The whole idea of outsourcing jobs has created much stir in the business environment. However, it works on the basic principle that one man’s loss is another’s gain! Whether it be the loss of jobs in America, which created great opportunities in outsourcing destinations or whether the recent Philippines Airlines(PAL) decision to hire Philippine Long Distance Telephone Co. (PLDT) for their call center operations, along with other catering and many other airport services!
This massive contract will save PAL P1.5 Billion a year and bail them out of a tough financial situation, but at the same time will affect 300 PAL employees who will lose their jobs as a result of this deal. However, about 600 new positions will spring up at PLDT where these ex-PAL employees will be given the first preference! This, unlike other outsourcing options will work out to be very convenient where new jobs will be created and kept within the country.
The Philippines should promote more such deals which are a win-win situation for both the parties involved. The government will also welcome such deals and is sure to grant some benefits to similar deals in the future. PAL could have also shipped their jobs to a foreign location but made a wise decision by awarding the project to PDLT. Philippines has a great workforce and is one of the big players in the call center industry. Cheap labor, the main reason for which jobs are outsourced is available here in abundance!
The labor union of PAL, known as PAL Employees’ Association (PALEA), has taken stiff opposition to this contract. The job cuts are not something they are happy about and they have filed a notice to go on strike. They definitely need to see this in a broader perspective and understand the wonderful implications that deals such as these will have on the economy of Philippines.
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