By Chloe Mari A. Hufana and Justine Irish D. Tabile, Reporter
THE DEPARTMENT of Labor and Employment (DoLE) anticipates over 20,000 Filipino workers will lose their jobs with the closure of Philippine offshore gaming operators (POGOs) by the end of the year.
At a post-State of the Nation Address (SONA) briefing on Wednesday, Labor Secretary Bienvenido E. Laguesma said around 15,000 are working with POGOs or internet gaming licensees (IGLs) in Metro Manila alone.
He said the number can still rise as this only includes workers from 34 IGLs in Metro Manila.
The department has so far tallied 5,000 workers that would be affected by the total ban in Cavite and Laguna.
“DoLE is not only looking at IGLs because, other than IGLs, there are also authorized providers who render services to IGLs,” Mr. Laguesma said in mixed English and Filipino.
The Philippine Amusement and Gaming Corp. (PAGCOR) has said there are 43 IGLs in the National Capital Region, Cavite, and Laguna.
Mr. Laguesma said DoLE is already “profiling” the affected workers by finding out their skills, current positions, current salaries, and preferred work.
The department is also considering possible interventions, such as referring skilled individuals to job openings or job fairs. For those lacking in-demand skills, DoLE will also provide upskilling programs and job-hunting assistance.
Mr. Laguesma said the majority of the affected workers are “encoders,” who can be referred to firms in the information and communication technology (ICT) and business process outsourcing (BPO) sectors.
He added they are partnering with the Information Technology & Business Process Association of the Philippines to find jobs for affected workers.
“DoLE will always be seriously concerned, even if just one job is lost… Other than job creation, we would also like to emphasize job preservation,” Mr. Laguesma added in mixed English and Filipino.
He said that affected and qualified workers will also be given assistance through the “Tulong Pang-hanapbuhay sa Ating Disadvantaged/Displaced Workers” (TUPAD) program.
In his State of the Nation Address on Monday, President Ferdinand R. Marcos, Jr. ordered a total ban on POGOs, citing these China-centric businesses’ alleged links to money laundering, scams and human trafficking.
PAGCOR was ordered to wind down all POGO operations in the country by the end of this year.
Philippine Chamber of Commerce and Industry (PCCI) Chairman George T. Barcelon said that “not a lot” of Filipino workers will be displaced by the POGO closures since these companies typically hire Chinese nationals.
“Those (Filipinos) that will be displaced are those working in the supply chain. These are companies that supply food or provide services to POGOs,” he told BusinessWorld in mixed English and Filipino.
“So, these are not the POGO workers, as there are not many Filipino POGO workers, because what they (POGOs) are targeting are those who can speak the language of their target market, which is China,” he added.
However, Mr. Barcelon said that job losses could be addressed by DoLE, which is planning to provide training for workers displaced by the POGO closures.
“The significant number of POGO workers being displaced is an indicator of how low the quality of jobs is in the country. The absence of work opportunities (with corresponding wages) has forced these workers to accept jobs in these sectors,” Leonardo A. Lanzona, Jr., an economics professor at the Ateneo de Manila University, told BusinessWorld in a Facebook Messenger chat.
Mr. Lanzona said it may be time for Congress to pass laws, such as unemployment insurance, to help laid-off workers while they are seeking jobs.
“Training programs for these workers may also be another option especially if these are young workers who can adapt to changing work conditions… All of these will require substantial resources,” he said.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said other industries such as real estate, employment agencies, transport, and logistics may be affected by the POGO closures.
Despite this, he said the ban is a “good signal” for investors.
“It’s also a signal of good governance since global investors patronize countries that comply with ESG (environmental, social, and governance) standards. Compliance with ESG means/signals good business for the country,” he told BusinessWorld in a Viber message.
Meanwhile, the Federation of Filipino Chinese Chambers of Commerce and Industry, Inc. (FFCCCII) said the POGO ban may help improve the country’s image and its relations with China.
“We support the decision of President Marcos for a total ban on all POGOs by this year,” FFCCCII President Cecilio K. Pedro said in a statement sent on Wednesday.
“It is hoped that this will improve the Philippines’ international public image, enhance peace and order, and help strengthen our country’s bilateral relations with China, as the Chinese government has long requested a total ban on the controversial POGOs,” he added.
FOREIGN WORKERS TOLD TO LEAVEAt the same time, the Bureau of Immigration (BI) wants all foreign workers of POGOs to leave the country in the next two months.
In a statement, BI Commissioner Norman G. Tansingco said all foreign nationals working for POGOs and IGLs, as well as related service providers, will be given 59 days “to wind down their affairs” and exit the country.
He said PAGCOR has provided a list of foreigners working in POGOs and IGLs.
Around 20,000 foreign workers, mostly from China, will be affected by the POGO closures, he added.
Mr. Tansingco said foreign POGO workers who do not leave within the two-month period will be deported.
The BI has deported over 2,300 foreign nationals who were working in “scam hubs” disguised as POGOs.