Manila–Since contractualization has become a trend in Filipino employment, Senatorial Candidate Cesar Montano said that he would regulate such a trend if given the chance to serve in the halls of the Senate so that he can make situations more favorable to laborers.
He will create and sponsor a bill called the Contractualization Regulation Act. Some key provisions that he is looking at is the inclusion of social service benefits (SSS, GSIS, etc) in the pay of employees. He also wants to regulate this practice to
large, financially-stable companies by setting limits and having these companies declare their financial position before they be allowed to adopt the contractual setup on a temporary basis. Lastly, to put teeth to the law, he seeks to institute financial disincentive and criminal charges to companies found guilty of breaking this law.
He explained that hiring workers on a contractual basis has become a permanent cost-saving measure by companies. “In reality, companies should only adopt contractualization to evade closure due to low income, but now, even the top grossing companies in the Philippines practice this to take advantage of the lack of opportunity and the existing unemployment and
underemployment in the country”, he said.
With contractualization, companies reduce cost by not paying for the employees’ benefits like SSS/GSIS, Philhealth and Pag-Ibig Fund and other infractions. They also do not have to worry about security of tenure of laborers and large labor unions since contractual employees are not allowed by law to join one. The companies also have to abide with less labor
laws with when adapting this kind of setup “In turn, its as if the companies that practice this are having extra sources of revenues. This form of circumvention of our labor laws must be addressed immediately”, Montano added.
Montano said that he is aware that this setup is being practiced by large companies, especially mall corporations. Montano also explained what the employees or laborers feel being under such a setup.