Government raids highlight call center workers’ woes

BECAUSE OF COMPLAINTS of harassment, government “raids” on call centers were suspended on May 31, 2022. The Bureau of Internal Revenue (BIR) had earlier formed a team to enforce the return-to-office rule imposed on Business Process Outsourcing (BPO) workers by the Department of Finance (DOF).

The DOF justified the policy as necessary for economic recovery. Industry spokesmen, meanwhile,  reminded the government of their  continuing contributions to the economy despite their employees’’ working from home  due to the pandemic. 

The BPO industry employs over 1.44 million Filipinos as of June 2022, according to the IT and Business Process Association of the Philippines (IBPAP).

The media have been alert to the issues, duly recording industry workers’ opposition to the mandate. But journalists could follow up on a point raised by Philippine Star columnist Boo Chanco, who, in a June 1 column, warned the government of the possibility that BPO companies could exit the country at the cost of their Filipino workers’ jobs.

Government denies request for WFH extensions

The Fiscal Incentives Review Board (FIRB) formalized time-bound hybrid work set-ups last September 2021. The September 17, 2021, FIRB   Resolution No.19-21,  permitted BPO firms in economic zones to “adopt 90% WFH setups” until March 31, 2022.

In February 2022, the Philippine Economic Zone Authority (PEZA) requested the continuation of hybrid work without the 10% on-site capacity requirement until September 2022. PEZA is an investment promotion agency granting tax perks to registered BPO firms.

PEZA cited Rule 23, Section 3 (d) of the Implementing Rules and Regulations (IRR) of Republic Act 11534, or the Corporate Recovery and Tax Incentives for Enterprises Act. The rule states that an investment promotion agency may “implement temporary measures” to support enterprises from exceptional circumstances; these circumstances include pandemics.

On March 9, 2022, the FIRB thumbed down the request and upheld Resolution No. 19-21 requiring the full return of the BPO workforce by April 1. Finance Secretary and FIRB chair Carlos Dominguez argued that increased vaccination rates ensure the safe reinstatement of face to face work. Dominguez added that the return of employees to their offices is essential to  the recovery of micro, small, and medium enterprises (MSMEs).

Workers object; more concerns crop up

An organized BPO workers group decried the  decision on March 24, saying the development could trigger mass resignations. 

Emman David, spokesperson for the Alliance of Center Workers, alerted media to this consequence as more workers have changed living arrangements–many have gone home to their provinces–since WFH setups began. Another member called on the DOF to reassess its goals, describing their treatment like “mere numbers” as inhumane.

Philippine Daily Inquirer columnist Anna Christina Tuazon  echoed BPO workers’ woes in a March 17 opinion piece, which highlighted the “uneven” impact of the FIRB decision.  Those required to report back physically, Tuazon wrote, are “those who can’t afford the increase in travel and fuel costs.” The columnist also scored the public transportation system for failing to add “fundamental improvements to ensure public safety.”

Workers’ employment in unregistered BPO firms is another concern. Charito Plaza, PEZA general director, in May 2022 said that many Cebu workers had jumped ship to underground firms because of more lucrative offers. Plaza noted that these companies are a potential “breeding ground” for labor violations as they are unregulated by government.

Task forces swoop down on offices

On May 18, 2022, the Bureau of Internal Revenue formed a task force to check BPO offices’ adherence to the FIRB return-to-office order. PEZA’s Plaza later told media that, during the surprise, now suspended inspections, industry members were threatened with penalties due to their alleged non-compliance. .

On June 2, 2022, The Manila Times’ editorial acknowledged pressing economic necessities, but ultimately stressed the outcomes of ignoring workers’ concerns. “Worrying too much about the welfare of the local stores and transport providers at the expense of the office workforce from whom they derive their income can have the same negative effects,” the editorial said.

Journalists should remain alert to government’s economic strategies for recovery, and explain their impact on ordinary workers in their news reports. The BPO policy could be only one example.