I am in favor of the proposed bill, introduced by the Kabataan Party-list represented by Raymond V.

Palatino, an “ACT ENSURING THE WELFARE AND PROTECTION OF BUSINESS PROCESS

OUTSOURCING (BPO) WORKERS AND THE RECOGNITION OF THEIR RIGHTS AS PROVIDED
FOR IN THE LABOR CODE OF THE PHILIPPINES” also known as the” BPO Workers’ Welfare and
Protection Act1”

The 29 sections of the proposed legislation cover all employees and workers engaged in the BPO industry
more commonly known as the call-center industry. By definition, BPO 2 is a subset of outsourcing that
involves the contracting of the operations and responsibilities of specific business functions (or processes)
to a third-party service provider.

To protect the rights, and promote the welfare of workers and to take appropriate steps to recognize
such rights and welfare, to improve and promote their social and economic status, living and working
conditions, terms of employment, professional growth and career development.

To protect the right and welfare of BPO workers and professional growth and career
development -

“SECTION 4. Standard of Treatment. – The employer and the supervisors

must, at all times, treat the BPO worker in a just and humane manner
xxx ;

SECTION 5.Access to Relevant Information. – The State shall ensure that BPO
companies allow their workers and employees access to relevant
information to make them understand their rights, benefits,
obligations, conditions and realities attending to their profession.
Xxx”

The Call Center Association of the Philippines pegs the turnover rate in the country at 60-80
percent, the highest in the world. A survey3 conducted a full-time call center agents stay for a
brief 22 months, while part-time agents stay for an even shorter 10 months, whereas 60
percent stay in a company for only a year or less4.

The reason is emotional exhaustion adds to the physical and mental strain of the workers,
leading to higher levels of stress and burnout under the electronically monitored work and
tightly bureaucratised work regime. Low or lack of motivation, failing to meet productivity
targets, suspension or termination with or without valid reason from the management are just
few of the many reasons why employees opt to leave the industry. To temper these adverse
effects, the call center industry should arrange a "structured socialization" of the employees
such as organising consultative forums, arranging get-togethers, and others alike.

The objective is to balance work and fun thereby creating a work –life balance of employees.

1
HOUSE OF REPRESENTATIVES, FIFTEENTH CONGRESS, First Regular Session- House Bill No. 2592
2
Wikipedia dictionary
The Epoch Times 2005, Philippine Call Center Boom Outgrows Manila, 18 March 2007
3
Callcentres.net
4
Survey conducted by Call Center Project based at Cornell University in New York
One of the factors that employee seek in their employer is their career growth and the good
environment in the company. So one must ensure that the needs and rights of the employee
should be met to restrain or lessen the high turnover rate.

To improve and promote their social and economic status-

SECTION 12. Protection from Discrimination. – BPO workers shall be

protected from discrimination by reason of sex, sexual orientation, age,
political or religious beliefs, civil status, physical characteristics or disability, or
ethnicity.

Philippines is the second largest BPO industry in the world, next to India, with almost 400,000
employees, a major contributor in terms of revenues and employment generation. However,
recent news project the contact center employees as drug addicts, drunkards, sex workers
because of their graveyard shift. This image should be put to stop being part of the so called
“sunshine industry.”

The government should create stronger measures to protect the health and safety of night
workers in line with the International Labor Organization Night Work Convention. A redesign
of work processes, especially in call centers, to allow employees more freedom to make use of
their qualifications, as well as policies and practices should be aimed in improving workers’
collective voice and promoting social dialogue.

To enhance living and working conditions-

“ SECTION 15. Overtime Work. – BPO workers xxx paid for the overtime work
with an additional compensation equivalent to not less than his regular wage
plus twenty-five percent (25%);

SECTION 16. Night Shift Differential. – BPO workers shall be paid a night shift
differential xxx;

SECTION 21. Transportation Benefits. – xxx to facilitate the safe commute of

employees at vulnerable times at night or early in the morning;

SECTION 22.Medical Examination and Treatment. – BPO workers shall be

entitled to a medical examination free of charge xxx;

SECTION 23. Workplace Policy on Occupational Safety and Health – An

occupational safety and health policy shall be formulated by each BPO
establishment xxx

Night work, which is often associated with occupational safety and health issues with 42.6
percent of BPO employees working the night shift to serve customers in distant time. The
stress, working against nature and the safety and security factor plays a major role. BOSS —
the Burn-Out Stress Syndrome — is a common syndrome among the BPO employees and
includes chronic fatigue, insomnia due to the complete alteration of 24-hour biological rhythm
of the body.
The legislators or government agencies should take necessary measures to contain and manage
occupational health risks including but not limited to the following, training program and technical
guidelines for the industry to prevent possible rise in the incidence of anxiety and other diseases related
in this industry.

Some benefits from major BPO company should be imposed as well to low-key BPO companies such as
group medical-claim insurance, subsidized food and transportation, company leased accommodation,
performance based incentives , flexible-time and flexible Salary benefits, to name a few.

To ensure security of tenure-

“SECTION 7.Regularization. All BPO workers shall be considered regular

employees upon the sixth month of employment xxx;

SECTION 24. Security of Tenure. – No employee may be terminated except

for just cause xxx”

A high rising reported cases is filed is due to unlawful termination of BPO employees. One case filed in
the NLRC is the unlawful retrenchment of 11 employees 5, worst is that they were not given any valid
reason, warning or reprimands.

One way of circumventing so as to slip through Labor Law compliance particularly on regularization, is
that BPOs are keeping their employees temporary- extending their probationary periods of more than the
allowed 6 months or not continuing their probationary contract even with good performance. This way
the company may save up a lot of additional cost such as paid leaves, and additional benefits for
permanent employees.

There should be a concrete and implementing laws to protect the employees of the “sunshine industry”.
Some reported cases even mentioned that according to their company they are not covered with the
Philippines Labor Code, which is absurd. BPO employees should be aware of their rights against unlawful
termination.

BPO’s have become a major contributor to the Philippine economy, providing customer service and
technical support on behalf of client companies. Revenues generated from the BPO sector surged to
US$6 billion in 2008 from $350 million in 2001.

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 because of their unique work
environment.

Hence, a need for a legislation protecting BPO employees should be passed to protect the rights, and
promote the welfare of workers and to take appropriate steps to recognize such rights and welfare, to
improve and promote their social and economic status, living and working conditions, terms of
employment, professional growth and career development.

From the words of Rep. Palatino, this bill protects BPO workers from understaffing or overloading and
provides them freedom from interference or coercion, protection from discrimination, freedom from
company bond and safeguards in administrative proceedings, among others.

5
Inquirer.net