The country’s leading group of information technology and business process management (IT-BPM) firms opposed the “premature” identification of six companies that supposedly violated employees’ rights during the deadly 6.9 magnitude earthquake in Cebu, arguing that it could be detrimental to investor confidence.
In a statement, the IT and Business Process Association of the Philippines (IBPAP) called out the regional office of the Department of Labor and Employment (DOLE) in Central Visayas, or Region VII, over their “irresponsible declaration.”
The IBPAP stated that these companies were drawn into the issue “without the benefit of impartial investigation or validation.”
“Such actions run contrary to the principles of fairness and good faith expected of a government agency that serves as a partner of both workers and employers in ensuring safe and decent workplaces,” the industry group said.
The IBPAP stated that DOLE Region VII, through its regional director, Roy Buenafe, submitted a report detailing alleged violations by certain IT-BPM companies to the Senate Committee on Labor, Employment, and Human Resources Development.
The Senate panel, chaired by Senator Raffy Tulfo, was prompted to pursue an investigation into the matter following reports of companies
forcing workers to return immediately after the earthquake, among other issues.
During the committee’s hearing, Buenafe stated that the DOLE has issued work stoppage orders to companies that allegedly endangered their employees during the recent earthquake in Cebu.
Buenafe cited six Cebu-based firms, namely Iploy OPC, Optum Global Solutions, EXL Services, Alorica, Gagfa IT Tower, and Teleperformance IT Park Cebu.
Of which, four are members of IBPAP.
The IBPAP said that naming these companies was a “reckless” move, as it causes “confusion among employees and creates undue alarm among global clients.”
The industry group warned that the move has repercussions for foreign investors, who may view the Philippines as unreliable and inconsistent in its regulatory practices.
“Such a perception erodes confidence, drives business to competing destinations, and jeopardizes the very jobs and revenues the Philippine IT-BPM industry has worked hard to secure,” the IBPAP said.
“Equally concerning, clients may become hesitant to expand outside Metro Manila, undermining countryside development opportunities where these jobs are most needed and where DOLE itself aims to create and safeguard livelihoods,” it added.
The IBPAP noted that since the initial reports surfaced, it has been in active communication with the government to request the list of involved companies.
However, the group said it has not yet been provided with such critical information.
In lieu of this, it stated that it sought the side of its members named in the issue, which then said that no violation of employees’ rights was committed.
The IBPAP said these findings “disprove” claims of employee safety violations during the Cebu earthquake.
With this, the group called on the DOLE to thoroughly investigate the matter and issue a clarifying statement on how it is being handled.
“Furthermore, we insist that DOLE Region VII rectify its records and remove the names of companies that were included in the report submitted to the Senate Committee on Labor and Employment,” it said.
The group also said that the government must ensure similar incidents do not happen again, noting that future reports identifying companies must be “based on verified information and proper coordination with IBPAP.”
“While IBPAP remains committed to working with DOLE and other stakeholders to resolve this issue objectively and transparently, we must stress that worker welfare and employer integrity must both be protected,” the group said.
“The confidence of global clients— built on our reputation for fairness, compliance, and operational excellence—is the foundation of continued job creation and investment,” it continued.
The IT-BPM sector contributes around $40 billion to the economy, employing 1.90 million Filipinos.
The industry is targeting to reach as much as $42 billion next year, with employment increasing to 1.97 million Filipinos.