Miriam Seeks Legislation for BPO

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Miriam seeks legislation for BPO's continued growth

By Marvin Sy(The Philippine Star) Updated November 14, 2010 12:00 AMComments (0)

MANILA, Philippines The countrys business process outsourcing (BPO) industry continues to grow and caneven surpass world leader India if the government will make sure all the right elements of the business are

in place.

Sen. Miriam Defensor-Santiago believes the Philippines is close to surpassing India as the biggest

destination for voice-based customer support and sales.

Santiago, who recently visited India to attend the Tibet Support Groups Conference where she met the Dalai

Lama, said the general observation of the BPO sector is that India is losing a lot of its United States-based

clients to the Philippines.

Citing news reports, she noted that the projected voice-based customer support and sales revenue for the

Philippines this year is at $5.7 billion.

In contrast, the projection for India was $5.58 billion in revenue this year.

There were also forecasts of the Philippines $9.5-billion BPO industry overtaking Indias $12.4 billion in five

years.

Santiago said analysts saw the Philippines better affinity with the American culture, lack of competing

industries for skilled workforce and higher tax incentives as the primary reasons for the rise of the country

in this sector.

She said what the country needs right now is legislation to ensure the forecasts would be realized.

The Senate in the 15th Congress has yet to file any bill for the promotion of the call center industry and the

protection of its workforce. I urge my colleagues in both houses of Congress to formulate laws supporting

this booming sunshine industry, she said.

The previous administration used the BPO industry as one of its centerpieces because of its sudden boom.

From a mere 5,000 jobs in 2001, the BPO industry has grown to employ more than half a million employees.

BPO companies in the country enjoy income tax holidays from four to eight years and a five percent tax rate

on gross income after that period.

If situated in IT parks and eco-zones, these companies also enjoy tax and duty exemption on imported

capital equipment.

Santiago said the rights of the call center employees must also be safeguarded, especially after her office-

received complaints about rampant and stark labor violations in this sector.


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Among the alleged violations reported were contractualization, union busting, unreasonable metric

evaluations, compelled overtime and holiday work, and long working hours.

Legislators should study how our laws can adapt to this relatively new industry. Amendments in the Labor

Code or an entirely different and separate law should be considered so as to protect the rights of call center

agents because of their unique work environment, Santiago said.

Santiago said she intends to file a bill next week aimed at the supporting the BPO industry.

We must balance the legitimate business interests of BPO companies with the labor rights of employees. I

have heard that most call center agents do not stay too long in one company either because the work

becomes more and more unreasonable every year or there is no professional growth in the company,

Santiago said.

22NOVTrue to her word, Sen. Miriam Defensor Santiago filed Senate Bill No. 2604, also known as the

Magna Carta for Call Center Workers Act of 2010, to protect thousands of call center employees in

the country.

Santiago last week said that the business process outsourcing (BPO) industry needed more legislative

support as reports claimed that the Philippines was on its way to becoming the worlds call center

capital in the next few years.

While the countrys economy owes a lot from the BPO sector, there is a need to balance the

legitimate business interests of BPO companies with the labor rights of its employees, Santiago said.

Her bill seeks to guarantee call center employees the following rights: the right to organize and joinlabor organizations; the right to a safe and healthy working environment; the right to at least a one

hour continuous meal break in the middle of every eight hour shift; the right to privacy; safety for

nightshift employees; and the right to be informed of the terms and conditions of their contract.

Santiago said she was concerned about reports that the local BPO industry discourages unions. She

cited research conducted in various countries showing the importance of unions in the call center

industry.

The Constitution guarantees all workers to self-organization, collective bargaining and negotiations,

and peaceful concerted activities, including the right to strike in accordance with law. BPO

companies in the country are not exempt from this constitutional provision and should honor their

employees rights, Santiago said.

Santiago also emphasized the need for BPO companies to maintain a safe and healthy working

environment, citing reports from both the International Labor Organization and the Department of

Labor and Employment of call center agents susceptibility to health and occupational hazards,


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particularly those who work the nightshift. Reports show that they suffer from problems like stress,

sleep disorders, fatigue, eye strain, and voice problems.

These measures protecting call center employees cultivate lower attrition rates and attract more job

seekers to the BPO industry, making it stronger and more productive. It therefore is in the interest of

the BPO companies themselves to protect their workers who are their most important resource,

Santiago said.

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Miriam Seeks Legislation for BPO