Saturday, November 20, 2010

Contractualization of Labor

How will a company, with a decreasing present ROI as compared to last year, or as the owners or bosses call a losing company, survive for the years to come? The easiest way out of what they call their financial slump, hire contractuals.

Hiring of contractuals, fixed-term employees, temporary employees, or whatever names they are called, is their answer to a company's stagnant income. Not that they're losing big bucks, but their income is not increasing year after year.

What does contractualization of labor means: This simply means that labor is considered one of the raw materials, one of the ingredients in the production process, one of the variable costs. In financial analysis of companies, variable costs are those that vary directly with production or sales. When sales or production is high, manpower is high, and so are the salaries and wages. As sales or production decreases, labor also decreases. In the point of view of an average man, this is just fair, much more in the point of view of the capitalists, playing it fair and square. But if we look deeper, treating labor as a variable cost undermines the nature of labor as human beings, with needs and requirements different from the other ingredients of production.

This is not about humanitarianism, caring and giving favor to labor for humanitarian reasons. This is not the way labor should be treated. Labor is the primary force of the economy of any nation. Without labor, economies will collapse. Without the capitalists, natures' riches are abundant, and mankind will definitely enjoy the gifts of nature, not only the crumbs of the capitalists.

Contractualization should be outlawed. Not only does it degrades labor's essence, but adds insult to injury when the capitalists gain profit in expense of labor.

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