Labor Contractualization In The Philippines

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To the contractual workers, labor contractualization is a nuisance since the wages received can be seen as significantly lower than regular workers. It prevents them from progressing faster into a better lifestyle since there is not enough money. Moreover, there have been multiple cases of strikes and walk outs on the side of the workers due to the issue. One of the strikes was back at least 41 years in the past where workers at La Tondeña Distillery in Tondo, Manila were at strike, demanding that more than 1000 of the workers be made regular (Ocampo, 2015). The La Tondeña strikers, who walked off their work stations for two days, won regular status for at least 300 or half of the contractual workers and more recently, the Coca-Cola strikers…show more content…
Individually, these workers will have to go through the stress or worries of having to find another kind of work after five months or so. If not, they’ll have to apply to the same company and still have money only enough for a very limited time. This will make Filipino families who are already nearing the poverty line to completely be in the state of poverty because of the small pay and the possibility of having higher prices in goods due to bad economy. This will pose larger problems to larger families that need a larger amount of money to get through every day of the week. The economy is also affected due to the massive amounts of layoffs of workers at the start of 1990s since regular workers are being replaced by temporary workers. (“Contractualization’s impact on the working class”,…show more content…
442 talks about the contractor and subcontractor. It is written here that “There is labor-only contracting where the person supplying workers to an employer does not have substantial capital or investment in the form of tools, equipment, machineries, work premises, among others, amounting to at least five million pesos (P 5 000 000.00) paid up capital stocks/shares in the case of corporations, partnerships, and cooperatives and at least five million pesos (P5 000 000.00) net worth in case of single proprietorship, and the workers recruited and placed by such person are performing activities which are directly related to the principal business of such employer”. It is said that labor-only contracting may only arise if the contractor doesn’t have a capital of at least five million pesos. This means that as long as the contractor has at least five million pesos, they are prohibited to use labor only contracting. It will prevent the top grossing companies from contracting the employees and it would result to the decrease of rate of contractualization in our country. The employers wouldn’t be able to take advantage of the law anymore because it is clearly written in this section the exact amount of the capital which would be the basis whether they can use labor-only contracting or
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