Self-regulation is future for BPOs, says labor chief

MANILA, Philippines—Self-regulation is the way to go for the country’s booming business process outsourcing (BPO) industry, according to Labor Secretary Rosalinda Baldoz who witnessed the signing of a voluntary code of good practices by the BPO industry of Davao City recently.

Baldoz said the code should serve as a model for the country’s “next wave cities,” or cities striving to be BPO centers.

“It will lead your industry to the path of self-regulation, provide you with a mechanism to address workplace issues and situations, and allow you a built-in flexibility to do your business because you yourself drafted this code based on business reality and your experiences,” Baldoz said.

The BPO and information and communication technology industry of Davao was the first to adopt a voluntary code of good practices, a key government reform measure under the 22-point labor and employment agenda of President Aquino.

The administration wants to move industries away from overdependence on government to self-governance in dealing with industry issues.

The signatories to the Davao code commit to pursue reforms to promote Davao as a destination for ICT-BPO investors; support the grant of incentives to employer initiatives to improve human resources; practice the principles that promote decent work, employment security, labor rights, rights at work, and social protection and dialogue.

They also committed to promote good practices on voluntary basis; and use the industry tripartite council to address labor and employment, economic, and social issues in the industry.

A labor NGO meanwhile warned that if reforms in the BPO industry are not implemented, the country could become a “modern-day sweatshop for the services sector.” –Philip Tubeza, Philippine Daily Inquirer