Trade forum Chris Malazarte A law protecting BPO workers

CEBU, Philippines - The Business Process Outsourcing (BPO) industry is now among the biggest contributors to the national economy. President Aquino blazoned in his recent SONA the impressive milestones that were achieved by the BPO for the last ten years.

“Back in the year 2000, only 5,000 people were employed in this industry. Fast forward to 2011: 638,000 people are employed by BPOs, and the industry has contributed 11 billion dollars to our economy.”, if the employment of the Philippines will increase our economy also increases. In light of these remarkable inroads, P-Noy had already seeded some 500-million yearly to further stimulate its growth in the hope of achieving the 25-billion dollar target by 2016. 

I remember some 10 years ago, I was a bit excited to see the invasion of BPOs in Cebu. I was particularly interested how a call center should run knowing our nuances in language and the way we communicate. At one point, I was also looking at the possibility of finding my future there with all the talks of a handsome pay and generous benefits. But in the face of all the excitement back then, I was among those who were apprehensive about security of tenure that I pondered in my column “What’s next if they fold up and leave the next day?” I had to ask that question because back when I was in the export industry, we were already seeing some locators in the export processing zones leaving. If it could happen to manufacturing, it could also happen easily in the services sector.

I could still draw the confident faces of the technocrats of the Board of Investments when I asked that same question back in 2000. They probably thought that my question was rather silly since BPOs have been known to be resistant to market changes unlike manufacturing which is driven by trends and global competition. Anyway, all they said was that “We just hope for the best and make use of it while there is sunshine.” 

There is something that our technocrats should know about BPOs. Not all BPOs are safe when it comes to workers’ rights and security of tenure. The BPO sector remains one of those that are regulated the least. There are many of them that do not provide SSS and other mandated benefits. Some of them overwork and underpay their employees. While there are those who operate a call center then effortlessly advice their employees to find another job because the account has been terminated by their client. In other words, not all call centers can guarantee the tenure of its employees.  

The recent case of Direct Access is just one to the chagrin and disdain of more than 600 employees who were told that the company just bursts into thin air without a word. And the Labor Department has yet to find out a way to run after its owners to at least help them claim their unpaid salaries. Who would ever expect a call center located at the I.T. Park with such large labor force absconding its responsibility so easily and conveniently drop all their employees like hot potatoes? If it happened to a company as big as Direct Access, the possibility is great that it can happen too to smaller call centers.   

I believe it’s a wake-up call for our policy makers to provide the safety nets in the BPO sector. We need to run after the owners of Direct Access and face the music. We need to tell those in the BPO sector that they can’t just get away with it unscathed.

But more than anything else, a law must be created to protect workers in the BPO. We have been able to pass laws that specifically protect the welfare of civil servants, OFWs, security guards, domestic helpers and other sectors but not a single law for BPO workers. I would like to see a law that would require BPOs to report their financial capability to address the displacement of workers in situations when a contract between a BPO and its client is terminated or not renewed.  

Apart from security of tenure, I would like to see a law that provides ample protection and benefits to mothers working for a BPO or perhaps a law that seeks to provide at least set a minimum health benefit for BPO workers in small centers.

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