IBPAP: ‘Reckless declaration’may jeopardize BPO industry

The IT and Business Process Association of the Philippines (IBPAP) has denounced the ‘irresponsible declaration’ made by the Department of Labor and Employment (DOLE) in Region 7 which ‘prematurely’ identified several IT-BPM firms that have been ordered to halt operations for alleged labor rights violations.

IBPAP said none of the accounts of its four member companies named by the BPO Industry Employee Network (BIEN) confirmed that employees were prevented from leaving the production area despite the earthquake, particularly regarding the blocking of exits, and forced to return to their workstations without safety clearance.

However, BIEN criticized IBPAP for what it described as an attempt to downplay safety violations raised by Cebu-based workers during and after the recent earthquake. In a statement on Thursday, BIEN said IBPAP’s remarks ‘attacked’ both DOLE Region 7 and employees who reported being forced to return to work despite ongoing aftershocks.

‘IBPAP denounces this irresponsible declaration by DOLE Region 7, which prematurely named companies without the benefit of impartial investigation or validation,’ it said.

The group said such actions ‘run contrary to the principles of fairness and good faith expected of a government agency that serves as a partner of both workers and employers in ensuring safe and decent workplaces.’

It added that the ‘reckless naming’ of companies before the Senate and in the media ‘damages reputations, causes confusion among employees, and creates undue alarm among global clients whose confidence directly impacts investment, business continuity, retention, and creation of jobs in the Philippines.’

The industry group said this misinformation has ‘serious’ international repercussions.

For one, it said business process outsourcing (BPO) clients who entrust critical operations to the Philippines may begin to see the country as ‘unreliable, inconsistent, and non-compliant’ in its regulatory practices.

Further, IBPAP said such a perception ‘erodes confidence, drives business to competing destinations, and jeopardizes the very jobs and revenues the Philippine IT-BPM industry has worked hard to secure.’

The industry group also expressed concern that clients may become ‘hesitant’ to expand outside Metro Manila, ‘undermining countryside development opportunities where these jobs are most needed and where DOLE itself aims to create and safeguard livelihoods.’

Since the initial reports surfaced, IBPAP said it has been in active communication with DOLE National Capital Region to request the official list of companies involved, along with corresponding complaints, reports, and allegations made by BIEN, which IBPAP said, does not represent the IT-BPM industry in the Philippines.

‘Despite these repeated efforts, no documentation has been provided to date,’ IBPAP said. ‘It is therefore disappointing for IBPAP to learn about this information only through a statement made during the Senate hearing that was subsequently published in an online news article.’

IBPAP said the findings from its inquiry ‘disprove’ BIEN’s claims of widespread employee safety violations among IT-BPM employers during the Cebu earthquake.

‘Their sweeping accusations cast the entire industry in an unfavorable light and unfairly generalize IT-BPM companies as non-compliant with labor laws, despite long-standing and consistent adherence to labor and safety standards,’ it added.

The industry group said it is ‘highly irregular’ that DOLE Region 7 conducted an inspection of a company supposedly included in the alleged work stoppage order only in the evening after the Senate inquiry.

‘This was reported to IBPAP as the inspection was happening in Cebu. The fact that a BIEN representative accompanied DOLE during this inspection raises questions about impartiality, given BIEN’s highly biased stance against IT-BPM employers for alleged violations of employee safety standards,’ it said.

‘We therefore urge the Department of Labor and Employment (DOLE) to investigate this matter thoroughly and issue a clarificatory statement on how it is being handled. Furthermore, we insist that DOLE Region 7 rectify its records and remove the names of companies that were included in the report submitted to the Senate Committee on Labor and Employment,’ it added.

‘Documented incidents’

‘There was an earthquake. There were evacuation failures. There were workers forced to return to their stations while aftershocks continued,’ BIEN said. ‘These are not rumors. They are documented incidents, supported by workers’ testimonies, photos, videos, and reports from multiple Cebu BPO sites.’

The group said labeling these accounts as ‘unverified’ or ‘misinformation’ denies the experiences of workers who feared for their safety.

It added that the incidents showed ‘clear breaches’ of occupational safety and health (OSH) standards.

‘When ceilings crack, exits are blocked, and employees are ordered to resume calls despite shaking floors, no amount of corporate spin can erase the fact that OSH standards were violated,’ BIEN added.

According to BIEN, IBPAP’s response reflects its intent to ‘protect industry interests’ rather than address the safety concerns of employees.

‘IBPAP’s statement exposes who they truly represent: not the 1.9 million workers they claim to speak for, but the business owners and foreign clients whose profits depend on uninterrupted operations, even in the face of danger,’ BIEN said.

BIEN added that IBPAP’s concern over reputational harm and investor confidence ‘misses the point,’ noting that the real threat to the industry’s image comes from unsafe workplaces, not from workers speaking out.

‘If IBPAP truly values the integrity of the industry, it should hold its member companies accountable instead of gaslighting the very workers who keep this $40-billion sector running,’ the group said.

BIEN also urged DOLE to remain firm in enforcing labor standards, saying its role is to protect workers, not companies.

It said the work stoppage orders issued in Cebu were a ‘necessary step’ to prevent further harm and compel compliance with safety regulations.

The group added that full transparency is needed by releasing the list of firms found to have violated OSH standards and the corrective actions implemented.

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