Transcript Migrations’ Middlemen - Migration Policy Institute

MIGRATIONS’
MIDDLEMEN
Regulating Recruitment
Agencies in the
Philippines - United Arab
Emirates Corridor
Dovelyn Rannveig Agunias
Policy Analyst, MPI
June 3, 2010
Washington, DC
Outline
1. Agencies’ Value vs. Cost
2. Key Regulatory Challenges
3. A Three Tier Labor Migration System
4. Policy Options
1. Agencies’ Value vs. Cost
 Value: Provide information, matching assistance
and many kinds of logistical support while in the
Philippines and upon arrival in the UAE.
 Cost: Charge excessive or unauthorized fees,
engage in fraud and deceit and activities that
border on human rights abuse
2. Key Regulatory Challenges
 Policy mismatch on:
 who can participate in overseas employment
 the allowable fees recruiters can charge migrants
 terms and conditions that must be included in
every contract
Domestic Worker Entitlements
Under Philippine Regulation
 US$400 minimum monthly wage
 continuous rest of at least eight hours per day
 paid vacation of not less than 15 calendar days for every year of





service
employer assistance in remitting a percentage of salary through
proper banking channels
no salary deductions
no confiscation of passport and work permit
personal life, accident, medical, and repatriation insurance
free roundtrip economy-class air ticket or money equivalent in
case of contract renewal
Source: POEA, Guidelines on the Implementation of the Reform Package Affecting Household Service
Workers.
2. Key Regulatory Challenges
 Difficulties in implementation
 monitor the welfare of workers
Services Rendered to Migrant Workers at the Philippine
Consulate in Dubai, First Three Quarters, 2008 and 2009
Services
Verify documents
Employment contract
Recruitment agreement
Manning agreement
Special power of attorney
Job orders
Trade licenses
Issue overseas employment certificates
Provide legal counseling
Visit hospitals
Visit jails
Provide medical assistance
Answer queries through a 24-hour hotline
Repatriate distressed workers
Accept runaways to Filipino Resource
Centers
2008
2009
7,712 9,738
480
238
7
7
735
316
1,170
631
738
294
20,395 24,187
25,025 28,450
78
86
150
239
282
650
29,110 34,300
457
668
835
960
Monthly
average
for 2009
Daily
average
for 2009
1,082
26
1
35
70
33
2,687
3,161
10
27
72
3,811
74
107
49
1
0
2
3
1
122
144
0
1
3
173
3
5
Reasons for Seeking Refuge at Filipino
Workers Resource Center, December 2009
1.Noncompliance with the minimum salary of
US$400 per month
119
2. Delayed payment of monthly salary combined with
117
Long working hours
Lack of food
Verbal abuse
Overwork
Sexual assault/harassment
Physical cruelty
Rape
98
95
93
55
14
6
4
2. Key Regulatory Challenges
 Difficulties in implementation
 monitor the welfare of workers
 establish an adjudication system that migrants
with complaints are willing to use
[KK1]This has nine complaints for each column, not ten
- please check
Top Ten Complaints against Employers and
Recruiters in the United Arab Emirates, 2009
Against employers
Against recruiters
Overworked (cleaned more than one
house or worked more than 18 hours
per day)
Physically maltreated
11 Agency did not provide help
7
13
84 Migrant escaped from the agency
11
Not paid or underpaid
72 Returned by the employer to the
7
Denied food
agency
53 Agency substituted contract
7
Verbally abused
30 Migrant did not want to return to the
6
Sexually harassed
agency for fear of abuse
15 Returned by the agency to an abusive
employer
5
Wrongly accused of theft
11 Physically maltreated by agency
4
personnel
Threatened death or incarceration
13 Rejected by the agency after being
4
returned by employer
Not allowed to go home and not
allowed to terminate contract
Raped
9 Lost contact with the agency in Dubai
4 Agency planned to send worker to
another country without worker
consent
1
1
Isolated Cases or Tip of the Iceberg?
Recruitment Violation Cases by
Type of Complaint, 2008
Failure to
reimburse
expenses
Unauthorized 4%
withholding of
documents
5%
Other
7%
Status of Cases Filed in 2008 as
of October
2009
Decided in < 1
month
2%
Misrepresenta
tion in
recruitment/
placement
30%
Decided in 2-3
months
14%
Decided in 4-6
months
21%
Violation of
other
provision of
labor code
7%
Pending
42%
Premature fee
collection
7%
Nonissuance
of appropriate
receipt 17%
Decided in 7-9
months
13%
Collection of
excessive
fees 23%
Decided in 1318 months
3%
Decided in 1012 months
5%
A Three Tier Labor Migration System
Tier 1
• labor movements that are documented and
organized, based on written contracts
Tier 2
• labor movements based on informal agreements
typically characterized by a lower wage, a
different job and reduced or forgone benefits.
Tier 3
• Labor movements that bypass the system
altogether through visitor’s visa
Policy Options
 Keep Low-Skilled Migration Low
Demand and Supply
Deployment of New Hires to the UAE,
Domestic Workers and Professional,
Technical and Related Workers, 1997 to
2008
18,000
16,000
12,000
Domestic
helpers and
related
14,000
10,000
12,000
Waiter,
bartenders,
and related
Number of job orders
8,000
10,000
Professio
nal,
technical,
and
related
workers
Domestic
workers
6,000
4,000
Service
workers
(n.e.c.)
8,000
Sales, shop
assistants,
and
demonstrators
Charworkers,
cleaners, and
related
6,000
4,000
2,000
2,000
0
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Number of deployed new hires
Top Ten Approved Job Orders to the United
Arab Emirates, 2005 to 2009
Year
0
2005
2006
2007
Year
2008
2009
Policy Options
 Keep low-skilled migration low
 Make it harder for unscrupulous
recruitment agencies to receive and keep a
license
Proportion of Filipino Recruiters by the Number
of Workers Sent to the United Arab Emirates,
2000 to 2009
1,351-1,550
1,151-1,350
951-1150
751-950
Number of workers
551-750
2009
451-550
2000
351-450
251-350
151-250
101-150
81-100
61-80
41-60
21-40
1-20
0
5
10
15
20
25
Percentage of recruiters
30
35
40
45
Changing Rules AND Changing
Ways
 Compatible and enforceable rules
 Allowable fees
 Standard contracts
 Agency liability
 Capable institutions
 Empowered migrants
For more information:
Dovelyn Rannveig Agunias
Policy Analyst, MPI
[email protected]
1-202-266-1925