Personal blog of Edge Lacorte

I just got an email from one of the people who stumbled upon my blog by random searching.

Here’s what he said:

I had a chance to click on your site while searching for an article
about Philippines and I read a bit of the blogs on your site and I
think it is good. I got particularly interested about the Dell issue.
As I read on I realized that there are very strong emotions that came
out from different people. I was not able to understand all the
Filipino words but I think it is good that people has a way of
expressing their emotions regarding the matter.

Working in the US I would say this, I’m lucky…. I work in NYC for a
brokerage company in Wall Street as a systems analyst. I have been
away for over 2 decades and I was able to visit Manila last year but
before I left I only had a psychology degree from La Salle and when I
got a job here I started working on computers and then learned more
about it as I move the ranks.

On my first visit to the Philippines in over 2 decades and talked to
my cousin who works for a call center for over a year, I asked her…
what job is available after working for a call center? She had this
blank stare on her face. Then I knew all along what I had that I had
taken for granted, …. Opportunity…..I have been living here in NYC
for so long that I too took that for granted… I asked her if working
in a call center is a sought after job and she said yeah…. and guess
what… she has a masters degree in education. I asked her why she
wanted to work for a call center and she said because it pays the most
money. And so I continued asking and asked why she studied for her
Masters and she said because it would be more competitive for her to
have that on her resume.

I often take it for granted that if I quit my job now and move on to
the other field, I can do that with little hesitation because  in my
mind I’m the master of my own destiny but I guess my cousin does not
have that luxury and I feel for her.

I do not know what happened since I left but I hope Filipinos realize
that we are having brain drain and other nations benefiting from it. I
would like to be able to encourage Filipinos to go beyond just what is
offered and do what their hearts desire, because that is the only way
one can have fulfillment.

In my humble opinion, it will get tougher as days and months comes by
for call centers. Dell lately has been offering American consumers
options of adding $10.00 into their new purchase they can talk to an
American representative and guess what in a few yrs. those call center
jobs will be limited again because Americans would rather pay a few
bucks to talk to another American. Their is a movement here for
“Protectionism” now that Obama is in the White House and with 8.5 %
unemployment, they would rather train another American than give the
job to somebody else. I should know because I’m in the field. I do not
know where that leaves the Filipino’s !!! I hope the Filipino
government has contingency plans once recession hits the nation and it
will… it is just a matter of time. I hope they realize people will
leave once opportunity gone.

I think as a nation we are smart but we have to find a way to get the
breaks not just grab what is offered on the table. I should know…. I
was once a Filipino too.

Thank you and good luck……

===============================

Hi Anthony,

Today is the saddest day for all Dell Philippines employees.

Just this morning, the Dell management announced the closure of Dell Pasay. Teleperformance bought Dell Pasay for 200+ Million Pesos*, including the employees, the facilities, existing contracts and all the liabilities of the company.

The Dell Pasay management team gave their employees 4 days to decide whether to stay or leave. If they stay, Teleperformance will acquire them as regular-probationary employees (they will experience the benefits of a regular employee, but will undergo probationary evaluation, which means they can still be terminated within 3-6 months if they fail to perform as expected).

Dell reportedly allotted 7.5 Million Pesos for the retention/separation package to be given to all employees. All the employees shall be paid 1/2 times their monthly salary per year of service. This means if I have worked for Dell for 2 years, I will get a retention/separation package that’s equal to 1 month of my salary. If I choose to stay, the retention package shall be taxable, and non-taxable if I choose to leave. In addition to this, the employees also get to receive their very last ICP (the yearly performance bonus, which is normally 100 – 150% of their salary per cut off). All their remaining leave credits will also be carried over to Teleperformance if they stay. Employees who choose to stay will get the same basic salary, but the allowances shall be slashed off the package.

I was an employee of Dell Pasay for 1 year and 4 months until September of last year when I got fed up with selling. Now I realized that I have made the right move to transfer to ACS when I felt that I already needed to do so. If I stayed in Dell, I could have been one of the unfortunate guys who are crying at 7-11 with a bottle of beer while trying to survive the dilemma.

Updates:

• Retention bonus will only be given to employees who will stay after rendering 3 months with Teleperformance
• Before employees get to sign the contract with Teleperformance, they are required to submit a resignation letter addressed to Dell first. (forced resignation)

* – Info unconfirmed.

Update (May 15, 2009):

• 70 Employees sue Dell

I was on my way to work last night. I still had a long way to go before I reach my destination so while I waited for the bus to get me to where I need to go, I watched the evening news on the bus’s dashboard TV and I was so surprised with the news. Intel Philippines is closing in February!

According to the news feature, Intel will close down its entire facility in Cavite, and that means laying off as much as 1,800 employees. It’s really saddening to see this happening, considering the fact that many of their employees have been with them for over a decade. The TV reporter was able to talk to one of the higher managers at Intel, who will be one of those employees that will be laid off.

One of my former co-workers at Dell once worked for Intel Cavite. As early as 2007, he already felt instability in the company that’s why he decided to resign and find a better career, which made him to end in Dell’s in-house call center in Pasay, which is also facing a huge survival challenge right now. He worked for Intel for as long as 14 years. In fact, he was able to build his own family while working for Intel. It was a painful departure from the company that he’s been used to going every single day of his life for 14 years, but he said that the future is more to worry about than what Intel has been for him in the past.

Update: I just got an update today that Intel’s severance pay is equal to the employee’s monthly salary x 1.75 x years of service for Intel. They will also give an extension of 1 year to the medical benefits of the employees and their dependents after separation.

With the Global recession hitting most of the developed world’s economies, from the European Union, United Kingdom, United States, SIngapore and more recently Japan, the Philippines’ sunshine industry, alternatively called the BPO (business process outsourcing) industry, is expected to continue to grow as international companies take advantage of highly skilled, cheap labor being offered by developing countries like India and the Philippines.

However just recently, news break out that Advanced Contact Solutions laid off 889 out of its 4205 employees, effectively reducing its workforce by 20%. The reason for such move was the loss of a major US-based client that filed for bankruptcy. The client it was Plantation,  a Florida-based PRC, a teleservices firm. When it sought bankruptcy protection, PRC owed ACS a total of $14.8 million or P740 million. Instead of putting up its own call centers here to service the customers of its clients, PRC subcontracted the job to ACS.

ACS is a subsidiary of Paxys Inc., whose shares are traded on the Philippine Stock Exchange. Paxys, in turn, is owned by Hong Kong-based All Asia Customer Services Holdings Ltd., which is also engaged in outsourced payroll processing and transcription.

ACS operates six contact centers in the Philippines with 7,118 seats located in Makati City, Quezon City, Lipa City and Cabuyao, Laguna. The centers handle inbound calls and electronic mail from customers and provide outbound telemarketing services.

ACS posted a net income  of P203 million on revenues of P2.4 billion in 2007. From January to September this year, it had a net loss of P100 million on revenues of P1.48 billion.

source: www.inquirer.net