Jessa N. Magat and Janice C. Maligsay
Divine
Word College of Laoag
Abstract
This
paper explores the ethical considerations of temporary employment in the
Philippines. This topic further contemplates an upward trend that has greatly
influenced the country's labour or employment market. Based on recent studies,
economic data and market statistics, multidimensional and versatile ethical
challenges are catalyzed by temporary work arrangements and modality. This
includes insecurity of employment, remuneration disparities, limited
opportunity for benefits and professional development programs, as well as the
potentiality for the risk of worker exploitation or unfair labour practice.
It
also tackles the comprehensive impacts on society such as the effects on
community and economic sustainability, communal solidarity, and workplace
culture. By considering these matters, this research aims to impart ideas to
the ongoing discourse on fair labour practices and models for a more equitable and
sustained temporary employment framework.
Keywords: Temporary Workers, Employment, Job Security and Stability, Benefits and Protections of Workers, Career Development Opportunities, Workplace Culture and Employee Morale
Introduction
The Philippine labour market has practised a
significant shift towards irregular forms of employment on temporary and
contractual work arrangements. This is now common in the different sectors of
the economy. Employees who are engaged in the temporary employment service are
in the limelight of this transformation experiencing both the advantages and
disadvantages. The ethical issues of temporary employment continue to be a
growing concern in our community, not only for those who are closely involved
in this industry but for the Filipino community as a whole.
Temporary employment imposes flexibility for both
employers and their workers. It also creates significant ethical questions in
our community. These concerns include the aforementioned job security, access
to benefits, wage disparities, and the potential for exploitation. The
Department of Labor and Employment (DOLE) reports that non-regular workers earn
on average 20% less than their regular counterparts in similar positions (DOLE,
2023). Furthermore, this study suggests that only a small portion of temporary
workers in the Philippines have access to social protection benefits such as
SSS, PhilHealth, and Pag-IBIG, compared to regular employees.
The ethical implications extend beyond the individual
workers affecting the communities in the Philippines. Areas with a high number of
temporary employment often experience greater economic instability and reduced
social harmony. Research from the Philippine Institute for Development Studies
suggests that areas with above-average rates of non-regular employment show
lower rates of household savings and reduced access to credit (PIDS, 2022).
This topic is particularly relevant as we are currently employed under a contract of service arrangement. Our personal experiences underscore the broader implications of temporary employment practices and highlight the urgency of addressing these ethical concerns.
Job Security and Stability
Job
security is the assurance an employee has that they can continue working on
their current job for the foreseeable future. It also means feeling safe from
factors like layoffs, sudden changes in business performance or economic
factors (Herrity, 2023)
One of
the main issues with temporary work is job security and stability, especially
when considering the labour market in the Philippines. The rise in
non-traditional work arrangements or simply temporary employment has resulted
in a dramatic change in the workplace, creating an impact on employees' general
well-being and sense of security.
The
lack of job security associated with temporary employment has considerable
effects on temporary workers. Temporary employees often experience higher
levels of job insecurity, which can lead to increased stress, anxiety, and
reduced job satisfaction. In the Philippine context, this insecurity is
intensified by the practice of "endo" (end-of-contract).
ENDO-contracting/contractualization refers to the situation where a company
hires workers on contracts instead of being hired as regular employees to increase profits (Fisher, 2023).
The
challenges of job security in temporary employment require a complex approach.
The Philippine government has attempted to regulate the use of temporary
contracts through Department Order No. 174-17, which aims to protect workers'
rights and limit abusive contracting practices (DOLE, 2017). However,
enforcement of these policies remains a challenge, and many tend to argue
that more comprehensive labour law reforms are necessary to fully address the
issue of job insecurity in the temporary employment sector.
Benefits and Protections of Workers
Employers
are also required to provide fair wages and benefits, safe and healthy working
conditions, and access to social security and other benefits. Additionally,
workers are protected against discrimination, harassment, and forced labour.
(Workers’ Rights in the Philippines | HSS Philippines, n.d.)
The
inequality in access to benefits and protections between temporary and
permanent workers is equally a significant ethical concern. This inequality not
only affects the immediate well-being of workers but also has long-term
implications for their financial security and overall quality of life.
The
Department of Labor and Employment (DOLE, 2023) reports that only 35% of
temporary workers in the Philippines have access to social security benefits,
compared to 92% of the employees with regular positions. This contrast extends
to other crucial employee benefits such as health insurance, paid leave, and
retirement plans. The lack of these protections leaves temporary workers
vulnerable to financial instability and health risks, intensifying existing
socioeconomic inequalities in the country.
This
issue further requires a multi-stakeholder consideration. Initiatives of the
Civil Service Commission (CSC), the Commission on Audit (COA), and the
Department of Budget and Management (DBM) were amended in Joint Circular No.1, s.
2017 that existing qualified Contract of Service and Job Order workers shall be
considered for appointment to the vacant positions of government agencies
subject to existing civil service laws, rules, and regulations and CSC-approved
Merit Selection Plans.
Wage Disparities in Temporary Employment
Wage
disparities between temporary and permanent workers in the Philippines
represent a significant ethical challenge in the labour market. These
disparities do not only affect individual workers' livelihoods but also have broader
implications for economic inequality and social mobility in the country.
According
to the Philippine Statistics Authority (PSA, 2022), temporary workers earn
about 22% less than their permanent counterparts, even when doing the same job.
This gap is especially noticeable in industries like manufacturing, retail, and
services, which rely heavily on temporary labour.
Cilenti
(2023) states that discrimination happens when employees are paid differently
for doing the same job or work of equal value, based on factors like gender,
race, or age. There are different types of pay discrimination, including:
- Wage discrimination:
This occurs when employees are paid different wages for the same job or
similar work. A common example is the gender pay gap.
- Promotion discrimination:
When employees are denied promotions or advancement opportunities based on
discriminatory factors, leading to lower pay and fewer benefits.
- Benefits discrimination:
This happens when employees receive different benefits, like health
insurance or retirement packages, due to discrimination
Wage disparities require a combination of policy
reinforcement and modifications in corporate practices.
Career Development Opportunities
The limited access to career development opportunities
for temporary workers in the Philippines presents a significant ethical
challenge in the realm of employment as well. This disparity does not only
affect individual career paths but also has broader implications for personnel
development and economic competitiveness.
The reasons for this disparity are difficult to
identify. Many employers are reluctant to invest in training development
programs for their temporary workers due to turnover risks. However, this
short-term approach often results in a less skilled workforce overall,
impacting productivity and innovation (Lanzona, 2019). Moreover, the lack of
career development opportunities can lead to decreased job satisfaction and
motivation among temporary workers, further impairing workplace equality.
The long-term consequences of limited career
development opportunities extend beyond individual workers. Orbeta (2020)
argues that the underinvestment in temporary workers' skills contributes to a
mismatch between labour market needs and workforce capabilities in the
Philippines. This mismatch can hamper economic development and reduce the
country's competitiveness in increasingly knowledge-based global markets.
Some progressive companies in the Philippines have
begun implementing inclusive training programs that encompass both permanent
and temporary workers. As a response, some agencies require their employees
under temporary work arrangements to render service equivalent to the training
period and expenses.
Additionally, government initiatives such as the
Technical Education and Skills Development Authority (TESDA) aim to provide
alternative pathways for skill development.
Potential for Exploitation in Temporary Employment
The precarious nature of temporary employment in the
Philippines creates significant vulnerabilities for workers, increasing the
potential for exploitation. This raises critical ethical concerns about worker
rights, dignity, and fair labour practices.
According to the Department of Labor and Employment
(DOLE, 2023), complaints about unfair labour practices among temporary
workers increased by 28% over the past five years. Common issues include unpaid
overtime, unsafe working conditions, and arbitrary dismissals. The practice of
"endo" (end-of-contract), where workers are repeatedly hired on
short-term contracts to avoid granting them regular status, is particularly
problematic and has been a focus of recent policy debates.
The potential for exploitation is exacerbated by the
power imbalances inherent in temporary employment relationships. A study by
Serrano et al. (2021) found that 67% of temporary workers in the Philippines
reported feeling unable to refuse excessive work hours or dangerous tasks due
to fear of job loss. This vulnerability is particularly acute in sectors with
high concentrations of temporary workers, such as manufacturing, construction,
and domestic work.
The consequences of exploitation extend beyond
individual workers to affect families and communities. Exploitative practices
can lead to physical and mental health issues, financial instability, and
reduced quality of life for workers and their dependents. Moreover, the
normalization of exploitative practices in certain industries can create a
"race to the bottom" in terms of labour standards, potentially
undermining decent work conditions across the economy (Marasigan, 2020).
Effects on Workplace Culture and Employee Morale
The occurrence of temporary employment in the
Philippines has significant implications for workplace culture and employee
morale, raising ethical concerns about organizational cohesion, job
satisfaction, and overall workplace well-being.
Integrating temporary workers into permanent
teams often creates a "two-tier" workforce, potentially leading to
tensions and reduced collaboration. Temporary workers may feel less invested in
the organization's long-term success, while permanent employees might view
their temporary colleagues as competition or threats to their job security.
This dynamic can undermine teamwork, knowledge sharing, and overall
productivity.
The impact on employee morale extends beyond the
workplace. Temporary workers experiencing job insecurity and lower job
satisfaction may carry these stresses into their personal lives, affecting
their overall well-being and their families. This can create a cycle of
reduced engagement and productivity.
Addressing these challenges requires thoughtful
management practices and organizational policies. Some companies in the
Philippines have implemented innovative approaches to bridge the gap between
temporary and permanent workers. These include mentorship programs, inclusive
team-building activities, and clear pathways for temporary workers to
transition to permanent roles (Ofreneo & Serrano, 2021). Additionally,
fostering a culture of transparency and open communication can help alleviate
tensions and promote a more inclusive work environment.
Conclusion
The
research of temporary employment in the Philippines reveals a complex landscape
of ethical challenges that extend far beyond individual worker experiences to
impact entire communities and the broader economy. The occurrence of job
insecurity, wage disparities, limited access to benefits and career development
opportunities, and the potential for exploitation underscores the urgent need
for comprehensive reform in both company policy and practice. Our analysis
highlights several key areas for action, including legislative reform to
strengthen and enforce labour laws, encouraging corporate responsibility through
the adoption of more ethical labour practices, expanding social protection and
access to benefits for temporary workers, implementing broader initiatives for
skills development, developing targeted programs to support affected communities,
and fostering more inclusive organizational practices to improve workplace
culture.
Addressing
these challenges requires a multi-stakeholder approach involving government,
businesses, labour organizations, and civil society. By working towards more
equitable and sustainable models of temporary employment, the Philippines can
balance the need for labour market flexibility with the ethical imperative to
protect workers' rights and well-being. Future research should focus on
evaluating the effectiveness of policy interventions, exploring innovative
models of temporary employment that prioritize worker welfare, and examining
the long-term socioeconomic impacts of temporary employment trends on
Philippine society.
Ultimately, the ethical implications of temporary employment in the Philippines call for a reimagining of labour relations that places human dignity and sustainable development at its core. Only through such a paradigm shift can the country hope to create a more just and equitable labour market that benefits all stakeholders in the long term.
References:
Herrity, J. (2023, May 30). How to increase job security. Indeed Career Guide. https://www.indeed.com/career-advice/career-development/job-security
Department of Labor and Employment (DOLE). (2017). Department Order No. 174-17. Republic of the Philippines.
Fisher, O. (2023). Exposing ENDO: Labor abuse and exploitation on contractual workers in the Philippines. https://digitalcommons.salve.edu/cgi/viewcontent.cgi?article=1144&context=pell_theses
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