I see things are black and white to you.
I find that it would reduce operating expenses even more to hire OJTs that are paid nothing. I also believe it would reduce operating expenses to have 5 great employees rather than 10 lazy @ss people on 6 month contracts.
But you are correct. It is clearly a strategy. Having seen so many filipino businesses without a strategy of any kind I don't find it a bad thing when someone actually has one.
Best Posts in Thread: Duterte ends “Endo”
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Many Companies do not Directly employ people but use Agencies, these can be the main culprits of the 6 month thing. They just send x workers who may do well in the workplace but upset someone in the Agency hierarchy and out you go, This happened to a nephew of my Wifes. he went to the Company and told them. They Took him on Direct.
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You don't really expect employers to admit they are intentionally gaming the system do you? The have to rationalize/justify it so that they can continue to do it.
There are certainly abuses on both sides, but you have to ask yourself where most potential for abuse comes from. The person with the power is clearly the business owner. They have the ability to fire anyone at anytime. I would find it highly coincidently that they would wait 5 months and then do a wholesale replacement of their employees. The seems more like a strategy to me. I assume that a regular employee can still be fired, so working hard for 6 months converting to a regular employee and than taking it easy is not a very smart strategy. ENDO is clearly a strategy that could be used to reduce operating expenses. If the skills needed to do the job can be quickly learned, why not refresh your workforce every 5 months. There are certainly jobs that are project oriented and lend them shelves to temporary/contractual help, but it's not the majority of work.
Now some numbers from Philippine Statistic Authority
Number of ‘endo’ workers on the decline – PSA
Number of non-regular employees in 2016. 1,190,697
Where do they come from:
The bulk or 687,206 of non-regular workers last year were from the service sector particularly in the administrative and support services; wholesale and retail trade; repair of motor vehicles and motorcycles.
The industry sector came in second with 447,320 non-regular workers, while the agriculture sector had the least number with only 56,170
The number of regular workers in 2016: 2,538,081
About 30% of workers are non-regular workers and have been working for less than 6 months. Suspicious?
DOLE reported its campaign has already benefited 116,000 contractual workers.
Out of the beneficiaries, 67,927 have already been regularized by their employers, while the remaining 48,847 are set be regularized in the coming months.
Out of 1,190,697 workers 116,000 were converted to regular workers, so only 10% or the non-regular workers are being converted. Suspicious?
Another good link on how ENDO affects Filipinos.
‘Endo’ in the Philippines
As a side note, it's pretty depressing to see there are only about 3.7M out of a population of over 100M people that are classified as regular and non-regular workers.-
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