Contractualization is a practice wherein companies or employers hire workers on a short-term or fixed-term basis without providing them with permanent employment status. This practice has been prevalent in the Philippines for several decades now, and it has become a hot topic of discussion among workers, labor unions, and government officials.
The question of who started contractualization in the Philippines is a contentious issue, as there are several factors that have contributed to its rise. However, it is widely believed that contractualization was first introduced in the country in the 1980s, during the Marcos regime, as a way to boost the country`s economy and attract foreign investments.
During this period, the government implemented various economic policies that favored multinational corporations, such as tax breaks, import liberalization, and labor flexibility. One of the ways that companies took advantage of these policies was by hiring workers on a contractual basis, which allowed them to minimize labor costs and avoid providing benefits such as health insurance, paid leave, and retirement benefits.
The practice of contractualization gained momentum during the 1990s, when the government began to implement structural adjustment programs (SAPs) in response to the country`s economic crisis. These programs aimed to reduce government spending and promote private sector growth by deregulating industries, liberalizing trade, and privatizing state-owned enterprises.
As a result of these policies, many workers were laid off from their jobs and replaced by cheaper contract workers who had little job security or benefits. This led to a rise in the number of informal or precarious workers who lacked protection from labor laws and social programs.
In recent years, the government has attempted to regulate contractualization through various policies and laws, such as the Labor Code and the Security of Tenure Bill. However, these efforts have been met with resistance from certain business groups who argue that contractual workers provide flexibility and cost savings for companies.
In conclusion, while it is difficult to pinpoint the exact origin of contractualization in the Philippines, it is clear that it has been a longstanding issue that has affected millions of workers over the years. As the country continues to navigate its economic and social challenges, it is important for stakeholders to work towards a fair and equitable labor system that provides adequate protections and benefits for all workers, regardless of their employment status.