Skilled OFWs Needed in New Zealand

New Zealand is fast emerging as a top destination of skilled overseas Filipino workers (OFWs) as the country expressed its willingness to opens its doors to more Asian workers.

Global downturn weighs on OFWs

Like millions of Filipinos, Alma Ang left her homeland to work abroad for a salary far higher than she could have ever earned at home. Now, as the global financial crisis bites, Filipino migrant workers face the prospect of losing their jobs abroad and returning home unemployed and often in debt. In the case of Ang, after paying a recruitment agency 120,000 pesos (about $2,500) for a job at an electronics factory in Taiwan, she was retrenched within a year and is back in the Philippines without any work at all.

I wanted to earn more money so I could build a house for my family, but that did not happen," said Ang, 31, who gave up her job as a quality control officer at a garment factory near Manila for a job in Taiwan that paid four times her salary. As the global economic crisis deepens, countries such as the Philippines, which are heavily reliant on remittances sent home by migrant workers, face the prospect that workers may return en masse after losing jobs in recession-hit economies abroad.

Migrante International, an NGO that assists Filipino migrant workers around the world, predicts that 100,000 workers may lose their jobs this year. "We have yet to feel the full effects of the global economic crisis," Gary Martinez, head of Migrante International, told Reuters. "The situation will certainly worsen in the coming months".

A mass influx of returned, unemployed workers could weigh on the Philippines which has one of the highest unemployment rates in Southeast Asia and one of the highest poverty rates, with one-third of the population living below the poverty line. Mass unemployment and social problems that often accompany large-scale joblessness could also take a toll on what is expected to be a tight presidential election next year to replace President Gloria Macapagal Arroyo.

Working abroad has become a way of life in the Philippines. Millions leave every year to work overseas, mostly as domestic helpers, seafarers or caregivers, to support families back home. Last year, 1.4 million Filipinos moved abroad for work, a daily deployment of close to 4,000 people. Due to high unemployment at home, the Philippine government has long championed the exodus of workers abroad, despite widespread disquiet of a drain of talent.

Arroyo calls these migrant workers "modern day heroes" because the money they send home has kept the Philippine economy afloat even in times of economic uncertainty. But as the global economy faces its biggest downturn in decades with a slump in shipping and recessions in many of the countries that employ Filipino migrant workers, the Philippines may find itself particularly exposed.

Around 10 percent of the country's estimated 90 million population live abroad. Last year, they sent home a record $16.4 billion in remittances, a major pillar of the domestic economy. Economists expect the inflow of remittances to contract by as much as 6 percent this year due to the global slowdown. "There is declining demand for labor and that is going to reduce demand for migrant workers," said Steven Kapsos, an economist at the International Labour Organisation (ILO). "I don't think that that is a permanent phenomenon ... but it is difficult to look beyond this crisis," he added.

Cash sent home by Filipino migrants, the vast majority of whom live in the United States, is one of the Philippines' top sources of foreign exchange and a pillar of consumer spending in the domestic economy. A drop in remittances is expected to squeeze the Philippine economy as migrants' families tighten their belts, squeezing GDP, along with falling exports.

Returning migrant workers face a bleak future at home with the Philippine economy struggling to provide enough jobs. The unemployment rate climbed to 7.7 percent in January after some 40,000 workers were laid off in the past few months. The country's jobless population is now almost 3 million and over 1 million people enter the labor force every year.

Poverty is also a concern. More than 30 percent of the Philippine population live below a government-defined poverty line of $3 a day per family of five, and the number will likely worsen as more Filipinos are added to the list of unemployed. "The poverty rate has gone up while the economy was growing ... so with GDP growth slowing down to probably 2 or 3 percent this year, you can expect that poverty rate is going to increase further," said Ernesto Pernia, an economics professor at the University of the Philippines. "I would think the poverty rate would go up to something like 35 percent or 36 percent.

The government has formulated a 330 billion pesos ($6.9 billion) stimulus plan, to create almost one million jobs, including some 100,000 "green-collar jobs". About 250 million pesos will go to a support fund for retrenched overseas workers, while the government will also impart skills training for in-demand jobs in other parts of the world. Critics, however, say it is not yet clear how the government will fund the stimulus plan.

In the meantime, Filipino workers in places such as Hong Kong and Singapore worry about keeping their relatively high paying jobs. A maid can earn $500 a month, compared to just $120 at home, with most of the money sent home to provide for families. "Many of us here are feeling nervous because there's been a lot of jobs terminated because of the crisis," said Janette Pilotin, a 35-year-old Filipina maid in Hong Kong who uses her income to put her two children through school. "If I lose my job, I cannot afford to come back home," she said. - Reuters

The Power of Good Attitude

Nowadays, it’s somehow difficult to be retained in a company considering the global recession that has been shaking the world. But let me tell you an inspiring story shared by my colleague, Allan.

There’s a newly hired QC engineer in a certain department. Let’s call him “Noel”. Unfortunately, the company has started to terminate some people in the department to cut cost. He was more than a month working in the company when he was informed by his Director that he’s one of the unfortunate employees to be terminated.

Facing this kind of situation is very crucial to anyone. To any Overseas Filipino Contract Worker, the initial reaction would be to panic and get depress. Surprisingly, this new guy handled the situation objectively. He expressed his gratitude for being part of the company. He told the Director that he’s a family man with an expectant wife and thought that his work here in Kuwait would be their bread and butter. But still, he would respect whatever the decision of his superiors.

The HR department has prepared all the termination documents and the only signature left unsigned was from the Director. While waiting for his last day in the company, the company held a Sports Tournament. Would you believe that Noel still participated in this tournament and represented his department?

Little did he realize that he was being observed by his Director. He was greatly impressed with Noel’s positive spirit! That despite of his situation, he managed to show his professionalism and strong character. Then, the Director told Allan a very positive observation… “With what happened to Noel, he supposed not to play anymore for his department because his personal game (career) in the company will soon come to an end. So what’s the use? But still, he supported his department and played well, too.”

Coincidentally, Noel’s project manager (whose also aware of the termination) called the Director that same day. The project manager told the Director that it’s worth keeping Noel for the department considering his positive work habits and attitude. Finally, Noel has been recommended to stay in the company… that’s amazing!

Positive working attitude really pays off! So guys, keep up the right attitude despite of the negative things that may arise. Make the best of the bad situation and our reward is waiting like “Noel”.

(New) Kuwait Labor Law

The National Assembly yesterday overwhelmingly approved at the first reading a new draft labor law in the private sector which expands rights for workers, although the current sponsorship system will remain. Forty-three MPs voted for the bill while one abstained. The second reading of the 146-article law is expected to take place in two weeks' time, but a number of amendments may be introduced.

The bill will replace the 1964 labor law which has often come under fire for favoring employers while being somewhat oppressive to workers, especially expatriates who make up about 96 percent of the 1.3 million workers in the private sector. The bill expands most of the rights for workers, including end of service indemnity, annual leave, dismissal and even public holidays, which have been increased from the current nine days to 13.

Despite this, several MPs have criticized the new bill for still favoring employers over employees, especially in a number of clauses dealing with termination of workers' services.

The new bill stipulates that all workers in the private sector, regardless of their duration of service, will get an annual leave period of 30 working days excluding public holidays, weekends and sick leave periods, if any are taken. Under the current law, workers get an annual leave period of 14 days for each of the first fiveyears and 21 working days thereafter.

The termination notice period has been increased to three months instead of the current one month for employees under monthly contracts, and one month instead of 15 days for workers employed on a daily basis.

End of service indemnity payments, meanwhile, have been altered in workers' favor. Workers are now entitled to a compensation of 15 working days pay for each of the first five years and one month's pay for each year thereafter, provided the total indemnity does not exceed their salary for an 18 month period. If the employer terminates workers' contracts, the employees are entitled to full indemnity as mentioned above.

If workers themselves choose to resign, the end of service indemnity is calculated as follows: If workers resign in the first five years of service, they will be entitled to half the indemnity. Currently, they are entitled to nothing. If the workers resign after completing five years of service and less than 10 years, they are entitled to two-thirds of the indemnity. If they resign after completing 10 years of service, they are entitled to full indemnity. Under the current law, if workers resign after completing five years of service, they are entitled to only half of this remuneration.

In addition, the new bill gives private sector employees three days of holidays for Eid Al-Fitr and four days for Eid Al-Adha, as well as declaring a public holiday for Liberation Day on February 26. These holidays are in addition to other public holidays like New Year, New Islamic Year, and other religious holidays. The total number of public holidays comes to 13 days.

The bill also gives expectant women maternity leave of 70 days without insisting, as the current legislation does, that 30 days of this should be taken prior to delivery and 40 days after delivery. Women can also apply for an additional maternity leave period of four months without pay. Employers are banned from terminating their services during these periods of leave. Under the new system, the daily period allowed for mothers to breast feed their babies has been increased from one to two hours.

Also under the new legislation, widowed Muslim women will be entitled to a bereavement leave period of four months and 10 days following their husbands' death.

Workers are also entitled to an annual pilgrimage leave of 21 days only once they have completed one year of service instead of the current three years.

Employees asked to work on public holidays, meanwhile, are to be paid at double pay rate, in addition to being given an additional day off later.

Under the bill, women cannot be asked to work between 8pm and 7am, except in health services and other professions specifically exempted by the Minister of Social Affairs and Labor.

The duration of limited period labor contracts, meanwhile, should not exceed five years and not be less than one year. Employers who terminate such contracts prematurely must compensate workers with an amount equal to the pay for the remaining duration of the contract.

If a worker does not report to work for seven consecutive days or 20 non-consecutive days within a year, his or her services can be terminated, but only after the full payment of his or her end of service indemnity.

Employers have no right to terminate the services of their staff while they are enjoying their annual leave.

Monthly pay must be paid in full in a lump sum every month and before the 7th of the next month. The bill requires the Labor Minister to issue a decision outlining a minimum wage for various categories of workers.

Sick leave periods have also been increased. Workers are now entitled to 15 days of sick leave with full pay, 10 days with 75 percent pay, 10 days with half pay, 10 days with quarter pay and 30 more days without pay. Those suffering from chronic diseases, to be specified by the minister, are exempted from these rules.

Workers can amass the annual leave to take in one bloc for a maximum of two years and can do so for more than two years if the employer agrees to it. They can also claim financial pay for the annual leave period if they don't want to take the time off.