Gov’t downplays effect on RP of US anti-BPO bill

Government officials shrugged off fears of a possible displacement of thousands of call center agents in the country as a result of a proposed bill in the United States seeking to stop America from engaging in business process outsourcing (BPO) while the Palace seems totally in the dark about it.

According to Bangko Sentral ng Pilipinas (BSP) deputy governor Diwa Gunigundo, the said measure in the US will not have any adverse effect on the BPO industry in the country.

Malacañang appears to have been caught flatfooted and said it is unaware on a proposed bill pending before the US Congress that would result in the displacement of no less than 1 million Filipinos employed in various BPO firms in the country.

At the press briefing in Malacañang, deputy presidential spokesman Abigail Valte admitted that they haven’t seen or heard of a US legislation dissuading American firms from outsourcing. “Well, in… I have not — First, we’ve not seen a draft of that bill. It’s the first time I’ve actually heard about this but in the form that you presented it, we will have to see its effect,” she said.

A resolution was filed before the US Congress discouraging American firms from outsourcing elsewhere outside the American territory. Reports said that the bill is primarily designed to keep call center business in the US. Moreover, the same report claims that a ban on outsourcing in the US is expected to ease the impact of an economic slump by generating jobs for more Americans.

Valte however agreed that a US congressional bill of that nature would certainly have an adverse impact on the country, which has been banking on the economic contribution of the Philippines-based BPO industry. “Well, obviously magkakaroon ng impact ‘yan sa atin because BPO is one of the major industries now in the Philippines and we have a large part of companies coming from, well, not just in other countries but mainly from the United States.”

A check by The Tribune showed at least 900 business processing firms doing business in the country. The BPO sector and its allied industries also employ some 1.1 million Filipinos, half of which are employed as call center agents. Moreover, the BPO industry has become a top choice for work as the sector has been paying more than the usual rates that conventional businesses in the country can pay.

Valte said that she would personally request for a meeting with the concerned agencies to formulate a plan at least to ease its impact if the pending bill at the US Congress is passed.

“We would have to discuss possibly the implications as well as the concurrent actions that will have to be done. I will speak to our counterparts in the Department of Foreign Affairs for this mainly also in DTI,” she said.

Gunigundo added the BSP expects the local BPO industry to post growth of 15 to 20 percent this year owing to the high demand for Filipino call center agents worldwide. He said Filipino call center agents are affordable and are not argumentative.

“Filipinos don’t charge much and they are not argumentative. This is why Filipinos are preferred than other nationals,” Gunigundo said.

The BSP official explained that with the current economic turmoil plaquing the US, it cannot afford to pay its high labor cost. He expressed confidence that the US will keep on outsourcing its business process and the Philippines would be the beneficiary.

Generating employment for many jobless Filipinos, mostly students, in recent years, the BPO industry posted significant contributions to the economy particularly last year, according to Gunigundo.

On the other, Nicon Fameronag, spokesman of the Department of Labor and Employment (DoLE), said the public need not to worry about the US measure since the BPO industry in the country would continue to grow despite the threat posed by the US measure.

Fameronag said the DoLE has been made aware of the bill as early as October in 2011 and it has taken the necessary precautions to protect the welfare of Filipino workers. Aside from the US, he said the government has found other markets for the local BPO industry.  –Mario F. Fetalino Jr. and Fernan J. Angeles, Daily Tribune