Official: Gov’t misled
on contractualization

May 29 2016 3:24 PM

Labor Day construction graphics by LG Elamparo

The government is misled on the issue of contractualization, according to an official of a national group that pushes for contractualization.

Engr. Henry B. Nuqui, vice president of Philippine Association of Legitimate Services Contractors Inc. (Palscon), said that the government must reconsider its plan to ban contractualization during a forum in Makati City recently.

“They are misled. They think that contractualization is end of contract. I think they should take a look at our industry. We are paying taxes and we contribute to the government,” said Nuqui.

Earlier, President-elect Rodrigo Duterte vowed to abolish contractualization so that young professionals could learn the proper skills.

Duterte also said that many young people could not work abroad because they lack the experience.

Palscon has warned that some one million Filipinos will be jobless should the government stop contractualization.

“Removing or banning contractualization would mean taking away productive jobs from one million Filipinos and would set the economy back,” said Rhoda Caliwara, new president of Palscon.

Contractualization is a worldwide trend and generally acceptable labor practice, Caliwara said.

Citing data from the Philippine Statistics Authority, the Philippines employed some 600,000 contractual workers, she said.

In 2015, the number of contractual workers has gone up to 850,000, she added.

“If seasonality, probationary, casual and apprenticeship employment will be included this year, the number of workers that will benefit from contractualization is projected to hit more than one million workers,” Caliwara said.

Caliwara also said that service contracting is seen also to provide decent jobs to many Filipinos in 2016.

Caliwara denied perception that contractualization deprives workers of benefits from government.

“Our members extend benefits such as SSS, PhilHealth, PAG-Ibig, and the mandated 13th month pay. We also follow the required minimum wage set by the National Wages and Productivity Council of the Department of Labor and Employment. Our workers also have the usual leaves and rest days as mandated by the Philippine Labor Code,” she explained.

Caliwara said that Palscon works hand-in-hand with the Department of Labor and Employment and other groups to help protect the Philippine workforce.

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