Kabataan Partylist Representative Raymond Palatino today filed House Bill 2592 or the “BPO Workers’ Welfare and Protection Act of 2010”, which seeks to promote and protect the rights of our fellow Filipinos, who flock to Business Process Outsourcing (BPO) companies for immediate employment.

Originally filed last 14th Congress, Palatino said that the BPO Workers’ Welfare and Protection Act of 2010 “sought to assert the prescribed labor standards set forth in the Labor Code and institutionalize additional benefits that would hopefully address specific work-related problems and issues peculiar to the nature of BPO work.”

When Rep. Palatino filed the bill last 14th Congress, his office received numerous feedback from BPO managers, call center agents, and even mothers of BPO workers, all expressing concern with the working conditions in many of the companies under this industry.

“Among the problems we’ve noticed from the feedback we have received, is that BPO companies devise mechanisms to prevent many of their employees from becoming regular employees despite having been employed as probationary workers or trainees for more than six months,” he said.

“We have incorporated two new provisions in this new bill for BPO workers, one for mandatory regularization of all employees who have worked for at least six months in the company, and one for the standardization of restroom breaks, aside from the standardization of the medical check-up benefits for all workers,” he said.

Aside from these provisions, Rep. Palatino has retained much of the rights and benefits that they have incorporated in their first bill for BPO workers’ welfare and protection, from asserting their right to organize and establish formations and unions, to asserting their right to due process in administrative proceedings.

Salient proposals in the HB include:

• Regularization of all BPO workers upon the sixth month of employment as trainee or apprentice, or upon the completion of a maximum probationary training period of six months.
• Standardized restroom breaks not shorter than five minutes each, with intervals of two hours during their working hours.
• Entitlement to medical benefits upon entry in the BPO company and not merely upon regularization
• Right to Self-Association, to engage in Collective Bargaining, and to participate in Democratic Exercises

In a recent study on the BPO industry, the International Labor Organization (ILO) said that while the BPO industry provide relatively “good” quality jobs, “key changes in the BPO industry policies and practices” need to be pushed to improve work conditions. The study reported that 48 percent of BPO workers suffer from insomnia while 54 percent from fatigue. Of which, 45.6 percent cited that harassment from irate clients are among the causes of work-related stress among workers, 41 percent from excessive and tedious workload, 37.4 percent from performance demands, 33.7 percent from monotony and 33.4 percent from regular night work.

The ILO study also noted high workforce attrition or staff turnover rates which need to be addressed by “redesigning” work processes, giving BPO workers autonomy and discretion.

Palatino said they are confident that they will get the support, not only of the agents but of call center owners and managements as well. “There is no reason for owners and managers to oppose this measure. Improving the agents’ welfare will also mean greater productivity and lower workforce attrition rate for them.”

“This industry grants apparent and immediate employment opportunities to many of our young people. It is only just that we ensure the rights and welfare of those who have chosen to rely on this “sunshine industry,’” he added.

The Philippines has the second biggest BPO industry in the world according to ILO. There are about 500,000 BPO workers and 900,000 more is expected to be employed this year. Last year, the industry posted a total earning of $7 billion a year. ###

HB 2592 – BPO Workers Welfare & Protection Act