Another Call Center closed out and Employees are left hanging in the air

Philippines
August 2, 2012 2:39am CST
Saw the news the other day about a call center here in our place that closed out due to bankruptcy. The employees were not allowed to get in the office premises starting that day, but it was such a sudden announcement that they were not expecting it to happen. Their salaries were held and they are now getting help from Labor Department on their rights. This call center (Direct Access), however, is not a very known company. I bet, its just a small time business trying its luck in the industry. I wonder why these employees would also risk their family and their lives on companies that are not well established, when there are a lot of other options out there. I would understand if these people just don't have other choice, due to qualifications, but for those who's got experience in the field, they should go for the bigger companies who've been out there for awhile.
2 people like this
17 responses
@stanley777 (9402)
• Philippines
4 Aug 12
Yeah, I've seen it too in the news. The sad thing was the management don't even informed their employees about the flight of their company. Reports said that, the salaries of the employees for the first half of July, was withheld by the company but explained that they would be paid in full at the end of the present month. The employees were surprised when they reported for work and found their company was close. I guess the management don't care much for their employees, they should have at least informed them beforehand.
• Philippines
7 Aug 12
Well, I guess you knew how some building owner operates. As long as they are being paid for the rent agreed upon, sometimes they don't care if their tenant's business is legitimate or not.
• Philippines
6 Aug 12
I'm sure they don't have time to think about the people, when they're already in a big trouble themselves. So sorry for the employees.
• Philippines
6 Aug 12
Oh, that's even worse. I wonder why the building owners would rent out their place to an unregistered business. Don't they have restrictions on that aspect.
@Jshean20 (14349)
• Canada
2 Aug 12
Here in Canada, I'm constantly hearing of call centres closing. The reason for this, is that they are moving the call centres to other countries where it's more financially friendly for the business as a whole. I'm employed by a call centre and you'd be surprised how many people are relieved to speak with someone they can understand on the phone, as they are so used to talking with someone that can't understand them and visa versa.
• Philippines
2 Aug 12
It is true that it's financially strategic for businesses to bring their call centers offshore because labor cost is extremely lower than their homecountry. However, there are still some bigger companies who choose to keep a small group in the main branch. Actually, not everyone in the offshore locations have bad English. I would say about 80% are well trained and have better Customer Service than their counterparts because of culture differences. That is based on feedback from customers and surveys.
@Jshean20 (14349)
• Canada
3 Aug 12
I understand that a lot of people offshore speak english perfectly fine, I just know that I hear a lot of customer complaints in this area so I suppose these people haven't felt that the communication was good.
• Philippines
3 Aug 12
Perhaps, they just got lucky! Of course, there is always a big difference on the accent and the intonation. So, even if the english was perfectly fine in grammar and word usage, but the intonation sounds strage, the customers would still rate the communication skill low.
@KrauseHome (36448)
• United States
29 Aug 12
Well in today's Economy it is often hard and Sad to see when things like this happen, and they continue to unfortunately happen all the time. It is just not always just from the Start up companies as well. I think in reality, anytime you take a job anywhere you are taking a risk as how long will your job really be there, and will you always be able to perform? All I can say is I am sure none of these people really knew, and I hope they get what they are wanting and find another job again somewhere.
• Philippines
30 Aug 12
That's true. Anything could happen. Even big insurance companies and banks closed out last year due to what happened in US Economy.
@katcarneo (1433)
• Philippines
2 Aug 12
This is too bad. There are many call centers in the Philippines and some businesses do not flourish. This is the Philippine Labor Code's guidelines regarding separation pay: [quote]Separation Pay In case of retrenchment and closures not due to serious financial reverses, the employee shall be entitled to separation pay equivalent to one month pay or at least one-half month pay for every year of service, whichever is higher. If the closure is due to business losses, there is no obligation on the part of the employer to pay separation benefits to employees. [unquote] If the employer will have sufficient evidence of business losses, then the employees who lost their jobs won't get anything.
@jpso138 (7851)
• Philippines
12 Dec 12
This is indeed a sad story. But naturally we can never force the company to continue when it is losing. I just hope that the employees of these company will be able to find new work as finding work nowadays is really hard to do.
• Philippines
13 Dec 12
There was news a couple nights ago that the employees just got their pay, after months of waiting for it.
@Cutie18f (9551)
• Philippines
25 Oct 12
It is sad to know that those people will lose their work but the call center probably lost its client, so it can't sustain its business.
• Philippines
1 Nov 12
Yeah, call center business, especially outsourcing is really a big risk. Even big companies lose clients, so we couldn't really expect much from smaller and newer ones.
• Canada
3 Aug 12
I am sorry to hear the news, it is sad. when person loose their job due to any reason it is difficult for them to manage life, family and look for new job, but one has to have courage and start looking for new and high paying job always. Call centers work are not the permanent and it is full of stress and uncertainities, work is outsourced to other countries based on cost involved in it. Pray to god and look for new job ..... All the best
• Philippines
3 Aug 12
Not all call center work is not permanent, or not something you can grow with. Perhaps, if you're still in the rank and file level, as a call center agent, you can't expect your resume to look that good when you apply for another job and for a higher position. But, if you were able to work your way up in the workforce, in the call center, you can actually use that work experience to get a good or better job in another industry. You get to learn a lot about handling customers, clients and the business.
@SomeCowgirl (32191)
• United States
3 Aug 12
It sounds to me from what you described that that place of work was best suited for those who are just getting on their feet, who still live at home and have their parents help. Just as a first job to establish something. I hate that so many were left out in the cold so to speak because of a company who can't give enough warning to it's employees that things are changing and they could be forced to close!
• Philippines
6 Aug 12
It really is a sad fate for these people. I hope they can find a new job easily, and one that they can keep longer.
• Philippines
2 Aug 12
Oh, that's really bad news. It's quite difficult to find another job and if these employees don't have their savings, they will definitely in bad financial status. We can't find a new job in just one day. It will take a couple of weeks to months.
• Philippines
2 Aug 12
I doubt if even 10% of these people have good savings to sustain them enough to find a new job. Most call center agents have very luxurious and extravagant lifestyles. So, most of them just live from payday to payday.
@koopharper (7477)
• Canada
2 Aug 12
Unfortunately this type of thing is an issue within the call centre industry that most outsiders are not aware of. Job security usually isn't there. I've not heard of one like this where the company went bankrupt and the employees were suddenly out of work before. In most third part call centres there is always the risk that the client will pull the contract and leave everyone out of work. Even in a well known established call centre this is a risk. I was lucky in one instance. I was in training when the contract for the line of business I was training for was pulled. Fortunately another line of business was able to pick us up right away or I would have been left without work on the spot.
• Philippines
2 Aug 12
That's the good thing about bigger and well established call centers, because they have many accounts and continues to get new contracts from new clients, so their people will have somewhere to go, if an account eventually closes out. Unlike, when you go for a new call center, who does not have a name yet and can't get new business easily. There may be a promise of career growth as pioneers, but what good is it, if the company could not even stand long enough for you to get your promotion.
• India
6 Aug 12
Hi friend, sad to hear about this. The administration must be careful and plan about this kind of issues, i think the security is very lack, so this kind of problem arise there. I am sorry for the employees, hope they will get justice
@riyauro (6421)
• India
2 Aug 12
This is sad. I hope the employees get there money. If the companies can't run properly then at least they should have told in advance and paid the employees. Many call centers are closing like this. Have a wonderful day.
• Philippines
2 Aug 12
People should be more conscious of what company they're dealing with. As it is, many call centers have closed out, so everyone should be more careful. Also, those who are already with a good company, should not waste their employment and be good employees to the good paying companies. I actually saw one of my ex-officemate on the news coverage standing as spokesperson for the sorry employees. And, he was very bad at attendance when he was still working for our company. He shouldn't have experienced it if only he did better before.
@Raine38 (12257)
• United States
2 Aug 12
The call center industry is already so huge and saturated enough that a lot of employees find it hard to be given a "break" or a shot at a much higher position; that's why whenever new players come they come running to it with hopes of being given the break that they have been waiting for since they will be the pioneers of this company. We can't blame them for aiming higher and wanting more to be able to provide for their family. The economy is really down and it must have been quite a struggle for the company but it should have been more humane in treating its employees. Closing shop just like that without any contingency plan for its workers is so unethical and downright unfair. It is even the middle of the year when people are just starting to get up from paying their kids' tuition and school stuff. I hope they find another work soon because if the company really have no more money, what else will they get in compensation if there's nothing to give?
• Philippines
2 Aug 12
Bigger and well established call centers are hiring everyday. If they just persevere more, and work hard when they get the job, and if they really have the xfactor to be considered for a promotion, they'd find their way to it. I don't believe in what people say about no room for growth, because if they really have the skill and the right profile for a higher position, they would be noticed.
• Philippines
2 Aug 12
Of course, looking for work is very difficult. And some call centers are not easy to get into. Maybe they were not expecting that the company would go bankrupt. It's a sad thing for the employees though. They will have to start again and I'm sure it wouldn't be easy.
• Philippines
2 Aug 12
Perhaps, but it still is wise to know the background of the company you will be working for. Like you said, its hard to find a job, so when you find one, better be sure its there for a long time.
• Philippines
2 Aug 12
I think the reason why some people would prefer lesser known companies is that the competition is less strife compared to well-known companies. Also, even the turn-out of the employees in famous companies is very high and fast. It’s better for some to work in a small company where you will have a good group that can support you. But the again, these employees have their own reasons as well. I guess lesser known companies provide the image of being more employee-friendly compared to companies who had a lot of people but barely know each other.
@squallming (1775)
• Malaysia
3 Aug 12
I bet they never did saw it coming. New companies do have higher risk of failing. However, it also means a new opportunity for the new employees to achieve something and get promoted. Bigger companies would demand good academic qualification and experiences before one can join. It is even harder for those who want to advance or promoted to hold importany post. There is a very hard competition there. If one only wanted basic salary, then it should be fine.
2 Aug 12
It's always sad when things like this happen, it affects people lives. Jobs are hard to come by, maybe that is why they went for that company, or maybe the rates of pay were better. I always find it sad when companys do this, as so often thier employees end up not getting paid money they have worked hard to earn