Understanding The Real Issues on Contractualization and Caaualization

  At the forum today on Understanding the Real Issues on Contractualization

 The first speaker, Atty Vicente Leogardo. Jr Employers Confederation of the Philippine (ECOP) Director-General, tacked the issues surrounding contractualization and importance of this law.The move to outlaw job “contractualization” may increase the ranks of the  unemployed, and put the Philippines at a big disadvantage with its Asean peers

And the second speaker Atty. Josephus Jimenez, 2014 People's Management Association of the Philippines (PMAP) President explained the Eight Inevitable Reasons Why Legitimate Job Contracting Cannot and Should Not be Stopped
 The Philippine Association of legitimate Service Contractors, Inc (PALSCON) emphasized that contractualization is generally acceptable labor practice an is a worldwide trend.

  PALSCON's new president, Rhoda Caliwara pointed out that in the Philippines alone contractual work employed around 600,000 workers in 2015, citing that from the Philippine Statistic Authority In 2015, the total went up to 850,000 workers and if seasonality probationary, casual and apprenticeship employment are to be included this year, the number of workers that will benefit from contratialization is projected to hit more than 1 million workers.



PALSCON's immediate past president Butch Guerrero, said that according to studies done by the Boston Consulting Group, "Contractualization of Service Contracting has helped 61 million workers gain access to the labor market worldwide through the employment and recruitment activities of such companies. The study was commissioned by the International Confederation of Private Employment Service (CIETT) of which PALSCON is an active member.

  Service contracting, according to Caliwara, is seen to provide decent jobs to a large part of the filipino workforce in 2016, it is also a worldwide trend that lets businesses adapt to the cyclical and also downward and upward trends in the market today. "These trends are increasing due the fast-paced business trends being influenced by mobility through technology.
Removing or banning contractualization would mean taking away productive jobs from one million Filipinos and would set the economy back. "Caliwara explained.

Banning contractualization would also increase unemployment rate to unimaginable levels that is likewise counterproductive to the economy. "Removing it  would put the country at a disadvantage vis-a-vis its ASEAN neighbors in this age of globalization and would mean capital flight of the country to neighbors such as Thailand and Vietnam, retorts Guerrero.

Contrary to common perception that contractualization deprives workers of government mandated benefits, Caliwara reiterateds that PALSCON and its members do not abuse Filipino workers' rights. "Our members extend benefits such as SSS, PhilHealth, Pag-Ibig and the mandated 13th month pay. We also follow the required minimum wage set by the National Wages and Productivity Council of the Department of Labor and Employment and our workers also get necessary leaves and rest days as mandated by the Philippine Labor Code."

PALSCON, also works hand-in-hand with DOLE and other concerned groups to help protect the Philippine workforce. In 2011,the DOLE  issued Department Order 18-A which outlawed the so-called "5-5-55 system' where workers are forced to sign short, 5-month employment contracts and thus are not qualified to receive the benefits due them. "Our workers are also at co-terminus with our contract with principals in order to give them longer employability under the conrtuctual agreement. Caliwara adds.

The association also set higher standards in terms of capitalization, registration fess, and safety standards to its members and workers. With the issuance of DO 19-A  and as a result, helped decrease the number of registered service contractors from 22,000 in 1010 sown to almost 5,000 in 2015. And is helping weed out fly-by night contractors who do not have regular offices, are unregstered and do not remit the proper government mandated dues to its workers.

"We assure the public and others who are skeptical at the issue of contractualization that PALSCON will not tolerate such companies who abuse Filipino worrkforce. This stand is at one with other trade unions in the country and is non-negotiable. declare Caliwara.

Visit here: www.palscon.org.