Nearly 27,000 to be affected by POGO ban, says DoLE

By Chloe Mari A. Hufana, Reporter

THE Department of Labor and Employment (DoLE) said on Wednesday it is preparing to help around 27,000 workers bound to lose their jobs once the total ban on Philippine Offshore Gaming Operators (POGOs) takes effect by end-December.

In a virtual briefing Labor chief Bienvenido E. Laguesma said the 26,996 workers are employed by 54 Internet Gaming Licenses (IGLs) companies and attached service providers, mostly in the National Capital Region (NCR) and Region 4-A.

“The total number of Filipino workers, including Region 4-A, is almost 27,000. To be exact, 26,996. In addition, there were also indirect Filipino workers totaling 2,549,” Mr. Laguesma said in Filipino.

Broken down, the DoLE had profiled 33 IGLs, 11 accredited providers, and 10 under the special class of business process outsourcing (BPO) firms.

Direct workers are employees hired directly by the IGLs, accredited providers, and special class of BPOs. Indirect workers include security staff, janitorial services, drivers, cooks, and household service workers.

“We hope that we’ll be able to provide the necessary services there to the best of their ability, maybe including their preferences where they will move to work or build their own livelihood program,” Mr. Laguesma said.

DoLE will organize a job fair specifically for affected IGL workers in the first week of October.

Mr. Laguesma said the agency is fast-tracking its profiling efforts to have a clearer picture of how many workers would be affected by the total ban ordered by President Ferdinand R. Marcos, Jr. last July.

“DoLE NCR is almost done with profiling. There are a few companies that did not submit the list, so DoLE went to them themselves and explained to them the reason why we are requesting the list of employees so that appropriate interventions could be provided come the closure of IGLs in our country,” he said in Filipino.

Mr. Laguesma said the DoLE is considering referring displaced POGO workers to existing vacancies and providing livelihood programs.

“We would also like to complement it with possible upskilling [and] retooling of affected IGL workers,” he added.

Meanwhile, the Philippine Amusement and Gaming Corp. (PAGCOR), the issuer of licenses to IGLs, said as many as 42,000 Filipino workers would be affected by the total ban.

Catalino B. Alano, Jr., PAGCOR’s external communications and corporate communications assistant vice-president, said the number is composed of IGL workers, service providers, and special BPOs.

He told BusinessWorld that as of July 1, there are only 41 legal IGLs in the country, coming from NCR, Laguna, and Cavite. Special BPOs are now at 14 and accredited providers at 20.

Leonardo A. Lanzona, Jr., a professor of economics at the Ateneo de Manila University, said the looming job losses from POGOs could worsen unemployment in the country.

“This will certainly affect the unemployment problem. This will exacerbate the existing quality of jobs problem as most of those displaced will be absorbed by the informal sector,” he told BusinessWorld in a Facebook Messenger chat.

The country’s unemployment rate rose to a one-year high of 4.7% in July as fresh graduates entered the workforce, the Philippine Statistics Authority (PSA) said.

This translated to 2.38 million unemployed Filipinos in July, up by 755,000 from 1.62 million in June. Year on year, this went up by 86,000 from 2.29 million in July 2023.

Federation of Free Workers President Jose Sonny G. Matula said the number of affected Filipinos is a “significant concern that could aggravate joblessness and poverty, especially for workers who may struggle to transition to other industries.”

“This large number of displaced workers requires immediate action from government agencies such as DoLE and Social Security System. Technical Education and Skills Development Authority  should be tapped to offer reskilling and retooling programs, equipping these workers with the skills needed to find employment in other sectors,” he said in a Viber message.

University of the Philippines Diliman School of Labor and Industrial Relations Assistant Professor Benjamin B. Velasco said it is important for workers to have safety nets.

“We need to make sure we can provide alternative livelihood or work that match[es] or even surpass what workers got when in their old jobs… Job fairs, job facilitation, and job reskilling are also important tools/interventions,” he told BusinessWorld in a Facebook Messenger chat, but noted the government’s murky track record with such actions.

Filomeno S. Sta. Ana III, coordinator of Action for Economic Reforms, said the government has to provide retraining for affected POGO workers.

“Overall, the Philippine jobs are low-productivity, low-wage jobs, including POGO jobs,” he said.

Bukluran ng Manggagawang Pilipino President Renecio “Luke” S. Espiritu, Jr. urged the government to take accountability for the social costs wrought by the entry of POGOs.

“The Marcos government should ensure a just transition toward decent, regular jobs for the workers victimized and exploited by POGOs,” he told BusinessWorld in a Facebook Messenger chat. “It is incumbent upon the Marcos government, through DoLE, to assist these workers to transition from working as gambling workers and be provided with dignified, regular jobs or alternative livelihoods.”