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Sunday, November 14, 2010

DOLE warns recruiters vs passing on insurance costs to OFWs

20 Oct 2010 -- Labor officials sternly reminded recruitment firms Wednesday against passing on to prospective overseas Filipino workers the cost of their mandatory insurance coverage.

The Department of Labor and Employment (DOLE) said the Philippine Overseas Employment Administration (POEA) is already monitoring potential violators.

"The insurance coverage shall be effective for the duration of the worker’s employment contract and shall at least cover the benefits provided for by the Omnibus Rules and Regulations Implementing Republic Act 8042 as amended by R.A. 10022," DOLE Secretary Rosalinda Baldoz said in an article posted on the DOLE website.

She added POEA under Administrator Jennifer Manalili has vowed to strictly monitor agencies trying to circumvent the law.

Under Republic Act 10022, licensed recruitment and manning agencies or foreign employers shall bear the cost of the insurance coverage of workers.

However, insurance coverage is optional for name hires, rehires (balik-manggagawa or vacationing workers) as well as workers hired through government-to-government arrangement.

These workers may request their foreign employers to pay the cost of insurance or they themselves may pay the premium.

Republic Act 10022 requires recruitment agencies to shoulder the following insurance costs:

  • the Overseas Workers Welfare Administration life insurance of P100,000 for natural death; 
  • P200,000 for accidental death;
  • P100,000 for total permanent disability;
  • P50,000 burial benefits;
  • $15,000 in case of accidental death;
  • $10,000 in case of natural death; and
  • $7,500 in case of permanent disablement, including repatriation costs, subsistence allowance benefit, money claims, compassionate visit, medical evacuation and medical repatriation. 

The insurance coverage guidelines were signed on September 8 and published in a newspaper on September 17.

"Hence, the insurance policy has become a mandatory requirement for processing of OFW contracts and overseas employment certificates (OECs)," the DOLE said.

Baldoz said a certificate of cover (COC) provided by an insurance firm licensed and certified by the Insurance Commission (IC0), is now required before the issuance of OECs or exit clearance of agency-hired OFWs.

She said a certificate of entry or other proofs of insurance coverage from the manning agency shall be accepted for seafarers if the vessel is covered by protection and indemnity.

The coverage must also conform to POEA rules and regulations and the POEA Standard Terms and Conditions Governing the Overseas Employment of Filipino Seafarers on Board Ocean-Going Ships. – JERRIE ABELLA, GMANews.TV

Recruiter: OFWs will end up paying for 'no cost' insurance premium

11 Nov 2010 -- Overseas Filipino workers bound for Asian countries such as Hong Kong, Taiwan, Brunei, South Korea, Malaysia and Singapore will eventually shoulder the compulsory insurance premium despite government warnings against passing on the cost to OFWs.

"OFWs will eventually pay for the insurance just as they, in reality, pay for the placement costs ranging P50-150,000 – including plane tickets, Philippine Overseas Employment Administration (POEA) fees, Overseas Workers Welfare Administration Membership (OWWA) fee, visas, foreign brokers and local placement costs, among others," recruitment specialist and former OFW Lito Soriano said.

Soriano claimed that for over three decades, the practice is that OFWs in Asian countries shoulder all the expenses for their employment abroad, even if the Labor Department and related government agencies say otherwise.

"So, the US$72-100 per annum for the compulsory insurance mandated by the new Migrant Workers Act RA 10022, is just another cost on the shoulders of the OFW," he added.

He said, the Philippine Government must realize that policies regarding "zero" placement fees for various destinations abroad are not followed in Asian countries for the simple reason that 95 percent of employers in these countries, as well as their local recruitment brokers, are not regulated.

The policies the Philippine government has crafted would not be honored in most of these countries, he added.

Moreover, he said, the government has not initiated bilateral OFW protection agreements to require foreign employers in Asian countries to pay for the recruitment costs including the exorbitant foreign brokers fees that are usually the major component of the total placement cost.

Soriano lamented most OFWs and the general public are not aware of this reality in the recruitment process.

Compulsory insurance

The insurance premium must correspond to the length of the employment contract and must be paid – "at no cost to the worker" – prior to the release of their POEA overseas employment certificate. [See: Section 23 of RA 10022]

With most OFWs on two year contracts, the true upfront cost is between P6,500 to P8,800, Soriano said.

The POEA said insurance coverage requires employers or recruiters to secure a two-year policy coverage for OFWs amounting to a fixed rate of US$144, on top of the premiums. (See: DOLE warns recruiters vs passing on insurance costs to OFWs)

The policy includes benefits of $15,000 in case of accidental death; $10,000 in case of natural death; and $7,500 in case of permanent disablement, including repatriation costs, subsistence allowance benefit, money claims, compassionate visit, medical evacuation and medical repatriation.

A certificate of cover provided by an insurance company that is licensed and certified by the Insurance Commission is now required before the issuance of overseas employment certificate or exit clearance of agency-hired overseas workers.

A recent advisory from POEA said the accredited insurance providers are Paramount Life and General Insurance Corp., Philippine Charter Insurance Corp., and United Coconut Planters’ Life Assurance Corp.

On the other hand, Soriano added that, "already the coverage is going to be extended in new House Bill 3308 seeking to insure all OFWs as they renew their contracts."

Soriano wondered who is going to pay as OFWs who renew their contracts don’t go through recruitment agencies, but have to use POEA as their agency.

"So will the taxpayer pay the bill or will the government pass it on to OFWs?" he said.

The "no cost to OFW insurance premium" is not realistic, he stressed, adding that even under the POEA-brokered Employment Permit System (EPS) for South Korea, the Filipino worker had to pay dearly.

Citing experiences in the EPS, Soriano said OFWs under the program paid all the costs, including their OWWA membership, plane tickets to Korea, visa fees at the Korean Embassy, POEA fees, medical examinations and training expenses.

"The POEA is the exclusive recruitment agency under the EPS program, yet the OFW has to shoulder everything."

According to him, a Filipino worker deployed under the program has to pay P20,000 plus, with the additional costs of language tuition, review and the actual KLT (Korean Language Test) in order to qualify for EPS. And when they are on-site, they have to take out “Return and Casualty insurances" and pay for it through salary deductions at 8.3 percent monthly!

Canceled contracts

Meanwhile, Hong Kong residents have reportedly canceled contracts for Filipino domestic workers, after the Philippine government’s implementation of a mandatory insurance coverage for this type of workers.

Employers, recruiters and workers have scored the new policy, which took effect last Monday, describing it as as unfair and redundant because existing labor laws in Hong Kong already require employers to secure insurance policies for foreign domestic workers. [See story: Mandatory insurance imperils HK hiring of Pinoy helpers]

Reports by Hong Kong-based news sites The Standard and the South China Morning Post said a local organization claimed that over 100 residents have suspended hiring Filipino helpers due to the mandatory insurance. — Fernando de la Cruz/LBG, GMANews.TV

Gov’t says to beef up OFW centers abroad

MANILA – The Philippines’s labor department reiterated its policy to reinforce centers for overseas Filipino workers (OFWs) abroad by deploying more employees overseas.

This was one of the policy pronouncements inscribed in the Department of Labor and Employment document for the first hundred days of President Benigno Aquino III that ended October 8.

“Work with the DFA to transform Philippine embassies, consular offices and Philippine Overseas Labor Offices (POLOs) into centers of care and service for overseas workers by assigning more foreign service officers to post where there are many OFWs and train them in the needs of the communities they serve,” the DOLE said in its 22-point Platform and Policy Pronouncements on Labor and Employment.

The pronouncements came after the International Organization for Migration (IOM) released a report recommending that government provide more resources to Filipino Workers Resource Centers (FWRCs) so that services may be expanded.

The report titled “Migrant Resource Centers: An Initial Assessment” said that apart from resources, government should also make sure FWRCs are used by as many potential clients and that migrants’ savings and skills are appropriately used inside these centers.

An FWRC is mandated by section 19 of Philippine Republic Act 8042 (or the 1995 Migrant Workers and Overseas Filipinos Act) to be set up in any country where there are more than 20,000 OFWs.

FWRCs were among the earliest formed migrant resource centers (MRCs) worldwide, next to the Australia’s Spectrum MRC, which was formed in 1976.

Currently, there are 21 FWRCs found in 18 countries, with three of them in OFW-rich Saudi Arabia and two in the United Arab Emirates –another OFW beehive in the Middle East region.

IOM assessed some 13 MRCs, whether set up in the origin country of migrants and/or in host countries, including those from Albania, Australia, Colombia, Croatia, Democratic Republic of Congo, Lebanon, Mali, Portugal, Slovakia, Sri Lanka, and Tajikistan.

The IOM report, written by Paul Tacon and Elizabeth Warn, defines MRCs as “physical structures which provide services directly to migrants to facilitate and promote their recourse to legal, voluntary, orderly and protected migration.”

Praise

Through the report, the IOM heaped praise on the Philippine government’s FWRCs for its services aimed at empowering migrant workers for development, and especially for protecting the rights of migrant workers.

The international government body also lauded FWRCs for offering remittance-related services such as information on remittances and their transfer costs, partnerships to facilitate remittance transfers, and information on investment options.

The FWRCs were also noted to be offering employment-related assistance such as job-matching services, and for promoting the involvement of migrants in so-called “migration-for-development” projects such as donations to the origin country by hometown associations.

In terms of migrant protection, the IOM also gave kudos to FWRCs for accessibility of services, “providing 24-7 services to migrants in emergency situations, and migrants who must not miss their usual work schedules.”

“FWRCs show particularly good practices in this respect, as they are required to be available to migrants at all times, on public holidays and weekends as well as working days,” the IOM report wrote.

FWRCs were also lauded in the IOM report for their “extensive experience in assisting migrants,” not just in forms such as legal assistance but also including psycho-social counseling and on-site physical and mental health services.

And being a physical structure, an FWRC has sheltered distressed women and men migrant workers such as those who ran away from work, those imprisoned in private employers’ homes or on work sites, those abused migrant workers, those whose contracts were illegally terminated, those victims of illegal recruitment, and those facing homelessness in the host country.

The Philippine embassy or consulate then assists the repatriation of the sheltered OFWs, while receiving newer OFWs under vulnerable conditions.

FWRCs were also lauded by IOM in terms of providing vital information to the home government on the conditions and issues faced by Filipino workers, thus assisting the Philippine government’s formulation of policies related to OFWs.

Pressures

The IOM evaluated FWRCs only in terms of services empowering migrants for development, services empowering migrants for protection, and set-up and sustainability.

Hence, it failed to give comments on FWRCs’ performance in undertaking a needs-assessment, maintaining contacts with migrant worker-clients, and, networks and partnerships with international groups and host country service providers for migrant workers.

Likewise, the IOM also avoided remarking on the FWRCs in the following criteria: integration of centers into government structures; sustainability for independent centers; and, capacity-building activities that benefit government’s policy formulation activities and non-government organizations’ migrant assistance-related activities.

The resources for these, however, have been a cause of concern and identified earlier by the Philippines’ audit commission.

A 2008 audit report by the Commission on Audit on the government’s overseas workers’ welfare program reveals high ratios between FWRC staff and the total number of OFWs and cases of distressed OFWs whom centers receive and give temporary shelter to.

Citing 2006 data, six staff of the FWRC in Riyadh, Saudi Arabia are serving an estimated total of 540,000 OFWs (for a ratio of one is to 90,000), while the two FWRC staff in neighboring Saudi Arabia are serving an estimated total of 200,000 OFWs there (for a ratio of one to 240,000).

Based on the number of welfare cases that year, there’s only one staff catering to 6,524 cases at the FWRC in Taipei City, Taiwan. With only two staff in the Taipei FWRC, this would mean each must manage at least 17.9 cases a day.

Their colleagues at the FWRC in Manama, Bahrain, may appear to take it easy at 6.8 cases a day or one staff for 2,489 cases. The Manama FWRC also has two staff.

These staff comes from the Overseas Workers Welfare Administration (OWWA), which also forks out the funds for the center’s maintenance. Likewise, personnel is also tapped from the embassy or consulate (under the Department of Foreign Affairs), and labor attaches who are under the Labor department’s corps of POLOs.

Promises

This discrepancy in staff against the number of cases reported to the FWRC is being pinned by the Commission on Audit as something to do with standards.

“The wide range of ratios in relation to the number of OFWs and welfare cases received are an indication of the absence of a standard on the number of POLO/OWWA personnel needed to ensure responsive welfare services to OFWs,” the COA report wrote.

In reply, also contained in the same COA report, OWWA officials said the agency’s community reach-out and developmental programs through the FWRCs are “effective medium [sic]” since FWRCs tap the help of Filipino organizations in host countries in delivering welfare services to migrant workers.

As to repatriating OFWs who are sheltered in FWRCs, OWWA officials said an OFW’s length of stay is dependent, in regions such as the Middle East, on the issuance of a document like an exit permit which, in turn, is issued if the OFW’s employer clears the worker of any wrongdoing.

The 100-day paper by the DOLE said that as of 30 July 2010, there were 1,204 wards in the FWRCs; 561 of whom were repatriated using DOLE and OWWA funds, in July and August 2010.

“All ‘repatriation-ready’ OFWs are to be home within one month from the issuance of exit clearance by the host government,” the DOLE paper said.

It added that the labor department and the OWWA “also provided repatriation funds for Filipinos threatened to be expelled from Kandara bridge. POLO Jeddah funded the temporary accommodation at Hajj terminal, filing of deportation documents, and eventual repatriation of overstaying Filipino nationals.

The paper added that 734 OFWs from Jeddah were repatriated from 01 July to 26 September 2010.

To note, the labor department said welfare and protection for OFWs “will remain a government priority that require comprehensive program and budget support during the entire migration cycle from pre-employment, on-site employment and post deployment which includes reintegration.” -

By Jeremaiah M. Opiniano, OFW Journalism Consortium | 11/02/2010
With reports from Isagani De La Paz

Source URL: http://www.abs-cbnnews.com/global-filipino/11/02/10/gov%E2%80%99t-says-beef-ofw-centers-abroad