Unions in call centers would be “like shooting ourselves in the foot!”

19 January 2010, Quezon City. –While the most affected economic sectors are merely recovering from the global economic crunch, Philippine Business Process Outsourcing (BPO) remains robust. The sector remains as one of the major drivers of growth of the country’s economy.

Last year, the country was awarded the 2009 Offshoring Destination of the Year category at the 4th National Outsourcing Association (NOA) Awards in London. This is the second time that the country won the prestigious award. The first time was in 2007.

According to the Department of Trade and Industry (DTI), the sector is expected to generate up to US$13 billion revenues in 2010. This expansion would mean hiring of up to 900,000 workers.

At a consultation workshop titled “Middle Class and the ICT-Enabled Service Sector: Development Challenges of the Next Wave in Globalization,” held on 19 January 2010 in Quezon City, an extensive discussion on BPOs took place. The program highlighted discussions on how the Philippines can maximize the benefits from the growing industry; how the BPO sector can generate high quality jobs; and what spin-off employment can be created.

The consultation-workshop was held to generate inputs from stakeholders on a proposed research study titled: “Understanding the current wave in globalization: the segmented outcomes of offshore service development in Mumbai and Manila.” The study is analysing the emergence of the offshore service sector in the two cities. It will examine what patterns of expansion of the offshore service sector and transition towards higher value added service activities can be observed in both locations; what segmentation of labor exists in the offshore service sector and what opportunities exist for upward mobility within employment; what role the offshore service sector play in the formation of a “new” middle class in both cities and what role this group has as driver of economic development.

Noting the 17 percent attrition rate in BPOs, particularly in call centers, the TUCP suggested that the proposed research should also look into the welfare and rights of workers. The research should look not only at the employment the industry generates but also how workers’ rights to organize and to bargaining collectively are respected.

A ranking officer of the Business Association of the Philippines (BPAP) responded saying that the industry is putting much effort to improving the image of the country to become the number one offshoring destination. “Allowing workers to organize unions would be like shooting ourselves in the foot,” she says.

TUCP explained that workers’ rights to join unions and bargain collectively are universally accepted principles backed by the Philippine Constitution, the Labor Code of the Philippines and International Labor Organization (ILO) Conventions 87 and 98.

The official later apologized several times for the statement.