LACK OF JOB SECURITY GETTING WORSE

Let’s be honest with ourselves and confront the harsh realities of the modern job market - job security!

The importance of job security is undeniably crucial for every employee, providing a sense of stability, financial security and the ability to plan for the future. Unfortunately, in this country, we have witnessed a growing tendency among employers to prefer offering renewable contracts for employees instead of permanent positions, a practice that has severely jeopardised job security. The trend of a number of companies, including the country’s government, shifting away from offering permanent contracts to most of their employees and opting instead for renewable contracts is a grave concern that continues to raise many questions among the workforce, as well as the general public.

Why are some companies, and the government itself, choosing to embrace this deeply unsettling shift? What are the implications of this practice specifically for employees, whose livelihoods and long-term financial stability are now at the mercy of potentially short-term, renewable contracts? Is there a sinister agenda, unknown to the public, which is driving this practice?

Exploitative

Are there any plausible reasons, beyond mere financial gain for employers, for this obviously unfair and seemingly exploitative practice? Is there collusion between government and companies in deliberately frustrating the futures of the workforce, specifically contract workers, for reasons that remain obscure? To be brutally honest with the truth, are there elements of exploitation involved in offering workers employment on renewable contracts, perhaps driven by the desire for financial gains and cost-cutting measures? Is there a tacit approval of this practice by the powers that be, a silent complicity that leaves the workforce at the mercy of a system that appears to value profits over the well-being and long-term job security of its employees?

These are the uncomfortable questions that we must confront as we grapple with the growing trend of renewable contracts and the erosion of job security in our country. The future of our workforce, and the economic stability of our society as a whole, hangs in the balance, and it is our collective responsibility to demand answers and seek solutions to this deeply troubling issue. It is crucial that all key stakeholders vigorously discuss this issue and find a lasting solution. This article will explore the possible reasons why companies prefer to offer renewable contracts instead of permanent ones; and the disadvantages for employees, including what policymakers and other stakeholders can do to solve this problem and find a solution that benefits all parties involved.

Based on my investigation, one possible key reason for the transition from permanent to renewable employment contracts is the changing nature of the business world. Firms are operating in highly dynamic, cutthroat and competitive settings, where being adaptable and flexible is vital for success. By offering renewable contracts, companies supposedly gain the ability to adjust their workforce according to evolving business demands. This, it is argued, enables them to effectively manage expenses and react swiftly to market changes without the limitations of permanent employment arrangements.

Another factor I unearthed from my research driving this shift towards renewable contracts is the possible desire for cost control and risk mitigation on the part of employers. Permanent contracts often come with significant financial implications, including severance packages, retirement benefits and other long-term commitments that can be a substantial burden on a company’s balance sheet. By offering renewable contracts instead of permanent employment, companies are able to minimise these fixed financial obligations and allocate resources more flexibly and efficiently.  Additionally, those who opt for renewable contracts argue that these practices grant employers greater workforce management control, as they can selectively renew or terminate contracts based on performance and business requirements.

However, it is essential to acknowledge the potential disadvantages and challenges associated with this shift towards renewable contracts, particularly from the perspective of employees. Let’s not deceive ourselves, employees are the drivers of the business environment - and the economy.  Their welfare, job security and reasonable remuneration, including long-term benefits, is very crucial. One significant downside of contract employment is the impact on employee morale and as mentioned above, including job security. We need to understand that non-permanent employment, while offering flexibility to employers, often places undue burden and uncertainty on workers.  Employees on these renewable contracts face instability and a lack of long-term job prospects, which can be highly stressful and detrimental to their well-being.

The lack of stability and benefits associated with renewable contracts can also make it challenging for employees to maintain a sense of belonging and commitment to the organisation. Without the security of a long-term position, workers may feel detached from the company and less inclined to invest their time and energy into the organisation’s success. This can have a direct impact on productivity, as employees may be less motivated to go the extra mile or to take on additional responsibilities. Overall, the precarious nature of employment without permanent contracts can have far-reaching consequences for both workers and employers.

Addressing this issue and providing more stability and security for employees should be a priority for organisations and policymakers alike, as it can lead to improved financial security, better mental health outcomes and increased employee engagement and retention. Furthermore, the lack of long-term job security and benefits associated with renewable contracts raises concerns about labour rights and fair employment practices, potentially contributing to wider social and economic issues such as income inequality.

Addressing these challenges will require a balanced approach that prioritises employee well-being while maintaining organisational flexibility, through measures such as effective support systems, training programmes and clear communication strategies. The increasing shift to employment of contract workers with low pay poses significant challenges. Contract workers often receive lower compensation than their full-time counterparts, despite performing similar tasks, undermining their financial stability and contributing to broader economic issues. Low pay limits the spending power of contract workers, constraining overall consumer demand and hindering economic growth.

Exacerbate

Additionally, the disparity in financial circumstances between contract workers and full-time employees can exacerbate social inequalities. Addressing these challenges requires a collaborative approach, involving policymakers, employers and stakeholders, to ensure equitable remuneration and enhanced benefits and protections for contract workers. Lest I forget, we have, in my opinion and on paper, a legislative institution, which is, in simpler terms, a Parliamentary institution. Even though the general public has somewhat lost confidence in it, I believe it can play a crucial role in addressing the issue of contract employment. I’m positive that they are reading this article.

The legislature can play a pivotal role in addressing the challenges posed by employers opting for renewable contracts. One potential intervention could involve enacting legislation that sets clear guidelines and limitations on the use of renewable contracts.  Establishing criteria for when renewable contracts are appropriate and ensuring that employees are not unfairly disadvantaged by this arrangement would be a step in the right direction. Moreover, legislative action can focus on enhancing the rights and protection of workers employed under renewable contracts. This could include provisions for severance pay or additional benefits for employees whose contracts are not renewed, as well as measures to prevent discrimination against workers on renewable contracts.

One institution that continues to persistently violate the basic rights and employment conditions of its workers is, perhaps not surprisingly, government itself. This is a deeply concerning issue, as one would expect government, as the leading institution in society, to set a positive example when it comes to fair and equitable labour practices. However, the reality paints a very different picture. Consider the problem of employing teachers on short-term, precarious contracts by the administration. This has been an ongoing issue for many years, despite relentless efforts by unions and advocacy groups to address this injustice. These dedicated professionals, who play a vital role in shaping the minds and futures of our children, are subjected to a severe lack of job security and stability, which inevitably takes a toll on their well-being and ability to effectively carry out their duties.

Despite some sporadic attempts to convert a handful of contract teachers to permanent positions, government has failed to demonstrate a genuine, sustained commitment to resolving this issue once and for all. The challenges faced by these hapless professionals are both numerous and deeply distressing. One teacher, whom we shall refer to as Jane, shared with yours truly a painfully vivid account of the struggles she and her colleagues in the teaching fraternity endure on a daily basis. Jane’s contract began in February 2018, and is typically a two-year arrangement, but it is often renewed late, sometimes as late as March or April.

Since the inception of her contract-based employment, Jane has had to grapple with a multitude of challenges, including the lack of government-provided housing. As a result, she is forced to pay a staggering rent of E750 per month out of her own pocket, a substantial financial burden that inevitably takes a toll on her quality of life and ability to save for the future.
Moreover, the workload at Jane’s school has increased significantly after the departure of a number of teachers, who were never replaced. This has led to an untenable situation where the remaining teachers, including Jane, are expected to shoulder an excessive amount of work, often without adequate compensation or support.

The emotional and physical strain of this situation is immense, as they strive to maintain a high level of educational quality for their students, while navigating the uncertainty and instability of their own employment. This alarming state of affairs within government’s own workforce raises serious questions about the institution’s commitment to upholding the rights and well-being of its employees. If government, the very entity entrusted with safeguarding the welfare of its citizens, fails to lead by example in this regard, it sends a troubling message about the overall state of labour rights and protections in the country.

Urgent and comprehensive action is needed to address this pressing issue and ensure that all workers, including those employed by government, are afforded the basic dignity, security and fair treatment they deserve. A former union leader I spoke to decried the practice of employing workers on renewable contracts This practice, he pointed out, was initially designed for expatriate professionals and those in the higher income brackets. He questioned why those at the lower end of the employment spectrum are being offered such precarious work arrangements. These contract employees have families to support and financial obligations to meet, yet the nature of their employment poses numerous challenges for them.

Another former union representative I interviewed implored workers to take a more proactive stance, peacefully protest and challenge the prevalence of contract employment. He emphasised the inherent disadvantages of this system, highlighting how it compromises the ability of contract employees to effectively advocate for their rights.  Unfortunately in this country, engaging in labour protests poses a significant danger of being beaten to a pulp by law enforcement agencies that do not recognise the fundamental rights of citizens. He also drew my attention to the fact that business executives in influential positions in government, he argued, may be reluctant to address the challenges faced by these contract workers, as it

Unionist

The role of the administration in addressing this issue was also raised. A former trade unionist I spoke to pointed out that the problem of contract employment often gets overlooked when one administration transitions to the next. He noted that the concerns of the job market, including the plight of contract workers, tend to fall through the cracks during these periods of political change, with incoming administrations failing to prioritise the unresolved issues left behind by their predecessors. The stories and perspectives shared in this passage underscore the urgent need for a comprehensive review of the employment practices in the employment industry. The experiences of teachers and workers struggling with the uncertainty and financial instability of contract work highlight the human toll of these policies.

Addressing this issue will require a concerted effort from policymakers, union leaders and the broader community to ensure that all workers, regardless of their employment status, are treated with dignity and provided with the stability and support they deserve. Without any shadow of doubt, the employment sector is a crucial component of any thriving economy, as it provides individuals with the means to earn a livelihood and contribute to the overall economic growth of a country. By comprehending the intricacies and significance of the employment sector, individuals, businesses and policymakers can collaborate to cultivate a vibrant and inclusive economic environment that serves the interests of both workers and employers. Peace! Shalom!

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