The right of workers to security of tenure is guaranteed not just by any law, but by the Constitution no less. Indeed, the Philippines is one of the few countries with a security of tenure provision in its Constitution, as well as in its Labor Code.
Security of tenure means the right to continued employment and the right to be protected against dismissal, except for just and authorized cause under conditions required by law.
Under our laws, ideally, good workers could keep their jobs for life if they want to, get paid decent wages and secure the future of their families.
In reality, though, job security is becoming elusive and ambiguous in many workplaces today. Even the government has a hard time defining what it is.
The President has promised to ban contractualization to guarantee workers’ security of tenure. He supposedly had already approved a draft order by the Department of Labor and Employment (DOLE) banning contractualization, which will come out in February.
Labor groups, however, seem unhappy, saying the new DOLE order merely addresses endo or “555”, the practice of repeatedly hiring workers for five months only to circumvent regularization. They want a total ban on contractualization, not another labor department order that will only regulate the practice. They say, although the new DOLE order might ensure that contractors or subcontractors are legitimate, that they have substantial capitalization and will give their workers the right salaries and benefits according to our laws, they will still remain contractual employees.
Indeed, even Labor Secretary Silvestre H. Bello III admits that the new measure is meant to eliminate illegal contractual-employment schemes and ensure that only legitimate contractors can engage in permissible contracting arrangements. He said the government cannot totally prohibit all forms of contractualization without repealing laws that allow contracting activities for business flexibility.
It’s a political and economic tightrope to totally ban all forms of contractualization. Service contracting is now a major driver of economic growth in the Philippines, with an increasing number of companies engaging in contracting and subcontracting. Almost any kind of service or operation is being contracted out nowadays. For many businesses and even for the government, it has become an accepted practice that is part of reducing operational costs. Many regular jobs have become contractual positions. IBON foundation estimates that four out of 10 rank-and-file workers in establishments with 20 or more employees are now hired under various contractual or nonregular employment schemes. Even business-process outsourcing, where the Philippine is a global industry leader, could be considered a form of contractualization. Big corporations routinely outsource and offshore their back-office operations to countries like the Philippines, to reduce costs.
So, should we be happy with the government just ending the endo or
555 practice for now? Well, yes and no.
If you are in the retail business and your company is earning upward of P40 billion every year, then you can certainly well afford to hire regular salespeople in your malls.
If Forbes lists your company among the world’s biggest and richest, then it certainly can’t hurt your bottom line that much to hire regular employees.
The profits of the top 1,000 corporations in the Philippines average over a trillion pesos yearly. Surely, they can afford to provide their employees much more than contractual employment.
Whether you are engaged in mining, telecommunications, power, banking, the service industries or a conglomeration of all these and more, having regular workers with benefits means happier workers who will help you offer better services and boost your profits.
Finding good employees is tough enough. If you manage to find good workers, then try to keep them by making them happy. Give them the right salaries and benefits and they will reward you with good service, loyalty and higher productivity. In the long run, having regular workers can only be good for businesses.
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