2, the House of Representatives passed another version of the Security of Tenure Bill on its third and final reading. That means our livelihood is secured,” she said. And as long as we’re good employees we don’t do any of the ‘just causes’ for termination, then we would still be an employee. “Security of tenure is so important to because it means that we are getting a regular salary every day for a certain period that we’re working. Gana emphasized the value of job security in developing countries like the Philippines, where so much of a citizens’ basic needs are not covered by the government. “They leave it to the government to make sure that employers are looking out for what’s best for them.” “Government should really protect the laborers because they have no bargaining power,” she said. Gana said that ideally, there should be a balance between protecting employers and employees, but also noted that the government ought to prioritize the latter. Now, policymakers face the challenge of protecting employees and closing loopholes that could make them vulnerable to exploitation, while not alienating the businesses that keep the economy running. A law that allows some forms of contractualization won’t satisfy labor groups, while one with a sweeping ban will be against business interests. While the promise to “end endo” was paved with good intentions, it became clear that both a tepid and a sweeping approach to the issue will result in unfavorable outcomes. A study by the Philippine Institute for Development Studies (PIDS) published in 2016 reported that ending contractualization altogether would be more expensive for companies by about 30 to 40 percent. Under the bill, all employees except those defined under probationary, seasonal, or project employment, would be deemed ‘regular.’ But in 2019, Duterte acknowledged that this would “place capital and management at an impossibly difficult predicament with adverse consequences to the Filipino workers in the long-term,” and ultimately vetoed the bill after businesses said that it would be too difficult to follow. For a time, this reassured labor workers that the president was “staying true” to his promise to end endo. In September 2018, Duterte certified as urgent the Security of Tenure Bill, a proposed law against contractualization. But instead of hiring employees full time, per the government’s directive, several of the country’s largest companies chose to lay off around 200,000 workers, according to Ariel Casilao, who represented the pro-labor group Anakpawis in Congress. It’s more like they decided to be stricter.”Īfter Duterte signed the EO, 20 companies suspected of practicing endo were identified and urged to regularize employees on fixed contracts. “I think what changed was the implementation on the part of DOLE. In all the different department orders of DOLE and all the Supreme Court decisions, it has been very clear that endo is prohibited,” Gana said. “From a legal standpoint, his EO was nothing different because it actually just repeats what has been in the law consistently. Critics said the EO “backs employers” and not Filipino workers. They wanted the government to make direct hiring the norm, and labor contracting an exception. Labor groups were disappointed with the EO, saying it was not the draft they prepared, nor did it reflect their negotiations with the Department of Labor and Employment (DOLE). There are certain things are willing to spend on, but they are not willing to spend on labor or their employees,” Dominique Gana, a corporate attorney told VICE World News.Īfter much delay and many amendments, Duterte filed an Executive Order (EO) against contractualization on May 1, 2018, Labor Day. labor is dispensable - it’s not important. The provision was meant to protect workers but companies learned to circumvent it to save money, usually by outsourcing contract workers from an agency. Article 296 of the Philippine Labor Code states that employees who continue to work after a six-month probationary period must be regularized, and as such, given benefits like medical insurance, paid leaves, and security of tenure. After five months, employers rehire employees for another fixed-term, and the cycle 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.
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