The Philippine Association of Legitimate Service Contractors, Inc. (PALSCON) had its 9th National Forum last 20 September 2019 at the Tent City, Manila Hotel on the theme “Service Outsourcing Today”. Notable keynote speakers shared insights with regards to embracing challenges faced by the service outsourcing industry, creating an enabling industry for it, as well as empowering the human capital. Several points of action were suggested with the aim of stabilizing the existing condition of the service outsourcing industry.
Of the challenges surrounding the service outsourcing industry, the most salient stems from the legal aspect. ECOP President Mr. Sergio Ortiz-Luis, Jr. mentioned the urgent necessity to monitor policy issues which affect the service outsourcing industry. There are policies which pose potential threat towards the stability of service outsourcing industry and make it even more vulnerable. Policies must be more responsive to the dictates of time in order to make it more applicable to the current Philippine context. Technological advancements of the Fourth (4th) Industrial Revolution, as well as the lack of skills training and development, are also pressing concerns. Some companies decide to utilize robotics, digitalization, or even artificial intelligence for a more productive output rather than employ manpower who lack skills training and development. The common denominator of the speakers’ response to the above-mentioned challenges is to enhance the capability of the employees as well as even out the utilization of technological advancements with manpower.
The primary drivers to an enabling industry are development of skills as well as training of workers. Some of the proposed steps are collaboration between the Technical Education and Skills Development Authority (TESDA) and employers in order to facilitate re-training of workers, proactivity of PALSCON to improve the services of the services outsourcing industry, as well as the more radical suggestion of drafting a new Labor Code which is more responsive to the needs of the business community in the current Philippine context.
From another perspective, Ms. Mira Sonia, the Chairperson of Asosiasi Bisnis Alih Daya Indonesia (ABADI), presented the reality of service contracting in Indonesia wherein the problem of unhealthy competition in the business community leads the service contractors to not obey existing labor laws.
Efforts of ECOP in supporting PALSCON largely affected the service contracting industry in a positive manner. Through lobbying, the fervent opposition of any measure aiming to prohibit and excessively restrict the practice of legitimate service contracting saved the industry from a potential deterioration. This led to the eventual veto of the proposed Security of Tenure (SoT) Bill during the 17th Congress. Just recently, ECOP submitted its position paper to the new DOLE version of the SoT. Bills on SoT and contractualization have been filed in both houses of Congress. ECOP is closely monitoring the movement of the issue in both legislative and executive branches.
