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Mass layoffs in call centers 'unlikely,' says Palace

MANILA, Philippines - The business process outsourcing industry, particularly call centers, is unlikely to be adversely affected by the global economic slowdown even with the prospect of a looming recession in the United States, Press Secretary Jesus Dureza said Tuesday.

Dureza said the Philippines has been least affected by the global economic debacle, and a committed foresight will continue to shield the country from the bad effects of the global crises slowdown.

He said the possibility of mass layoffs in call centers in the country is unlikely at this time.

“There is no projection that we will be having a mass layoff of call center employees in the Philippines," Dureza said.

Dureza said the global economic slowdown could even benefit the Philippines as affected countries might find it more productive and profitable to establish and operate call centers here.

He said President Gloria Macapagal-Arroyo has directed her economic managers to come up with a contingency plan in case the current global economic and financial situation worsens into a recession.

The contingency plan includes programs spelled out under the proposed P1.4 trillion 2009 national budget that can mitigate the possible adverse effects of the global food, fuel and financial crises.

The contingency plan also covers increased allotment for social security, welfare and employment, scholarship and better educational services.

Dureza said projects for livelihood and retraining for returning overseas workers, and the proposed increase in the deposit insurance coverage of the Philippine Deposit Insurance Corporation to P1 million are included in the plan.

“That is the foresight that the government is having," Dureza said. - OPS/GMANews.TV
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