One of the ticklish issues that will confront the Duterte administration when its term

finally commences at midday of June 30, 2016 is the continued existence or demise
of job contractualization. Despite several attempts to weed out this very
contentious labor scheme, it has remained in effect until now.

The capitalist nature of the outgoing regime has not given emphasis on this
supposed anti-poor policy of employment for reasons that may be both beneficial
and otherwise to labor matters and stakeholders. But then we also have to
acknowledge that many investors deem it wise to put their money in the Philippines
because of the relatively cheaper labor cost, which to an extent is brought about by
contractualization.

The termination of endo(end of contract) as a campaign promise of incoming

president Rodrigo Duterte will create various repercussions to the Philippine
economy. The labor force especially the proletariat sees endo as a tool of the
capitalist to manipulate and exploit the vulnerability of laborers. The laborers, as an
offshoot of prolonged unemployment and uncompetitive nature, would rather
accept a below par employment contract without full benefits enjoyed by a regular
worker than have no paid employment.

The termination of endo(end of contract) as a campaign promise of incoming

president Rodrigo Duterte will create various repercussions to the Philippine
economy. The labor force especially the proletariat sees endo as a tool of the
capitalist to manipulate and exploit the vulnerability of laborers.
Although there are legal implications of endo because a company cannot just
practice labor contracting wittingly or unwittingly without having in their company a
roster of regular employees, it has nonetheless contributed a lot to the total
employment and national income by way of short-term employment opportunities.
While endo has deprived many laborers of the opportunity to enjoy the full benefit
of being a regular employee, the stringent measure normally applied to a regular
applicant is relaxed in favor of an endo worker, resulting in a bigger participation of
the entire employment sector.

Cancellation of endo would most likely post stringent requirements for the
employers before new regular employees may be hired. Hiring regular employees in
favor of contractual employees, we have to admit, entails a lot of costs perhaps
more than double than what a contractual employee will get sans benefits. Although
this author would not favor a full implementation of contractualization, but the

thought of full cancellation of the same would accelerate the unemployment

statistics that we currently have.

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Logic tells us that you cannot force the employers to give what they do not have.
Much less force them to hire regular employees to fill in job vacancies. To escape
from the responsibility of carrying the load and additional cost of hiring regular
manpower, firms would rather overload their current roster of regular employees
with work in lieu of hiring regular employees.

To escape from the responsibility of carrying the load and additional cost of hiring
regular manpower, firms would rather overload their current roster of regular
employees with work in lieu of hiring regular employees.
This is the most plausible scenario that may transpire if the government will go for
the full prohibition of contractualization. Prudence dictates that contractualization
should still exist in a case to case basis but with government regulation to avoid
abuses by the employers. Firms in the infancy stage should be allowed to some
extent to hire contractual employees until such time that firms can exist on its own
and be stable enough to weather the challenges of investment risks.

Firms in the infancy stage should be allowed to some extent to hire contractual
employees until such time that firms can exist on its own and be stable enough to
weather the challenges of investment risks.
Unemployment and economic growth

With the current data on unemployment which stands at 5.8 percent, the incoming
administration under the leadership of presumptive president Duterte stands to
inherit around 3.48 million people who are unemployed. This practically puts to
naught the 6.9 percent GDP growth the country was able to accomplish in the 1st
quarter of 2016.

The growth component was mainly consumer-driven fuelled primarily by election

spending estimated to be within P10-12 billion. This amount of fund injection
created temporary employment opportunities that generated an income that
contributed to the 1st quarter growth rate. This, however, is a short-term economic
bliss that after certain honeymoon period will go back to its previous dilemma of
exclusive growth, an economy reserved for the ruling oligarchy.

Countless growth have been experienced but the people who consider themselves
poor remain unyielding, the number of unemployed remain at more than 3 million.
Graft and corruption remain unmoved, putting it in the upper index of most corrupt
nations of the world.

Tall order

Despite the tall order that awaits the incoming Duterte regime, the resounding
mandate that he received during the last election puts to emphasis the peoples
high trust in his leadership. One thing going for the incoming president that perhaps
distinguishes him from his predecessor is the fact that he approaches the nations
problem with coolness and serenity. If you are in this mood, it is most likely you
will make a good account of yourself and your decision.

His micro approach to the problem as exemplified by the news item he heard about
the group of pushers arrested in Tanauan, Batangas. The pushers were made to
parade in the streets as if to imitate the traditional Flores de mayo but this time
renamed Flores de Pusher, for purposes of putting them to shame for their
criminal acts.

Perhaps in jest, incoming president Duterte made pronouncements that these

people may have been dead if he was in the position of the mayor. His ability to put
premium and emphasis even for this simple police matters if he continues doing it
during his term, will endear him to people. It shows that he does not want himself
isolated from the most basic problem of the society the society that elected him
and catapulted him to the highest position of the land.

His ability to put premium and emphasis even for this simple police matters if he
continues doing it during his term, will endear him to people. It shows that he does

not want himself isolated from the most basic problem of the society the society
that elected him and catapulted him to the highest position of the land.