MANILA, Philippines — Amid projections of the continued growth of the business process outsourcing (BPO) industry in the Philippines, a lawmaker has refiled a measure that aims to improve the working conditions and benefits received by workers in that sector.
Filed by Rep. Raoul Manuel (Kabataan Partylist), House Bill 8189 or the BPO Workers Welfare Act is a new version of the Magna Carta for BPO Workers proposed in the 18th Congress.
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The bill establishes standards for fair labor practices and mandates additional benefits to BPO workers, such as safeguards against job insecurity, a uniform nationwide minimum wage for entry-level positions, and access to medical benefits upon employment.
“We recognize the importance of the BPO industry in providing jobs for our countrymen, but we also recognize the need to protect the rights and welfare of BPO workers,” Manuel said.
The bill also aims to address “the issue of low wages” in the local BPO industry, which employs nearly 1.3 million Filipinos, many of whom render third-party services to companies in developed countries like the United States, Japan, Australia and countries in Europe.
In January, more than 80% of outsourcing companies believe that they expect to post growth in 2023 "despite a potential global recession," according to a survey by IT and Business Process Association of the Philippines.
“BPO companies in IT hubs outside Metro Manila offer new hires a low salary of P5,500 a month in the Bicol region, while in the National Capital Region, basic salaries can be as low as P12,500 a month, and workers rely on incentives to increase their take-home pay,” Kabataan party-list said.
“Regular increases in salaries have been nominal or sometimes non-existent.”
Job insecurity in the BPO industry
BPO workers also suffer from a lack of security of tenure because of the risk of overseas clients pulling out or ending contracts.
When this happens, “BPO workers are placed on 'floating status,' which means they are still employed with no pay for as long as six months, even if the companies continue to hire new agents for other clients,” Kabataan said.
Workers’ right to organize and form unions is "also severely curtailed" by BPO companies and big industry groups, according to the party-list.
“In addition, those workers who are brave enough to organize and/or fight for their right to organize face various forms of harassment and discrimination from management,” they added.
The Philippines is estimated to hold a sizable chunk — or 10-15% — of the global BPO market.