This is the second of Yempo’s articles on the topic of Modern Slavery. Please read our comprehensive guide to how Yempo ensures ethical practices here.
Clients from large organisations with diverse global workforces are more likely to ask their offshore outsourcing provider about Modern Slavery practices than those new to offshore outsourcing. Enterprises that operate in multiple jurisdictions typically have supplier codes of conduct, questionnaires, and random audits to ensure their supply chain is operating ethically. Small businesses and those new to offshore resourcing models have often not even heard of the term, so are not aware of the breadth of issues it covers.
Modern Slavery broadly implies the exploitation of workers, so it is not surprising that companies operating in countries with lower-cost workforces such as the Philippines and India are sensitive to the issue. As we addressed in our first blog, exploitation is a misconception in low-cost countries. Hand in hand with lower salaries comes considerably lower costs of living, such that a professional worker earning a third of the salary they might earn in your country, still has the standard of living of a professional worker. In fact, many visitors to the Philippines are surprised at the superior standard of living many of their staff. Full-time, even stay-in househelp are common. Couples will often have full-time nannies for their child and even multiple nannies if they have larger families. It is a long-standing source of humour when some Filipinos go on an extended business trip to the UK, US or Australia and must use a washing machine or an iron for the first time in their lives. A Filipina friend of mine who studied at the University of Sydney for a few years was embarrassed visiting the library for the first time and asking where she could find “the photocopy lady”.
The reality of the Philippines is that to combat exploitation of workers, the government has evolved an employee-centric labour code. Filipino workers have more protection than any I have encountered in the world – Australia, UK and especially the US, which has an employer-centric labour code. To support the Philippine philosophy, it costs a Filipino worker practically nothing to sue their employer for the most frivolous of matters, and the employer must pay considerably to defend their position; it is simply not viable for a company to attempt to exploit its workforce.
The aspect of Modern Slavery which makes it an interesting topic when Western organisations challenge Filipino organisations, is that of servitude. Workers pay to relocate from a low-cost location to places like Australia, UK and US, and then have their passports withheld while they repay the exorbitant costs. This is one of the ugliest forms of Modern Slavery and simply does not exist in the Philippines. Companies concerned about their supply chain should be closely examining vendors that operate in their own jurisdictions with a high percentage of immigrant workers.
If you are concerned about Modern Slavery and your offshore service provider, please get in touch.
Thank you for visiting our blog! We hope you found our content informative and engaging. Stay connected with us for more insightful blogs, updates, and tips on outsourcing IT and outsourcing finance in the Philippines, or shoot us an email at [email protected]. We are happy to answer your questions!
