The notion about job contractualization says that: it eliminates the cost of the

company, through which the cost of labor is minimal; in turn the company will maximize its
profits and incur more investments. However, according to the financial analyst of Hewlett
Packard Enterprise Philippines, Mr. John Christopher Cadiao, even if contractualization will
be abolished, the company will still incur costs that are tantamount to the costs incurred for
contractualization. Simply put, it will not directly affect the financial aspect of companies
that practices contractualization. Though it will not reduce such company costs, considering
the cost-benefit analysis, abolishing contractualization has the capability of generating more
revenue. If the employees felt the assurance of their security needs accompanied with
benefits, it will generate higher internal productivity. Thus, the unfavorable costs of
regularization of all employees will then be covered in the long run.
If we look more on the technical side rather than the financial one, contractualization
reduces the tedious burden of processing such as recruiting and screening. Hence, the
company will be more efficient in doing other things in the management and selling aspects,
without minding the hiring procedures. In addition, the vacancies in the workplace can be
easily replaced if there is a contractualization mainly because firms can look for a
replacement by hiring new ones because there are many people who waits in line to be
hired. Replacement becomes easier when contractualization is applied due to the matter of
trust. Hiring an employee on a regularization basis is burdensome to the employer because
of the uncertainty of the working performance. Assessment is also a huge factor on the
productivity of the company. Some employees couldnt cope up to the companys working
standards thus, contractualization makes it easier for the employers to extinguished
inefficient and ineffective workers.
Contractualization has definitely contributed in our national income and total
employment. Industries are able to hire more employees because the processing
requirements of these wage-earners are less stringent and costly. It creates more job
opportunities that goes under the short-term employment and hence, contributing to the
national income. The use of temporary workers is growing rapidly. It has spread across
industriesfrom manufacturing to services and other occupations, including construction
workers, registered nurses, bankers, information technologists. The number of companies

using temporary workers was on the increase as global competition increased and the urge to
cut down on costs of undertaking businesses in order to remain competitive rises.
If Job contractualization is ended, the unemployment rate will be higher due to the
higher requirement of the industries to hire regular employees. Stringent requirements are
intended to protect their business on having workers that do not have the skills the company
needed. These industries will also suffer from higher costs by providing tenure and benefits
to employees. The labor productivity growth will be affected since there will be an
improvement in the workers real wages and benefits. The improvement of these earnings
also contributes to the poverty reduction. If these slave-wages will be removed and replaced
by a higher and just compensation, it will increase the purchasing power of the people thus,
adding up to consumption and contributing to the economic growth.
Although, some companies reduces their cost by saving up benefits that are only
intended to regular workers, having temporary workers also results to temporary
assignments. Thus, creating more adjustments in the part of the employers. The costs that
will be assumed are for training needs in which no matter how skilled or unskilled an
employee is, there will always be protocols needed before assigning tasks. If every after six
months, the company will spend training costs, and then these will also be a disadvantage in
the long run. Same goes with their morale issues which affects motivation and productivity.
If the working environment consists of regular and non-regular employees, doing the same
exact job but getting different rewards, then there will be comparisons on benefits and
wages. Non-regular workers may feel inferior, thus; becoming less efficient and productive
due to unfairness. Lastly, legal concerns are now on the talks in the Philippines due to
injustice treatment and violence attributed to these temporary workers.
Not in all cases that employees benefit on contractualization extinguishment. Ms.
Esperanza Escape, supervisor of Enchanted Kingdom, says that Contractualization is a
drawback to the employees and the economy as a whole. The assurance or guarantee of
employment is reduced due to the higher requirements that will be set by the employers.
Hence, producing more unemployed or unqualified citizens.