More than 600 lose their jobs: Call center closes shop

CEBU, Philippines - Business process outsourcing has been dubbed as a sunshine industry, but to more than 600 employees of a call center, the sun has set for them.

This as a Cebu-based call center company closed shop the other night leaving more than 600 jobless.

Direct Access Corporation, one of the locators at Asiatown I.T. Park in Cebu City suspended its operation effective July 30 for a period of six months due to financial losses.

Notice to employees

Jeffrey Newman, chief operating officer of the company sent notice about the closure to their employees.

The Freeman obtained a copy of the notice, which stated that employees will be notified in writing of the resumption of operations on or before the sixth month.

“If the company could not recover financially, there will be a permanent retrenchment on the sixth month where you will be paid what is due under the Philippine labor laws. Thank you for your continued understanding of the company’s situation,” the notice read.

In a complaint letter, the employees lamented that they were caught off guard with the sudden closure of the company.

The employees said that they expected to receive their salaries last July 16, but did not get any and the management allegedly promised them to pay the salaries excluding night differentials, allowances and incentives the following day.

They were also told that the balance of their salary will be paid on July 23, but they have not received it.

They also alleged that they were told that the giving of allowance will be suspended for four pay periods.

The employees added that there are also inconsistencies in the Social Security System (SSS) and Philippine Health Insurance (Philhealth) remittance of the company.

The employees also did not receive their salaries that would have been due yesterday.

Filing of charges

Sylvio Dorig, speaking on behalf of the 641 workers in an interview with GMA 7’s Balitang Bisdak, said that they are contemplating on filing illegal dismissal charges against the company.

The terminated workers are mostly call center agents.

The group went to Cebu City Hall earlier in the morning to ask for assistance.

Philip Zafra, chief of staff of Mayor Michael Rama, assured to help the distraught workers.

Emmanuel Ferrer, administrative officer of the Department of Labor and Employment-7 said that they already received the complaint of the workers and within 30 days, as mandated under the law, they will try to hear both sides and if no settlement is reached, the labor complaint will be elevated to the National Labor Relations Commission.

Unions at BPOS

Earlier, the country’s biggest labor federation, the Associated Labor Unions-Trade Congress of the Philippines said it will look into organizing BPO workers into unions.

Gerard Seno, who recently assumed as ALU-TUCP national executive vice president, said that the BPO industry has around 300,000 workers nationwide and the figure is expected to double in four years.—/NLQ (FREEMAN)