opinion


POLICY PEEK


A 4


The Manila Times


TUESDAY


D e cember 7, 2010


Edit orial Credit cards


vs. consumers S


INCE the onset of the global financial crisis, lawmakers have attempted to rein in high credit-card rates but to no avail. In the House just late last month, another


attempt was made by Rep. Arthur Yap of Bohol, who filed a bill seeking to limit the interest rates and penalty charges imposed by credit cards to 1 percent a month or 12 percent a year. Rep. Yap’s House Bill 1235 is similar to other measures aimed to bring down high interest rates charged by credit- card firms, such as Senate Bill 1438 filed Sen. Francis “Chiz” Escudero in 2009. His colleagues have also raised concerns about the same issue, including Senators Ramon “Bong” Revilla and Miriam Defensor Santiago. Regrettably, none of the initiatives has made progress to protect con- sumer interests. We hope that Rep. Yap’s bill passes, and that he and others who have advocated similar measures are sincere in their advocacy—and not merely after brownie points in the media. We also hope that President Benigno “Noynoy” Aquino 3rd will certify House Bill 1235—and other meas- ures like it—as urgent to protect consumers. Our regret is that he has not certified any bill as urgent, nor has he even convened the Legislative Executive Development Advisory Council, or Ledac, to spell out what output the administra- tion expects from Congress. Still, we remain hopeful. We hope to see action soon, because we believe that the interest rates are too high. Most credit cards offer between 2.5 percent and 3.5 percent per month. If the cardholder does not pay the entire bill every month, the interest rate is compounded. Annualized rates can exceed 40 percent a year. In his press release, Rep. Yap said that there were 4 million Filipinos who have credit cards. Many of them apparently have more than one, given that the total number of cards is about 6.5 million. And these numbers are on the rise because of aggressive marketing, the congressman added. There are at least 14 credit-card companies operating in the Philippines, but the central bank only regulate those that course transactions through banks. Not all credit cards do, according to Sen. Escudero. And in a statement released in February 2009, the senator also said, “The compounding interests, surcharges and penalties on the unpaid part of the bill are what push the costs up.” Nearly three years after that was said, the problem persists.


Balancing act We urge the Bangko Sentral ng Pilipinas to review its policy


on credit cards, particularly Central Bank Circular 905-82. The circular effectively removed the ceiling on interest rates for secured and unsecured loans. If at all, the central bank should have more teeth, so to speak, to bite off a large chunk of the high interest rates charged by credit-card companies. In a developing country with a high incidence of poverty, offering credit cards may be likened to offering opium to a drug addict. That is why we also support initiatives proposed last year by Sen. Santiago to prohibit credit-card companies from soliciting memberships from Filipinos age 25 years old and younger. That’s an important step, but the laws need to go further to help ensure banks and other firms offering credit cards behave responsibly.


Granted, the interests of the credit-card firms have to be protected, too. That is why, we believe, that it is in their interest to be more discriminating in prospecting for poten- tial cardholders—to screen high-risk clients with poor credit histories. By offering high rates, as done now, the risks are passed on to “good” customers.


Consumer information Whatever changes are made will require new legislation, not


to mention a lot of time to pass it. Meanwhile, we do not think it is right for consumers to continue paying exorbitant rates. Besides, we concede that it is tricky to find a balance between free enterprise and consumer rights. While lawmakers debate on fair interests rates, we suggest other measures that will allow consumers make better- informed decisions about credit cards. For instance, the authorities—perhaps those at the central bank—should compel credit-card companies to publish the effective annual interest rates alongside the monthly rates. We suspect that most Filipinos do not know how to convert the monthly rates to yearly rates—and will probably be surprised to realize how much they actually have to pay. Also, we agree with an old proposal of Sen. Escudero to put


warnings on billing statements of credit cards that explain to cardholders the consequences of paying only the minimum amount due. In his measure, the senator proposed that the warning should include information on the number of years it will take cardholders to pay the entire amount if he or she makes only the minimum payment required. Plus, his measure requires companies to inform consumers about the total cost to be paid by the cardholder if he or she pays only the minimum monthly payment, assuming no other further advances are made, according to his statement in 2009. We agree. We recognize that these proposals may put a burden on credit-card companies, something unavoidable given the imperfections of the economy. The alternative is to place the burden on consumers. That is the situation today, which is simply not right.


TUESDAY December 7, 2010 The Manila Times DANTE F. M. ANG 2ND, Executive Editor


FRED DE LA ROSA, Chairman Editorial Board RENE Q. BAS, Editor in Chief ROMY P. MARIÑAS, News Editor


ARNOLD S. TENORIO, Business Editor CONRAD M. CARIÑO, National Editor


TESSA MAURICIO-ARRIOLA, Lifestyle Editor ARIS L. SOLIS, Regions Editor


PERRY GIL MALLARI, Acting Sports Editor BRIAN M. AFUANG, Art Director RENE H. DILAN, Photo Editor


 DANTE F. M. ANG 2ND, President and CEO


Telephone All Departments. 524-5665 to 67 Telefax 528-1729; Subscription: 524-5664 Local 222 URL http://www.manilatimes.net • e-mail newsboy1@manilatimes.net Letters to the editor


THE MANILA TIMES is published daily at 2/F Dante Ang and Associates Building, 409 A. Soriano Avenue, Intramuros, Manila 1002


VOLUME 112 NUMBER 057


OPINION Who will protect children from their parents? BY DR. DANTE A. ANG


I CAUGHT the tailend of Human Rights Commission Chair Etta Rosales’ interview on Failon at Webb over dzMM Friday last. It was enough to spoil your day. Imagine, she said in effect, that it must be all right for the mothers to bring their babies to the rallies just because there is no law against it. “Wala naman kasing batas na nagbabawal doon.” (There is no law that prohibits mothers from bring- ing their babies to the rallies.) She was referring to the Manila


Police’s dispersal of the demon- stration last week staged by the “kuliglig” operators, their fami- lies and supporters. Several dem- onstrators, including a baby, were reportedly hurt when the police broke their line using water can- ons. At the height of the disper- sal, the demonstrators went on television to air their threat that out of job, they have no choice but to go back to “kidnapping.” Last I heard, the “kuliglig” op- erators and the police have filed charges and counter-charges against each other. To bolster her argument that it


was perfectly OK to use women and children in demonstrations to avoid possible conflict, Ro- sales brought up the case of the Maguindanao massacre where Governor Mangudadatu sent his wife and sisters to the Comelec offices to file his certificate of can- didacy. He had hoped that his political opponents would not dare harm women. He was wrong. Fifty-eight civilians, in-


cluding at least 32 media practi- tioners, were gunned down mer- cilessly by a gang led by Mayor Andal Ampatuan Jr. Rosales was comparing apples and oranges. In the case of the women killed allegedly by the Ampatuans, Mangudadatu sent his women in his place purposely to avoid a direct confrontation with his opponents. On the other hand, the “kuliglig” operators knowingly, and by design, brought along their babies and put them in harm’s way by using them as shields against the police. Hearing Rosales’ arguments, I couldn’t help wonder whether the CHR chair who used to be a street parliamentarian, is really up to her job. Rosales should be reminded that she is now with the govern- ment and that her job requires competence, sound judgment and objectivity. Assuming she is competent, how could she be fair and objective when her concept of justice is the kind that finds the police guilty of human-rights vio- lation even before any investiga- tion could be started? Yes, I agree that the police should be overly protective of the children, especially babies, in managing crowds, even when hot heads provoke them. But that’s easier said than done. I guess when your very own life is on the line, your instinct is to protect yourself from harm.


Still, there could be no justifi- cation for violating the rights of people. When demonstrators are hurt and lives are lost, the police


whether provoked or not must bear the blame. On the other hand, the provocateurs must also share the onus or perhaps even equal or a bigger responsibility for crossing the line and stretch- ing the limits of reason. And while at it, what about the parents who purposely brought their children and babies to the “kuliglig” rally last week? Should Rosales just shrug her shoulders and repeat the refrain that there’s no law against making cannon fodder of your own children. If Rosales truly understands


her job, she should also run af- ter the parents who knowingly used their children as a shield against the police.


This is one instance when I support Manila Mayor Fred Lim and the police for bringing order and sanity in the streets against the “padyak” tricycles, and now the obtrusive “kuliglig,” that daily, literally litter our streets. They counterflow and violate traf- fic rules. The “kuligligs” would even race you and get mad when you beat them to the traffic light. What makes them terrible law- breakers and a nauseating nui- sance on the street? One, is that the “padyak” and the “kuliglig” don’t pay tax. Two, they are not authorized to ply our streets, more so the major, busy roads. Three, they are dangerously unsafe to ride. Passengers, especially chil- dren, are endangered every time they ride “padyaks,” tricycles and “kuligligs.” And, four, these road pests exacerbate the gridlock in our streets, slowing down traffic


Labor issues in call centers


that the Philippines has already overtaken India as the world’s number 1 country for shared services and business process outsourcing (BPO). Also, last week, in an interview


T


with Karen Davila on ANC’s Headstart program, the president of the Contact Center Association of the Philippines, Benedict Hernandez, said the Philippines has already overtaken India in terms of the number of call center employees this year. “When you think of the contact center environment, we have as- sumed the number 1 position. Last year, we were about 300,000. This year, it’s 350,000 in terms of em- ployed Filipinos working in call centers in the Philippines com- pared to only 330,000 in India. Right now, the best place to put a call center from a quality position is the Philippines,” he said. In terms of revenues, Philip- pine call centers are expected to generate $5.7 billion this year or $200 million higher compared to India’s $5.5 billion. BPO rev- enues are forecast to hit $9.5 billion. This is still behind In- dia’s $12.4 billion but the Phil- ippines is not only expected to catch up but overtake India in the next five years. BPO revenues include voice and non-voice services. Call centers that offer voice services provide lower profit margins compared to other BPO offerings. Non-voice BPO offerings, such as financial, medical, editorial and engineering services, contribute higher profit margins. More es- tablished BPO players, including


ERNESTO F. HERRERA


those from India, have created a niche supply for these services. But like I said, the Philippines will capture a bigger share of these non-voice services in the near future because we have no shortage of workers who can do higher-end and knowledge- based BPO work.


All these are good news, indeed, but not everything is bright and sunny in this sunshine industry. There are also human and labor issues in call centers and other BPO companies that de- mand immediate attention from the government, labor organiza- tions and industry players. By now, we are all too familiar with the high attrition rate in BPO workplaces. Young, energetic, enthusiastic people are enticed by the “work for fun” ads in call centers and realize that the work is rather dif- ficult and highly stressful. The high stress level leads to a number of illnesses and employee burnout, so much so that BPO workplaces have been called “elec- tronic sweatshops” or “the slave galleons of the 21st Century.” The International Labor Organi- zation book titled “Offshoring and Working Conditions in Remote Work” talks about these issues in- depth. Take the night work shift, for instance.


HE IBM Global Locations Trend said in its latest report


The Institute for Occupational Health and Safety Development recently criticized the decision of Labor Secretary Rosalinda Bal- doz to provide exemptions to the Labor Code ban on women do- ing night work. (Article 130 of the Labor Code provides for night work prohibition on wo- men employees, thereby requir- ing an exemption.) According to the NGO, recent studies have shown how night work increases the risk of getting breast cancer for women shift workers, noting that cancer caused by shift work is not a com- pensable disease in this country. This is quite a dilemma for the Labor department because one, the BPO is perhaps the biggest employment generator in the country; two, most of its work- ers are women (almost 60 per- cent); and three, night work is common among BPO workers, especially call centers, as they serve customers mostly in the United States in real time. So what is the Labor depart- ment to do?


The ILO book also says night


work is associated with occupa- tional and safety and health is- sues such as sleep problems and fatigue. Nearly half of BPO em- ployees surveyed in the book re- ported suffering from sleeping problems or insomnia.


There are other causes of stress according to the book. Specifi- cally, these were the stress-induc- ing factors cited by the employ- ees surveyed: harassment from irate clients (45.6 percent); exces- sive and tedious workload (41 percent); performance demands (37.4 percent); monotony (33.7


percent); regular night shift work (33.4 percent). This is why some companies


have a staff turnover rate of as much as 100 percent annually, the ILO says.


Indeed, as the authors of the ILO book noted, a good business model cannot be deemed good if it has such a high attrition rate. They urge the BPO industry to redesign work processes, especially in call centers, to allow workers to have more autonomy and make use of their qualifications. As with any industry, people are the backbone of BPOs, so you have to take care of your people. If you have a high incidence of illness, absenteeism and resignations, that can’t be good for business. I’m sure looking at the long term, industry players would want to reduce the high stress levels, so they could reduce the high attri- tion rate and can have more work- ers for their labor pool, not to mention to keep costs down. It costs less to keep workers happy and costs more to hire and train new workers for the same jobs. Of course, there is job dissatis- faction everywhere. In a perfect world, workers would love their jobs, work hard for their employ- ers, get paid well, and stay in their companies forever. We are not asking the BPO in- dustry for something unattain- able, but industry leaders should indeed change some of their prac- tices if they want more young Fili- pinos to make a career out of their BPO jobs instead of look- ing at it as something to do for a few months.


ernestboyherrera@yahoo.com


and driving fuel consumption up for public and private transports. Our country’s precious foreign exchange earnings are wasted in the process. Millions of pesos are lost from business slowdown. Toxic emissions hurt public health, costing the government a fortune in healthcare costs. It’s about time our public officials flex their muscles. OK, we have to help provide jobs for the jobless, and houses for the homeless, among other basic social needs of our people. But in the discharge of their duties, public officials cannot and should not take the path of least resistance. They must do what is necessary and good for the people and stand by it.


In “None of the Above” (Why Presidents fail and what can be done about it), Robert Shogan of the Los Angeles Times wrote: “The purpose of politics is to express the often conflicting concerns of the voters. The role of govern- ment is to resolve these concerns equitably. To put it in simplest terms, politics defines what peo- ple want; government defines what they get. For democracy to work, government must respond to politics.”


By her statement on radio, I am afraid that Etta Rosales has not shaken off entirely her old habit of bashing the police and other law-enforcement authorities to assert her sense of activism. I hope she does not mistake gov- ernance for PR. As Shogan wrote, “To win attention, they (govern- ment leaders) have made style a matter of State.”


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16