A Study on the Effects of “End of Contract” Policy in the Morale and Productivity of Contractual Employees of Yamaha Motor Philippines, Inc. in Batangas

Abstract

Contractualization is a form of employment globally used by firms, especially by commercial and industry, to save costs. Firms may be enjoying the higher return on investment because of fewer costs in training and not really requiring benefits to be given to the contractual employees, yet they overwork or get underpaid. Philippines, as a country with cheap labor, investors are persuaded to vest in the country to give jobs to people and to stabilize the economy. And in return, investments are being returned to the business owners and investors as a fulfillment of their purpose in investing. Following the statement of President Rodrigo Roa Duterte to end contract, Yamaha Motor Philippines, Inc., as a manufacturing firm, might consider the instruction to avoid being closed or shut down, or if not, the most possible thing to be done by the firm is to comprise their employees of 80% regular workers and 20% contractual because of its nature. As a result, contractual employees’ morale and human resource management are affected by the “end of contract” policy in the country. Emotions, attitude, satisfaction, and outlook that comprises employee morale; and hiring, training and development, and compensation and benefits operations of the human resource, effects are presumed. The results of this study will hopefully answer the basic argument of the researchers: if an effect, whether positive or negative, will be felt in the morale and productivity of contractual employees of Yamaha Motor Philippines Inc. This study will be formulated to adjust with the government’s remark regarding the employment of the Filipino people.