Tuesday, November 01, 2005

Maids' pay-rise hopes dashed

By EUNICE del ROSARIO
Vol XXVIII NO. 203
Sunday
9 October 2005
http://www.gulf-daily-news.com/Story.asp?Article=123967&Sn=BNEW&IssueID=28203

A NEW minimum wage for Filipina housemaids, stipulated by their own government, is not worth the paper it's written on, say recruiters in Bahrain.

Recruiters may sign the minimum-wage contract required by law to get maids out of the Philippines, but families here will simply ignore it, say agents.

They say Filipina housemaids receive high salaries compared to domestic helpers from other countries working in Bahrain.

More Bahraini families are also choosing Indians, because they are "easier to get along with, learn to adapt easily, experience less culture shock once in Bahrain and are more loyal".On average, Filipina housemaids are said to earn about BD50 a month, while those from Ethiopia, Sri Lanka, Bangladesh, India and Indonesia reportedly earn around BD40.

The Philippines' government has set a new minimum wage for Filipina housemaids in Bahrain at $200 (about BD75), which it says recruiters will have to meet.But manpower agencies dismissed this as a "formality".

They said the $200 minimum salary would be stated in contracts, but Bahraini families would most likely continue to pay Filipina housemaids BD50.

"I am happy to follow the $200 minimum wage, but the problem here is that the majority of Bahraini families would not be paying this salary. They are not in position to pay," Al Shoala Public Relations managing director and Bahrain Recruiters Society president Ali Al Shoala told the GDN yesterday.

Al Shoala Public Relations, a leading manpower supply company in Bahrain, brings on average about 40 housemaids from various countries to the kingdom.Mr Al Shoala said that he personally would like to see the BD75 minimum wage materialise, but doubted that anyone would pay it.

"It is very rare in Bahrain that families would pay even BD65 for a housemaid. Even rich families won't do that," he said.Three Bahraini families the GDN spoke to yesterday said that they paid their Filipina housemaids BD50 each a month.One family head said he would consider raising his housemaid's salary to BD60, even BD75, after a few years' service.

"It also depends on her skills. If she speaks good English and learns quickly, then why not raise her salary?" he said."Unfortunately, the growing problem with Filipina housemaids is that they generally think they can just leave and run away to their embassy at the slightest hint of a problem.

"Years ago, I had one Filipina housemaid who run away after two months because she said she was homesick."Another Bahraini family said that they would pay BD75 for a Filipina housemaid if she had a college education, other than that - they would only pay BD50."Why should we settle for someone who is not educated?" reasoned one member of the household.

Al Shoala's public relations manager Makki Abdulla said Goan housemaids were in high demand in Bahrain."Most Bahraini families want Indian housemaids now, this is what we have found out," he said."Indians make very good housemaids and they tend to adapt to Bahrain more easily than Filipinas.

They also stay for a long time in each household."All housemaids brought to Bahrain by Al Shoala are also trained prior to working with families here.If they are unpaid, abused or maltreated, they are urged to contact the agency and complain, said Mr Abdulla."If the employer is bad then we immediately put his name in our blacklist.

"A spokeswoman from Shaker Management Consultation Services said that it welcomed the minimum salary, set by the Philippines' Department of Labour and Employment (DOLE)."The Philippine Embassy in Bahrain pushed for a $300 (BD113.4) minimum salary, which we thought was a lot compared to other GCC countries - where it is $200," she said.

"This is in favour of Filipina housemaids definitely, especially if this means we will be able to hire more qualified candidates."Unfortunately, I doubt if anyone would pay BD75 a month. There is a trend in Bahrain that Filipino housemaids get BD50 a month.

"She said that Filipina housemaids got more in other countries like Hong Kong, Singapore, the UAE and Kuwait."Their salary in Bahrain is really minimal, whereas in Abu Dhabi Filipinas earn about BD75," said the spokeswoman.

"But within Bahrain, Filipinas earn more than Ethiophians, Sri Lankans and Bangladeshi housemaids."Lower salaries could mean lower quality of work, said a Zainal Manpower spokeswoman."The $200 minimum wage is just a formality in contracts, because anything less than that, the housemaid may not be able to leave the Philippines. But in reality, they get paid BD50 here," she said.

"But as an agency, our main concern is that the housemaids we bring are paid on time, they are treated properly and not abused."

Meeting

The Philippine Embassy hopes to hold another meeting with the Bahrain Recruiters Society.

Their last meeting was held at the embassy in Zinj in July, to find ways to ensure that employers stick to the standard contract for domestic staff.

The embassy also stressed to the BRS the fact that the Bahrain labour law of 1976 did not cover domestic helpers. This means that they have no benefits, such as medical insurance.

The society said that problems faced by housemaids in Bahrain were 'solvable'.

The society has a total of 61 manpower agency members. #

Thursday, October 27, 2005

$3B in OFW remittances eludes banks

Posted: 2:16 AM Oct. 27, 2005
Inquirer News Service
http://money.inq7.net/topstories/view_topstories.php?yyyy=2005&mon=10&dd=27&file=1

AS MUCH as $3 billion in cash sent home by overseas Filipino workers is still coursed through non-bank channels such as couriers, Governor Amando Tetangco of the Bangko Sentral ng Pilipinas (BSP, the central bank) said Wednesday, citing findings of a government study.

Banks are expected to capture $10.3 billion in OFW remittances this year and will likely capture a bigger proportion as the money inflows continue expanding in the years ahead, Tetangco said. "As we are able to improve remittance systems and able to use technology, we'll see more and more portions of these remittances into the banking channel," he told a forum of foreign correspondents.

The OFW money that elude banks still benefits the economy as a whole, Tetangco noted. "It still goes into the country, still goes to consumption and other uses in the economy."

"That's why in the BoP [balance of payments], we try to capture some of that by assuming there's another 20 percent that is being coursed through non-banks," he said."

That's a conservative estimate, because the survey shows it's somewhere between 25 and 30 percent." The Department of Labor and Employment did the study on OFW remittances, together with consular offices abroad. To encourage use of banks in sending OFW incomes home, the BSP is asking banks "to come up with products that OFWs can use, for those who don't have the time or inclination to go into business," Tetangco said.

He said the central bank was also studying ways to link OFW inflows with microfinance. "The $10 billion is a big account and we have a lot of people in the countryside that are potential entrepreneurs," he noted.

"Looking forward, we see that there's still potential for further expansion in the industry, for a number of reasons," Tetangco said. "One, there is increasing demand especially from countries whose populations are aging," Tetangco said. With INQ7.net

Almost 5,000 Filipino workers in jail overseas

First posted 07:53pm (Mla time) Oct 25, 2005
Agence France-Presse
http://news.inq7.net/breaking/index.php?index=1&story_id=54487
Inq7.net

NEARLY 5,000 Filipino workers have been jailed overseas for various crimes but the government is doing its best to help them, Labor Secretary Patricia Sto. Tomas said Tuesday.

Most are detained in Middle Eastern countries although there are others who have been jailed in Japan, Hong Kong, Brunei and Singapore, she told reporters. Up to eight million Filipinos live abroad, many on short-term employment contracts.

"Legal assistance to [overseas Filipino workers] who have committed offenses in their host countries are provided jointly by the Philippine Embassies in the host countries and by the Overseas Workers Welfare Administration," she said.

Social workers are also providing humanitarian aid, she added. The lure of higher-paying jobs overseas has seen almost eight million Filipinos go abroad with nearly a million finding work overseas every year. #

Study: Worker remittances to reach $225B in '05

http://www.abs-cbnnews.com/storypage.aspx?StoryID=20064

WASHINGTON - Migrant workers are expected to send home a whopping $225 billion this year, the World Bank said Monday, as a new study showed remittances playing a key role in slashing poverty rates in developing economies.

Worker remittances also increase spending in home countries on education, health and investment, the bank said. "Close to 200 million people are living in countries other than the ones in which they were born, and remittances are estimated to reach about 225 billion dollars in 2005," the Washington-based bank said, quoting from its forthcoming publication, Global Economic Prospects 2006.

"This makes remittances the biggest source of foreign exchange in many countries and has major implications for strategies to reduce poverty in developing nations," it said.

The Bangko Sentral ng Pilipinas (BSP) earlier said it expects remittances from Filipinos working overseas to hit $10.3 billion this year, up 21 percent from 2004.

BSP Governor Amando Tetangco told reporters remittances could rise further to at least $11.3 billion next year. BSP officials have said total remittances could be around 20 percent higher if informal transfers, such as money sent home through visiting relatives and friends, are accounted for.

Remittances help fuel consumer spending, which accounts for about 70 percent of Philippine gross domestic product.

The World Bank report, to be released in November, examines policy options to increase the poverty-reducing impact of international migration and remittances. The World Bank presented the findings in conjunction with the release on Monday of a new study, "International Migration, Remittances and the Brain Drain," produced by its research department.

It includes a detailed analysis of household survey data in Mexico, Guatemala and the Philippines -- all countries that produce millions of migrants -- which concludes that families whose members include migrants living abroad have higher incomes than those with no migrants. "The studies show that remittances reduce poverty and increase spending on education, health and investment," said World Bank economist Maurice Schiff, who co-edited the book with Caglar Ozden, also an economist at the bank.

He said the findings were consistent in all three country studies.

Further research is underway to see if they apply in other countries, he added. "The household survey evidence presented in the book demonstrates a direct link between migration and poverty reduction in the countries studied," said Francois Bourguignon, the World Bank's chief economist.

"It is groundbreaking work that is essential to sound policymaking in this area," he said. While remittances highlighted migration's positive impact on development, a more complex picture -- the so-called "brain drain" -- emerges when the study's focus shifted to the educated migrants from developing countries.

One chapter in the book unveiled "the most comprehensive database" to date, based on census and survey data from OECD countries, tracing a massive exodus of professionals from some of the world's most vulnerable low-income countries.

Eight out of 10 Haitians and Jamaicans who have college degrees live outside their country. In Sierra Leone and Ghana, the same ratio is five out of 10. Many countries in Central America and Sub-Saharan Africa, as well as some island nations in the Caribbean and the Pacific, show rates of migration among professionals over 50 percent.

This was in sharp contrast to much bigger countries such as China and India, from which only three to five percent of graduates are abroad, as well as Brazil, Indonesia, and the former Soviet Union, which also have low migration rates among the educated.

On a larger scale, the study showed that migration dramatically increased global economic output by enabling workers to move to locations where they were more productive, and as a result, earn much higher wages than they would have in their developing home countries.

A large portion of these economic gains accrues to the migrants and to their families back at home through the remittances they send, it said. (AFP)

Tuesday, October 25, 2005

WB study: OFW money lifting families out of poverty

Posted: 2:09 AM Oct. 25, 2005
Inquirer News Service
http://money.inq7.net/topstories/view_topstories.php?yyyy=2005&mon=10&dd=25&file=4

MONEY remitted by overseas Filipino workers (OFWs) is lifting many Philippine households out of poverty by boosting funds for education, health and entrepreneurship, a new World Bank study has noted. The study, titled "International Migration, Remittances, and the Brain Drain," includes a detailed analysis of household survey data in the Philippines, Mexico and Guatemala.

The chapter on the Philippines says households with OFWs tended to be wealthier than others in terms of per capita income based on 1997-1998 data. It said that in June 1997, a month before the Asian financial crisis set in, 5.9 percent of Philippine households had one or more members working abroad.

Fifty-one percent of these households landed in the top 25 percent of the national household income per capita distribution while 28 percent were in the next-highest quartile, it said. Only nine percent of Philippine households with OFWs were noted to be still living below the poverty line.

The average per capital income of OFW households was estimated at P20,235 ($778) during the pre-Asian crisis period as opposed to ordinary households, which had a higher poverty rate of 31 percent and a lower per capita income of P11,857 ($456).

The study further noted that a currency exchange shock similar to the peso devaluation against the US dollar during the Asian crisis could lead to increases in household remittance receipts and in total household income. A 10-percent improvement in the exchange rate leads to a drop of 0.6 percentage point in the poverty rate, it noted.

Households enjoying a more favorable exchange rate were also more likely to start a business, particularly in transportation and communication services, and manufacturing, which were activities involving considerable fixed costs in vehicles and equipment that could become more affordable in the wake of positive exchange rate shocks, the study pointed out.

Those investing in transportation services were likely to venture into taxi and minibus operation while likely manufacturing activities include small activities such as mat weaving, tailoring, dressmaking and food processing, the study said.

"The fact that the exchange rate shocks stimulated such investments suggests that the shocks are likely to have persistent and positive effects on household well-being over the long term, in addition to their leading to reductions in current poverty," it said. The study also found evidence of positive spillovers to households without OFWs in terms of gift-giving.

Other key findings of the WB study were:

• 31 percent of OFW household heads have college or higher education, compared with just 20 percent of non-OFW household heads.
• 23 percent of OFW household heads work in agriculture, compared with 38 percent in all other households.
• 68 percent of OFW households live in urban areas, compared with 58 percent of non-migrant households.
• Saudi Arabia is the biggest single destination of OFWs, with 28.4 percent of the total.

Hong Kong (China) comes in second with 11.5 percent. The only other economies that account for six percent or more are Taiwan (China), Japan, Singapore, and the United States.

• OFWs have a mean age of 34.5 years; 38 percent are single and 53 percent are male. The two largest occupational categories are production and related workers, and domestic servants, each accounting for 31 percent of the total.

• 31 percent of OFWs have achieved some college education, and an additional 30 percent have a college degree.

To address rising unemployment and balance-of-payments problems, the Philippine government initiated an Overseas Employment Program in 1974 to facilitate the placement of Filipino workers abroad.

At first, the government directly managed the placement of workers with employers overseas, but soon yielded the function to private recruitment agencies and assumed a more limited oversight role.

Doris Dumlao, with INQ7.net

Reports on runaway workers in thousands

The Saudi Gazette
http://www.saudigazette.com.sa/sgazette/Data/2005/10/25/Art_277047.XML

RIYADH -- The runaway workers section in Riyadh s Expatriate Department gets as many as 4,500 reports of runaway maids and workers a month, according to a report in the Arabic daily Al-Watan on Monday.

The paper said that the department s director would not give any information on the issue, saying that he had no authority to divulge such information. But the newspaper said that there is information that the department receives as many as 150 so-called missing worker reports each day.

The paper quoted visitors of the Expatriate Department in Riyadh as saying that a major contributor is the illegal employment of runaway workers by a number of citizens and expatriates for higher wages.

Fahad Al-Shammari believes that competent authorities including the Passports Department, police, and other, do not enforce harsh sanctions which would be a deterrent.

Offenders are arrested if, by coincidence, they are caught by police and sponsors are required to pay for tickets to send them home even though their legal responsibility for runaway individuals ends upon filing a running away report , he said.

Shammari adds that competent authorities are at times aware of the presence of runaway workers and when a report is filed, the Passports Department and the Police assign responsibility for arrest to each other until citizens give up and resign to the status quo.

Mahmoud Al-Haq, an expatriate, blames the running away to a number of sponsors requiring workers to pay certain amounts upon coming to Saudi Arabia in order to have the sponsor s authorization to work.

These amounts are increased each year. No longer able to bear this injustice, some workers simply run away.The head of the Expatriates Department in Riyadh declined to disclose information on the issue or on the Department s role in curbing the phenomenon on the grounds of non-competence.

However, there is information that the Section of Run-Away Labor, affiliated to the Department, receives more than 150 reports each day, which translates into more than 4,500 reports each month.

A citizen whose subordinate has run away is given a form to fill. The form contains information on the run-away worker and on his/her sponsor.

A list of workers employed by the government is then shown to a sponsor to determine whether or not a run-away worker may be working in the public sector.

On the other hand, the Department requires citizens who wish to retract a run-away report to pay fees of up to SR2,000.A sponsor who fails to report a run-away worker within three days of the running away is fined SR1,000, taking legal excuses into consideration.

Reports are received within three days of the running away incident on condition that the sponsor has not filed a lawsuit against his subordinate with any government authority.

A responsible source at the Passports Department defended the levying of a fine, explaining that some citizens make agreements with their subordinate whereby they are allowed to run away and work for other parties against a fee paid in cash to the original sponsor.

The purpose is to dodge responsibility in case a run-away worker is arrested.

In the case of maids, a sponsor is required to obtain a letter from the Maids Affairs Section indicating that the maid is no longer in his employment.

The remaining reporting procedures are subsequently finalized. The passport of a missing worker is normally handed over to the authorities within three months.

However, an exception is made in the case of maids and drivers whose passports may be handed over within two weeks in order for a sponsor to be able to apply for recruitment of a replacement.

STARTING NEXT YEAR: Maids in S'pore must be given one day off a month--report

First posted 04:26pm (Mla time) Oct 25, 2005
Associated Press
http://news.inq7.net/breaking/index.php?index=1&story_id=54471
Inq7.net

SINGAPORE -- Employers of foreign maids working in Singapore must give their domestic helpers at least one rest day a month or compensate them in cash starting next year, The Straits Times newspaper reported Tuesday. Under current legislation, Singapore's employers are not obliged to give maids any free time, but the Association of Employment Agencies watchdog group said that from January, agencies must include a clause in employment contracts that stipulate one day off a month for maids.

Following the move, domestic helpers not given their monthly rest day can sue their employers for breach of contract, the report said. More than 140,000 maids, mostly from Indonesia and the Philippines, are employed in Singapore, a wealthy Southeast Asian city-state.

Singapore made it mandatory for maid agencies to be accredited in 2003 to encourage ethical and proper employment practices. The watchdog group is one of two organizations which run accreditation schemes requiring the more than 500 agencies under them to set out clear refund policies and employment terms for maids.

Maid employment agencies that do not include a clause for time off in contracts drawn up between maids and employers may not be reaccredited, the newspaper reported."Employers tell us that they are busy, that's why they can't give their maids a day off," the paper quoted David Haw, director of employment agency Newway Holdings, as saying. "It's a shame that we are from a developed country and yet we treat our maids like slaves.

"The report said a sample of the new employment agreement had been submitted by the association to the Manpower Ministry and that a standard contract would be issued shortly, implying government approval of the measure. The association can make recommendations to employers, but has no power to enforce policy.

The watchdog and the Manpower Ministry could not be immediately contacted by The Associated Press to confirm the report.

There have been periodic cases of employers abusing their maids in Singapore, and some activists want the government to do more to protect the rights of foreign domestic helpers.