Firms involved in deadly Davao mall fire face sanctions

MANILA: The Philippines said on Tuesday it would investigate whether safety regulations were ignored at an office where a fire killed 37 call center employees and vowed to impose sanctions if firms had not met standards.

The remains of 37 employees of the US-based Research Now SSI killed by Saturday’s fire in Davao City have been recovered and a criminal investigation will be launched by the Department of Justice.

Labor Secretary Silvestre Bello said he had instructed the government’s workplace health and safety agency and the Labor Ministry’s regional office in Davao, President Rodrigo Duterte’s hometown, to investigate if there were lapses in safety standards.

The fire broke out at a furniture store on the third level of the 14-year-old New City Commercial Center and quickly engulfed an outsourcing business on the upper floor, based on an initial report from the city government.

“We will immediately look into possible violations of some safety and health standards,” Bello told Reuters.

“We may not issue any clearance to operate,” he said when asked to clarify sanctions that could be imposed on the mall or call center management if culpable.

The fire is a setback for the Philippines’ $23 billion business process outsourcing (BPO) industry, which is an economic lifeline in the country of more than 100 million. The sector employs about 1.15 million people, with jobs forecast to grow to 1.8 million by 2025.

Along with remittances from overseas workers, BPO revenues are a major earner of foreign exchange for the country, driving what is one of Asia’s fastest-growing economies.

The BPO Industry Employees Network (BIEN) has expressed concern about postings on social media that said the building was made of sub-standard materials, had locked its fire exits, and had not held fire drills. It was not possible to immediately check the accuracy of the postings.

BIEN said the government should look into every BPO firm’s compliance with occupational health and safety standards.

“Justice must be served to the victims and those accountable must be penalized so as to avoid future workplace deaths,” BIEN said in a statement.

On Monday night, Duterte told relatives of victims that the National Bureau of Investigation, police and fire protection bureau would get to the bottom of the disaster.

“The truth will come out,” he said.

Research Now SSI has confirmed 37 of its 500 employees in its Davao call center were “lost” in the fire.

It did not immediately respond to a Reuters query on Tuesday about safety protocols at its Davao office.