IBPAP hits 'premature' disclosure on BPOs; DOLE denies report to Senate

The Information Technology and Business Process Association of the Philippines (IBPAP) on Thursday denounced the Department of Labor and Employment's (DOLE) alleged disclosure of several companies covered by work stoppage orders following the magnitude-6.9 earthquake in Cebu, but the agency denied submitting a report on the matter to the Senate.

According to the IBPAP, the "irresponsible declaration" by DOLE Central Visayas (Region VII) "prematurely" named companies without the benefit of impartial investigation or validation, which could damage reputations, and create undue alarm among global clients.

"This misinformation has serious international repercussions. BPO (business process outsourcing) clients who entrust critical operations to the Philippines may begin to see the country as unreliable, inconsistent, and non-compliant in its regulatory practices," the IBPAP said in a statement.

"Such a perception erodes confidence, drives business to competing destinations, and jeopardizes the very jobs and revenues the Philippine IT-BPM industry has worked to secure. Equally concerning, 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," it added.

This comes as the IBPAP said the DOLE submitted a report to the Senate Committee on Labor and Employment indicating six IT-BPM companies that were issued work stoppage orders, four of which are IBPAP members.

In a message to GMA News Online, however, Labor and Employment Secretary Bienvenido Laguesma said DOLE Central Visayas Regional Director Atty. Roy Buenafe "has not submitted the report yet."

Further, Laguesma said Buenafe did not mention any company names during a Senate hearing, but just stated the number.

"In any case, let me stress that it is not and will never be the policy of the DOLE to put on the spot much more embarrass any company being complained of without the benefit of a fair and impartial investigation or validation," Laguesma said.

The Labor chief added, "Due process is always part and parcel of any DOLE proceeding. Will do further verification of this IBPAP concern to straighten out the latter and put the issue to rest."

'Irresponsible'

The IBPAP said making such a disclosure to the Senate could have a profound impact on the industry.

"If left unaddressed, these kinds of irresponsible declarations create business nuisances that extend far beyond reputational damage. They erode investor trust, sow doubt among global clients, and may compel principals to shift critical operations from the Philippines to other competitor countries," the IBPAP said.

"The result is not just lost business opportunities, but a direct threat to the livelihoods and quality of life that 1.9 million BPO Workers and their families have worked hard to build and that the nation depends on," it added.

GMA News Online has reached out to the Senate labor panel regarding the submission of the DOLE report as cited by IBPAP.

The DOLE Central Visayas has said six BPOs in Cebu City were being investigated, following complaints of compromised safety of employees when the deadly quake jolted the province and left at least 74 people dead.

The department has since ordered a halt to the operations of a BPO firm in Cebu, citing the lack of emergency and disaster plans, and ordered another to submit proof of corrections after a recent labor inspection found Occupational Safety and Health (OSH) deficiencies.

"(W)e immediately sought an explanation about the allegations made. None of their accounts confirm that employees were prevented from leaving the production area despite the quake, particularly regarding the blocking of exits, and forced to return to their workstations without safety clearance," the IBPAP said.

"The findings from our inquiry disprove BIEN's (BPO Industry Employee Network) claims of widespread employee safety violations among IT-BPM employers during the Cebu earthquake," it added.

Bogo City was the epicenter of the strongest earthquake ever recorded in the northern Cebu on Tuesday evening, with a depth of 5 kilometers and tectonic in origin.

Latest data available from the National Disaster Risk Reduction and Management Council (NDRRMC) showed that 559 were injured, with the number subject to validation. There were some 189,620 families or 666,439 individuals affected. — VDV, GMA Integrated News