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The stiff competition in the economy prompts firms to formulate cost-reduction measures for them to stay with the competition in the market. Currently,cost-reduction or minimization becomes the main artillery of firms in the market wars.Cost-reduction defines as“the reduction of firm’s expenditure on variable inputs such as raw materials, tools and equipment, and manpower” (, 2014). Amongthe inputs, manpower is the most vulnerable part of a business because they are easily replaceable, especially if a surplus of workers exists in the labor market. Hence, manpower becomes the priority of firms in their cost-reduction measures.In order to decrease labor costs, firms resort to labor contracting or subcontracting.

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Title: Examining the “5-5-5” Arrangement in Contractualization: A Study on the Repeated Hiring Practices of Firms in Selected Industries
: Ivan Cassidy F. Villena