Over 400 workers at Wipro in Cebu have been placed on floating status following a major earthquake and typhoon, leaving them without pay for up to six months. This temporary layoff has intensified anxieties amid ongoing recovery efforts from the disasters. Labor advocates criticize the move as a tactic to reduce costs by pressuring resignations.
In the wake of a 6.9-magnitude earthquake on September 30 and Typhoon Tino, also known as Kalmaegi, Cebu province has been grappling with widespread devastation. Amid repairs to damaged homes and disrupted utilities, over 400 business process outsourcing (BPO) employees at Wipro Cebu received notices of placement on floating status—a form of temporary layoff without pay and with restrictions on seeking similar employment for up to six months.
Kyle Enero, chairperson of the BPO Industry Employees’ Network (BIEN)-Cebu, described the situation as particularly harsh for the affected workers. “Lisod sa ilaha jud,” Enero said, translating to 'It is really difficult for them.' He explained that the layoffs aim to shorten employees' length of service, compelling agents to resign and thereby allowing the company to offer lower pay and benefits. “This way, the company shows that securing large profits remains its top priority,” Enero added.
Many of those impacted have served Wipro for six years or longer and include top performers, raising questions about the fairness of the selections based on alleged performance issues. Enero highlighted cases where workers were arbitrarily placed on floating status and later subjected to performance improvement plans, labeling it as constructive dismissal exacerbated by high attrition rates in the industry.
This development compounds existing labor concerns in Cebu City's BPO sector, where employees reportedly faced coercion to continue working during the earthquake despite building damage and evacuation threats. BIEN-Cebu has condemned the actions as an assault on workers' rights, demanding severance pay, options for role reprofiling, and compassion for those recovering from the calamities.
Enero has requested dialogue with the Department of Labor and Employment-Regional Office VII (DOLE-VII) to address earthquake inspections and layoff cases. Wipro Cebu has not yet responded to inquiries.