Household HSBC Watch

The Philippine peso may slide 14 percent against the dollar to a three-year low by June 2009 as the nation’s trade deficit widens and foreign investors shun local assets, according to HSBC Holdings Plc. It is not good news for workers. HSBC Philippines is not just a call center. HSBC Philippines is a Global Service Center catering exclusively to HSBC customers worldwide. As long as these employees do not go on strike HSBC can save money in the Philippines. Who cares about the employees and their economic plight? Workers around the world should care, both deeply and sincerely.

Remember what happened when the Mexican peso slid against the dollar. Factories moved from the US to Mexico, labor was cheap, and jobs were outsourced. What we have is a race to see what locations offer the cheapest labor rates per hour. Loyalty to HSBC in London, and conversely London’s loyalty to the Philippines is as questionable as the safety of an overloaded ferry in the path of a typhoon.