End to contractualization seen

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Two big labor organizations on Sunday expressed belief that contractualization will finally end under the incoming Duterte administration if President-elect Rodrigo R. Duterte makes good his campaign promise to put an end to the anti-labor practice in the country.

Jose Sonny Matula, president of the Federation of Free Workers (FFW), said ending contractualization “is not impossible if Duterte will take his campaign promise seriously.”

The Partido Manggagawa (PM) also holds the same view as the group’s spokesman, Wilson Fortaleza, told The Manila Times that “policy changes are not only desirable but also doable things.”

During the 90-day campaign, it was Duterte who first attacked contractualization, saying it should not be applied in the Philippines since many workers would end up jobless every five-month period.


In the private sector, this labor scheme is enforced by directly hiring employees for a five-month period only or hiring laborers through manpower agencies.

In the government, it is done through job orders schemes.

The salary of a contractual is lower than the minimum rate and involves no social and monetary benefits like the workers of ill-fated Kentex Manufacturing Corporation in Valenzuela City who received P202 per day.

Records of the Philippine Statistics Authority report that of the

country’s more than 65 million workers, almost 40 million are contractuals.

According to Matula, Congress must amend Article 106 of the Labor Code, which allows contractualization, and that Duterte should also issue an executive order to end all forms of contractualization.

Matula also asserted that DOLE can work on ending contractualizaton without even waiting for the decision of the president.

Fortaleza stressed that effectively ending contractualization will restore the dignity of Filipino workers.

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2 Comments

  1. Juan T. Delacruz on

    Labor Law needs to be restructured and contractualization must end. The need to unionize workers is a must, and this is the only way to protect the employment of the people. Incentives, overtime / holiday pay, bonuses, gender equality, Equal Employment opportunity, discriminations at work places, maternity leave, emergency leave, family wellness leave, and etc. must be addressed and defined. When employment is stable, workers pay their taxes, and make contributions toward their retirements, as well. When foreign businesses, such as manufacturing have plans to move into the country because of cheap labor, the first thing they will study is the “Labor Law” of that particular country, and secondly, the Environmental Law. They (manufacturing company) always wanted the cheapest way to dispose their toxic manufacturing wastes. Philippines is weak in both of these areas.