Customer contact hourly wages in Suriname under pressure

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Outsourcing to Suriname is still popular. With about thirty service providers in customer contact and back office, the labor market is crowded. Talking about hourly wages is therefore sensitive almost everywhere. The arrival of a Surinamese contact center collective labor agreement is obvious.

In brief:

Hourly wages in Surinamese contact centers are under pressure
There are large differences in structure and height
There is limited enforcement of labor relations

Cost savings are still the most important reason to opt for outsourcing. The ultimate is near- or offshoring. For Dutch-speaking customer contact, the options are relatively limited. There are facility contact centers with Dutch-speaking employees in nearshore locations such as Spain, Portugal, Greece and Turkey. These companies often work with temporary employees (working abroad for a year) or with remigrants (employees who are at home in the Dutch culture).

Offshore service providers have also been present in South Africa and Suriname for a long time. In Suriname, the number of BPO companies has increased since 2006. quickly increased to about 30. The number of employees currently working in customer contact is approximately 6.000. The population within the working population that is considered suitable for a job in customer contact is estimated at a maximum of 10.000 people.

Wage cost advantage

While wage costs in the Netherlands have risen considerably in a few years due to inflation, GGD services and adjusted collective labour agreements, the wage cost advantage at near and offshore locations still exists. Employers at near and offshore locations often invest in additional facilities (relocation costs scheme, housing, contribution to training costs, substantial contribution to premiums for pension and/or health insurance), but can still offer their clients a considerably lower hourly rate per agent. The advantage for outsourcers ranges from 25 to 50% compared to the Dutch all-in hourly rate, which is currently around 40 euros.

Suriname is experiencing high inflation; many employers pay their employees in euros. In addition, Surinamese employees continue to face fluctuating exchange rates for the Surinamese dollar (SRD), roughly between 1:28 and 1:38. The statutory minimum hourly wage in Suriname has been set at SRD 49,12 (currently approximately one and a half euros), but this is not actively enforced.

Hourly wages

The average monthly salary in Suriname is around 340 euros gross. Those who work at a contact center usually earn at least a comparable monthly salary, but it can also be higher.

The hourly wages offered by facility contact centers in Suriname are made up of various components, which makes it difficult to compare them. Various employees at Ziptone indicate that Concentrix, Yource and Custom Connect would offer 1,80 to 2,00 euros, Teleperformance would pay 1,86 to 2,50 euros with outliers at specific accounts up to 2,87 euros; ContactCare would offer 3,00 to 4,50 euros and at Inspire employees could earn 2,00 to 5,00 euros per hour, but what is net at one company is gross at another, according to insiders.

Employees exchange information via Facebook Messenger or WhatsApp about which employer pays what, according to messages available to Ziptone. Employers approached by Ziptone emphasize that the differences in payment are large. “The largest players want to keep wages low, otherwise their business model may no longer work,” according to one of them. Smaller facility contact centers – the category of up to roughly 300 seats – are said to have better-paying clients or are satisfied with lower margins – or both and let that be reflected in better employment conditions.

Secondary conditions

The basic salary that employers offer often includes 50% reimbursement for health insurance (in some cases full reimbursement applies) and in some cases it also includes reimbursement for pension premiums. Starters are usually employed with a one-year contract; pension accrual is not always an issue in that case. Travel allowances are often used; sometimes a so-called exchange rate compensation is awarded. In addition to all these certainties, there are also employers who offer uncertainty. There are employers who, despite a reasonable hourly wage, assign fewer hours to employees if there is a need to scale down. This means a variable monthly income.

Start at night

Employers almost always work with allowances for starting and/or finishing at early or late times – relevant if the opening hours of Dutch customer services are followed. The working hours can be an obstacle for Surinamese contact center employees. Companies that want to be available in the Netherlands from 08.00:03.00 can schedule their Surinamese employees from 04.00:18.00 at night (in Dutch winter time) or at XNUMX:XNUMX at night (in Dutch summer time). Those who have to start at night can count on transport with a van from the employer at certain employers. If the customer service of a Dutch company closes at XNUMX:XNUMX, this means that Surinamese employees are finished at three or four in the afternoon local time. The latter could theoretically provide scope for employees who combine the customer contact job with another job, their own company or a study.

An early start sometimes leads to grumbling – despite any allowances: the working hours raise questions about the work-life balance and the impact on the health and well-being of employees. The Dutch trade union FNV referred Surinamese call center employees to the Surinamese trade union TTWOS (Telegraaf-en Telefoon Werknemers Organisatie Suriname), the union at telecom provider Telesur. TTWOS is a member of UNI Global Union and is, among other things, a discussion partner in collective labor agreement negotiations at Telesur.

Whichever BPO service provider you speak to: every player claims to offer a good and extensive employment conditions package. The fact that there are significant differences between the total employment conditions packages is underlined by the establishment of the employers' association that wants to influence wage development, among other things. Setting up a contact center collective labor agreement for the Suriname market is therefore in line with expectations.