End contractualization & ‘endo’ by reforming anti-business & anti-worker labor laws
Thanks to Harvard alumni IT executive Benedict Carandang (son of Philippine Chamber of Commerce and Industry official Marivel Carandang), University of Perpetual Help president Anthony Tamayo and Forbes magazine managing editor Lala Rimando for inviting me to the April 24 presidential debate at the University of Pangasinan in Dagupan City, I was able to observe the five candidates up close and personal. Congratulations also to the excellent organizational skills of ABS-CBN.
Kudos also to the staff of the 88-year-old Dagupeña Restaurant in nearby Calasiao City where we enjoyed a Pangasinan-style dinner up to midnight with affordable prices and good food. I’m a history buff and was delighted to learn that this resto was started by Ignacia Cahoha Bernal as a small carinderia set up to support the schooling of her eight children and it has endured. This is an example of how a humble SME can continue through the vicissitudes of time and the world’s uncertainties as long as the owners uphold consistency and good quality.
One thing I admire in Calasiao that I missed that late night was the famous, delightful and world-class Calasiao puto or steamed rice cakes of its SMEs.
Populist promises to ‘end endo’ are not enough
I can understand that politicians worldwide have to pander to the masses by promising heaven and earth during elections, so I skeptically discount their words and fiery bravado. However, let me caution you about one of their simplistic and wrong promises.
Whether in that debate or other fora, I noticed that media practioners and others often raised the “problem of contractualization” as a valid issue, but often their line of questioning was wrong and most politicos’ replies were also off-tangent! Almost all politicians who have never ventured into business nor managed an enterprise, they’d mouth the disturbing populist line: “We shall abolish contractualization” or “We shall end this system of endo.” Period.
As a small business owner I beseech our politicians to sit down and talk to businesspeople, especially those small- and medium-scale enterprises (SMEs) who provide the bulk of the jobs in the Philippine economy, to understand why contractualization has become a necessary evil and that it cannot be abolished without overhauling our anti-business and anti-worker labor laws!
At a recent “Pandesal Forum” in Kamuning Bakery Café, there were only two politicians who spoke on this issue with a balanced view because they have had personal experience running businesses — young legislators Win Gatchalian and Migz Zubiri. They didn’t pander to the audience with populist words but gave balanced and wholistic answers.
I believe I express the sentiments of many SME entrepreneurs and even big business leaders by saying that I hate contractualization, or hiring employees for less than six months. Why? Because it is not easy to train people for half a year and then lose them, only to retrain all over again. I also know that non-regulars might not have the long-term commitment, loyalty and zeal for work if they know they’re only there for half a year.
Reform labor laws
Why then do we SMEs and big firms resort to this difficult and seemingly “heartless” contractualization option, often relying on labor agencies? It is the fault of our past politicians — many of whom were scions of landlord clans or brats from political dynasties who have never had to run any business, even a sari-sari store — who somehow legislated bizarre anti-business and anti-worker labor laws that make it very difficult for employers to terminate or fire employees, thus making businesses allergic to hiring regulars.
In the world’s oldest constitutional democracy, the USA, or the world’s second biggest economy, the communist state of China, businesspeople can fire any employee for whatever reason as long as he or she is fairly compensated for every year of service in the firm. How come our politicos have institutionalized Philippine labor laws that are worse and more communistic than those of even China or Vietnam?
If our political leaders are really sincere about genuine democracy and ending the chaotic, inefficient and unwieldy contractualization system, thus ending the “endo” nightmares of millions of our workers, then please use political will and common sense to decisively reform our anti-business and ultimately anti-worker labor laws.
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