Department of Labor and Employment Secretary Rosalinda Baldoz Saturday said in a DOLE press release that the defeat at the US Senate of US House Resolution 3696, known as the “United States Call Center Worker and Protection Act” is a welcome development for the country.
The bill prohibits American companies from setting up call centers in foreign countries, including the Philippines.
“While we have been vigilant and proactive in implementing measures that could mitigate the impact of the legislative proposal had it been pushed into a law, the US Senate decision is very much welcomed news,” Baldoz said
This means that more BPO companies can expand their businesses in the Philippines and generate the much needed employment for our local workforce, she also said.
The Republican party-sponsored bill, believed to attract and keep good jobs in the US by rewarding companies who move their operations back to America, was officially defeated on July 19 by a vote of 56-42, the press release said.
In the US senate, at least 60 votes are required for the bill to be enacted into a law, it added.
US business groups have opposed the measure, arguing that it could have a negative effect on their competitiveness and overall standing in the global trade as it could cost companies a percentage of their profit with the penalties that go with pursuing off-shoring operations.
Baldoz noted that the statement of Benedict Hernandez, President and CEO of the Business Processing Association of the Philippines, who said that outsourcing business services to the Philippines helps make American companies more competitive and profitable.
Hernandez had cited the Dartmouth's Tuck School of Business economist Matthew Slaughter's study of hiring practices of 2,500 US multinationals, which found that for every job outsourced, nearly two new jobs are created in the US, the press release said.
The Philippines is considered the top destination for businesses that are looking for call center services, it added.
In 2011, the country's IT-BPO industry generated more than $11 billion in revenue and employed almost 640,000 Filipinos.
The industry roadmap projects that by 2016, it would to grow to $25 billion in annual revenue and employ 1.3 million, the press release said.*