If you are a newly-grad or young worker coming from a province and looking for a fresh job or looking for one for a long time in Metro Manila, there may have been offers but most of them are contractual agreements. Some of you may be hesitant to take on these positions and some have no options but to accept the job. These realities are true to many testimonies of YCW members in Valenzuela City.

YCW-Philippines together with other trade unions and  organizations are advocating for an “ENDO” of the contractualization system in the Philippines. Contractualization is actually bad not just for workers but for all Filipinos. It may be a decade of struggle, but right now, we can still do something about it.

It is always important knowing your rights as a worker. Being aware of these rights, we can better advocate for our well-being and demand decent salary and just work in our workplaces together with other workers.

What is contractualization in the Philippines

It is a kind of employment practice of hiring workers on fixed-term contracts, mostly on a short term basis that  would end before six months are reached, thus the term, “endo” or end of contract. Business establishments want to circumvent a provision in the Labor Code which states that employees who have worked for six months within an enterprise are required to be regularized. 

Contractualization has been a subject of concern and advocacy of YCW for a long period of time. It is inclined  to the campaign of IYCW at international level under the Precarious Work Campaign. For YCW,  contractualization is violating workers’ rights to organize and collectively bargain for higher wages, social security and health benefits, better terms of employment, and safe working conditions. It is putting workers into unfair labor practices and violations of their rights. 

The reality of contractual workers in Valenzuela City

During the Field Mission of Mr. Rony Robiansyah, IYCW-ASPAC Coordinator last August, 2023 he noted some challenging realities of young workers who are working in the factories in Valenzuela.

The competition to find work is very high,  after 2 years of being affected by the Covid-19 pandemic, large numbers of new graduates in the workforce and the lack of job opportunities add to the already existing tight competition of finding work among workers. This situation is an opportunity for multinational companies to recruit  workers for short-term contracts. 

Young workers are usually employed for short period and the employer-employee relationship is distant. Workers do not have direct contact with employers because they are mediated by recruitment agencies. Contractual  workers often do manual work and companies are not paying attention for worker safety. When work accidents occur, workers do not receive fair compensation from their employers.

Some key points of concern among contractual workers in Valenzuela City.

1. Long working hours (10-12 hours)

2. Low income compare to the daily basic expenses (food, transport, rent etc)

3. Unpaid overtime

4. Contractual workers cannot participate and join with trade union

5. Out-sourcing of companies by contracting manpower agencies

6. Some companies are not paying the social security benefits, health insurances and housing benefits

7. No work-no pay even under special holidays

8. Expensive and high standard of requirements in applying for a job

Know your Rights as Contractual Worker: The First Step

The Department of Labor and Employment issued Department Order 18-A, Series of 2011, under Section 8, lists down the rights of workers that every contractual employee should have and should be.

https://www.officialgazette.gov.ph/2011/11/14/dole-department-order-no-18a-11-s-2011/

1. Safe and healthful working conditions

All workers, regardless of status (regular or contractual workers) have the right to work in a safe and healthy environment. Employers have the  legal responsibility to establish and maintain a safe and healthy working condition for workers adhering to occupational health and safety standards (OSH).

2. Service incentive leave, rest days, overtime pay, holiday pay, 13th month pay, and separation pay

Regular or contractual, workers are entitled to receive these benefits according to the labor laws in the Philippines. For example, under Article 94 of the Labor Code “every worker shall be paid his or her regular daily wage on regular holidays, except in retail and service establishments regularly employing less than 10 workers. The employer may require an employee to work on a holiday but such employee shall be paid a compensation equivalent to twice the regular rate.”

These benefits are important for young workers to maintain a decent standard of living and enjoy just compensation of work.

3. Retirement benefits under the SSS or retirement plans of the contractor, if there is any

Every worker, regular or contractual, should have access to the retirement plan and benefits to support them when they get old and stop working. The Social Security System (SSS) contributions of workers should be paid regularly by the employer. Workers must check their salary slip if it is properly deducted from their monthly salary and check the SSS portal online whether their contribution is being made on time.

4. Social security and welfare benefits

Contractual workers should be covered by social security benefits, including health insurance, maternity leave, and disability benefits. These social benefits and protection is important  to guarantee the workers well-being and security during emergency and urgent needs. 

5. Self-organization, collective bargaining and peaceful concerted action

Every worker  has the right to self-organization, to form, join or assist labor unions, to bargain collectively through representatives of their choosing, and to engage in peaceful concerted actions to advocate for their rights and interests. The Philippine Constitution Section 8 guarantees this right of workers and contractual workers are not exempted to these fundamental labor rights.

6. Security of tenure.       

Security of tenure is a right of every worker and is mandated by the laws that protects them from being unjustly terminated from employment by their employers. Security of tenure is an essential aspect of work to have job stability and protection against unfair dismissal without due reason and process.  

Breaking the Taboo about Contractualization

Some groups or individuals may claim that contractualization is actually good for the workers and for the Philippines. Through contractualization, they say, will capacitate employers to increase their profits and expand their businesses thus hiring more contractual workers and contributing to economic growth of the country. Otherwise, If the government abolishes contractualization, for them, many companies will shut down. Shutting down means, the profits of the employer will plummet and many workers will be fired from jobs, and the Philippine economy will fall. But this argument is a capitalistic perspective and self-serving to their businesses only.

In fact, allowing  employers to further exploit workers through contractualization and cheap labor practices affects productivity and reduces the  buying capacity of workers. Thus the cycle of society development is impeded. If more workers are becoming poor, the country will become poorer. Only the gap between the rich and the poor widens. More than that, contractualization weakens workers' solidarity to act collectively.

Educating, Organizing, Mobilizing and Building Network of Workers

YCW Philippines is holding a regular training discussion on Basic Workers' Rights. During the visit of IYCW-ASPAC coordinator, the activity was attended by representatives of YCW-Philippines National Secretariat and invited contractual workers and YCW members in Valenzuela City. It was also attended by network organization Women WISE, an organization working on women workers in the struggle for employment, empowerment and emancipation.

The said formation and training discusses various topics on labor rights issues, right to job, the right to employment and what are the steps to be done if workers rights are violated. Significantly, YCW Philippines and Women Wise agreed to continue to work together in Valenzuela City in organizing and providing awareness and support to the young workers, women workers and workers in general.