Palace open to Magna Carta for BPOs, as labor bloc dares Miriam to probe sweatshops

Published by rudy Date posted on July 7, 2013

MANILA, Philippines – Malacañang is open in principle to the proposed Magna Carta for Call Center Workers bill refilled by Sen. Miriam Santiago, who had earlier noted that workers in such a robust sector as the business process outsourcing deserve full benefits and rights under the law .

“If it is for the general welfare of those in the business process outsourcing industry, then I doubt that anybody would disagree that we need to look out for their general welfare,” deputy presidential spokesperson Abigail Valte said in a briefing aired over state-run Radyo ng Bayan on Sunday.

Senator Miriam Santiago has refiled the bill amid reports that the BPO industry discourages the formation of unions.

“However, when it comes to the specifics, we’ll have to look at the contents of the proposed bill of Senator Santiago before we can make any comment,” Valte added.

The proposed Magna Carta aims to protect the interest and welfare of call center workers, particularly their rights to association and assembly.

It enforces the rights of call center employees to, among others, organize and join labor organizations; a safe and healthy working environment; and the right for night shift employees to stay in their employer’s premises until daybreak to ensure their safety.

“The right to form labor unions is enshrined in the Constitution, and the country is party to various International Labor Organization conventions and treaties. We cannot truly boast of our BPO industry to the world if it does not comply with the most basic of international labor standards,” Santiago said.

The bill, originally filed in 2010, promotes low attrition rates for the industry and attracts skilled workers to strengthen the local BPO industry, which is expected to generate up to $16 billion and provide 720,000 jobs this year.

“Once touted as a sunshine industry, the country’s BPO industry has the distinction of both contributing to economic growth and sustaining it through the services it offers. It makes perfect sense that Congress should protect this industry,” Santiago said.

Philippine BPO revenues reportedly rose steadily since 2009. Last year alone, BPO companies were said to have raked in $13.5 billion in revenues — 22 percent higher than 2011.

Probe BPO sweatshops, Miriam dared

Meanwhile, a newly formed group of call center workers called on Senator Santiago to investigate what it called “BPO sweatshops” in the interest of protecting workers rights in the industry.

“We welcome Miriam’s proposed bill for call center employees and we are willing to engage her on its provisions. And as step towards its refinement we ask her to hold hearings in aid of legislation about the proliferation of sweatshop labor conditions in the BPO industry. Sweatshop conditions not just stressful work are a problem of BPO employees,” said Sylvio Dorig, spokesperson of Inter-Call Center Association of Workers (ICCAW), in a statement.

ICCAW said it is a DOLE-registered workers association for mutual aid and protection. Dorig cited as concrete examples the plight of employees of Cordia Philippines, a call center based in Cebu City’s Asiatown I.T. Park. Earlier this year some 76 Cordia workers filed cases of illegal closure, non-payment of salaries and non-remittance of their mandated benefits at the Region 7 branch of the National Labor Relations Commission (NLRC).

He also recalled that a group of call center workers in Metro Manila recently complained of underpayment of wages and non-payment of benefits against their former employer, Ortigas-based E-Global International Communications Inc.

With the assistance of the Partido ng Manggagawa (PM), the E-Global workers were able to verify with the Social Security System that the company was not remitting deductions. A notice was sent to E-Global to comply within a month’s time after which a case can then be filed against the company.

PM national chair Renato Magtubo said “A sunshine industry and dollar-earning sector like the BPO should have no room for sweatshops. The government must strictly regulate this fast growing industry in the interest of more than 600,000 workers since E-Global and Cordia are not the only BPO sweatshops around.”

In July last year, some 600 employees were laid off overnight when the Cebu City-based Direct Access abruptly shutdown. After a few months of protests, the Direct Access workers got their money claims and separation pay. As a result of that labor dispute, ICCAW was formed to be “a voice for BPO workers regarding specific grievances and general concerns.” –Dexter San Pedro, InterAksyon.com

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