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Mayor Osmeña asks American-owned BPOs to stay in Cebu City


By Philippine News Agency

Cebu City Mayor Tomas Osmeña has urged United States business owners not to pull out their business process outsourcing (BPO) centers from the city.

Cebu City Mayor Tomas Osmena gestures questioning the resolution of National Police Commission stripping of power of the mayor over the Philippine National Police after withdrawing support to the campaign against illegal drugs. Osmena is set to file a motion for reconsideration to the commission. (Photo by: Juan Carlo de Vela) mbnewspictures / mbnewspix

Cebu City Mayor Tomas Osmeña (Juan Carlo de Vela / MANILA BULLETIN)

“We will do everything in our power to protect you. There are many things we can accomplish at our own level. Don’t pack your bags and go to America. Pack your bags and come to Cebu,” he said.

The mayor met with representatives of business process outsourcing (BPO) and information technology (IT) companies Friday.

He assured them the sector would continue to grow in Cebu City.

With 22 Philippine Economic Zone Authority-registered facilities and 349 companies directly employing 160,000 workers, the BPO sector is a booming industry in the city.

US President-elect Donald Trump has promised that within his first 100 days, he’ll work with Congress “to establish tariffs to discourage companies from laying off their workers in order to relocate in other countries and ship their products back to the US tax-free.”

Republicans will control both houses of the US Congress when Trump’s term begins on Jan. 20, 2017.

Attempts to discourage outsourcing may find some support among Democrats as well.

In 2010, several Democrats, including 2016 presidential contender Bernie Sanders, proposed to give American employers a tax break for hiring new workers within the US to replace jobs that had been outsourced.

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  • underthePhilippineSun

    at least mayor osmena have some CONCERN for his countrymen in cebu… i wish duterte have some concern too… BPO leaving the country is a BIG LOSS to Filipinos…

    i think we can test-the-waters of trump’s presidency after he resume post on jan 20, 2017…

  • kapuh

    Duterte made it very clear he doesn’t want the Americans here from day 1 — so you can’t blame the US-BPO if they pack their bags and move elsewhere.

    • stjohnofthevatican

      The planned move has nothing to do with Duterte. This has been going on way back 2012!!! Whether the US will stay or not has nothing to do with the Philippines alone. Duterte’s point is not act like a pauper to the point of sacrificing our integrity. Many Asian countries survived without this industry.

      • kapuh

        Wanna bet? I already know A company with 700 employees who made their decision based on Duterte’s attitude towards the american. You can ask a BPO insider that its so darn hard to even make any US company to consider the Philippines for investment…. thanks to Duterte!!!

  • kingfisher

    This is a big spat on the face of Duterte…PH is a very poor third world country where Duterte pretended to be a superpower leader insulting Americans. This idiot president does not have comon sense and no sense of responsibilty and accountability for millions of filipinos who will be out of jobs in the next coming months telling american businessmaen to pack up and leave the country. HE MUST BE OUSTED TO SAVE THE COUNTRY FROM FARTHER DESTRUCTION.

    • stjohnofthevatican

      Duterte will not and will have no influence over on what US wants. If they prefer to stay or leave, no one can stop them. For the sake of my argument I provided some numbers.

  • stjohnofthevatican

    FOR DOOMSAYERS, TROUBLEMAKERS, PESSIMIST, SCAREMONGERS, GRINCHES.. Let’s assume that businesses engaged in the business will have a tax-exemption, tax breaks, incentives, etc. This has been going on since the time of Obama, and Aquino in the Philippines. The plan of the US to have the BPO business be relocated back to the US has nothing to do with Duterte. Now read further and see why the business will stay in the Philippines.

    First Donald Trump does not own the industry. He does not have any personal investment in that business. Common sense dictates that no investor will waste ninety percent of a supposed savings!

    What is this savings? An American call center agent basic pay is about 12.87USD or 631.91PHP while a Filipino counter part is paid on the average about 75PHP per hour. This means Filipinos are only paid about eleven percent on a supposed 12.87USD if paid to an American agent.

    This is just the tip of the iceberg. American agents are also provided medical, dental, 401K, profit sharing, paid vacation, paid sick days, paid maternity leaves, paternity leaves, paid holiday allowances, unemployment benefits, day care, disability income protection, social security, tuition reimbursement and Starbucks coffee!

    This is not the first time that US planned of such a move, this first occurred during Obama’s second term but the industry persisted, and hoping the Filipino agents would now understand why and be cheering about it. Second, it will have an impact in other US brands in the Philippines. McDonald’s, Starbucks, Sbarro, Subway, Levi’s, Nike to name a few, will have lesser sales, lesser royalties.

    • kingfisher

      You are dwelling on assumption and wishful thinking scenarios, you have no knowldege on Trump’s campaign flatform on his first 100 days because you are only watching pinoy teleserye. Let me quote Trump’s campaign promised to you, “I’m going to bring jobs back from China, Mexico Japan, Vietnam, Philippines. They are taking our jobs. They are taking our wealth. We have $2.5 trillion offshore. We’re going to bring that money back. You take a look at what happened just this week, China bought the Chicago Stock Exchange. Nabisco and Ford, they’re all moving out. We have an economy that last quarter didn’t grow. We have to make our economy grow again.” (Republican primary debate in South Carolina , Feb 13, 2016)

      So who’s the grinch, scaremonger, troublemaker and DU30’s arse wiper?

      • Dyuweh

        Trump will “You’re Fired” duterte in a heartbeat, Trump is like Duterte but in a much more more powerful scale (now that he’s US prez) and much more terrible temperament (again “YOU”RE FIRED!!). Trump does not even care about NATO ( in whom the US has long binding historical ties), how much more than the Philippines which the US does not really need? Does duterte really think that China and Russia will buy the BPO services the Philippines offer? As if Filipinos are fluent in chinese and russian?

      • stjohnofthevatican

        There are numbers to consider. Money are numbers not presumptions. US policy and interest is also about money. Duterte is not writing the law for America.

    • Dyuweh

      you are wrong in all fronts — no one gets paid $12/hr on call centers (wages have gone up) and by no means are we automatically provided all the amenities you mentioned above – 2.) Trump’s policy decisions are very unknown at this point that there is no telling where it is headed and why everyone is scared like sh!t – all that it is evident is that he ran a Campaign of Divisions, you might as well call it “The United Hate of America” at this point- you really need to get your information together before you start running your mouth

      • stjohnofthevatican

        the very reason why the industry was set up outside US is because you live in an world of false presumption that you guys are the best, try read again. Never in my post that i claimed the figures are absolute. If you’ll say that wages are much higher, then that makes my point even better!!! Greater loses or better profit!!! Two, never I said that those benefits are guaranteed either. On Trump’s policy? Who cares about it? Should we live in fear? If its going to happen do we have a choice? Many Asian countries survived without that industry as primary catapult to industrialization. Last but not least, Osmena begging these business owners to stay? Who can stop them? Are we talking about US policy? Who makes the decision? These are two different animals.

        • Dyuweh

          1.) “false presumption that you guys are the best” — ok, so give me an example of why we’re not or better yet give me an example of what has your kind contributed to the betterment of this planet? I can agree we’re not the best however we do lead in a lot of areas that changes the paradigm. And with that paradigm shift comes Capital, Wealth and Global Power and Leverage and the its Evils.

          2.) “On Trump’s policy? Who cares about it? Should we live in fear? ” — I can see that you are living in your own reality of short sightedness from your own micro world. You should not be afraid of Trump’s policies but rather be VERY AFRAID of what it means to you and to us in general. Maybe looking up the word Draconian should at least put a tingle in your spine.

          3.) “why the industry was set up outside US” is because things are driven by PROFIT (Wall Street) and globalization in which it appears you are either out of touch or incoherent of. Profit puts a sore on mother earth and sold your children and their children. And profit will not stop even if it has to step on everyone’s back to include you.

          4.) Do you even hear yourself talking? I can understand that cultures are different but seeing things in a bigger picture and with foresight and in respect to global history and cultures does put things in perspective.

  • pikoy

    lalong dadami ang mga burikat sa cebu….sabagay kayong din mga cebugagos ang may kasalanan noon kampanya alam nyo na anti-U.S. si DUTAE pero binoto nyo pa rin….ngayon nagmamakaawa kayo na wag silang umalis…talagang lalong dadami ang mga burikat sa cebu…sabagay no.1 na industry ng mga cebugagos ay SEX TOURISM.

    • YatakiTumbi Tai

      Hayup tong ignoranteng maka pag salita. Ang mga burikat Cebu ay galing sa ibat-ibang lugar tulad ng lugar nyo. Ikalawa, di lang ang mga Cebuanos ang naninirahan na ngaun sa Cebu, karamihan ay galing sa Mindanao. Tanga logic mu.

  • affleap

    If the new US leadership says so, what then the PH can do. It is of Trump’s brand of economic protectionism which he believes that employing their own citizens in BPO in lieu of other nationality is of their own economic benefit. A lesson we now have learned that the PH economic dependence towards the unpredictable US is sometimes disastrous.