Ending Endo: It’s Complicated

Update:

1. News: No more endo in 2017
2. Feature: Would Ending Endo Contribute To Inclusive Economic Growth?
3. News: DOLE to craft a policy on contractualization based on employer and labor proposals

Is there a quick fix to ending endo?

Duirng the last viewing party of the presidential debate with my Blogwatch and #JuanVote friends, I gave a brief reaction to the presidentiables’ solution to end the endo (short for end of contract for 5 month contract employment, also known as 555). Honestly, it was only Binay and Roxas who seems to have a grasp of the complexity of the problem, at least, based on their time pressured responses. Yesterday, during my walk-xercise at Baywalk, I chanced upon this rally of a  progressive labor group, who were also clamouring for the end of endo.

Labor day 2016, protest rally in Manila

This problem is widely affecting blue collar jobs or employees who have not completed college education. If I remember correctly, this has been an issue since I joined the workforce on 1996. And I believe this will remain unresolved even if the legal loopholes will be addressed because, in my opinion, the problem is not only legal, but also cultural and entrepreneurial. Since I’m no lawyer, I will not discuss the legalese. But I will share my thoughts why ending endo is easier said than done, from an entrepreneur and HR’s perspective.

Endo as cultural problem

My network include entrepreneurs, so during meet-ups, it can’t be avoided discussing this trending topic. A client mentioned an interesting observation. He said, majority of his (blue collar) employees, as soon as they’re regularized, they stopped desiring the next level opportuniy. They’re happy of just having a “regular” job. An HR friend also said it seems Filipinos, are more attuned to service oriented jobs, unfortunately, majority seems to be content, on the entry level position.

Sadly, I have to agree w/ the observations above. What complicates the cultural or mindset problem is that the needs of these people grows- they fall in love, will marry and have kids. And this is where the entrepreneurial problem begins– employees will rely on their company for tenured based bonuses and salary increases, whether they’re performing or not.

Endo as entrepreneurial problem

First and foremost, I believe there are companies who can afford the benefits that goes with regular employment, and should not use the legal loopholes to prevent hiring for regular employment.

Now having said that, there are aspiring entrepreneurs who have good heart (I’ve met a lot of them), who will find it hard to grow and expand, when blue collar employees who have stopped aspiring for professional growth, and just rely on the company to provide for their growing needs.

Yes, these entrepreneurs have instituted productivity based rewards system where performance is measured and rewarded. But at the end of the day, they will still deal with the cultural dimension of the problem.

These entrepreneurs also offered skills enhancement and formal education initiatives. I’ve met also an entrepreneur who even developed a piggy back program, financed and trained their employees to be micro entrepreneurs with the end goal of uplifting their living. But the cultural component, seems to be stronger than the interventions the company provides.

With these, doing business in the country will be difficult bec. industrial peace is not only threatened, but productivity hampered.

I believe exploitation of ordinary workers thru endo should be stopped, and the state should run after companies who intentionally circumvent the law in their favor. But I also believe that we have to address all the components of the problem so we’ll have a solution that is not band-aid, or will not only please one sector.

Do you have a different perspective of the issue? How do you think the endo problem should be addressed?