US$8000 bond--protective safeguard or exploitative noose for OFWs?

[benelynne]

$8,000 bond required of direct hirers  

THE Department of Labor and Employment is now requiring foreign employers to post a performance bond amounting to $8,000 per employee before they directly hire Filipino workers.

This requirement forms part of the new stricter rules formulated by the Philippine Overseas Employment Administration. The new rules took effect Jan. 15, according to Labor Secretary Arturo Brion who is chairman of the Philippine Overseas Employment Administration.

Direct hiring of Filipinos by foreign employers has to be approved by the labor chief and the contract will be scrutinize and verified the labor attaché or the Philippine Embassy, Brion said.

“Direct hiring may be allowed only for members of the diplomatic corps and of international organizations, government officials of ministerial level, and employers who are hiring on one-time or trial basis,” Brion said.

However, the number of employees that can be hired directly by a company shall not exceed five, the labor department said.

The government decided to adopt a stricter policy on direct hires because it wanted to protect the Filipinos from abusive employers, according to Brion.

Under the new rules, the foreign employers who want to hire directly should post a repatriation bond in the amount of $5,000 per employee to guarantee the repatriation of the worker or of his remains, in the event of death, and a performance bond of $3,000 per employee to guarantee payment of the employee’s salary for the duration of the employment contract. The total bond amounts to $8,000 per employee. Arlie Calalo

http://www.manilastandardtoday.com/?page=politics4_jan21_2008

[benelynne]

I just can't help but wonder if DOLE's purpose is really to protect the welfare of OFW's or is just inventing a sweet-sounding revenue source whose burden will eventually be passed on to the OFW himself.

Overseas companies decide to hire workers directly to cut on the mediation or middleman cost of employment agencies. Do you think it will still be economical for them to hire workers directly if this hefty bond will be imposed on them? I am sure only the desperate companies will do this, but they will eventually charge this additional cost against the remuneration or welfare benefits of the OFW. In other words, this administrative cost will in the end not really safeguard the OFW's welfare but expose him to greater exploitation.

[Glen]

Mao bitaw no? Kabasa bitaw pod ko ani.

[pioneer]

Stupid DOLE. Please forgive my language.

The employers will get workers from India, Mexico, China, and many other countries.

This DOLE needs to read the business section of newspapers. We are now in a highly globalized market. One job can be filled in by any nationality.

By enforcing stricter rules, DOLE is killing the Filipinos.

[B:)]

In my opinion, I have a feeling,
this is DOLE's way of saying to the filipinos to "please stay work in our country and not abroad". Or, pangkwarta lang ba kaha?

[Macky Ferniz]

Actually, what happens here in Saudi Arabia is that some desperate workers are willing to shoulder the agency cost including all expenses the company has spent for brining him to Saudi Arabia. This will be paid by the employee vide monthly installment salary deduction. Many will gamble on such condition even for low profile jobs.

Now with $8,000 bond, I am sure many Filipinos are willing to shoulder this bond out of desperation.

[G@Len]

Stupid DOLE. Please forgive my language.

The employers will get workers from India, Mexico, China, and many other countries.

This DOLE needs to read the business section of newspapers. We are now in a highly globalized market. One job can be filled in by any nationality.

By enforcing stricter rules, DOLE is killing the Filipinos.

oowww... 8000USD is a lot of money to pay... so samut nga mohinay ang hiring sa mga pinoy workers while india ang mosaka.

dili ko ganahan mapalibutan ug mga b*** ug ilok!!!   

[G@Len]

In my opinion, I have a feeling,
this is DOLE's way of saying to the filipinos to "please stay work in our country and not abroad". Or, pangkwarta lang ba kaha?

wala tngali ang "please" -- "Stay! work in our country!"

[hazel]

8 Grand is too much! As usual, this is an indirect way sa panguarta.

[benelynne]

DOLE used to require repatriation cost to be borne by the employer as one of the clauses of the employment contract.

But now it's actually asking US$8,000 bond. We're pricing ourselves out of a very competitive market.

[G@Len]

as i know, $5k ra daw then the $3k is something like your (salary x 3 =~ 3k) assuming nga 1k imong salary.

pero giHold na nga memo diri sa SG ang kapaet kay nakaLinya na ko gahapon with priority number 277, miabot ko sa embassy around 9:20am nahuman ko process around 2pm (no lunchbreak).

by the way, ang akoa diay gi-process gahapon is the normal registration sa OWWA pa without the $$$ thing... supposedly Feb 01, 2008 ang ilang implementation diri pero ilang gi-hold.

http://www.philippine-embassy.org.sg/index.cfm?GPID=207