BPO workers push P1200 minimum wage

Local

EMPLOYERS and employees in Cebu’s IT-BPM sector are revisiting long-standing questions on pay and upskilling, as workers push for higher wages while industry leaders stress skills upgrading and cost pressures.

The BPO Industry Employees Network (BIEN-Cebu) pressed its case for a P1,200 daily minimum wage in Central Visayas while criticizing arguments from industry groups, including the Cebu IT-BPM Organization (CIB.O), that cite rising operational costs and global competition as reasons to delay wage increases.

BIEN-Cebu president Kyle Enero said workers remain excluded from the gains of industry growth.

“It really is one thing after another—except the welfare of workers, whose labor is what sustains the industry,” said Kyle Enero, President of BIEN-Cebu.

He added that industry projections show continued expansion, which should be reflected in wage adjustments.

“These projections reveal an important contradiction,” Enero said in a statement on Monday, June 29.

“If the industry remains confident that it can continue expanding—even amid AI integration—and is projecting nearly US$60 billion in revenues by 2028, then it cannot, in the same breath, argue that providing workers with a meaningful wage increase is economically impossible," he added.

BIEN-Cebu also criticized comparisons that benchmark Philippine competitiveness primarily against lower labor costs in countries such as India, Vietnam, and other outsourcing destinations, and warned against using smaller firms as justification for keeping wages down across the sector.

The group said large corporations continue to benefit from expansion and fiscal incentives, while workers remain on stagnant pay despite rising revenues and cost-of-living pressures.

BIEN also raised concerns over government incentives granted to IT-BPM firms, including tax holidays and restructuring practices after incentive periods expire.

Enero said workers are repeatedly met with warnings whenever they raise wage concerns.

“When we spoke out against OSH violations in October last year, we were warned that clients would pull out and workers would lose their jobs. Today, as we call for a livable wage, we hear the very same narrative,” Enero said.

“Whenever workers assert their rights, the industry's first response is to warn of economic catastrophe instead of addressing the substance of our demands. Workers deserve better than fearmongering," he added.

He added that growth should not rely on low wages, saying the current model risks leaving workers behind.

On the industry side, CIB.O vice president Darwin John Moises said workers’ concerns over inflation and purchasing power are valid but pointed to global competition and the need to shift workers toward higher-value roles.

The group shared on Facebook an interview with Moises and framed the discussion on wages and competitiveness around current challenges in the sector.

The organization asked in its caption whether the public fully understands the industry’s situation in the Philippines.

CIB.O acknowledged that employees’ concerns over rising living costs remain valid but said operators continue to face higher operational expenses while competing with outsourcing destinations such as South Africa, Vietnam, Malaysia, Mexico, Colombia, and Eastern Europe.

It also repeated its claim that operating costs in the Philippines are about 25 percent higher than in India.

The organization also raised questions on the broader impact of wage proposals.

“Where do you think a Php 1,200/day minimum wage across the board or across industries will lead us?” it said.

In the article shared, Moises emphasized the need to move workers into higher-value roles through skills development.

He said workers should transition into roles in artificial intelligence, analytics, cybersecurity, and digital services that offer higher pay than traditional voice and back-office work.

He added that upskilling and reskilling programs remain essential in improving incomes while sustaining competitiveness and supporting job creation.

The Regional Tripartite Wages and Productivity Board-Central Visayas (RTWPB 7) has already docketed BIEN-Cebu’s wage petition after compliance with requirements, with a consultation scheduled.

Several labor groups urged RTWPB 7 to approve higher wages during its first public consultation on pending wage petitions, arguing that workers can no longer keep pace with rising prices and inflation.

Among those that presented their positions were Sentro ng mga Nagkakaisa at Progresibong Manggagawa, Partido Manggagawa, Alyansa sa Mamumuo sa Sugbo-Kilusang Mayo Uno (AMA-SUGBO KMU), and the BPO Industry Employees Network-Cebu.

AMA-SUGBO KMU sought a P1,200 daily living wage, citing the region's 10.8 percent inflation rate in May 2026 and arguing that the current P500 to P540 daily minimum wage no longer meets workers' basic needs.(MyTVCebu)