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On Dec. 18, 2007, the Philippine Overseas Employment
Administration (POEA), the government entity set up to regulate the
deployment of workers abroad, issued Memorandum Circular No. 04
(MC-04), the guidelines on the direct hiring of Filipino workers, to
take effect on Jan. 15, 2008. The memo allows direct hiring of OFWs
by foreign employers only upon approval by the secretary of Labor
and Employment.
Now, direct hiring or direct
hires happens when the foreign employer directly contracts with the
Filipino employee as to the nature of work and conditions of
employment. There are interviews and medical checkups for
pre-qualifications. After a meeting of the minds, the worker flies
over and starts working. That’s that.
A large class of OFWs however go
through recruitment agencies ostensibly for the protection they need
from abusive or fly-by-night operators. This is usually the case for
unskilled or semi-skilled workers who lack the capacity and
connections as is true for domestic workers, caregivers and even
seamen.
For certain professionals like
nurses and doctors, the foreign government imposes restrictions and
calls for qualifications given the kind of service involved and the
state of the industry in the country of destination. Because of the
huge demand, it makes sense to rationalize the selection, hiring and
deployment of medical personnel via third-party intermediaries like
agencies for coordination.
Under MC-04, prospective
employers must first comply with the guidelines, otherwise they
shall only be allowed to hire OFWs through recruitment agencies
which are willing to assume responsibilities over the employees,
including payment of salaries and other employment benefits. What
does not make sense here?
For starters, employers are
required to put up a performance bond equivalent to the worker’s
three-month salary to guarantee compliance of the employer with the
provisions of the employment contract, provision for a repatriation
bond in the amount of US$5,000 or its peso equivalent to guarantee
the actual cost incurred for the repatriation of remains and
subsequent burial following death from any cause and for costs of
violation/non-compliance with the contract, rules of the company and
Philippine laws as well as the laws of the host country.
The circular increases the burden
on the employer and makes it more financially costly to hire a
Filipino worker. It will make our labor market less attractive and
less competitive. It an artificial barrier that will block the free
flow of manpower and services in the globalized world in an era
where our advantage lies in our dynamic and mobile labor pool. It
goes against the freedom to contract when the employee cannot give
his informed yes to a contract with the government’s imprimatur.
Imagine Citibank or Proctor and Gamble complying with the memorandum
in the name of protecting its promoted vice president or transferred
manager. Surely, the OFW knows better.
The employer’s alternative is
to use the services of a recruitment agency which surely will charge
a service fee. In the history of our overseas employment program
illegal recruitment, overcharging and a myriad number of schemes
foisted by agencies happen more than usual. Added to this is the
bureaucratic red tape with queues, payments, fixers and delays. It
is distressing and counterproductive. It is cardinal in governance
to keep things simple. What you can do directly, don’t do it
indirectly. It makes sense for the government to get out of the way
and to take a proactive stance on preventing abuses.
This can be done by
distinguishing the different classes of OFWs and treating them
separately. Lumping them under one guideline without distinction is
illogical. The policy ought to be deregulation, that is, let the
market take over the contracting process but with the eye of weeding
out the unscrupulous specially in risky sectors like entertainment.
Our OFWs are known for their hard work and competence and their
remittances are lauded as the major stabilizing factor in our
national economy. We can help by setting clear standards that make
sense of the factual reality and at all times having the welfare of
the workers at heart.
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