IF your answer is yes to one or more of the following questions, then this article is for you:
- Were you affected by the Malu Fernandez controversy?
- Do you know anyone who is an overseas Filipino worker? (OFW)
- Do you have a relative who is an OFW?
- Do you believe that many Filipinos are working abroad because of the lack of opportunities here in the Philippines?
- Do you believe that OFWs help the Philippine economy?
- Do you believe that the present administration is corrupt and there has to be some changes?
- Are you an OFW, or an ex-OFW, or are you planning to become an OFW?
If you said yes to any of these, read on…
Perhaps you’ve heard of the controversial memorandum (1) of the Philippine Overseas Employment Administration (POEA) regarding the Guidelines on the Direct Hiring of Filipino Workers. Please allow me to explain to you why OFWs need your support against this memorandum. We really need your help! Please forward our plea for help to as many people as possible.
Who are the ‘direct hire’ OFWs?
There are two ways to get a job overseas. You can either go through an authorized recruitment agency in the Philippines or you can directly contact the employer. Obviously, those who can directly communicate with the foreign employer don’t have to go through a recruitment agency and so the process is referred to as “direct-hire” and they are called “direct-hires.”
OFWs who go through a recruitment agency usually have to pay their recruiter a placement fee and/or a commission. While those who are direct-hires sometimes take greater risks by staying in a foreign country (sometimes as tourists) and then by God’s grace and through their contacts, they find work. Some direct-hires find work while still in the Philippines when the employer comes to the Philippines to screen applicants.
Both ways of finding work have their own advantages and disadvantages, depending on the jobsite, employer, work, and the contract. (2) There are those who say that it’s important to go through a recruitment agency because they make sure that the employer is a good one. Recruitment agencies also look after you when you’re already in your jobsite. On the other hand, there are others who think that they can do away with recruitment agencies. They think they can deal directly with their employers and they can handle their own problems. And if not, they can always run to the Philippine embassies for help. That’s why they’re there, right?
If you were to choose between the two, which one do you prefer: Go through a recruitment agency or directly deal with the employer?
There is another important thing that we should keep in mind when it comes to the definition of direct-hires. Let’s say an OFW who went through a recruitment agency in their first overseas job finishes their contract with their employer. If he/she decides to find another job overseas with another employer, he/she is now a “direct-hire.”
Before Memorandum No. 4
Let’s say, an employer in the Middle East needs to hire an engineer. A Filipino engineer, who has just finished his contract with another employer, applies for the job. He came highly recommended by his previous employer and so he was accepted in the job. His new employer offered him a salary of $1,000 a month. He was more than happy to take the job, especially because if he can’t find work, he will be forced to go back to the Philippines. They signed the contract and the OFW starts working the next day. Simple, right? That’s direct-hiring!
Enter Memorandum No.4!
Memorandum No.4 (Series of 2007) signed by POEA Administrator Rosalindo Dimapilos-Baldoz took effect on January 15, 2008. All employers, whether individuals or companies, must abide by the so-called “guidelines.”
Let’s go back to the story of our Filipino engineer. Now, according to this memorandum, he can’t start working for his new employer. Not yet! First, his employer has to register with POEA. But there’s no need to worry, because the process will not take longer than one month. One month! You mean to say that the Filipino engineer has to wait for a month before he can start working! That’s okay, says POEA. I’m sure his family can wait for a month before he can send money for their food and utilities.
But there’s more to it. There are more requirements that the employer has to submit. Here are the other requirements:
1. The employer must submit the following documents to POEA:
a) copies of their business registration, license, and identification paper
b) sample contracts for the OFW
c) proof that the OFW won’t be charged a placement fee (hello? it’s called “direct-hire”)2. Pay a “performance bond” equivalent to the worker’s salary for three months. The performance bond will be used to guarantee compliance of the employer of the contract. So, the performance bond will serve as a penalty fee for the employer in case there’s a breach of contract by the employer. It’s not clear in the memorandum if this performance bond will be given in full to the direct-hire OFW.In the case of our OFW engineer, his employer has to pay $3,000 ($1,000 x 3 months) which is approximately P120,000. This sum is to be paid even before the OFW starts work. Wow!
3. Provide a “repatriation bond” in the amount of $5,000 or approximately P200,000. This money is to be used for the direct-hire’s repatriation expenses in case the contract is terminated. Also, in case the OFW dies while overseas, this money is going to be used to bring the remains back to the Philippines.
I thought the government considers OFWs as our modern-day heroes. Then how come they can’t even afford to bring back the remains of OFWs who die while working overseas. I thought this is why OFWs are required to pay their PhilHealth even though they’re not in the Philippines.
4. And the last requirement to get the registration process started is the submission of a Medical Insurance Certificate
Isn’t it common practice that the application for medical insurance gets started as soon as the employee starts working? I think this is also true for companies in the Philippines. And isn’t it true that it takes a while before the insurance company releases the medical insurance certificate. Sometimes, it even takes about three months before the document is released. Wow!
In other words
If you were an employer looking for foreign workers, would you really go through the trouble of doing all the above requirements? Would you be willing to set aside $8,000 or approximately P320,000 so your Filipino employee can start working for you?
I do admire our government’s high regard for our OFWs. They really believe that employers will jump through hoops to get a Filipino worker.
I really hope that employers will do all these things to get a Filipino worker. But what if they don’t? What if there are so many foreign workers in the global market these days that they can easily get workers from other countries whose governments don’t have ridiculous requirements? What if they decide not to hire Filipino workers? Who is going to be directly affected by this? Who is going to suffer?
Who is going to suffer?
It’s fairly obvious that our OFWs are the ones who will be badly affected by this memorandum and I am one of them. Whether you are an engineer, teacher, domestic helper, nurse, doctor, or any other overseas employee, as long as you hold a Philippine passport and you have a job overseas, you will suffer because of this memorandum. If you don’t lose your job now, you’ll have trouble looking for a job later.
Families who rely on remittances of their OFWs will also be badly hit by this memorandum. How can OFWs send money home if they don’t have a source of income because they have no work? We all know that many OFWs have mouths to feed and siblings to help send to school.
Another victim of this memorandum will be our economy. OFWs brought in $15 billion to our economy in 2007.(3) This amount of money is not to be taken lightly. If you think that the call center industry is helping our economy, then multiply it by five times and it will match the amount of money brought in by OFWs.
And how will this affect small and big business companies in our country? Well, let’s try to simplify it for everyone. Less employers mean less work for our OFWs. Less work means fewer OFWs. Fewer OFWs means less remittance. Less remittance means less “spending power” of Filipinos. Less spending power means less money for other things. People will only have money for their basic needs and commodities. Other businesses will close and there will be less jobs for the millions of Filipinos who are working in the Philippines. So they will start to look for work overseas but they won’t be able to find any. All thanks to Rosalinda Baldoz’s Memorandum Circular No.4.
So who’s going to suffer from this memorandum? You! Me! Everyone!
What should we do?
If you ask me, the first thing we should demand is the immediate resignation of Rosalinda Dimapilos-Baldoz, the POEA administrator who signed Memorandum Circular No.4. This memorandum is evidence that she doesn’t understand the needs of OFWs and she does not deserve to be at the helm of POEA.
Our second demand should be the immediate revocation of Memorandum Circular No.4. We should all join the mass protest action. It’s clear that we will all suffer because of this new policy on direct-hires. Don’t hesitate to take it to the streets. That’s the only way we can get their attention. Let’s show them that we are serious in demanding for the resignation of Baldoz and the revocation of the memo.
If in case you can’t join the mass protest action, here are other ways you can help this urgent cause:
- E-mail your relatives, friends, and every one you know and ask them to join the protest. Forward the link to this post and other posts about this issue to your friends. There’s also a Filipino version of this post.
- Text all your contacts and ask them to support our protest.
- Support the Senate inquiry of Senator Manny Villar (4). E-mail Senator Manny Villar at mb_villar@yahoo.com or go to his website, www.mannyvillar.com.ph
- Support the Congress resolution of Representative Teddy Casino of Bayan Muna party-list (5)
- Sign the online petition (6)
- Blog and comment in blogs about Baldoz and her memorandum. When Malu Fernandez spoke badly about the OFWs, we were quick to point out her wrongs and we succeeded. More than ever, our OFWs need your help. Please hear our plea.
My friend, let’s take action! Let’s demand for the resignation of Rosalinda Baldoz and for the revocation of Memorandum No.4!
Click here for the Filipino version of this post.
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Notes:
(1) POEA Memorandum Circular No.4 - Guidelines on the Direct Hiring of Filipino Workers
(2) Magandang ipalabas ng POEA ang kanilang statistics kung ilang OFW ang dumaan sa recruitment agency at ilan ang direct-hire.
(3) Top international economist says Philippine economy has to grow 14% to stop OFW exodus, Positive News Media, Jan 31, 2008
(4) $5K bond hinders Pinoys’ search for better opportunities - Villar seeks Senate inquiry on new direct-hire guidelines
(5) Solon wants memo on OFW hiring scrapped, Feb 3, 2008, GMANews.TV
(6) Online Petition - Abolition of (POEA) Memorandum Circular No. 4
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May 19th, 2008 at 1:18 am
[...] OFW : YOU ARE NOT PROTECTED!!! [...]
February 26th, 2008 at 6:30 pm
yang bang si baldoz na yan ay may kamag anak na ofw? i guess wala kasi wla syang alam eh magaling lang syang mag isip na mga pakana. pero matalino sya ha kasi nakaisip sya ng isang malaking kabulastugan para sa mga ofw’s na tulad ng mc 4 na yan. yun nga lang sa sobrang talino eh natatabunan ng kung anu anung ang utak nya kaya sya nagkakaganyan. napakawalang**ya hindi na nahiya!!!! kung nalalaman nya lang ang pinagdadaanan ng mga bawat ofw’s sa boung mundo magawa nya pa kaya ang mga kahunghangan nyang ito. the govt shud do something abt this. may karma para sa mga taong wlang puso, kaluluwa at hiya magtagumpay man sila sa maiitim nilang balak at bulok na budhi may kalalagyan din sila kung hindi ngayon malay natin baka bukas diyos na ang bahala sa kanila sa impyerno nmn ang tuloy nila.
February 25th, 2008 at 12:25 am
mas gugustuhin ko pang magtrbho dito sa abroad sa walang kwentang employer pro magbigay naman nga sweldo bawat buwan kaisa uuwi ako nga pinas.. na.mas delikado ang buhay kung wala akong trabaho….
February 24th, 2008 at 7:29 pm
THE STENCH OF GREED IS ALL OVER THIS ISSUE: FILIPINOS WORKING FOR GMA’S REGIME IMPOSING RULES IN ORDER TO SUCK BLOOD OUT OF OFW! HERE IS MY RESPONSE TO THIS AS READ FROM TWO OFW DISCUSSING THE ISSUE OF THEIR HOMELAND’S SAD SCENARIO, A COMMENTARY ON THE EFFECT OF EDSA REVOLUTION:
“EDSA II HAPPENED BECAUSE THE SO CALLED ELITE, ENLIGHTENED SOCIETY WAS IGNORANT OF THE LAW AND DISRESPECTFUL OF THE RIGHTS OF THE PEOPLE TO GOVERN THE COUNTRY. THE CONSTITUTION, BEING A GUARANTOR OF THE PEOPLES’ RIGHT TO RULE THEMSELVES THROUGH CLEAN ELECTION WAS DISREGARDED. THIS IS THE REAL ISSUE, THE WRONGS THAT LED THE RIGHTEOUS, THE IGNORANT, THE HAMBUGS, AND THE LIARS AND CHEATERS TO REIGN. MAY GOD BLESS OUR MOTHERLAND AND SAVE IT FROM THE KIND OF PEOPLE THAT LED TO EDSA II. reposted by G….
Thanks, Loverly….I am very tired of the Philippine issues at this point. I don’t even feel that excitement when I am faced with the prospect of going back to visit. Filipinos will listen to what they like to hear, read who they like to read, and continue on with their comfort level. Only the poor and the hungry are the one’s complaining, that is if they still have the strength to complain or have not become victims to increasing criminality in the country.
Filipinos who are eating on time and are said to be educated….do not have that dedication to the rule of law, nor the will to fight for what they believe in; the reason why it will take many more generations to come or perhaps, even a bloody revolution …before the country can change for the better. To be a country that lives by the rule of law is to have a population with integrity and high moral standards. So we are back to what you are talking about…our pagkatao. I am tired of the Philippines’ issue…. I don’t even read the newspapers because nayayamot lang ako.
Take care…..”
February 22nd, 2008 at 2:41 pm
First of all, I want to thank our president for her immediate action on this issue who directed POEA to immediately suspend the implementation of MC4 and to relax the rules on Direct Hiring of Professionals last Feb 14, 2008.
I am for the total scrapping of MC4 provisions (not just temporarily suspending its implementation) and below are my personal opinions.
To start with, I’m sorry to say that issuance of MC4 was not well thought of. Apparently, the provisions were designed around Contractual OFW’s and Rank & Files but was targeted to everybody. For me, this was the number one mistake of MC4.
In addition, the guidelines were so vague that POEA even have to issue a Q&A after MC4 official release trying to redefine the required Repatriation and Performance Bonds, justify the small percentage of Direct Hires, stating its ultimate objectives of protecting the OFW’s, etc., etc. Even assuming its true that only US$55 will be spent by a foreign employer on an OFW if the bonds are issued by a Philippine Bonding company, do we really think these employers will go into the hassle of complying just to hire a Filipino? What was the basis of US$55 total for both Repatriation and Performance Bonds? Was it based on a 3 months salary of a DH for the Performance Bond?
If we analyze the situation and really wants to protect the welfare of OFW’s without having them loose their competitiveness in the job market and adding to our bureaucratic red tapes, we don’t need the provisions of MC4.
Implementing MC4 provisions will only reduce the opportunities of aspiring Filipino talents to work abroad. If utmost protection of OFW’s means not allowing them to work abroad, then the provisions of MC4 must and by all means, be implemented immediately.
Look at some if not most of OFW’s having problems abroad. They were hired through agencies, legit or illegal recruiters. Yet, MC4 was only targeted to Direct Hires. This means that even assuming we have MC4 in place, we will still continue to experience problems. May we know the degree of OFW problems committed on Direct Hires? For the information of POEA, the bulk of these Direct Hires specifically in HK and China are for Professionals. Most of them are highly skilled Filipinos who are assigned to senior management or executive positions. Some of them are not even hired as Contractual Employees but are on Permanent or Regular status. And, for those hired as Permanent Employees, their Employment Agreements or Appointments do not necessarily show provisions for repatriation. First, because the employers used a standard Employment Agreement based on their applicable labor laws and practices. Second, because they’re supposedly hired as permanent or regular employees. And lastly, because these employees can afford to go back home at their own expense. With the proximity of China or HK to the Philippines, they can even go back more than twice a year.
So what can POEA really do to help and protect our OFW’s?
1. Help ensure that OWWA will have enough funds to support those OFW’s in need of repatriation, legal assistance, etc., etc. After all, we OFW’s have contributed funds to OWWA for these needs as well.
2. Put a stop to illegal recruiters. Work with our law makers to ensure we will have severe penalties to offenders.
3. Cut Red Tapes instead of adding, e.g. MC4, to encourage more foreign employers to hire Filipinos. Work closely with foreign governments so you will be able to promote or discourage countries our OFW hopefuls can venture.
Find ways to improve your services like the Balik Manggagawa application for Overseas Employment Certificate (OEC). I will take this opportunity to touch on this issue. In Cebu for example, a vacationing OFW can spend more than 4 hours just to get an OEC. This is true even for an applicant with valid OWWA, Phil Health, etc. membership or those who doesn’t have to pay for the renewals of these stuffs. Why will it take 4 hours? Simply because it starts with a wrong process. An applicant for OEC is required to fill up the same OFW Information Sheet he/she have filed during the first registration process. The filled up form and passport will be submitted for review by an officer before finding out from the succeeding processes that the applicant still have active memberships for OWWA and Phil Health. The queue alone for OFW Info Sheet and Passport review may take hours depending on the volumes being processed. Why can’t the process start screening using the E-Card of an OFW to determine whether he/she needs to undergo a longer process of filling up OFW Info Sheet, etc., etc. or a shorter one by simply paying the P100 fee for the OEC? The last time I went into this ordeal, I was very surprised to learn that there was supposedly a one year multiple entry OEC. This means that vacationing OFW’s with active memberships for OWWA and Phil Health do not have to go to POEA/OWWA and get OEC before returning abroad for work. This is a good move specifically for those OFW’s who can return home several times within a year. I was both happy and sad though. Happy to realize that after all, somebody at POEA is thinking about improving efficiency and cutting red tapes. But, when I asked for it, I was told that I can only apply and get it from the head office in Manila. If not yet done, I hope this will soon be available nationwide.
4. Make sure you have competent personnel assigned to review Employment Contracts or Agreements.
5. Please consult or seek suggestions from the OFW community should you be issuing new set of rules and/or guidelines affecting OFW’s.
And please remember, DO NOT PUNISH ALL FOR THE SINS OF THE FEW!