Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS,
Second Regular Session

House Bill No, 9218

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

AN ACT
PROVIDING FOR THE PROTECTION OF WORKERS IN THE CALL CENTER
INDUSTRY’

EXPLANATORY NOTE

The Constitution, in Article 13, Section 3, paragraphs 1 and 2, state that
“The State shall afford full protection to labor, focal and overseas, organized and
unorganized, and promote full employment and equal employment opportunities
for all.

It shall guarantee the rights of all workers to self-organization, collective
bargaining and negotiations, and peaceful concerted activities, including the right
to strike in accordance with law. They shall be entitled to security of tenure,
humane conditions of work, and a fiving wage. They shail also participate in
policy and decision-making processes affecting their rights and benefits as may
be provided by law.”

“In all probability, work consists of uninterrupted and endless sequence of
similar conversations with customers she never meets. She has to concentrate
hard on what is being said, jump from page to page on a screen, make sure that
the details entered are accurate and that she has said the right things in a
pleasant manner. The conversation ends and as she fidies up the loose ends,
there is another voice in her headset. The pressure is intense because she

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knows her work is being measured, her speech monitored, and it often leaves
her mentally, physically and emotionally exhausted."? This is what a typical day
in the life of a call center agent looks like. It is a mix of high pressure work,
reversed work hours, above average paychecks, and a lifestyle that is sui generis
to this profession

The cali center industry has been described as a sunshine industry in the
Philippines owing in no smail part to the boom that it has experienced in the past
decade. News reports place the expected revenue of the Philippines from voice-
based customer support and sales for 2010 at $5.7 billion. The Philippine $9.5
billion? Business Process Outsourcing (BPO) industry will also overtake India’s
$12.4 billion industry in five years. The Business Processing Association of the
Philippines reported that their members employ around 400,000 workers.* Even
Intemational Labor Organization (ILO) Chief Lawrence Jeff Johnson
recommended that Philippine graduates who are waiting for opportunities abroad
should fill the manpower shortage in the BPO sector, particularly in call centers
and medical transcription areas.

While the BPO sector gives us all of these benefits, there is a need to
balance the legitimate business interests of BPO companies with the labor rights
of employees. A recent study by the ILO shawed the perils of working in call
centers, A study found that 42.6 percent of BPO employees in the Philippines
work the night shift. This work schedule is linked to health and occupational
safety concems. Problems like sleep disorders, fatigue; eye strain; neck,
shoulder and back pains; and voice problems are typical for these workers. 47.7
percent of Filipino BPO workers the authors surveyed suffered from insomnia,
while 54 percent suffered from fatigue. Call centers employees were also found
to have relatively low autonomy. Their jobs are described as "typically invotving
heavy workloads backed by performance targets and tight rules and procedures.
enforced by electronic monitoring which are known to produce high levels of
work-related stress. Some of these psychological stress-inducing factors were
harassment from irate clients; excessive and tedious workload; performance
demands; monotony; and regular night work.”

A Swedish study estimates that call center operators spend an average of
1,300-1,400 hours a year sitting at the computer taking calls, Since their work
areas are often structured in an open-space plan, the resulting noise levels can
be high. In 2003, researchers discovered that the average noise level was at a
fevel that clearly disturbs concentration and can cause fatigue and headaches
Headphones utilized by operators are often not designed to block out the

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302, p. 115 (1999)

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ambient noise. Moreover, suitable ergonomics for avoiding eye strain were
found to be lacking.’

Another problem with the industry is the way it discourages unions®
Several surveys and research in Europe showed that unions do matter in the cali
center industry. It is in the very nature of call center work where the protection of
trade unions is very much called for. The Communication Workers Union
(CWU), for example, is the biggest union for the telecoms industry in the United
Kingdom with 215,000 members. The CWU "exists te protect, advance and
serve the interests of its members throughout the communications industry."*

This bill seeks to better protect the interests and welfare of the workers in
the BPO industry. It is in the interest of the BPO companies themselves to
protect their workers who are their most important resource. Lower attrition rates
and the attraction of more capable workers leading to a stronger BPO industry is
what this bil seeks to accomplish.

We therefore enjoin our colleagues to ensure the immediate passage of
this bill into law.

DIOSDADO tua. ARROYO GLORIA MACAPAGAL ARROYO

Second District, Camarines Sur Second District, Pampanga

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

FIFTEENTH CONGRESS
Second Regutar Session

enn §218

House Bill No.

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

AN ACT
PROVIDING FOR THE PROTECTION OF WORKERS IN THE CALL CENTER
INDUSTRY

Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress assembled:

SECTION 4. Short Title. - This Act shall be known as the "Magna Carta
for Call Center Workers Act of 2011."

SECTION 2. Declaration of Policy. - (a) It is the policy of the State to
afford full protection to labor, local and overseas, organized and unorganized,
and promote full employment and equal employment opportunities for all

{b) The State shall guarantee the rights of all workers to self-organization,
collective bargaining and negotiations, and peaceful concerted activities,
including the right to strike in accordance with law. They shall be entitled ta
security of tenure, humane conditions of work, and a living wage. They shall also
participate in policy and decision-making processes affecting their rights and
benefits as may be provided by law.

{c) As a party to the Intemational Labor Organization Convention
concerning Freedom of Association and Protection of the Right to Organize, the
State affirms that workers, without distinction whatsoever, shall have the right to
establish and, subject only to the rules of the organization concemed, to join
organizations of their own choosing without previous authorization


SECTION 3. Definition of Terms. — As used in this Act, the term:

(a) “Business Process Outsourcing" or "BPO" refers to the transfer of an
organization's non-core processes to a third-party who uses an
information technology based service delivery, and in tum manages the
selected process based on defined and measurable performance criteria;

(b) “Call center’ is a type of BPO and refers to a centralized office for
feceiving and transmitting requests by telephone or Intemet. Gall center
operations include, but are not limited to, the granting of incoming product
support, information inquines from consumers, and outgoing calls for
telemarketing, clientele, product services, and debt collection:

(c) "Call center employee" shall refer to any person employed by a call
center either in a temporary/probationary or permanent capacity;

(d) "Department" shall refer to the Department of Labor and Employment;
(e) “Secretary” shall refer to the Secretary of Labor and Employment;

SECTION 4. Rights of Cal! Center Employees. — Call center employees
shall enjoy the following rights:

(a) The right to organize and join labor organizations;

(b) The right to a safe and healthy working environment which will facilitate
optimal physical and mental health in relation to their work;

{c) Call center employees shall have at least a one (1) hour continuous
meal break in the middle of every eight (8) hour shift;

(d) The right to privacy of call center employees shall be respected. The
monitoring of personal phone calls shall not be allowed, and in the event
that their official phone conversations are monitored, they must be
informed of this at all times prior to the start of the monitoring process;

(e) For employees working in the night shift, they shall have the right to
stay in a comfortable resting area within the employer's premises until
daybreak to ensure their safety;

(f) The right to be informed of the terms and conditions of their contract.
SECTION 5. Duties of Employers in the Industry. — It is the duty of call

center companies engaged in business in the Philippines to observe the
following:



(a) Establish and maintain a safe and healthy working environment which
will facilitate optimal physical and mentat health in relation ta the work of
call center employees;

(b) Monitoring software shouk! not be used to unduly pressure employees
and should not impose an oppressive working environment;

(c) Employers should incorporate regular rest breaks and changes in
activity for all display screen equipment users;

(d) They are required to cary out risk assessments and to remove
Monotonous work and work at a pre-determined rate when designing
tasks whenever possible;

(e) All BPO companies shall inform their prospective recruits that they can
have their contract explained to them free of charge at the BPO Help Desk
of the Department of Labor and Employment;

SECTION 6. BPO Help Desk. — There shall be a BPO Help Desk at the
national and regional offices of the Department of Labor and Employment. It
shall be equipped to advise employees or prospective employees of BPO
companies of the terms and conditions of their employment when presented with
a copy of the contract. It shall atso inform employees of the proper procedure in
filing complaints for violation of this Act.

SECTION 7. Grievance Mechanism. — There shall be a mechanism in
every company for the adjustment and resolution of grievances arising from the
interpretation and enforcement of employment contracts and company personnel
policies. This shall not require the prior existence of a collective bargaining
agreement for the mechanism to be put in place.

SECTION 8. Jurisdiction. — The Labor Arbiter shall have primary and
exclusive jurisdiction ta hear and decide within thirty (30) calendar days after the
submission of the case by the parties for decision without extension, even in the
absence of sfenographic notes, cases involving all workers in the BPO industry
as provided for under Article 217 of the Labor Code

SECTION 9. Application to Other Sectors of the BPO Industry. - The
provisions of this Act shall apply to other areas of the BPO industry whenever
applicable.

SECTION 10. Annual Report to Congress. - The Secretary shall submit a
feport within one year from the implementation of this Act, and every year
thereafter, on the improvement in the working canditions and attrition rate in the
call center industry.


SECTION 11. implementing Rules and Regulations. - The Secretary shall
formulate and disseminate the Implementing Rules and Regulations of this Act.

SECTION 12. Separability Clause. - If any provision or part hereof is held
invalid or unconstitutional, the remainder of the law or the provision not otherwise
affected shall remain valid and subsisting.

SECTION 13. Repealing Clause. — Any law, presidential decree or
issuance, executive order, letter of instruction, administrative order, rule or
regulation contrary to or inconsistent with, the provisions of this Act is hereby
repealed, modified, or amended accordingly.

SECTION 14. Effectivity Clause. - This Act shall take effect fifteen (15)
days after its publication in at least two (2) newspapers of general circulation

Approved,