One of the most heated issues in the Philippine society today is the topics of contractualization and endo. They were particularly brought into light during the last presidential election, wherein the candidates all promised to end the current malpractice from happening.

How the End of Endo Will Affect the Philippines 1

Contractualization actually refers to companies hiring workers, who provide their services for a limited amount of time only. Usually, they employ them within six months. Endo, on the other hand, is the practice employers do. They fire their employees in order to avoid paying for additional items like their benefits, which they should be receiving upon regularization.

Many people have made their voice known about it. They say that workers deserve to receive proper welfares. However, it is significant to note that the Philippines has had it for a long time, which begs the question: “how will the removal of endo affect the country?”

Regularized employees may be overworked

A number of corporations and companies in the Philippines have relied on contractualization and endo to hire workers when they need to and fire them when they see it fit. This may seem harsh towards one group of people – the employees – but it is also important to acknowledge that people are also behind corporations; and these individuals could be depending on this practice so they do not go over their budget.

Some companies like SM Investments Corporations require more workers during peak seasons like school openings and Christmas. Once the endo law has been enforced, they would be obligated to hire more regular employees even when they do not need them on ordinary days. They may also end up overworking their regular workers, if they decide not to hire more staff members.

The rate of unemployment may rise

One of the possibilities that may happen after the abolishment of endo and contractualization is a high rate of unemployment. Imagine what will happen to contractual workers. They will likely lose the opportunity to a job – albeit a temporary one – once major corporations stop their hiring process.

This possibility is being backed by Rhoda Caliwara, president of PALSCON, who said that outlawing this practice can turn millions of workers into unemployed individuals. Although, Representative Emmeline Aglipay-Villar has countered her claims by saying the endo law will create prevalent job security.

Also, undergraduates may lose out especially since there is a high chance companies will opt to hire more highly skilled employees that have graduated from college.

The job market will become unstable

The Philippine job market is known worldwide for being competitive despite being low-cost. Primarily, this is because companies are able to hire (temporary) workers through the practice of contractualization. If this it is to be removed, then this would mean the country’s job market will become unstable or, worse, become less competitive in the process.

The endo law being proposed at the senate may force companies to hire employees, who are not deserving of regularization, which would mean that the quality of their products and services will go down. Foreign businesses that pay for them may end up going somewhere else. This will, then, result to negative economics.

It is completely understandable that a number of Filipinos are fighting to get rid of endo in the country. Lawmakers are, of course, welcome to enforce an “endo law” but they must be ready to tackle all the issues that could happen once it has been implemented.

About the Author:

How the End of Endo Will Affect the Philippines 2Laurel Santos may be a 24 year old adult but at her core she is just a little girl full of wonder. She lives in the city and works as a freelance photographer in the Philippines. She manages a small pet shop inside her village. She has a big heart for animals, especially stray dogs. She is an avid traveller because she believes that life is not lived within the borders of your own home.  Despite her busy schedule she always finds time to do one thing that she is very passionate about and that is writing.