THE Trade Union Congress of the Philippines slammed a business process outsourcing (BPO) group for contending that banning contractualization in the country would deter foreign investors from infusing fresh capital here.
“The total ban on contractualization will be discouraging for investors,” IBPAP Executive Director for External Affairs Genny Marcial said. This is the Information Technology and Business Process Association of trhe Philippines.
But the TUCP slammed the IBPAP for resorting to what it described as scare tactics used by the employers’ and capitalist lobby group who are profiting largely out of workers sweat and blood.
BPO is the contracting of non-primary business activities and functions to a third-party provider. BPO services include payroll, human resources (HR), accounting and customer/call center relations and is also known as Information Technology Enabled Services (ITES).
“In fact, responsible foreign investors wanted regular workers to produce quality products and compete in the world market,” TUCP Nagkaisa spokesperson Alan Tanjusay told the Manila Standard.
He said “they need a workforce who are regular and secure in their tenure.”
According to IBPAP, without contractualization, the Philippines will be less competitive against neighboring countries.
“Many investors are concerned about investing in the Philippines,” she said, noting the country’s labor sector is less flexible than in other Asean countries where companies supposedly hire and let go employees—as the case may be—within the bounds of the law.
“The industry has to remain competitive with other countries,” the IBPAP official said.
“If we can have the ability to let go of people … we will take that option with open arms,” she said.
Marcial said Philippine laws in place must simply be implemented properly. “We believe current laws already cover contracting and subcontracting,” she said.
The Department of Labor and Employment said it continues to hold dialogues with different sectors in an attempt to minimize the employment of workers under the contractualization or “endo” system.