The recent news about former President Gloria Macapagal Arroyo and her son, Camarines Sur Rep. Diosdado "Dato" Arroyo, are pushing for a bill that will pave the way for the organization of unions among call center workers should be of great concern to corporations with a presence in the country.  The bill proposes a Magna Carta for Call Center Workers.  There are a few key provisions mentioned, including the following:

1. - Rights to safe and healthy working environments;
2. - One-hour meal breaks;
3. - Privacy rights;
4. - Resting areas;
5. - Security of tenure and a living wage.

This legislation would greatly hamper growth in the Philippines and reduce the offshore savings benefits to US corporations.  A prime example is the recent disposition of Sykes' operations in Argentina which were basically closed down after unions caused extreme wage escalation which impacted their profitability in the region.  

We interviewed some local business leaders in the Philippines BPO industry who had just found about potential creation of unions.  They seemed less than optimistic that the legislation would pass.  It is recommended that the progress be closely monitored over the next year.     

Comments (0) | Trackbacks (0) | Permalink |