Chiz : Put an end to labor Contractualization

November 18, 2009

"We hear of employees enticed to take optional retirement and then be replaced by contractual workers. And then we hear of these workers being forced to work beyond the mandated eight-hour workday without overtime pay. These are some of the unacceptable practices that prevail in the workforce today," the senator explained.

He said a contractual worker is usually hired for less than six months after which his services are terminated. The contractual worker cannot be immediately rehired by the same company, which is an affront to "tenurial security" that is provided for in the constitution.

Escudero said putting an end to contractualization is a concrete measure to improve the quality of life of Filipino workers because they will become eligible for social security and health benefits.

"Overtime pay, SSS, and Philhealth benefits are due a regularly employed worker. These are benefits that employers do not have to pay when they have a contractual workforce but which are otherwise supposedly stipulated in the Philippine Constitution," he said.

Putting an end to contractualization will also result in higher revenues for the government, the opposition lawmaker said.

According to the Department of Labor and Employment, there are about 17 million minimum wage workers in the country. There are about 297,614 registered contractual workers in the country.

"If all registered contractual workers were made regular employees, the government ? particularly the SSS and Philhealth ? can earn about P3 billion a year from contributions. This is coverage that will favor contractual workers," he said.

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