CONTEXT AND POSSIBILITIES OF TRADE UNION ORGANIZING

IN THE PHILIPPINE CALL CENTER AND

BUSINESS PROCESS OUTSOURCING INDUSTRY:
A SURVEY REPORT ∗

I. INTRODUCTION

The Bureau of Labor and Employment Statistics (BLES) reported in January 2004
that the services sector accounted for about 48% of employed persons in the Philippines,
an increase of more than 7% from the 2002 figure.1

The preponderance of low-productivity, low-paying jobs in that sector, however,

underlies doubts about the quality of employment generated.2 The rise in
underemployment in recent years came from the services sector and the extent of
underemployment is a measure of the severity of the lack of jobs, which makes workers
accept shorter working hours or low-paying jobs instead of open unemployment.3

The number of non-regular or temporary and peripheral workers is increasing.

Work is temporary if time-bound and peripheral if indirectly related to the employer’s
main business.

BLES reported that as of June 2003, non-regular staff and contractor/agency-hired

workers comprised 25% and 10.8%, respectively, of total employment in establishments
with 20 or more workers.4

In the meantime, the number of unions registered went down from 910 in 2002 to
647 in 2003.5 Membership in newly registered unions also declined from 89,187 in 2002
to 44,794 in 2003.6 The number of CBAs registered decreased from 588 in 2002 to 415 in

∗
Researched and written by Jonathan Sale (Lawyer; Professorial Lecturer, University of the Philippines
School of Labor and Industrial Relations) and Lin Bool (HR/IR Practitioner/Researcher; Graduate student
in industrial relations, De La Salle University).
 2

2003 while the number of workers covered by new CBAs fell from 114,412 in 2002 to
66,824 in 2003.7

Of the total number of establishments surveyed by BLES as of June 2003, only

14.8% were unionized and 14.2% had CBAs.8 Union membership and CBA coverage
reached 20.2% and 19.7%, respectively, of the total 2,582,000 paid employees. 9

The downward trend in trade union density seems to coincide with employment
growth in the services sector. There appears to be an inverse relation between the two.

The call center and business process outsourcing (BPO) industry is part of the
services sector. Recently the Business World, a newspaper of general circulation in the
Philippines, reported that as of the first quarter, call centers employ more than 70,000 and
earned an estimated $800 million in 2004.10 However, one issue affecting women
employees in the industry is the night work prohibition under Philippine law.11 The same
report noted that the outsourcing industry is not yet ready for unions because of the
contractual nature of work and highly mobile workforce.12 In another newspaper report,
the Manila Bulletin placed the attrition rates in Filipino call centers at 20%.13

This paper has two basic aims:

1. To generate baseline data about workers in the call center and BPO
industry, particularly, their employment terms and conditions and attitudes
to trade unions; and
2. To determine the context and possibilities of trade union organizing in that
industry.
 3

II. AN OVERVIEW OF THE INDUSTRY 14

According to IDC Call Center Services Forecast and Analysis, 2001-2005, Asia is
a source of significant outsourcing operations from the United States and Europe, and the
Philippines is emerging as a specific alternative to India, due to historical and cultural
factors.

McKinsey & Co. projects a bigger demand for outsourcing services that will
reach US$ 180 billion in 2010: Finance and Accounting - 11%, Data Search, Integration
Management – 11%, Remote Education – 11%, Network Consulting and Management –
4%, Website Services – 4%, Engineering and Design – 3%, Market Research – 3%,
Transcription / Localization – 1%, Human Resource (HR) Services – 28% and Customer
Contact Services – 24%. HR and Customer Contact Services account for 52% of the
total outsourcing demand.

The Department of Trade and Industry (DTI) reported that the Philippine call
center industry has been more than doubling every year since 2001. There were 3,500
seats, which grew to 7,500 seats in year 2002 and 20,000 seats in year 2003, which
reached an estimated 40,000 seats in year 2004.

A call center is any communications platform from which firms deliver services
to customers via remote, real-time contact. Clients include mail-order catalog houses,
telemarketing companies, computer product help desks, banks, financial service and
insurance groups, transportation and computer handling firms, hotels and IT companies.
The size of an operation is described in terms of the number of "seats." A seat consists of
a station with two or three people alternating in several shifts to provide 24-hour call
center service. The industry's main target markets include the United States, Australia,
and the United Kingdom.

Among known call center hubs in the Philippines are Eastwood City Cyber Park
in Libis, Quezon City, RCBC Plaza IT Park and PBCom Tower in Makati City, and Fort
Bonifacio E-Square IT Park in Global City.
 4

DTI defines Contact Centers as a physical location where calls are placed or
received in high volume for the purposes of sales, customer service, technical support,
research, and others. DTI identified thirty-seven (37) contact centers registered and
operating in the Philippines (Appendix “A”) as of October 2004.

Key factors have been identified why the Philippines is becoming Asia’s call
center hub –

a. Affordable Quality Human Resource. (Skilled labor force of 29 million, Literacy

rate of 94%, 3rd largest English speaking nation, 380,000 graduates/year,
Western-patterned educational system, Strong work ethic compared to India,
consultative/customer-oriented mind set, Quality management staff, Easily
trainable, Low attrition rate, Lower costs compared to Australia: approximately
one-fifth the cost of the US and Europe)
b. Affinity to Western Culture. (World-class English proficiency compared to China,
Similar form of government structure, US GAAP adopted Accounting Systems,
Legal system/contracts similarity, Same media sources, Strong familiarity with
Western culture yet open and easily adaptable to other cultures)
c. Strategic Location. (Located in the fastest growing outpost of high-tech economy,
Gateway of international shipping and airlines [FEDEX, UPS, etc.], Critical entry
point to over 500 million ASEAN market, Accessible by air within four hours
from any Asian capital [Japan, Korea, Singapore, Taiwan])
d. Hospitable Lifestyle. (Expatriates' top choice for quality of life, Friendly people,
Value-for-money housing, Modern recreational facilities, First- rate educational
institutions [International schools: British School, German school, Japanese
school, Mandarin school, etc.])

Hiring rate is between 3% and 5% of applicants. Since the Philippines produces

380,000 college graduates per year, 5% or 19,000 per year would qualify as call center
agents. However, not all college graduates would decide to work as call center agents so
the “hireable” college graduates are probably much less than 19,000. In order to meet the
demand, the call center industry hires not only new college graduates but past college
 5

graduates (even if already employed) and, in increasing numbers, college students and
plain high school graduates.

This is confirmed by estimates that show the industry hiring about 3,000 agents
per month today. To maintain a 100% growth rate in 2005, the industry must hire at least
60,000 new agents.

Call center companies seeking exemption from the night work prohibition
affecting women employees were granted exemption by the Secretary of Labor after
visiting the requesting call center companies, that is, Customer Contact Center (C3) and
Sykes Asia, Inc.

The Bureau of Working Conditions (BWC) through Administrative Order No.

210 s. 2002 was tasked to meet with call center companies to discuss labor issues
concerning the operations of call center facilities. In September 2002, the consultation
with management representatives from ten (10) call center companies was held. The
workers’ views/concerns on the night work prohibition were gathered through on-site
interviews, which were held from February 5 to 11, 2003 at call center companies
represented during the consultation with management.

The outcome of the consultation and interviews was a Final Report, which
contained the following conclusions/recommendations:

a. Regular night work has negative effects on the health, social and family life of
workers whether male or female. Sex plays no role, thus there appears to be
no justification for protecting only women except as to their reproductive
function. However, the effects vary from one individual to another.

Night work for women may be allowed to avoid discrimination against

men. In view of their reproductive function, it should still be disallowed for
pregnant and nursing mothers and those engaged in strenuous activities.
 6

Future legislation should diminish the ill effects of night work on women
and men. If night work is unavoidable, workers should be compensated more
in terms of social, monetary and health protection.

b. The ILO Conventions on Women’s Night Work have been widely denounced
in the light of increasing globalization and growing recognition and
acceptance of the principle of equality between the sexes.

Because of the constitutional mandate for equal work opportunities, a

review of Articles 130 to 131 of the Labor Code is warranted. While a Bill on
the repeal of said Articles is pending in Congress, expanding the exemptions
to allow night work in non-strenuous activities appears to be more appropriate
since there might be industries where women are still subjected to arduous,
long work hours.

c. The consultations with employers and employees of call centers appear to

show favorable conditions of work for women in night work, in terms of
security of tenure, monetary compensation and provision of fringe benefits.
However, there are mandatory benefits, i.e., paternity leave, which are not
granted according to majority of the respondents.

To alleviate the rigors of night work, employers should be urged to give

additional benefits but they should not be negligent in the implementation of
mandatory benefits, which should be strictly monitored.

Holiday swap or compensatory day offs should not be allowed, but

mandatory benefits such as premium pay and holiday pay should be given.

d. In terms of workhours, the consultations revealed that work schedules adopted

by respondents deviate from the usual shifts in other industries. A
considerable percentage of the workers render more than 8 hours of work, and
were allowed/required to work on rest days.
 7

Workhours for those in night shifts should be limited to 8 hours a day.

Rest day should be strictly enforced. Future legislation should consider
limiting weekly workhours to 40 similar to health workers who are exempted
from the night work prohibition.

e. Welfare facilities are provided by majority of the respondent companies.

However, only a few provide for sleeping quarters and transportation. Half of
the respondents do not provide health and safety training. There is a need to
increase their awareness on health and safety standards.

f. There should be periodic medical check-ups for night workers in call centers
to determine fitness for night work. A study should be undertaken on the
health not only of subject workers but male night workers in call centers as
well.

g. Night work for women in call centers may be allowed, as an expansion of

Article 131 of the Labor Code, subject to certain requirements under a
Memorandum Circular to be issued by the Secretary of Labor and
Employment, which will serve as a Guideline for call centers and companies
in similar operations.

III. RESEARCH DESIGN

A one-shot survey form (Appendix “B”) was used to gather the data needed for
the study. The survey form is an abridged version of the UNI-April 2005 survey forms
on workers’ terms and conditions and attitudes to unions. The UNI survey forms were
reduced to one page for ease and facility.

The survey form did not include questions regarding employment classification or
status of the respondents since under Philippine law any employee, whether employed for
 8

a definite period or not, shall beginning on the first day of his/her service, be eligible for
membership in any labor organization.15

Due to accessibility and time constraints, nonrandom (nonprobability) sampling

was used to determine the 101 respondents covered by the survey. The sampling
procedure involved two stages. In stage 1 contact persons working in the industry were
asked to fill out the survey form and/or help determine other potential respondents. In
stage 2, the other potential respondents mentioned in stage 1 were requested to answer
the survey as well. Thus, the number of respondents grew from one stage to the next. In
social research literature this is referred to as the “snowballing” technique.16

Actual interviews were also conducted to obtain other relevant information about
the industry. Four (4) respondents – one of them a Team Leader – and a physician
providing medical services to call centers and BPOs at Eastwood City, Libis, Quezon
City were interviewed for the purpose.

For some data, central tendency (i.e., mean and mode) was computed. Aside from
percentages, ratios and proportions, data were analyzed by categorizing them into
nominal, ordinal, explanatory and dependent variables.

Gathering, categorizing, tabulation, analysis, interpretation of data and writing of

the survey report were performed from May 3 to 30, 2005.

IV. FINDINGS, ANALYSIS AND INTERPRETATION

Respondents’ Profile

The workers came from 15 different outsourcing companies (Table 1). The
company profiles are set out in Appendix “C.” 26% of the respondents came from
 9

Sykes Asia, 15% each from eTelecare and i-Contacts, 12% from ICT Group, 11% from
Sitel, 5% from Teletech Philippines, and 4% from Ambergris Solutions Inc.

Table 1

COMPANY TOTAL %
Alorica Philippines 1 1%
Ambergris Solutions Inc. 4 4%
Convergys Corporation 3 3%
Customer Contact Center, Inc.
(C3) 1 1%
ePacific Global Contact 1 1%
ePLDT 1 1%
eTelecare Global Solutions 15 15%
IBM Daksh eServices Inc. 4 4%
i-Contacts Corporation 15 15%
ICT Group 12 12%
PeopleSupport Philippines Inc. 1 1%
Sitel Philippines Inc. 11 11%
Sykes Asia Inc. 26 26%
Teleperformance Philippines 1 1%
Teletech Philippines 5 5%
GRAND TOTAL 101 100%

Table 2 shows that majority of the respondents were females (54%).

Table 2
SEX TOTAL %
Female 55 54%
Male 45 45%
No answer 1 1%
GRAND TOTAL 101 100%

2 out of 3 respondents were aged 25 years or less, and almost every one finished a
bachelor’s degree (Tables 3 and 4). The average (i.e., mean) age of the respondents was
24.9 or 25 years, while the age that appeared with the greatest frequency in the
distribution (i.e., mode) was 24 years.
 10

Table 3
AGE TOTAL %
25 or below 68 67%
Above 25 31 31%
No answer 2 2%
GRAND TOTAL 101 100%

Table 4
HIGHEST EDUCATIONAL ATTAINMENT TOTAL %
Bachelor's Degree 91 90%
No answer 3 3%
Some College 3 3%
Some Graduate 4 4%
GRAND TOTAL 101 100%

In terms of work typology (Table 5), 56% of the respondents handled customer
service, 34% functioned as technical support, and 5% were in sales and marketing.

Table 5
TYPE OF WORK TOTAL %
Administrative 3 3%
Billing 1 1%
Customer Service 57 56%
No answer 1 1%
Sales and Marketing 5 5%
Technical Support 34 34%
GRAND TOTAL 101 100%

Table 6 shows that a big majority of the respondents had an average monthly take
home pay of P15,000 or less. In terms of central tendency, the data reflected a mode of
P15,000 and a mean of P16,275.
Table 6
AVERAGE MONTHLY TAKE HOME PAY TOTAL %
Above P15000 33 33%
No answer 8 8%
P15000 or below 60 59%
GRAND TOTAL 101 100%
 11

Degrees of Pressure and Satisfaction

Based on Table 7, the greatest number of respondents said they experienced

moderate pressure at work (44%), followed by those who experienced heavy work
pressure (32%). Interviews with some respondents disclosed that one main source of
pressure was the tough performance standard and appraisal system applied to them.17
Some performance metrics required a compliance rate of 110% of target.18 Average
handling time (AHT) for booking of vacations was pegged at 5 minutes.19 Failure to meet
the performance metrics or AHT adversely affected an agent’s performance rating and
job tenure, they said.20
Table 7
DEGREE OF PRESSURE TOTAL %
Heavy 32 32%
Light 25 25%
Moderate 44 44%
GRAND TOTAL 101 100%

In terms of workplace satisfaction, 1 out of 2 respondents expressed a neutral

stance while 4% said they were unhappy (Table 8). Neutrality and unhappiness at work
seemed positively related to work pressure, supra.

Table 8
DEGREE OF SATISFACTION TOTAL %
Happy 46 46%
Neutral 51 50%
Unhappy 4 4%
GRAND TOTAL 101 100%

Work Conditions

Most of the respondents worked 40 hours a week, as indicated in Table 9. 14%,

however, had a workweek that exceeded 40 hours.
 12

Table 9
HOURS OF WORK PER WEEK TOTAL %
40 84 83%
Above 40 14 14%
Below 40 2 2%
No answer 1 1%
GRAND TOTAL 101 100%

Table 10 reveals that for 64% of the respondents, breaks totaled 90 minutes per
day, consisting of a meal break and two (2) rest periods or coffee breaks. Breaks were
not restricted for those in technical support who constituted 2% of the sample. When
interviewed, some respondents, however, said that the 90-minute break schedule was not
observed during Saturdays due to sheer volume of calls.21 As a general rule, employees
are entitled to at least 60 minutes time-off for their regular meals.21a Rest periods or
coffee breaks of short duration (5 to 20 minutes) are considered as compensable working
time.21b

Table 10
TOTAL MINUTES OF BREAKS PER SHIFT TOTAL %
Ninety (90) minutes 65 64%
Above ninety (90) minutes 4 4%
Below ninety (90) minutes 27 27%
No Answer 3 3%
Unrestricted 2 2%
GRAND TOTAL 101 100%

3 out of 4 respondents did not experience any problems when taking breaks
(Table 11). This explains why for 67% of them no reasons were given for the presence or
absence of problems related to breaks (Table 12). But 10% of the respondents had
problems taking their breaks because of length and volume of calls, while 3% said breaks
were not sufficient.
 13

Table 11
EXPERIENCES PROBLEM WHEN
TAKING BREAKS TOTAL %
No 77 76%
No Answer 10 10%
Yes 14 14%
GRAND TOTAL 101 100%

Table 12
REASON FOR PRESENCE OR ABSENCE
OF PROBLEMS WHEN TAKING BREAKS TOTAL %
Complies with break schedule 11 11%
Breaks insufficient 3 3%
Lengthy / heavy volume of calls 10 10%
Not applicable 2 2%
No Answer 68 67%
Breaks sufficient 7 7%
GRAND TOTAL 101 100%

78% of the respondents had night work during the interval 12 midnight to 6
o’clock a.m. (Table 13). Of the respondents who performed night work, 61% or a big
majority were females (Table 13.1).
Table 13
NIGHTWORK 12 MN – 6 AM TOTAL %
No 15 15%
No answer 7 7%
Yes 79 78%
GRAND TOTAL 101 100%

Table13.1
Count of SEX OF THOSE ON
NIGHTWORK 12MN – 6 AM TOTAL %
Female 48 61%
Male 31 39%
GRAND TOTAL 79 100%

45% of the respondents performed overtime work (Table 14). In terms of

duration, 1 out of 3 respondents rendered overtime work of 1 to 5 hours per week.
 14

Table 14
AVERAGE HOURS OF OVERTIME
PER WEEK TOTAL %
0 33 33%
1 to 5 33 33%
6 to 10 5 5%
Above 10 1 1%
No answer 23 23%
Seldom / Minimal / Uncertain 6 6%
GRAND TOTAL 101 100%

For exactly 7 out of 10 respondents, overtime was voluntary (Table 15).

Overtime was paid for 69% of them (Table16).

Table 15
OVERTIME VOLUNTARY OR
REQUIRED TOTAL %
Not applicable 6 6%
No answer 8 8%
Required 16 16%
Voluntary 71 70%
GRAND TOTAL 101 100%

Table 16
OVERTIME PAID OR UNPAID TOTAL %
Not applicable 5 5%
No answer 18 18%
Paid 70 69%
Unpaid 8 8%
GRAND TOTAL 101 100%

According to 89% of the respondents, their workplaces had a canteen (Table 17).

Table 17
WORKPLACE HAS CANTEEN TOTAL %
No 11 11%
Yes 90 89%
GRAND TOTAL 101 100%
 15

Based on Table 18 and 19, the greatest number of respondents said their yearly
vacation and sick leaves consisted of 15 days each. Notably, 3% said they had zero
vacation and sick leaves, 1% expressed uncertainty and another 1% professed lack of
knowledge about the matter. Under Philippine law, every employee who has rendered at
least one year of service, whether continuous or broken, is entitled to a yearly service
incentive leave (SIL) of five (5) days with pay.22 The implementing regulations provide
that unused SIL is convertible or commutable to cash.23 Those who wrote zero and spoke
of uncertainty and lack of knowledge in the survey might have had less than a year of
service. According to the respondents who were interviewed, their sick leaves were
scheduled just like vacation leaves, and prior approval of the Team Leader was necessary
before an agent could take a leave of absence for health reasons.24 Their leaves were
called service incentive leave but were not convertible to cash, they said.25
Table 18
NUMBER OF VACATION LEAVES
PER YEAR TOTAL %
0 3 3%
15 35 35%
Above 15 29 29%
Below 15 but not less than 5 19 19%
Lacks knowledge 1 1%
Not applicable 6 6%
No answer 7 7%
Uncertain 1 1%
GRAND TOTAL 101 100%

Table 19
NUMBER OF SICK LEAVES PER
YEAR TOTAL %
0 3 3%
15 33 33%
Above 15 20 20%
Below 15 but not less than 5 32 32%
Lacks knowledge 1 1%
Not applicable 4 4%
No answer 7 7%
Uncertain 1 1%
GRAND TOTAL 101 100%
 16

Only 17% said they were required to use an English sounding name when
performing their functions (Table 20). But the English of 43% of the respondents was
scored or rated for “Americanization” (Table 21).

Table 20
REQUIRED TO USE ENGLISH
SOUNDING NAME TOTAL %
No 83 82%
No answer 1 1%
Yes 17 17%
GRAND TOTAL 101 100%

Table 21
ENGLISH SCORED FOR
AMERICANIZATION TOTAL %
No 58 57%
Yes 43 43%
GRAND TOTAL 101 100%

More than 1/3 of the respondents said their health was affected by working night
shifts (Table 22). A variety of answers were given to the question how their health was
affected, i.e., lack of sleep or rest, decreased body resistance, sleep disorders and
insomnia, cough, colds, tonsillitis and sore throat, anemia and weight problems, migraine
and headaches, and backache (Table 23). According to a physician providing medical
services between 8 o’clock p.m. and 8 o’clock a.m. to call centers and BPOs at Eastwood
City, Libis, Quezon City, at least three (3) agents consulted him every night due to upper
respiratory ailments and fatigue.26 He mentioned that his attention was called by a firm
for advising the employees to get some rest.27

Table 22
HEALTH IS AFFECTED BY
WORKING NIGHT SHIFT TOTAL %
No 65 64%
Yes 36 36%
GRAND TOTAL 101 100%
 17

Table 23
HOW HEALTH IS AFFECTED BY
WORKING NIGHT SHIFT TOTAL %
Anemia, Weight problem/s 4 4%
Backache 1 1%
Cough, Colds, tonsillitis, Sore Throat 4 4%
Decreased Body Resistance 6 6%
Lack of Sleep / Rest 8 8%
Migraine, Headaches 2 2%
Not applicable 12 12%
No Answer 59 58%
Sleep Disorders / Problems, Insomnia 5 5%
GRAND TOTAL 101 100%

Communication Mechanisms/Worker Participation

With respect to the question how employers communicated with the staff, 15%
said through team meetings, 13% answered a combination of e-mail and team meetings,
and 11% reported a mixture of bulletin board and team meetings (Table 24). Most of the
respondents said team meetings were among the modes of communication. According to
a Team Leader who has been in the industry for four (4) years, the agenda of the team
meetings he conducted on a daily basis typically included coaching or training of team
members about performance standards and updates on quota targets.28 This indicates that
Team Leaders are not necessarily supervisory employees.28a Table 25 shows that for
majority of the respondents employer communication with the staff was primarily
designed to inform, not to consult.
Table 24

EMPLOYER'S COMMUNICATION MECHANISM WITH STAFF TOTAL %

Bulletin board 4 4%
Bulletin board, email, intranet, team meetings 6 6%
Bulletin board, email, team meetings 5 5%
Bulletin board, Internal paper mail, email, intranet 1 1%
Bulletin board, internal paper mail, email, intranet, team meetings 7 7%
Bulletin board, internal paper mail, intranet 2 2%
Bulletin board, internal paper mail, intranet, team meetings 1 1%
Bulletin board, internal paper mail, team meetings 6 6%
 18

Bulletin board, intranet, team meetings 1 1%

Bulletin board, intranet, team meetings, general assembly 1 1%
Bulletin board, team meetings 11 11%
Bulleting board, intranet, team meetings 1 1%
Email 4 4%
Email, intranet, team meetings 9 9%
Email, team meetings 13 13%
Email, team meetings, general assembly 1 1%
Internal paper mail 1 1%
Internal paper mail, email, intranet, team meetings, general assembly 1 1%
Internal paper mail, intranet, team meetings 1 1%
Internal paper mail, team meetings 1 1%
Intranet 7 7%
No answer 2 2%
Team meetings 15 15%
GRAND TOTAL 101 100%

Table 25
PURPOSE OF COMMUNICATION TOTAL %
Consult 40 40%
Inform 55 54%
No answer 6 6%
GRAND TOTAL 101 100%

For most of the respondents, hard copies of rules and regulations affecting
working conditions were given to them or printed off for their own use (Table 26).

Table 26
AVAILABILITY OF COMPANY
WORK RULES TOTAL %
No 15 15%
No answer 2 2%
Yes 84 83%
GRAND TOTAL 101 100%

Changes in company work rules and regulations were made available in the same
way to 72% of the respondents (Table 27).
 19

Table 27
AVAILABILITY OF CHANGES IN
COMPANY WORK RULES TOTAL %
Not applicable 1 1%
No 27 27%
Yes 73 72%
GRAND TOTAL 101 100%

Attitude to Trade Unions

Almost all the respondents were never members (past or present) of trade unions
(Table 28). But when asked about their view of trade union roles in general terms, 53%
had a variety of answers (Table 29). The answer that appeared with the greatest
frequency was “monitoring/protection of employee rights and welfare.” This means that
majority of the workers had general knowledge about trade unions even though most of
them were non-members and young (the sample’s mean age was 25 years while the mode
age was 24 years, supra). Their knowledge may have been acquired through formal
education, since almost all of them finished a bachelor’s degree, supra.

Table 28

RESPONDENT PAST OR PRESENT MEMBER OF

TRADE UNION TOTAL %
No 94 93%
No answer 3 3%
Yes 4 4%
GRAND TOTAL 101 100%

Table 29
ROLE OF TRADE UNION IN GENERAL TOTAL %
An organization, consists of dissatisfied employees,
organized to strike 6 6%
Balances employer-employee relations 2 2%
Monitors, protects employees' rights and welfare 21 21%
Negotiates salary / wage increase and improvement of
work conditions 18 18%
No answer 43 43%
Serves as voice and representative of workers /
employees 11 11%
GRAND TOTAL 101 100%
 20

When asked specifically, however, to rank trade union roles according to what
they consider to be the most important in the list, nearly 2/3 of the respondents ranked
salary/wage negotiation as number one (Table 30).

Table 30
MOST IMPORTANT ROLE OF TRADE UNIONS TOTAL %
Employment law advise 2 2%
Ensuring company explains / complies with internal procedure 12 12%
Influence over management decisions 4 4%
No answer 8 8%
No comment 1 1%
Providing news and information about the industry and labor
market 1 1%
Salary / wage rate negotiation 65 64%
Support in discipline / grievance procedure / hearings 8 8%
GRAND TOTAL 101 100%

When asked if they would be interested to join an affordable, principled and

efficient workplace union, majority of the respondents answered yes, they would be
interested (Table 31).

Table 31
INTERESTED TO JOIN AFFORDABLE,
PRINCIPLED AND EFFICIENT UNION TOTAL %
No 45 45%
No answer 3 3%
No comment 1 1%
Yes 52 51%
GRAND TOTAL 101 100%

A closer look at the respondents who said they were interested to join an affordable,
principled and efficient workplace union reveals the following (Tables 31.1 to 31.13):

1. 50% were males while 48% were females.

2. 85% finished a bachelor’s degree.
3. Work typology for a big majority was customer service.
 21

4. 42% experienced moderate pressure at work while 33% encountered heavy work
pressure.
5. As regards degree of workplace satisfaction, 44% expressed a neutral stance while
about 6% were unhappy.
6. But only 13% experienced problems when taking breaks.
7. 3 out of 4 (75%) rendered night work during the interval 12 midnight to 6 o’clock
a.m.
8. A substantial minority (42%) said their health was affected by working night
shifts.
9. Almost all were never trade union members, but 71% had general knowledge
about trade unions.
10. A big majority (62%) had an average monthly take home pay of P15,000 or
below.
11. A big majority (62%) also said that salary/wage rate negotiation is the most
important role of trade unions.

Table 31.1
INTERESTED TO JOIN AFFORDABLE,
PRINCIPLED AND EFFICIENT UNION TOTAL %
Yes 52
GRAND TOTAL 52 100%

Table 31.2
SEX TOTAL %
Female 25 48%
Male 26 50%
No answer 1 2%
GRAND TOTAL 52 100%

Table 31.3
HIGHEST EDUCATIONAL ATTAINMENT TOTAL %
Bachelor's Degree 44 85%
No answer 3 6%
Some College 2 4%
Some Graduate 3 6%
GRAND TOTAL 52 100%
 22

Table 31.4
TYPE OF WORK TOTAL %
Administrative 1 2%
Customer Service 31 60%
No answer 1 2%
Sales and Marketing 3 6%
Technical Support 16 31%
GRAND TOTAL 52 100%

Table 31.5
DEGREE OF PRESSURE TOTAL %
Heavy 17 33%
Light 13 25%
Moderate 22 42%
GRAND TOTAL 52 100%

Table 31.6
DEGREE OF SATISFACTION TOTAL %
Happy 26 50%
Neutral 23 44%
Unhappy 3 6%
GRAND TOTAL 52 100%

Table 31.7
EXPERIENCES PROBLEM WHEN
TAKING BREAKS TOTAL %
No 41 79%
No Answer 4 8%
Yes 7 13%
GRAND TOTAL 52 100%

Table 31.8
NIGHTWORK 12 MN - 6 AM TOTAL %
No 9 17%
No answer 4 8%
Yes 39 75%
GRAND TOTAL 52 100%

Table 31.9
HEALTH IS AFFECTED BY WORKING
NIGHT SHIFT TOTAL %
No 30 58%
Yes 22 42%
GRAND TOTAL 52 100%
 23

Table 31.10
RESPONDENT PAST OR PRESENT
MEMBER OF TRADE UNION TOTAL %
No 49 94%
No answer 1 2%
Yes 2 4%
GRAND TOTAL 52 100%

Table 31.11
ROLE OF TRADE UNION IN GENERAL TOTAL %
An organization, consists dissatisfied employees,
organized strike 2 4%
Balances employer-employee relations 1 2%
Monitors, protects employees' rights and welfare 15 29%
Negotiates salary / wage increase and
improvement of work conditions 12 23%
No answer 15 29%
Serves as voice and representative of workers /
employees 7 13%
GRAND TOTAL 52 100%

Table 31.12
AVERAGE MONTHLY TAKE HOME PAY TOTAL %
Above P15000 15 29%
No answer 5 10%
P15000 or below 32 62%
GRAND TOTAL 52 100%

Table 31.13
MOST IMPORTANT ROLE OF TRADE
UNIONS TOTAL %
Employment law advise 2 4%
Ensuring company explains / complies with
internal procedure 7 13%
Influence over management decisions 3 6%
No answer 1 2%
Providing news and information about the
industry and labor market 1 2%
Salary / wage rate negotiation 32 62%
Support in discipline / grievance procedure /
hearings 6 12%
GRAND TOTAL 52 100%
 24

The following matrix (Figure 1) depicts the variables that tend to explain the
interest of respondents to join trade unions that are affordable, principled and efficient:

Figure 1
MATRIX OF VARIABLES

EXPLANATORY DEPENDENT

• Gender (male) • Interest to join affordable,

• Education (bachelor’s degree) principled and efficient trade
• Work typology (customer union
NOMINAL

service)
• Night work and effect on
health
• General knowledge about
unions
• Average monthly take home
pay (P15000 or less)

• Degree of work pressure

(moderate to heavy)
ORDINAL

• Degree of neutrality/
unhappiness at work
• Perception about most
important role of trade unions
(salary/wage negotiation)

A variable is dependent if it is the concept to be explained and explanatory if used

to explain the dependent variable.29 Nominal variables are mutually exclusive and totally
inclusive categories.30 Ordinal variables, aside from being mutually exclusive and totally
inclusive, also determine order or relative position. 31

Based on the foregoing data, the variables in the matrix appear to be positively
related.
 25

V. CONCLUSION AND RECOMMENDATIONS

By and large, it appears that labor standards on hours of work are being met in the
call center and BPO industry. But night work during the prohibited interval for women
employees, who constitute the majority in the survey, remains widespread. It seems that
the Labor Secretary has not yet issued an administrative regulation that grants exemption
to call centers and BPOs from the night work prohibition.

While the workers may be young, night shifts adversely affect the health of a
substantial number of them. 3 out of 4 workers in the sample encounter moderate to
heavy work pressure, and 1 out of 2 is neither happy nor unhappy at the workplace.
Majority of the respondents are in customer service.

A big majority receives P15,000 or less by way of average monthly take home
pay. Majority has general knowledge about trade unions, despite their young age and
notwithstanding that almost all are non-members. Formal education may have something
to do with this. Nearly 2 out of 3 workers consider salary/wage negotiation as the most
important role of trade unions. 51% are interested to join an affordable, principled and
efficient workplace union.

Given the above context, it is possible to organize workplace trade unions in the
Philippine call center and BPO industry. Organizing efforts should be industry-based
rather than firm-based, due to the attrition rate and the prevalence of definite or fixed-
period employment. Because of their primary role in the conduct of daily team meetings
and their tenure in the industry, Team Leaders across firms who are engaged in customer
service can be a good organizational base. Whether rank and file or supervisory, Team
Leaders may be organized under the law.32 Initial contact could be in the form of an
invitation to a series of seminars or symposia on industry-specific issues, like
performance standards and appraisal, occupational health and safety, labor standards,
self-organization and collective bargaining, among others. Subsequent activities may
include medical and/or legal consultation/counseling.
 26

Once organized, trade unions should be able to directly address workplace issues
relating to night work for women, performance standards and appraisal, occupational
health and safety, and salary/wage negotiation, among others. Labor education should
also rank high in the agenda.

ENDNOTES/REFERENCES
1
Bureau of Labor and Employment Statistics, Department of Labor and Employment,
2004, Current Labor Statistics, p.12.
2
Congress of the Philippines, 2001, Human Capital in the Emerging Economy, p. 27.
3
Id., at 32-35.
4
Bureau of Labor and Employment Statistics, Department of Labor and Employment,
2004, LABSTAT Updates, Statistics on Non-Regular Workers, 8 (21) (December), p. 2.
5
Bureau of Labor and Employment Statistics, op. cit. supra, note 1, p.19.
6
Id., at 18.
7
Id., at 76.
8
Bureau of Labor and Employment Statistics, Department of Labor and Employment,
2004, LABSTAT Updates, Extent of Unionism, 8 (13) (October), p. 1.
9
Id., at 2.
10
Capistrano, Outsourcing sector not yet ready for unions, Business World, April 29-30,
2005, 2/51, Focus.
11
Ibid.; The Labor Code provides: “ART. 130. Nightwork prohibition. – No woman,
regardless of age, shall be employed or permitted or suffered to work, with or without
compensation: (a) In any industrial undertaking or branch thereof between ten o’clock at
night and six o’clock in the morning of the following day; or (b) In any commercial or
nonindustrial undertaking or branch thereof, other than agricultural, between midnight
and six o’clock in the morning of the following day; or (c) In any agricultural
undertaking at nighttime unless she is given a period of rest of not less than nine (9)
consecutive hours. ART. 131. Exceptions. – The prohibitions prescribed by the
preceding Article shall not apply in any of the following cases: (a) In cases of actual or
impending emergencies caused by serious accident, fire, flood, typhoon, earthquake,
 27

epidemic or other disasters or calamity, to prevent loss of life or property, or in cases of

force majeure or imminent danger to public safety; (b) In case of urgent work to be
performed on machineries, equipment or installation, to avoid serious loss which the
employer would otherwise suffer; (c) Where the work is necessary to prevent serious loss
of perishable goods; (d) Where the woman employee holds a responsible position of
managerial or technical nature, or where the woman employee has been engaged to
provide health and welfare service; (e) Where the nature of the work requires the manual
skill and dexterity of women workers and the same cannot be performed with equal
efficiency by male workers; (f) Where the women employees are immediate members of
the family operating the establishment or undertaking; and (g) Under other analogous
cases exempted by the Secretary of Labor in appropriate regulations.”
12
Ibid.
13
Cardenas, Roxas says Filipinos make better BPO agents than Asia counterparts,
Manila Bulletin, May 29, 2005, Metro 3.
14
Taken from www.dti.gov.ph, www.ccap.org.ph and www.bwc.dole.gov.ph.
15
LABOR CODE, art. 277 (c); Omnibus Rules Implementing the Labor Code, Book V,
Rule II, Section 2, as amended.
16
Labovitz, Sanford and Hagedorn, Robert, 1981, Introduction to Social Research, 3rd
Edition, New York: McGraw-Hill Book Company, p. 64.
17
Interviews with respondents from eTelecare Global Solutions and Sykes Asia Inc. on
May 10 and 11, 2005.
18
Ibid.
19
Ibid.
20
Ibid.
21
Interview with respondents from eTelecare Global Solutions on May 10, 2005.
21a
LABOR CODE, art. 85.
21b
Omnibus Rules Implementing the Labor Code, Book III, Rule I, Section 7.
22
LABOR CODE, art. 93.
23
Omnibus Rules Implementing the Labor Code, Book III, Rule V, Section 5.
24
Interview, op. cit. supra, note 21.
 28

25
Ibid.
26
Interviews with physician at Eastwood City, Libis, Quezon City on various dates.
27
Ibid.
28
Interview with respondent from Sykes Asia Inc. on May 11, 2005.
28a
LABOR CODE, art. 212 (m) provides: “Managerial employee” is one who is vested
with powers or prerogatives to lay down and execute management policies and/or to hire,
transfer, suspend, lay off, recall, discharge, assign or discipline employees. Supervisory
employees are those who, in the interest of the employer, effectively recommend such
managerial actions if the exercise of such authority is not merely routinary or clerical in
nature but requires the use of independent judgment. All employees not falling within
any of the above definitions are considered rank and file employees for purposes of this
Book.”
29
Kochan, Thomas A., 1980, Collective Bargaining, U.S.A.: Richard D. Irwin, Inc., p.
24.
30
S. Labovitz and R. Hagedorn, op. cit., note 16 at 96.
31
Ibid.
32
LABOR CODE, art. 245.
 29

APPENDIX “A” – LIST OF REGISTERED CONTACT CENTERS

1. AOL Member Services Phils., Inc.

2. Cyber City Teleservices
3. All Asia Customer Services
4. Air Relay
5. Ambergris Solutions, Inc.
6. Asian Call Centers
7. CA Telemarketing, Inc.
8. Capital Crossing Asia, Inc.
9. Connect2 (Phils.), Inc.
10. Contact World, Inc.
11. C-quadrant
12. C3
13. Cylynx Technologies
14. Easycall Communications Phils., Inc.
15. E-Pacific Global Contact Center
16. ePerformax
17. eTelecare
18. Expercs Direct
19. Global Reach
20. Globalstride
21. Hellocorp Phils.
22. Immequire Phils., Inc.
23. Incoho Phils., Inc.
24. InfoNXX
25. I-Touchpoint Technologies
26. Link2Support
27. Parlance Systems, Inc.
28. People Support International
29. Pilipinas Teleserve
30. Q-interaction Phils.
31. SVI Connect Corp.
32. Sykes Asia, Inc.
33. Source Once Asia
34. Teleperformance
35. US Asia Solutions, Inc.
36. Vertex Solutions, Inc.
37. Vocative Systems, Inc.
 30

APPENDIX “B” – SURVEY FORM

Sex (M/F) ______Age ______Highest Educational Attainment ___________________________

Type of work (please tick one): Customer Service [ ] Technical Support [ ] Sales &Marketing [ ]
Billing [ ] Administrative [ ] Other (please specify) _________
Average take home pay per month P ______________________________________________________
In your job on the average you are under (please tick one):
Heavy pressure [ ] Moderate pressure [ ] Light pressure [ ]
In your workplace on the average people are (please tick one): Happy [ ] Neutral [ ] Unhappy [ ]
How many hours are you contracted to work per week? ________________________________________
What breaks are you entitled to? _____________________ Is it ever a problem for you to take your
breaks? ______ Why? _________________________________________________________________
What time is/are your shift/shifts? _______________________________________________________
How many hours overtime a week on average, if any?________________________________________
Overtime is (please tick one): Voluntary [ ] Required [ ]
Overtime is (please tick one): Paid [ ] Unpaid [ ]
Does your workplace have a canteen? (please tick one) Yes [ ] No [ ]
How many vacation leaves per year (days)?_____ How many sick leaves per year (days)? _________
Are you required to take on an English sounding name (please tick one)? Yes [ ] No [ ]
Is your English scored or rated for being “American” sounding (please tick one)? Yes [ ] No [ ]
Has your health been affected by working night shifts (please tick one)? Yes [ ] No [ ]
If so, how? ________________________________________________________________________
How does your employer communicate with staff (please tick as many as necessary)? Bulletin Board[ ]
Internal Paper Mail[ ] Email[ ] Intranet[ ] Team meetings[ ] Other (please specify) _____________
Do you consider this communication as primarily designed to (please tick one)?
Inform staff of decisions already made [ ] Consult staff on possible changes and ask for feedback [ ]
Are you given hard copies of rules and regulations affecting working conditions or can you print them off
for your own use? (please tick one) Yes [ ] No [ ]
Are you given hard copies of changes in the rules and regulations affecting working conditions or can you
print them off for your own use? (please tick one) Yes [ ] No [ ]
Have you ever been a member of a trade union? (please tick one) Yes [ ] No [ ]
If so, what is/was its name?______________________________________________
What, in general terms, do you understand to be the role of the trade union in the workplace?
_____________________________________________________________________________________
Below are some roles undertaken by unions in the workplace. Please rank them in what you consider to be
the order of importance (“1” for most important, “2” for second most important, etc.)
[ ] Salary / wage rate negotiation
[ ] Support in discipline / grievance procedure / hearings
[ ] Ensuring company explains / complies with internal procedures
[ ] Employment law advise
[ ] Influence over management decisions
[ ] Providing news and information about the industry and the labor market
[ ] Other reason ((please specify) _________________________________________________________
If you could be sure that your workplace union was affordable, principled and efficient would you be
interested in joining? (please tick one) Yes [ ] No [ ]
Do you have an anonymous e-mail address (e.g., yahoo, hotmail, etc.) you would be willing to share with
us? _________________________________________________________________________________
 31

APPENDIX “C” – CORPORATE PROFILE OF CALL CENTER / BPO

COMPANIES WHERE RESPONDENTS WORK
(Based on Companies’ Websites)

Alorica Philippines

Alorica Inc. is an after-sales service provider with solutions including call center services, service
logistics, warranty and repair, returns management, field service and parts management. Its’
headquarter is based in Chino, CA. Established in 1998 with a total of 1,500 employees, it has
sites in US. Other area of operations includes Cork, Ireland, Japan and Philippines. Alorica
Philippines Inc. is located at Wynsum Corporate Plaza in Ortigas Center, Pasig City, with
approximately over 1,000 employees. It acquired Vertex Solutions Inc.

Ambergris Solutions, Inc.

Ambergris Solutions Inc. provides customer relationship management (CRM) and back office
solutions to US-based clients in the utilities, IT, travel & hospitality, telecommunications and
financial services industries. These solutions include multi-channel service that encompasses
voice, e-mail, fax and web-based support.

Convergys Corporation

Convergys’ headquarters is in Cincinnati, Ohio, USA. It serves companies in communications,

financial services, technology, employee care and other industries in more than 40 countries. It
employs more than 63,000 people in contact centers, data centers and offices in the United States,
Canada, Latin America, Europe, the Middle East, and Asia. Convergys has offices in Cebu City,
Manila and Quezon City.

Customer Contact Center, Inc. or C3

Customer Contact Center, Inc. or C3 is a Philippine company engaged in the customer contact
management outsourcing business. A subsidiary of the Lopez Group of Companies, it provides
end-to-end contact center solutions to leading international and local clients. It was established in
May 2000 and currently operates in Eastwood City Cyberpark in Quezon City, with a capacity of
930 seats.

ePacific Global Contact

ePacific Global Philippines serves telecommunications companies, internet services companies

and trade services companies. It provides clients with both Outbound and Inbound services.
 32

ePLDT

ePLDT, Inc., a wholly-owned subsidiary of the Philippine Long Distance Telephone Company
(PLDT), is the principal corporate vehicle of the PLDT Group’s information and communications
technology (ICT) focusing on enabling ICT infrastructure services which would drive Internet
applications, IP-based services and multimedia content delivery.

eTelecare Global Solutions

Founded in 1999, eTelecare International provides customer contact center operations for
financial, computer and telecommunications firms. It started its operations in the Philippines in
September 2002 with its call centers located at Eastwood City and Makati City.

IBM-Daksh eServices, Inc.

Daksh eServices is a Business Process Outsourcing (BPO) services provider in India. It provides
customer care, technical support, data conversion, collections, telesales, transaction processing and
other value additions services for banking, insurance, financial services, travel, technology,
telecom and retail. Its office is located in Manila, Philippines. It was acquired by IBM.

i-Contacts Corporation

i-Contacts Corporation (i-Con), a wholly-owned subsidiary of Smart Communications Inc., is a

contact center that provides companies with access to its customers via voice, fax, internet and
Short Messaging System (text messages). It was launched on June 1, 2001. The company has four
(4) contact center facilities. Three branches are in Luzon located in Quezon City and in Makati
City and one is in the Visayas region established in Cebu City.

ICT Group

ICT Group has over 40 contact centers, over 12,000 customer sales, service and market research
representatives in the United States, Canada, Europe, Australia, Mexico, the Caribbean and the
Philippines and more than 8,300 agent workstations interconnected to a centralized, common IT
platform. It provides customer relationship management (CRM) solutions such as sales, service
and marketing in financial services, insurance, telecommunications, healthcare, information
technology, media, energy and hospitality industries. ICT GROUP is headquartered in Newtown,
PA, a suburb of Philadelphia.

PeopleSupport Philippines, Inc.

PeopleSupport Philippines, Inc. provides offshore business process outsourcing, or BPO, services
from our outsourcing centers in the Philippines. PeopleSupport offers customer care, inbound
 33

sales, technical support and direct response sales services using over 3,600 professionals in the
Philippines. They provide these solutions through communications channels, including telephone,
e-mail, live web chat and Internet self-help applications. They serve U.S.-based clients in a variety
of industries, including travel and hospitality, technology, telecommunications, retail, consumer
products and financial services.

Sitel Philippines, Inc.

SITEL began its Manila operations in May 2004. SITEL’s facility in Manila is located in
Eastwood City. SITEL's facility has a capacity of 1,000 workstations. SITEL’s operation in the
Philippines provides VoIP, site interconnectivity, CRM tools, etc.

Sykes Asia, Inc.

SYKES has been providing outsourcing and consulting solutions in the technology, finance and
communications industries for over 25 years. They support products and services in the technical,
financial and communications industries. They complement support services with consulting,
enterprise support and solutions that are customized for business requirements. With
approximately 8,000 employees, it has offices in Makati, Ortigas and Cebu.

Teleperformance Philippines

Teleperformance is an outsourced Customer Relationship Management services provider. It

operates in more than 4,000 workstations in 23 contact centers across the United States, as well as
in Argentina, Canada, Philippines, and India. Teleperformance Philippines has close to 200
workstations expandable to 400 seats. It is a joint venture between SR Teleperformance and a
group of Filipino entrepreneurs. The Philippines site (in Pasig City) has been in operation for 8
years. Services include sales, customer care, and product support for telecommunications, banking
and financial services, pharmaceutical, technology, automotive and healthcare industries.

Teletech Philippines

TeleTech is a service provider of customer management solutions. Founded in 1982, TeleTech

provides services through a strategic platform that encompasses people, process, technology and
infrastructure. TeleTech offers solutions to a variety of industries including financial services,
transportation, communications, government, healthcare and travel.