The Ethical Challenges of Temporary Employment: Philippines context.

 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

Health and Safety Solutions Philippines. (n.d.). Workers rights in the Philippines. https://hssphilippines.com/knowledge-base/workers-rights-in-the-philippines/

Department of Labor and Employment (DOLE). (2023). Annual labour market report. Republic of the Philippines.

Department of Budget and Management. (2017). Joint circular extends contracts of COS and job order workers. https://www.dbm.gov.ph/index.php/management-2/658-joint-circular-extends-contracts-of-cos-and-job-order-workers

Philippine Statistics Authority (PSA). (2022). Annual labour and employment statistics. Republic of the Philippines.

Lanzona, L. A. (2019). Human capital development and temporary employment in the Philippines. Philippine Review of Economics, 56(1), 103-126.

Maligalig, R., et al. (2021). Bridging the skills gap: Strategies for inclusive workforce development in the Philippines. Asian Development Bank.

Marasigan, M. L. (2020). The hidden costs of temporary work: A study of health and safety risks in Philippine manufacturing. ILO Asia-Pacific Working Paper Series.

Cilenti, T. (2023, March 22). Can you be paid differently for the same job? Cilenti & Cooper - Overtime Lawyers in NY. https://wagefirm.com/can-you-be-paid-differently-for-the-same-job/

Ofreneo, R. E., & Serrano, M. R. (2021). Strategies for inclusive workplaces in the Philippines: Bridging the temporary-permanent divide. In J. Cooke & K. Fang (Eds.), The Routledge Companion to Inclusive Work Practices in Asia Pacific Contexts (pp. 213-228). Routledge

 

 

Allies and Adversaries create Workplace Politics which Shape Organizational Culture

 Authors: Monette B. Dagupion and Laizel D. Sahagun

Divine Word College of Laoag

Abstract

Organizational Politics, also known as workplace or office politics, can be defined as competition for ideas and strategies that assist decision-making within any organizational structure. It identifies the effort one makes in the organization about one's self-interest and goal accomplishment. Organizational politics shape the organization's culture. This research seeks to establish the allies and the adversaries as the players in the politics of the organization and their effects on the organizational culture. Allies are supportive people who encourage others to have confidence in them and work towards developing a healthy organizational culture. Contrary to allies, adversaries are most likely to build competition or animosity, which may create tension between team members.

Keywords: Allies, Adversaries, Workplace Politics, Office Politics, Organizational Culture, Political Skill

Introduction

Politics is often described as dirty and downplayed by money, but its true essence is all about power, influence, and relationships. It is a radical composition everyone wants to have in life. We set our goals and pursue them; sometimes, we do not get what we wish; that is the life cycle. The bad thing about politics is how the greed of personal interests comes on the way. We often hear that politics does not have allies; they only have common interests.

Organizational or workplace politics is an inescapable aspect of anyone's professional life, which can profoundly impact the internal processes and the company's culture. In this complex system of politics at the workplace, the concepts of allies and adversaries are inevitable influential dynamics that define the organization's culture. Randolph (1985) argued that politics is not always bad; it is simply a tool that people can use for the good of the organization or for personal gain. Darrel Cabarrubias, a Certified Human Resource Professional (CHRP), expressed in an interview with Cosmopolitan Philippines that the discourse of Organizational Behavior affirms that politics in the workplace is a reality.   The research of Olorunleke (2015) suggests several factors that lead to workplace politics: high hierarchy, uncertain environment, ambiguity of goals, and others (Olorunleke, 2015).

Far from being a modern phenomenon, workplace politics is as old as work, a natural development of human interaction in structured environments. Abun (2022) states that political behaviour is part of human nature as a political animal. Djuric (1979) pointed out that our human behaviour is motivated by self-interest provides us with the capability of selfishness to reach our personal goals.

Associating politics within the workplace has its own good and bad side. If we allow only power and influence to secure a seat, chaos will be unleashed. Office politics may seem arrogant and unsatisfying, but it has its dynamics, whether upright or corrupt. The main concerns with workplace politics are how this scheme affects the organization and its employees and its benefits and drawbacks.

Learning more about organizational politics is essential as business environments become more competitive and dynamic. Business structures are not only a system of formal management positions and defined lines of authority but also feature subtle political dynamics that can considerably influence decisions and staff promotions. The research aims to explore such dynamics where allies at the workplace build trust and cooperation and help achieve organizational objectives. In contrast, due to conflicting self-interests, adversaries lead to division, rivalry, and toxic organizational culture.

The Concept of Workplace Politics

To support the author's claims, the Management Study Guide states, "Office politics arises when employees tend to misuse their power to gain undue attention and popularity at the workplace." Office politics increases conflicts and tensions and reduces individuals' productivity since they will play nasty to gain attention.

 

Politics in the workplace is an unavoidable part of workplace reality and, therefore, cannot be eliminated. Though it often leads to frustration and conflict, it can be an incredible tool for good when used correctly and with good intentions. Workplace politics cannot be viewed just as self-advancing or self-promoting, that is, enhancing the self at the expense of the rest; instead, it is about improving the appropriate functioning of the workplace. This paper has also found that these currents of influence will continue to grow as organizations and businesses change; therefore, mastering the art of flowing through these currents will be central to the effectiveness of professionals and organizations.

Today, questions arise as to what law is needed to mitigate such schemes in the private sector since the Philippine law mandated the Republic Act No. 6713, which states,  "an act establishing a code of conduct and ethical standards for public officials and employees, to uphold the time-honoured principle of public office being a public trust, granting incentives and rewards for exemplary service, enumerating prohibited acts and transactions and providing penalties for violations thereof and for other purposes."  Although it does not directly point to workplace politics, Section 4, Norms of Conduct, includes justness and sincerity, which are the main issues.

Allies in Workplace Politics

According to Merriam-Webster, an ally is associated with another as a helper, person, or group that helps and supports an ongoing effort, activity, or struggle with a political ally.

Haglund (2023) said, "Alliances arise from states' attempts to maintain a balance of power with each other." This concept concludes that to rise to the top, allies would be the first thing to find in the workplace. The shared common goals would be the stepping stone to success.

Analyzing organizational charts in the workplace can help one understand the informal network. This can be done by discreetly observing employees' interactions and relationships. Finally, one can interpret how influence flows between the parties and whether there are any interpersonal conflicts. One can try to establish one's social network by understanding how existing relationships are built. 

Characteristics of Alliee

Although Workplace Politics connotes adverse reactions, it is a critical skill for success in the work environment and does not have to involve power manipulations, trust issues, or hidden agendas. Mintzberg (1983) advocated political perspectives on organizations and suggested that individuals must possess political skills to be effective in political environments. 

Gerald R. Ferris's Political Skill Theory examines an individual's interpersonal skills. The theory impacts many areas of organizational behaviour, such as leadership, work productivity, career advancement, and coping with pressure. In particular, higher political skill is associated with an increased likelihood of implementing change, finding solutions to conflicts, and encouraging subordinates. 

Based on research, Yeung (2023) defines political skill as "the ability to understand stakeholders effectively and to use such knowledge to influence them and secure resources to achieve organizational and personal goals." We can notice in his article that he did not mention unfairness in politics, as political behaviour can be mutually beneficial. For example, political skills can be used in power networking since spending time at work and developing stronger professional connections with others can significantly attract investors.

How Alliances Are Formed and Maintained

Alliances serve as vital lifelines for professional success and organizational effectiveness. One of the essential facts about these strategic partnerships is that they do not just happen. They are planned and developed over time. Building workplace alliances starts by identifying common ground or finding that one employee has similar abilities. People recognize those who provide backup to their suggestions, have comparable approaches toward work, or have strengths that cover the weaknesses of the former. 

To build one’s social network, one should be friendly with everyone and avoid unnecessary conflicts, but one should not align oneself too closely with one group and another.

After understanding the flow of influence and relationships in the workplace, the next step is to build connections. One can start by looking beyond the immediate team, getting to know influential people, and creating a high-quality connection. 

Positive Impacts of Allies on Organizational Culture

The famous saying 'the enemy of my enemy is my friend' is part of Austrian Psychologist Fritz Heider's social balance theory, introduced in the 1940s. It summarizes a realistic approach to alliances and relationships, particularly in challenging or competitive environments.

This approach fosters tolerance and flexibility when communicating with people. It reminds us that loyalty and allegiance may not always be permanent and that circumstances can create opportunities for new and beneficial connections. This becomes especially useful where flexibility is critical to success in any organization, especially in fluctuating environments.

When corporations maintain good relations, the working environment improves and is enhanced. Workplace support makes the employees feel a sense of belonging and, as such, are happier with their jobs. These conditions can spread good morale in the employer's camp, and everyone stands to gain. It focuses on a more positive work environment and decreases burnout, increasing employees' overall health.

Most alliances can be classified as unofficial manager-trainee relationships that play a role in building an organization's leadership inventory. Since allies work together to empower each other in career enhancement, they encourage lifelong learning. This may result in a more effective pool of leadership and a better organizational culture for talent development.

Thus, the role of allies in creating a positive organizational culture is multi-faceted and can be considered quite influential. These alliances can effectively support the change of culture for collaboration, willingness to share best practices and innovations, as well as employees' satisfaction and the organization's adaptability. However, there is a need to ensure that these alliances are built and managed ethically and, more to the point, complement the organizational culture and objectives. Thus, a well-developed culture of positive alliances can become an essential competitive advantage that will allow for the effective management of an organization's success in the context of the growing complexity of modern business environments.

Characteristics of Adversaries in Workplace Politics

Adversaries are people or organizations that have an opposing relationship with others as much as they have different self-interests and objectives. Such persons can be given to acts of rivalry, deceitfulness, or undermining nature at certain times. Hence, it is widely understood that adversaries can exert a substantial negative impact on the organizational culture; however, their impacts can equally be a catalyst of positive change or improvement. Adversaries in workplace politics can hinder teamwork and cooperation, ultimately affecting the overall productivity and effectiveness of the organization (Mintzberg, 2019).

Adversaries are typically not open to change or collaboration because they are focused on their colleagues as competitors. This adversarial mindset can create a toxic culture where conflict is common and mutual respect is diminished (Mintzberg, 2019). Studies show that adversaries are often found in highly competitive environments where resources are limited, and success is seen as a zero-sum game, leading to a culture of distrust and fear (Buchanan & Badham, 2008).

The Formation of Adversarial Relationships

Adversarial relationships in the workplace form primarily due to conflicting interests, power struggles, or personal grievances. According to Buchanan and Badham (2008), such relationships often emerge in environments where roles are ambiguous, competition for scarce resources, and a lack of transparent communication. This is the case when people feel threatened in a particular environment, and there are people out there who may threaten their leadership or authoritative positions.

As Chisanga (2024) stated in his research, another fundamental cause of organizational politics is ambiguity and uncertainty regarding the organization’s goals, roles, or decision-making processes. Adversarial relationships can be further influenced by ineffective leadership, lack of clear organizational objectives, and organizational culture that encourages competition rather than cooperation. When adversaries have negative attitudes towards others, they think of such people as competitors in their quest for a promotion, thus exhibiting negative behaviours like gossiping, undermining, or sabotaging the targeted individual. In addition, it is crucial to note that adversarial processes may manifest even more during organizational changes or when the conditions are unclear.

Negative Impacts of Adversaries on Organizational Culture

Adversaries can have significant negative impacts on organizational culture. Their actions may result in conflict within the company because of poor communication and distrust among employees, which can reduce collaboration because, according to Khan (2023), collaboration and communication go hand in hand. If employees communicate effectively, collaboration is likely to improve as well.  Likewise, cultures distinguished by a lack of trust will probably not encourage knowledge transfer from the individual to the group or the organization (Bishop et al., 2006), affecting the overall organizational culture.

Adversarial behaviours can cultivate an unhealthy working environment where employees can be uncomfortable expressing themselves or working together. An unhealthy or toxic work environment can lead to stress, conflict, and decreased morale (Chisanga, 2024). Research by Mintzberg (2019) emphasizes that adversarial politics can slow decision-making processes as individuals focus more on personal power struggles than collective goals. Under such conditions, organizational learning and innovation are eroded because employees become reluctant to step out of their comfort zones to share crucial information for fear of receiving an attack from their adversaries.

People involved in organizational politics are associated with negative traits such as deceitfulness, suspicion, rivalry, and self-interest. That can damage the organization's culture and erode trust, cooperation, and effectiveness of strategies and processes. However, understanding adversaries' behaviour enables an organization to implement measures that may nullify such influences. By encouraging openness, welcoming both verbal and non-verbal communication, and promoting teamwork, leaders can effectively manage the actions of adversaries and create a better work environment for everyone involved.

Conclusion

Workplace politics refers to the behaviours exhibited in organizations and affect the relationships between employees as well as the culture of the organization. Politics is usually seen in a negative light as it is linked to power battles and selfish gains. Still, it can equally act as a form of positive transformation, cooperation, and development when practiced with integrity and accountability. This paper analyzed the roles of both allies and adversaries in the context of workplace politics and underscored the essential significance of these roles within an organizational culture.

Allies, as defined by trust, cooperation, and mutual support, assist in creating a positive work culture that emphasizes collaboration, teamwork, and innovation to meet organizational objectives. This way, employees promote a healthy and positive workplace environment where problem-solving is based on good communication and achievements are celebrated.

However, adversaries have opposing self-interests, a sense of competition, and power battles that lead to a toxic workplace. These behaviours lead to manipulation, dishonesty, and rivalry, which leads to a lack of trust, hatred, and collaboration. These adversarial relationships can even harm work in organizations, as they slow decision-making and limit the creativity of new concepts.

It is crucial to know how allies and adversaries affect the workplace environment. Leaders should encourage clear communication and ethical practices to counterproductive behaviours of politically motivated employees by prioritizing the organization’s welfare. Recognizing workplace politics and its positive and negative effects can help create an environment conducive to employee growth and organizational success.

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