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Contractualization is one of the leading systems used by capitalists to further exploit and oppress workers. Contractuals directly employed by capitalists or through contractors are ordinarily given three to five month contracts. In hiring contractuals, capitalists are able to circumvent labor laws and standards that grant benefits ordinarily enjoyed by regular workers. Among them are job security, the right to a minimum wage, 13th month pay and others. The system of contractualization is also used to suppress the rights of workers to form unions and to strike. Contractualization worsens the oppression of workers through the following practices: 1. Firing regulars and replacing them with contractuals, or firing regulars and rehiring them as mere contractuals. 2. Hiring contractuals on condition that they do not join unions. Another widespread practice is the use of "contractors" owned by dummies of capitalists or contractors or agencies tightly controlled by, or in cahoots with, capitalists who hire contractuals. Thus, the workers remain under the capitalists� absolute control even as the capitalists exercise the most minimum level of responsibility towards the workers. 3. Maintaining workers as contractuals despite years of working with the company. In spite of many years of service with a company, many contractual workers do not enjoy job security and are merely given new contracts every three to five months. 4. Requiring workers to sign undated or postdated letters of resignation that may be used by capitalists to fire them or serve as a constant threat that they could be fired whenever the capitalist decides on it. 5. Requiring workers to sign blank or doctored payrolls to make it appear that they receive wages higher than what they actually get. Workers are also required to sign agreements ceding all their rights to the capitalist. ![]()
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