The BPO Industry Employees Network (BIEN)-Cebu is urging workers in the information technology and business process management (IT-BPM) sector to organize and push for higher wages, arguing that employees deserve a larger share of the wealth generated by their labor.
The group issued the call after the first public hearing on wage adjustment in Central Visayas on Aug. 24, where an IT-BPM industry representative warned that higher labor costs could discourage clients from keeping their accounts in the Philippines.
BIEN-Cebu President Kyle Enero disputed the argument that a substantial wage increase could threaten jobs, saying workers have generated wealth beyond projections made by industry and government economists.
“The industry insists that a substantial wage increase would be detrimental to businesses, but the reality is that a wage increase is doable, urgent, and long overdue,” Enero said.
During the Regional Tripartite Wages and Productivity Board VII (RTWPB VII) hearing, an industry representative said a wage increase would be ineffective if it resulted in fewer jobs. The representative also warned that clients could move operations to lower-cost locations such as Ho Chi Minh City in Vietnam and Bangkok in Thailand.
BIEN-Cebu said client decisions to move accounts are influenced by factors beyond labor costs, including corporate decisions, management practices, business strategies, technology, service delivery and companies’ ability to meet performance requirements.
The group said using possible client pullouts as an argument against higher wages could force Filipino workers into competition with workers in other countries based mainly on who can provide cheaper labor.
Enero also argued that companies have room to increase workers’ pay by allocating a larger portion of existing revenues to salaries instead of profits.
BIEN-Cebu cited one scenario from its research in which a US-based client pays about US$10 per worker-hour while the employee performing the work receives about US$2 to US$3 per hour.
The group said narrowing that gap could create room for higher wages without necessarily requiring companies to increase the rates charged to clients.
“The problem is not simply whether the industry has the money to increase salaries. The question is who receives the wealth that workers produce,” Enero said.
BIEN-Cebu said the IT-BPM sector’s revenues depend on hundreds of thousands of Filipino workers who provide customer service, technical support, transaction processing, software development, data management and other services for global clients.
The group said workers should have a stronger voice in determining how the wealth generated by the industry is distributed.
Enero, who also serves as lead convener of the Wage Increase Network (WIN) Cebu, called on IT-BPM workers to strengthen collective action in support of a substantial wage increase.
“We must build our collective strength and push even harder for our just demand for a substantial wage increase,” he said.
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