Gov’t alerted to US bill’s effect on Philippines’ booming BPO

Labor Secretary Rosalinda Baldoz

The government is assessing the impact of a proposed law in the United States that would discourage US firms from outsourcing their operations, Labor Secretary Rosalinda Baldoz said Wednesday.

Baldoz said she would ask Labor Attaché Luzviminda Padilla in Washington to assess the impact of the Call Center and Consumers Protection bill that might have severe repercussions on the country’s booming business process outsourcing (BPO) industry.

“If there’s going to be a slowdown then of course that would affect us because there are many US outsourcing companies here in the Philippines,” she said.

The country’s BPO industry employs around half a million Filipinos, according to the labor secretary. The Philippines overtook India last year, becoming the world’s biggest provider of call center agents.

“I will have to check. It is still not a law. I will ask the labor attaché in Washington to give me a briefing on this bill and possible impact assessment on our outsourcing companies here,” she added.

Penalties on US firms

Baldoz said that she would ask Padilla to monitor the progress of the bill in the US House of Representatives.

The proposed legislation, US House Bill No. 3596, seeks to require call center operators who answer calls to identify their location, giving US callers the option of choosing a local operator.

The measure also seeks to penalize US companies $10,000 a day if they fail to report their relocation to the US Department of Labor within 60 days.

American companies will also be required to inform the US labor department 120 days in advance regarding their plans to transfer operations elsewhere.

The bill also seeks to ban American call centers operating outside the United States from seeking federal grants and loans for five years.