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Thursday, January 25, 2007

 

Govt braces for 40% drop 
in domestic help market

By William B. Depasupil, Reporter

  THE government’s new policy on domestic helpers (DHs) bound for overseas work will mean a 40-percent drop in yearly deployment, the Department of Labor and Employment (DOLE) admitted on Wednesday.

In the long run, however, the new requirements would bring in more benefits for overseas Filipino workers (OFWs) in the domestic sector, Labor and Employment Undersecretary Danilo Cruz said.

“It is true that there will be a decline in our yearly deployment. It will drop by around 40 percent but it could easily be compensated by new markets that need skilled and professional workers,” Cruz said at a press conference.

New requirements

The official was reacting to warnings by recruitment agencies and their foreign counterparts that the Philippines could be pricing its workers out of the domestic job market.

The Philippine Overseas Employment Administration’s (POEA) governing board recently increased the minimum salary of departing DHs to $400.

It also raised the minimum age requirement to 25 years old, prohibited the collection of placement fee and required a prequalification certificate.

The new policy took effect on December 16, 2006.

Cruz said recruitment agencies in the country were amenable to scrapping placement fees but strongly opposed the $400 minimum salary and the 25 years old age requirement.

Last year the country sent 1,083,568 documented overseas Filipino workers to more than 190 host destinations. Of these, close to 300,000 were domestic helpers.

Markets open

Cruz noted that some countries were already hitting the $400 salary mark even before the POEA drafted its new policies. He cited Hong Kong, Taiwan, Spain, Israel and several European countries.

New labor markets have also opened in Canada, Libya, Spain and Taiwan, while Australia and New Zealand were on the pipeline, he added.

Rene Cristobal, president of a manpower association, said foreign recruiters, not the employers, were the source of protests.

“It means less profit” for foreign recruitment firms, he noted.

POEA Chairman Rosalinda Baldoz said the new policy would allow Filipino domestic helpers to upgrade their skills and eventually graduate from their grueling 24/7 work week.

The additional skills required by the POEA, she added, could help domestic helpers gain employment in hotels and restaurants as housekeepers, or in department stores.

   
 

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