Note that in the above case, the employers are the produces of the goods, which is labor, and the capital lists and business owners are the consumer of these goods. Why do many capitalists and business owners practice contractualization? first, this practice decreases their cost because no regular benefits are provided to the contractuals. Second, because the employees contract is subject to renewal on a regular basis (hence, no jobs security) employers seldom practice their right to organization and free expression. A rising out of their grievance is impossible because of fear that their contract may not be removed.

Business owners and capitalists will continue hiring contractuals because of its perceived benefits to their business.