The House of Representatives Committee on Labor and Employment conducted a public hearing on 10 October 2018 (Wednesday) to discuss the measures that seek to strengthen the protection of Business Process Outsourcing (BPO) workers.

House Bills 156, 661, 662, 2233, 4629, and 5728 authored by Reps. Aglipay-Villar, Elago, Roque, Revilla, Maceda, Nieto, and Vargas seek to reinforce standards in the working situation of BPO sector workers while taking into consideration the peculiarities of the industry. House Bill 2225 on the other hand seek to increase the night shift premium pay for BPO workers from 10% to 25%.

On the proposed premium increase

Mr. Nicki Agcaoili of the IT & Business Process Association of the Philippines (IBPAP) opined  that increasing the night shift premium of BPO workers can threaten the competitiveness of the Philippines in the global BPO market. India and China, the Philippines’ toughest competitors in the BPO sector, currently do not offer night differentials for workers. Clients may opt to pull out from the Philippines in favor of these countries should operational costs continue to grow.

This sentiment was echoed by National Wages and Productivity Commission (NWPC) represented by Deputy Executive Director Patricia Hornilla citing the possible impact of the increase to other industries which also have night work. Workers from these industries can possibly seek out higher night shift differentials should the increase for the BPO sector be approved.

Other issues

The health risks associated with night work were also extensively discussed. Dr. Valeriano Timbang from the Department of Health said night shift BPO workers are more prone to cardiovascular and musculoskeletal diseases as well as depression and other mental health issues.

The security of tenure and issue of “floating” workers were also raised which prompted the Congressional body to further review the measures and include a provision on security of tenure in the substitute bill.