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The Honolulu Advertiser

Posted at 11:32 a.m., Friday, November 1, 2002

Call center to lay off 100 workers

By John Duchemin
Advertiser Staff Writer

French teleconferencing company Genesys Conferencing says it plans to close its Honolulu call center by January and lay off all of its 100 employees.

The announcement marks the latest in a series of call center closures in Hawaii, and comes as Genesys closes centers across America. In the last two years, call centers operated by Federal Express, Sprint PCS, WorldPoint, Northwest Airlines and Hawaiian Wireless have closed, said Kevin Johnson, president of the Hawaii Call Centers Association.

Hawai'i telecommunications executives say the closures are a symptom of specific industry issues, and not an indicator that Hawai'i is unfit as a call center site. They point out that several companies are expanding their call centers here, and expect to pick up many of the employees let go by Genesys.

"You watch the trend of people leaving, and it's all very logical," Johnson said. "Some of the companies closed, others consolidated their centers into megacenters on the Mainland. Most of the centers here are quite small, and those are the first ones to go.

"But none of that is alarming, because we have other centers that are growing and performing very well."

AT&T Long Distance, for example, has trebled the size of its Hawai'i call center from 100 to 300 employees since the beginning of 2001, spokesman George Irion said. The center is now one of the four largest in AT&T. Irion said its multilingual staff generates excellent revenues.

"We're proof that this can be done in Hawaii," he said. "Any center is always at risk – businesses are always looking to be more efficient – so (AT&T's expansion) is a really strong endorsement of our the quality of people here."

Johnson said economic development officials are concentrating on attracting call centers that deal with "gold callers" ­ customers who have questions requiring specialized answers or help from talented professionals. The American Healthways center in Kapolei, for example, is entirely staffed with employees who are registered nurses, he said.

Generic call centers are easily duplicated in other places, and most Hawaii operations are too small or too high-paying to compete unless they have a specialty, Johnson said.

Johnson said Genesys is automating many of its services and no longer needs as many call center employees.

Genesys will shut down its center at 1001 Bishop St. between Dec. 13 and Jan. 13, said Donald Dixon, the company's North America human resources director, in a letter yesterday to the state Department of Labor and Industrial Relations.

Call center manager Margie Medalle confirmed the accuracy of Dixon's letter, but had no further comment.