ECCP backs contractualization

The European Chamber of Commerce of the Philippines (ECCP) is pushing for the continued practice of contractualization in the country, but urged the administration to exhibit strong political will, particularly against big companies and industry players engaged in its illegal practice.

In a position paper, the ECCP said problems in contractualization need not be addressed by prohibiting it, but by strengthening enforcement of the laws against its abuse.

As such, it supports the government’s thrust in curbing abuse of contractualization of workers in the Philippines.

“The loopholes in the legislative and administrative framework governing contracting should be plugged so that job contracting can be prevented without compromising compliant trilateral contracting that is necessary for the competitiveness of key economic sectors, such as ICT/BPM/ KPM and Maritime, and under certain circumstances which include the case of project-based employees, seasonal workers, and additional staff hired during a temporary surge in business,” the group said.

The ECCP said in order to maintain the competitiveness of the booming ICT/BPM/ KPM sector, there is a need for people with different technical backgrounds for short-to midterm jobs, through contractualization.

“The industry relies on the use of short-term engagements, not just in the Philippines, but at a global level,” the group said.

“Further, it cannot be denied that there are months when demand for certain types of products are high, as in the case of the Christmas season and demand would be lower for other months.

Employers, of course, cannot be expected to retain the same number of employees the whole year round because it is impractical and costly to maintain workers beyond what is needed. As businesses operate on a highly competitive environment, they would not survive if forced to regularize all employees,” it added.

President Duterte on May 1 signed an executive order prohibiting illegal contracting in workplaces, commonly known as end-of-contract or “endo.”

Labor groups have called for a total ban on the practice of contractualization, but such can only be achieved through amendments in the Labor Code.

“Let us not kill the goose that lays the golden egg. Give to businesses what is due to businesses, and give to employees what is due to them,” the ECCP said.

“If under the parameters of the law, an employee is entitled to be regularized, then that employee should be afforded with security of tenure and other benefits that go with being a regular employee. If on the other hand the nature of the job is seasonal, contractual and/ or project-based because of the exigencies of the situation, do not force businesses to take them in as regular employees,” it added.