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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February 10th, 2008 at 8:39 pm
Yes, I agree with the mounting dissent among the OCWs worldwide especially those who where “hired directly”.
It seems that DOLE/POEA missed the point I discussed in my radio programs, BALETODO SPECIAL EDITION, SATURDAYS, 6:15 - 8:00 pm aired over RADYO ng BAYAN 738 khz am Band http://www.pbs.gov.ph and “BAYANING MANGGAGAWA, BAYANING OFW” Saturdays, 12:00 - 2:00 pm over DZAR SONSHINE RADIO 1026 khz).
During my broadcasts, I called on every hardworking Filipinos who are going to work under a “direct hire” “to register” in our government agencies concerned, in this case, DOLE/POEA/OWWA, to ensure that they can be easily monitored and assisted once a problem arises.
I also called on all OCWs/OFWs, being a long time OCW myself, to immediately inform the Philippine Embassy (PE) officials upon arrival to area of destination.
With this initiative of the OCW, we can get out of trouble coming ahead of us, the government thru the PE can easily trace and assist us when problem arises.
Having been a “direct hire” OFW in Japan for long, I enlisted myself to abovesaid agencies and paid that OWWA US$25 for my insurance etc. I worked in Japan for long until I finished my contract.
When I went home in our country, I got sick and was operated to remove stones in my gall bladder. That time, I don’t have enough money to pay my medical bills nor to buy my required medicines being unemployed. ganyan naman ang buhay nating OFWs after contract di ba?
I ask my wife to try going to OWWA for financial assistance and mind you, they helped me a lot by paying all my hospital bills and medicine bills. You can check and verify my record at OWWA to beleive and confirm.
Now the issue on POEA Memorandum No 4. It is indeed a strange to me who is that wizzard-business-oriented adviser of Administrator Baldoz! Masyadong matinik sa kitaan ang bugok na iyan!
No stupid foreign employer will muster to get in their wallets or bags or even from their banks to pay - in all - US$8,000 just hire and employ Pinoys. It must leak from their (DOLE/POEA) hallucinating minds that these employers are after the fast and hustle free hiring unlike the slow but very expensive yet heavily bureaucratic system of recruitment agencies in our country. Not even businessmen would undergo the long period of documentation before starting their business to run that is why many among these sector prefer to invest in other countries or go underground economy to fastrack their investment and income!
What Sec Brion, Ms. Baldoz must do is simply call on the “direct hired” Pinoy workers to register in their master list of leaving our beloved land and pay the OWWA Insurance/etcFee, period.
On the other hand, us, OFWs/OCWs, must not turn our heads in paying our OWWA US$25 insurance/etc fee. Note that etc please. It is not all about our personal insurance now but for all of us. Lucky are those who are not affected by problems inflicted in host countries we go and work. Please consider that in many experiences, directly and indirectly, that US$25 serves not only our fellow OFWs/OCWs who got sick or those hospitalized due to accidents met, BUT, those who’re trapped in wartorn countries and get repatriated back home. OWWA is forced to shell whatever amount possible to ensure safety of affected Pinoys. Let us be realistic to this point. It happened many times and keep happening, right?
Hence, my point why we must register, as “direct hires” to DOLE/POEA before leaving to work abroad is simply for our own protection, safety and assurance that we can be easily traced and assisted in case a problem or trouble arises vs us. DOLE/POEA/OWWA can no longer have the “alibi” that they do not have our names in their master list or be tagged as “undocumented” OFWs. A reason they can legally claim against us that results to long, unassuring needed assitance. And sorry, I agree to this case.
Mawalang galang, once I was the President of Migrant Workers Federation (MWF) and we handled many of these cases. Those who sought our help, the “direct hires” do not even have records in the Philippine Embassies of host countries! This is a big mistake among us dear Kababayans. We must practice registering ourselves in our PEs wherever country we go, even as tourists. It is our prime duty to avoid misgivings in the latter part especially when we meet accidents in other countries (huwag naman sana!). Para walang sisihan kung kailangan natin ang tulong. And when they distance themselves helping us, then that is the time we can really pour our raging sentiments against our government officials assigned and tasked to help us.
Overall, while I join all “direct hired” OCWs/OFWs in decrying this new POEA Memorandum Order, please let us be reasonable to registering and paying the OWWA US$25 insurance/etc fees. On insurance business, they call it law of probability, Hindi man tayo nagkasakit at hindi napakinabangan ang insurance fee, sa sandaling may napahamak tayong kababayan sa ibang bansa na ang nasabing ahensiya ang tumulong…tayong OFWs/OCWs ay may malaking bahagi sa kabayanihan ng paglilingkod sa kapwa at sa ating bayan!
Thank you very much at mabuhay ang uring manggagawa!!!
EdV
February 10th, 2008 at 5:17 pm
It’s another ingenuity of the filipinos.. Tired of getting bribes, commissions and kotongs from the OFW which is very small time.. Why we don’t take it directly from their bigtime foreign employers.. anyhow our ofw are really in demand worldwide. In this case, we will be taking this legally, in huge amount and not directly from our people.. Mike Arroyo and Benjamin Abalos will sure agree on this idea.. Poor OFW.. buti pang mamundok na lang..wala kang lusot..lumabas ka na ng bansa..biktima ka pa rin at hinahabol ng bulok na sistema.. maagnas sana ng buhay ang nagplano at sponsor ng batas na iyan..bulok..bulokk..
February 10th, 2008 at 4:16 pm
The POEA is trying to get the country back to the ancient times when there was no internet. Now we look for jobs, arrange interviews and get direct hired thru the internet. I think it is about time for the recruitment agencies to align their business to this modernization and the POEA should not impose heavy burden financially to us OFWs and propective employers. We will loose the jobs to countries like India, China and other emerging labor exporting countries who does put heavy burden to employers and employees.
February 10th, 2008 at 3:40 pm
when will this end?
it is sometime hard for me to swallow when some of my foreign friends speaks of filipino characters that described us as greedy and conniving miscreants. this kind of comments makes me seething with anger and usually ends with big debate against my friends’ unfounded facts. but the actions of phil. govt officials i.e.(the POEA vultures ) only speaks volume that attest to my friends’ empirical observations.
policy initiative like the POEA govt. official’s action have galvanized my foreign friends belief against our true filipino characters.
how can i argue with my foreign friends when the truth that they have professed and spoke about stares me right into my eyes?
February 10th, 2008 at 3:09 pm
The government should have considered first the downside effects to the OFW’s their latest Memorandum in regulating the “direct hiring process” although the intention is to protect the OFW from any unfortunate event his/her employment term, but this doesnt mean that it can helps the person to acquire and secure a better job he/she is longing for, because of this new guidelines which in Employer’s view is very restrictive and costly to comply.
Furthermore, i myself being an OFW who wants to find another job which i can acquire thru a direct hiring process will have to think twice before doing it due to this very unhelpful policies of our government in acquiring a better and high paying job from another employer.