DOLE Official Urges Exemption for Nongaming BPOs Amidst POGO Ban

September 26, 2024 Philippines Industry Updates

A labor official has recommended that President Ferdinand Marcos Jr.’s total ban on Philippine offshore gaming operators (POGOs) should not apply to business process outsourcing (BPO) firms that provide only support services.

Patrick Patriwirawan Jr., director of the Department of Labor and Employment’s local employment bureau, stated on the government television program “Bagong Pilipinas Ngayon” that these BPOs can also cater to industries unrelated to gaming.

Patriwirawan was quoted as saying by the Inquirer that these BPOs, categorized as “special class business process outsourcing,” do not engage directly in gaming activities. He emphasized that both the Department of Labor and PAGCOR (Philippine Amusement and Gaming Corp.) have recommended exempting these firms from the upcoming phaseout.

With the rebranding of POGO firms to internet gaming licensees (IGLs), operations are set to cease by the end of the year. This ban is expected to displace around 41,000 workers, part of an estimated total of 80,000 affected, including many foreign nationals. Patriwirawan highlighted that priority will be given to Filipino workers, who may receive livelihood assistance of up to P30,000.

The Department of Labor has already profiled 27,747 affected workers, with a significant number based in the National Capital Region and surrounding areas. Additionally, Labor Secretary Bienvenido Laguesma noted that 2,549 Filipino workers indirectly employed by POGOs, such as security and janitorial staff, will also face job losses.

To assist those displaced, the labor department plans to offer a range of services through its Public Employment Services Office, helping workers find new jobs or upgrade their skills. Discussions are ongoing with the Department of Trade and Industry to facilitate the absorption of these workers into the information technology and business process management sectors.

Meanwhile, PAGCOR Chair Alejandro Tengco has requested that 12 specific BPOs be exempt from the ban, arguing they only provide customer service to gaming companies based in the United States, Canada, and Europe. He also disclosed that six more companies are applying for special BPO permits.

While expressing regret over the ban, he stated that he would respect the final decision made by authorities.

“It’s a pity, it’s regrettable. All I’m coming from is a sense of regret. But, if they say that it will just be used to mask IGLs, then I will respect and we will follow,” Tengco said on ANC. “I am not lobbying, I’m just making a suggestion.”