Tunisia: Are call centers "modern-day slave traders"?
17 March 2009
Read by 1723 persons
With nearly 216 call centers (July 2009) located in Tunisia's major cities, generating over 17,600 jobs for young graduates, call centers are seen as a "godsend" to somewhat curb unemployment, which hovers around 14% in general and 20% for higher education graduates.
Public authorities, undertaking various actions to combat unemployment, committed in 2001 to prioritizing high-employment sectors like ICT and the establishment of call centers. Since then, these sectors have benefited from a series of fiscal, regulatory, and technological measures and incentives, attracting several foreign companies specializing in outsourcing, assistance services, or telemarketing.
The low cost of labor, the high level of qualification of human resources, and cultural and geographical proximity encouraged French, Italian, and German multinationals to relocate these customer service operations to Tunisia. These services cover diverse fields: IT, telecommunications, tourism, transport, leisure, distance selling and distribution, financial and banking services, and insurance.
Call centers also benefit from a ten-year exemption from all taxes on profits. They do not pay customs duties on imported equipment or local VAT on equipment purchases. The state also covers 50% of the salary for two years when a young graduate is hired under SIVP contracts, with a 50% reduction in employer social security contributions. For example, public aid can reach 250 dinars for a salary of 400 dinars. The best benefit is the state's coverage of training costs for foreign language improvement for call center employees, as part of professional integration programs.
These advantages and privileges granted by the state certainly promote employment, but it is also time to evaluate them, especially since some call centers show little regard for employee rights and even practice a form of modern slavery, violating the most basic employee rights.
Employees work more than 48 hours, including weekends and public holidays, tethered to their phones to serve often aggressive or distressed clients. They face surprises like salaries far below what was promised upon hiring, unfulfilled bonuses, shortened or non-existent breaks, backaches, headaches – all in a context of constant stress. In short, precarious jobs and conditions that some compare to "modern-day slavery."
Worse still is the exploitation, by some call center managers, of unemployed and vulnerable young graduates without compensation. While not the norm, such cases exist. During our investigation, we encountered a French call center manager who opened three call centers under different names over successive periods, each time registering a new company. His strategy involved luring young graduates with the promise of "fantastic salaries, higher than those offered on the market." He told recruits they would receive 2-3 months of training, followed by an equivalent probationary period before being offered permanent positions. Months passed (3-6, depending on the case), during which the young graduates made calls at a fast pace, awaiting payment. Meanwhile, the manager deliberately failed to register his employees with the CNSS (National Social Security Fund), disappearing one day after emptying the premises, leaving dozens of young people bewildered and penniless.
This real-life case is symptomatic of a group of call center managers who disregard regulations, ignore labor laws, and escape the oversight of competent authorities. Once they've made their money, they leave the country, taking advantage of the situation of young graduates with limited means of recourse, unaware of their rights, and unwilling to sue to defend their case. However, this should not be generalized; many call centers offer decent conditions to their employees, paying bonuses and wages, and allowing them to advance quickly in their careers. There is a trade union affiliated with UTICA (Tunisian Union of Industry, Trade and Handicrafts) for call centers. This union, representing 10% of companies in the sector, imposes a code of ethics on its members that respects workers' rights. Unfortunately, this initiative only covers one-tenth of the operators in Tunisia and should be extended to all operators, with strict enforcement.
Published September 10, 2009
Posted online September 11, 2009
AfricanManager
Public authorities, undertaking various actions to combat unemployment, committed in 2001 to prioritizing high-employment sectors like ICT and the establishment of call centers. Since then, these sectors have benefited from a series of fiscal, regulatory, and technological measures and incentives, attracting several foreign companies specializing in outsourcing, assistance services, or telemarketing.
The low cost of labor, the high level of qualification of human resources, and cultural and geographical proximity encouraged French, Italian, and German multinationals to relocate these customer service operations to Tunisia. These services cover diverse fields: IT, telecommunications, tourism, transport, leisure, distance selling and distribution, financial and banking services, and insurance.
Call centers also benefit from a ten-year exemption from all taxes on profits. They do not pay customs duties on imported equipment or local VAT on equipment purchases. The state also covers 50% of the salary for two years when a young graduate is hired under SIVP contracts, with a 50% reduction in employer social security contributions. For example, public aid can reach 250 dinars for a salary of 400 dinars. The best benefit is the state's coverage of training costs for foreign language improvement for call center employees, as part of professional integration programs.
These advantages and privileges granted by the state certainly promote employment, but it is also time to evaluate them, especially since some call centers show little regard for employee rights and even practice a form of modern slavery, violating the most basic employee rights.
Employees work more than 48 hours, including weekends and public holidays, tethered to their phones to serve often aggressive or distressed clients. They face surprises like salaries far below what was promised upon hiring, unfulfilled bonuses, shortened or non-existent breaks, backaches, headaches – all in a context of constant stress. In short, precarious jobs and conditions that some compare to "modern-day slavery."
Worse still is the exploitation, by some call center managers, of unemployed and vulnerable young graduates without compensation. While not the norm, such cases exist. During our investigation, we encountered a French call center manager who opened three call centers under different names over successive periods, each time registering a new company. His strategy involved luring young graduates with the promise of "fantastic salaries, higher than those offered on the market." He told recruits they would receive 2-3 months of training, followed by an equivalent probationary period before being offered permanent positions. Months passed (3-6, depending on the case), during which the young graduates made calls at a fast pace, awaiting payment. Meanwhile, the manager deliberately failed to register his employees with the CNSS (National Social Security Fund), disappearing one day after emptying the premises, leaving dozens of young people bewildered and penniless.
This real-life case is symptomatic of a group of call center managers who disregard regulations, ignore labor laws, and escape the oversight of competent authorities. Once they've made their money, they leave the country, taking advantage of the situation of young graduates with limited means of recourse, unaware of their rights, and unwilling to sue to defend their case. However, this should not be generalized; many call centers offer decent conditions to their employees, paying bonuses and wages, and allowing them to advance quickly in their careers. There is a trade union affiliated with UTICA (Tunisian Union of Industry, Trade and Handicrafts) for call centers. This union, representing 10% of companies in the sector, imposes a code of ethics on its members that respects workers' rights. Unfortunately, this initiative only covers one-tenth of the operators in Tunisia and should be extended to all operators, with strict enforcement.
Published September 10, 2009
Posted online September 11, 2009
AfricanManager
