single, have a family to support

to etc. According to most of the respondents who have their own families to

support, they said that the compensation that they receive as contractual workers

are not enough. According to Respondent H, “Ano para sa akin dahil sa

 28

pamilyadong tao ako, may mga anak na kasi ako, so kulang- hindi talaga sapat

yung sahod ko.” (Because I already have a family, which means I have kids, the

compensation I receive is not really enough). Respondent I also said that

“…Minsan ah.. umaabot ako sa punto na nanghihiram nalang sa mga ano-mga

kaibigan ganun kasi nga kulang yung sweldo ko para sa pamilya ko.” (Sometimes

I get to the point where I borrow money from my friends because my salary is not

enough to support my family). While Respondent B, who is single, said that he

faces problem in terms of saving money “ahmm.. wala tayong naiipon sa sweldo

kasi kung ano lang yung kailangan yun lang yung bibilhin.” (I am unable to save

money because I am only able to buy the necessities that I will really need).

The lack of funds to support them in case of emergencies

Having emergency funds is significant because this is where an allocated

fund is set aside in case of emergencies and unexpected events. It is important for

workers to be able to save money and have emergency funds because they are

prone to accidents and unexpected events while working; especially for labor work.

Moreover, some of the respondents have expressed their dismay that they are

unable to save money because of their low and depressed salaries that they

receive wherein they also do not have health benefits that the employers should

be giving.

Based on the findings, some of the respondents encounter the difficulty of

saving money, especially for emergency purposes. Respondent G “.. Sa sobrang

 29

kulang nung sahod ko, nahihirapan akong magipon lalo na para sa- kunyari pag

may emergency, syempre kasi nga diba wala kaming benefits para dun sa health

benefits namin.” (I have a hard time saving money for emergencies because of the

low salary that I receive and because we do not have health benefits from the

company). Respondent D also shared that “.. minsan sa sobrang stressed sa

trabaho, kunyari nagkaron ka ng sickness ganon-di ka pwede mag leave so pag

contractual ka magaabsent ka and ibabawas yon sa salary mo.” (Sometimes when

you are sick and you are a contractual worker, when you take a leave from work,

that will be immediately deducted in your salary). **RRL PRONE TO SICKNESS

The findings from this study show that contractual workers experience

problems in terms of the need for medical attention and or health benefits.

Because of their low and depressed salaries, the respondents experience

insufficiency in monetary value and this hinders them to save money for

emergencies and this shows how this affects their perception towards

contractualization.

Regularization of employees

Regularized workers are able to complete the probationary period of 3-6

months in companies. This is where they are able to receive benefits that

contractual employees are not able to experience. Majority of the respondents

 30

have voiced out that regularization of employees is the major problem that they

encounter as contractual workers.

Based on the gathered data from the interviews, the majority of the

respondents’ problem is their sought towards regularization. According to

Respondent G, he said that “Hmmm.. syempre iba pa rin kapag conrtractual ka,

may mga natatanggap yung mga regular na hindi namin natatanggap tulad nung

14th month pay and yung benefits like sa Red Cross ganun.” (Ofcourse it is

different when you are a regular worker, you are receiving incentives and benefits

that we, as contractual workers, do not receive like the 14th-month pay and the

Red Cross benefits. Additionally, Respondent A added “..diba syempre lalo na

ngayon may Labor Code na nainano si DOLE na hanggat maaari iregularize yung

mga workers” (Especially now that there is a Labor Code mandated by DOLE that

wants to regularize workers as much as possible).

The findings from this shows that the majority of the respondents view the

regularization of employees as the main problem that they have as contractual

workers. Their lament against this have proven that the need to regularize workers

are immense because this affects how the respondents view contractualization.

According to the gathered findings from the interviews, it has appeared that

the problems that they encounter as contractual workers immensely influences

 31

their perceptions towards contractualization. And these problems will be needing

interventions and immediate plan of action for the betterment of their conditions as

workers and their perceptions.

Does their status as contractual worker help them perceive job satisfaction?

As emerged through the responses of the respondents, the majority of the

participants have answered contractualization is not helpful in helping them

perceive job satisfaction but they have stated reasons why they are motivated and

satisfied at work. The participants have also shared as to why contractualization

does not help them perceive job satisfaction as contractual workers.

According to the data gathered, the reasons why the respondents are

satisfied with their work is because they feel motivated for their families.

Respondent B shared that “Ahhh I think hindi dahil sa contractualization kaya ako

na momotivate eh siguro sa ano sa pamilya ko kaya ko nagagawa yun.” (I think

that contractualization is not the reason why I feel motivated because my family is

the reason why I am able to do this job). While a respondent said that s/he is

satisfied due to working in the government wherein s/he will be regularized after 6

months of under probation. Respondent G have shared “Ah sa government kasi

satisfied ako na contractual kasi continuous yung sa goverment. Continuous kasi

after 6 months na under probation, pwede ka ng maregular.” (I am satisfied

 32

with my work here as a contractual worker because it is continuous. Continuous

because after 6 months of under probation I will be regularized).

On the other hand, Respondent H, who is a single mother, have stated that

she is somehow satisfied with her work as long as she has an income where she

could use to provide the necessities of her children. She said that ““ ahh sa akin

kahit na oh minsan masabi ko ring okay narin sa akin, satisfied ako kahit papano

kesa ano sa wala akong makukuhanang pang araw araw na gastos (para) sa mga

anak ko.” (For me, I can say that I am somehow okay with my work, I am satisfied

to the job I have now rather than having no source of income at all)

For respondents who have shared that contratualization does not help them

perceive job satisfaction as contractual worker, Respondent D said that “... pag

contractual kasi wala kang medical, pag regular kasi dun lang tayo nagkakaron ng

medical benefits na mag po-provide ng health card.” (Contractual workers do not

have medical benefits because only regular workers can receive medical benefits

that provide them health card). Moreover, respondents do not perceive job

satisfaction towards contractualization because of their lack of security of tenure.

For instance, respondent I said that “actually hindi ako satisfied kasi since

contractual ako, madali lang akong tatanggalin sa trabaho.” (Actually, I am not

satisfied with my work as a contractual worker because I can easily get dismissed

by my employer). Additionally, there is one respondent who is unsatisfied to his or

 33

her work because he or she is a minimum wage earner. Respondent B voiced out

his or her lament “hindi ako satisfied kasi kulang yung sweldo ko para sa pamilya

ko.” (I am not satisfied with my work because the pay that I receive are not

adequate for the needs of my family).

With the results from the gathered data, it can be stated that

contractualization does not help contractual workers perceive job satisfaction but

rather it hinders them to perceive contractualization positively because of they are

not able to receive benefits and incentives that will help them be more motivated

and satisfied in their fields of work. Also, it can be inferred that although

contractualization does not help workers to achieve job satisfaction, there are still

factors that helps them be motivated at work as contractuals such as their families

and working environment.

What are your probable suggestions that can help you improve your status

as contractual workers?

The findings from the interviews show that there are several suggestions

from the respondents that can help them improve their status as contractual

workers. Based on the gathered data, majority of the respondents suggests that

there should be an increase on the compensation that they receive. Some

participants have suggested that the lack of benefits should be resolved and

employers should have considerations when regularizing workers.

 34

According to the findings, it was revealed that most of the respondents

implies that the need to increase their wages should be heard. Respondent H said

that “Ahh yung ano sana yung kahit maliit man lang na dagdag sahod sa amin

ganun para naman kahit papano mabawasan naman yung gastusin namin.” (It

would really help if they increase even a small amount of increase can help me

lessen the expenses that I need is atleast a tiny bit of increase to my salary, in this

way it can lessen the expenses we have.)

There are several suggestions that the respondents have expressed during the

interview. Most of them imply the need of increased in/to? their wages. It is said

by Respondent H “okay yung pasahod sa amin. Ahh yung ano sana yung kahit

maliit man lang na dagdag sahod sa amin ganun para naman kahit papano

mabawasan naman yung gastusin namin.” (Our salary here is regularly given.

What I need is atleast a tiny bit of increase to my salaru, in this way it can lessen

the expenses we have.) Furthermore, they propose to add more benefits to all

contractual workers. For instance, Respondent C stated that “Syempre dito kasi

may 14th month unlike sa amin 13 lang tapos syempre wala kaming benefits ng

mga red cross mga ganun.”(Of course, there is 14 month pay here but unlike in

my situation as contractual worker, I only have 13 month pay and because of that

we dont have the benefits such as the red cross etc.) In addition, the

respondents have similarly asked for medical attention or benefits. Respondent E

stated “sana bigyan nila ng mga medical attention kasi yung ibang company

talagang walang nabibigyan ng medical attention lalo na yung mga private

 35

companies.” (I hope they give medical attention because in other companies, no

one gives medical attention especially private companies.) Next is Respondent F

who request to add health assistance and cooperative, he or she said that

“siguro dagdagan nalang yung ibang benefits hindi naman ipapantay sa regular

dagdag lang yun lang naman gaya ng ano lang siguro mga health assistance

mga ganun tsaka yung mga cooperative na pwede kang umutang ng ganitong

halaga kung may emergency ganun.” (Not to be equal with the regular workers

but maybe add more, other benefits. Such as health assistance, just like that and

also cooperative that you can loan in a certain amount of money especially when

it is in emergency situation.) Lastly, the respondent has requested to atleast have

consideration for them to become regularized. Respondent G implored “10 years

na akong contractual tas ano parang wala yung consideration man lang na gawin

kang permanent” ( I am a contractual worker for 10 years and I feel that they dont

have anu consideration for me to become permanent.)

What are their probable suggestions that can help you improve your status

as contractual workers?
 36

Chapter 5

SUMMARY OF FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

Summary of Findings
 37

The researchers draw the following findings based on Chapter 4 where the

data are presented and interpreted. These are presented according to the

sequence of questions in the Statement of the Problem.

There are many answers and stands that emerged for the perceptions of

contractual workers towards contractualization but only three answers came out

above all the responses given which are why there are three themes that are made

out by the answers of the respondents. The first instance is that they agree, based

on their view of contractualization, because contractualization is an avenue and

training ground for them to gain experience and this could be their edge when

applying for another job in a different company. The second instance is that they

strongly disagree towards contractualization, because of their insufficient wages,

lack of benefits and security of tenure. One of the respondents even mentioned

the labor code against contractualization that is signed by our President Rodrigo

Duterte, that aims to regularize contractual workers as much as possible. Also, the

lack of benefits especially the medical attention that they needed is not given to

them. Another is the lack of security of tenure; the worker will not know when will

s/he be dismissed in his/her job. Lastly, there were respondents who had a neutral

stand towards their view of contractualization because according to them, there

are equally positive and negative outcomes of contractualization. One is that it is

positive because aside from the fact that the President has already ordered the

increase of their salary, it is positive because companies now have high standards

in accepting applicants in their establishments and being a contractual would help

 38

an employee gain experiences and improvements. Another is that

contractualization is agreeable because employees are normally set for probation;

they have first to prove their skills and abilities whether or not do they deserve to

be regularized.

For the working conditions as contractual workers, the responses only show

one result but with similar and different reasons based on their own experiences.

All of the 10 respondents answered that their working conditions as contractual

workers are fine, most of it is because they are treated right as contractual workers

and the great bond that is made between them and their coworkers. Also according

to one of the respondents, he is able to provide for his needs and they mostly

answered that there are no problems in their workplace. Except for one, where she

describes her working condition as fine or okay but her management is sometimes

strict. There was also a respondent who stated that his working condition is okay

because he only follows the policies and regulations brought by their management.

On the other hand, the respondents describe their different working

environment wherein they undergo contractualization. Based on their answers,

there are three responses that emerged and stand out. The first occurrence is that

they have experienced a good working environment, mainly because of their

coworkers. They also mention that do not encounter any conflicts in their working
 39

environment. One of the respondents shared that since her officemates are fun to

be with and there is nothing wrong with her work in the company, overall she said

that she has a good working environment. There are also few respondents who

have a different experience to their working environment. They view their working

environment as hard and both good and bad. One respondent explains that he had

a hard time with his working environment due to it is his first time in his job and he

is still not used to it. But after 2 months, he has adapted to his working environment

and does not experience any difficulty. Moreover, there is also one respondent that

shared it is both good and bad, good because his working environment is a perfect

spot with his job and bad because he meets their quota seasonally and not

monthly. As what he has said if they reach the minimum quota, he will receive

incentives or bonus.

In addition, the respondents explain the various reasons that they

experience which affect their motivation at work. Majority of their responses are

similar due to the reason that they are motivated to become regular or

permanent. Just like what one respondent has shared, being regular and

permanent in work makes them acquire benefits such as PhilHealth and security

of tenure. Their salaries also will increase if they will be promoted as regular or

permanent to their work. Another reason why they are motivated is for the sake

of their families and children. They strive to work hard for them to be able to

support the needs and wants of their families. Furthermore, one respondent
 40

shared that she does not demand to become regular, as long as she has a job,

then she is fine with it. The respondent is not fussy to the job people offer to her

because what is more important is that she wants to have a source of income to

be able to provide the necessities of her children.

For the job satisfaction of the respondents towards contractualization,

there are two responses that emerged. One is they are satisfied and not

satisfied. Most of them shared that they are satisfied with their current job.

Satisfied in a way they still complain and demand more. One respondent

explains that he is satisfied but if he will be given a better opportunity, he would

grab and go for it. For the other respondents who are not satisfied with their

work, they said that it is because of the opportunities they can achieve aside of

being a contractual worker only.

CONCLUSIONS

It can be inferred from the findings that there are different views and

factors that affect the perception of contractual workers towards contractualization

according to the responses that are gathered on this study. The contractual
 41

worker’s view or perception towards contractualization is deeply influenced by

various factors. These factors are the following: the type of job they are in, their

educational attainment, their status in life and lastly, their work experience.

The findings of the said factors play a big role in the contractual worker's

motivation, job satisfaction and most especially their perceptions of

contractualization. One of the factors is the type of job they are in; whether the

respondent is working as a private or government employee because according to

the respondents, there is a big difference between working in a private or

government institution. The contractual working in the private sectors has a big

difference when it comes to their given wages as compared to those who are in

the Government. Mostly their wages are above minimum but they have lower

security of tenure as compared to working in the Government sectors. Next is their

educational attainment; whether they are able to graduate college or were

undergraduates. Their educational attainment varies towards their perception

because there is a big difference between college graduates who are contractual

than those who were undergraduates. Those who were able to graduate are mainly

contractuals working in a white-collar job as compared to those undergraduates

who are in the blue-collar sector. The contractuals who are in the white collar job

receive a larger sum of wages as compared to the other and their type of work is

immensely different that is why it affects their perception towards

contractualization. Another factor is their status in life; if the contractual worker is

single, married or a single parent. The results generally are greatly influenced by
 42

their status in life because it depends if they already have a family to provide their

needs or it is only for his/herself; generally, for those who are single and does not

have a family to provide and feed, their perception towards it is in the positive side

because they can provide both their needs and wants as compared to those who

already have a family to feed because their wages are not enough to support their

financial needs. Lastly is their work experience, it affects their perception because

as long as they are treated well, and have a good working experience and

environment, their view towards it is also in a positive way.

Having the findings, it is concluded that the said factors play a big role

in the contractual worker's perceptions towards contractualization. The responses

based on the conducted research shows that it has various view or perceptions

according to the respondents. The views include agreeing, disagreeing and having

a neutral say about the topic. These findings validate the research that

contractualization, though the number of respondents who disagreed is greater

than those who agreed, is not purely bad or have a negative effect in terms of the

contractual worker’s situation and perception because according to the

respondents, it also has good and positive effects to them based on the collected

findings. It can be concluded that each person differs from one another and their

view or stand to contractualization also varies.

RECOMMENDATIONS
 43

Based from the conclusion drawn in this study, the following recommendations

are offered:

1. For the public, they must be aware that contractualization does not purely

affect contractual workers negatively based on the result of the study. There

are also positive view and circumstances where contractual workers have

a positive perception in it, for instance, being a contractual worker helps

them to acquire experience/s that would be of great help for their chosen

future professions. Another, even though they are contractuals, it is still their

source of income to provide their needs every day. They are okay with it as

long as they can provide the needs and necessities of their families even

though it is for a limited time only.

2. For the employers, specifically, those who have contractual workers, if

they will not be able to regularize all their workers, they should take part and

recognize the suggestions that these contractual workers have voiced out,

for instance, the lack of benefits that they are experiencing especially the

medical benefits that should be given to them, must be put in attention and

priority because it is the top most concern and suggestion of the

respondents according to the collected responses.

 44

3. For contractual workers, the study should be beneficial for them as the

conducted research is about their concerns and opinions towards their

betterment as contractual workers. If their employers persist and they are

not treated well, they should not be afraid of seeking other opportunities

because it is their right as workers to fight and seek what makes them

happy and satisfied.

4. For future researchers, it should be a great help for their future researches

as they can acquire and gather pieces of information that may be relevant

in their future study. Especially that contractualization is still implemented

and is continuously a controversial topic.

 45

REFERENCES

Aguilar (2009, April 11). Contractualization wakasan –TUCP. Retrieved from

http://tucp.org.ph/2007/04/contractualization-wakasan-tucp/
 46

Angeles C. (2016). Different views on Contractualization. Retrieved from

https://business.inquirer.net/56467/different-views-on-labor-

contractualization

Cainglet, Vega, Zapata (2012, April 30). A SOCIAL REPRESENTATIONS

STUDY OF CONTRACTUALIZATION. Retrieved from

http://www.academia.edu/14701985/A_SOCIAL_REPRESENTATIONS_S

TUDY_OF_CONTRACTUALIZATION

Aya (2016, August 22). Contractualization Does Not Benefit Our Workers and

The Government. Retrieved from

https://ayapngnbn.wordpress.com/2016/08/22/contractualization-does-not-

benefit-our-workers-and-the-government/

Azucena C. (2016, September 18). Contractualization: Which meaning do we

mean?. Retrieved from

https://business.inquirer.net/215071/contractualization-which-meaning-do-

we-mean

Duterte calls on Congress to end labor contractualization | Philstar.com. (2018,

July 24). Retrieved from

https://www.philstar.com/headlines/2018/07/24/1836355/duterte-calls-

congress-end-labor-contractualization

Galolo J. (2016). Mixed stand on contractual labor. Retrieved from

https://www.sunstar.com.ph/article/70952
 47

Hacker, S. (2016, November 25) All You Need to Know About Contractualization.

Retrieved from http://asiapro.coop/contractualization-all-need-know/

Kagan, J. (2019). Emergency Fund. Retrieved from

https://www.investopedia.com/terms/e/emergency_fund.asp

Lopez et al (as cited in Michelle, 2016, November 28). Contractualization fight

threatens Japanese firm's expansion: Lopez. Retrieved from

https://news.abs-cbn.com/business/11/28/16/contractualization-fight-

threatens-japanese-firms-expansion-lopez

Philippines Archives - Bulatlat. (2016, July 16). Contractual workers in the gov’t

push for security of tenure for non-regular employees. Retrieved from

http://bulatlat.com/main/tag/contractualization-in-the-philippines/

Rey, A. (2018). New Metro Manila minimum wage set at P500 to P537. Retrieved

from https://www.rappler.com/nation/215947-new-metro-manila-minimum-

wage-500-to-537-pesos

Octavio, R. (n.d.). Thesis Revised. Retrieved from

https://www.scribd.com/document/326847019/Thesis-Revised

The Pros and Cons of Contractualization | Pinoy Bisnes Ideas. (2016, October

15). Retrieved from https://www.pinoybisnes.com/others/the-pros-and-

cons-of-contractualization/

What You Need To Know About Contractualization And End Of Contract -

eCompareMo. (n.d.). Retrieved from

 48

https://www.ecomparemo.com/info/what-you-need-to-know-about-

contractualization-and-end-of-contract/

Selznick P. (1969). Law, Society and Industrial Justice, pp 52-62; Collins H. (1999),
Regulating Contracts Ch. 2.

APPENDIX
 49

Appendix A

Consent Letter

November 26, 2018

Dear ___________________,

Praised be Jesus and Mary!

We are researchers from Grade 12-St. Matthew of Malate Catholic

School. You are invited to participate in a research project entitled
“Contractualization: Perceptions of Contractual Workers.” This study aims to
explore the perception of contractual workers in Malate area towards
contractualization.

In this study, we will be conducting an interview to ask you questions

regarding your perceptions towards contractualization. This will require you about
1-2 hours of your time. The interview will be conducted from December 10-14 at
your preferred time and place and will be audio-recorded or video recorded with
your permission.

There are no anticipated risks from participating in this study.

Rest assured that we will be taking the necessary steps to protect your
anonymity and identity. During the interview, the researchers will blur your face in
order to hide your identity. Also, pseudonyms will be used instead of your real
name during the presentation of findings.

Your participation in this study is voluntary. You may refuse without any
consequence.
Your help is very much appreciated.
 50

Sincerely,
Bianca Englatiera
Marian Mallari
Jamie Lorenzo
William Luchavez

Noted by:

Ms. Maria Grizel D. Ragandang

Practical Research Teacher
________________________________________________________________
Participant’s Consent
___ I consent to participate in this study.
___ I consent that the interview with me will be audio-recorded/ video-recorded.
___ I am sorry, I refuse to participate in this study.
___ I am sorry, I do not consent that the interview will be audio-recorded/video-
recorded.
________________________________ _____________________
Participant’s Name and Signature Date

Appendix B
 51

Interview Guide

Malate Catholic School

S.Y 2018-2019
Senior High School Department
Practical Research 2

“ Contractualization: Perceptions of Contractual Workers”

Englatiera, Bianca A.

Mallari, Marian T.

Lorenzo, Jamie Ann C.

Luchavez, William

INTERVIEW GUIDE

1. When did you become a contractual worker?

2. Why did you choose this profession?
3. In your own opinion, is your salary enough for you needs?
4. Have you faced problems because of being a contractual worker?
5. How do you view contractualization?
6. How will you describe your working conditions as contractual workers?
7. How will you describe your working environment as contractual workers?
8. Does their status as contractual workers increase their motivation?

*Additional questions may be asked by the interviewer during the interview*

52