Press Release
February 5, 2008

$5K bond hinders Pinoys' search for better opportunities
Villar seeks Senate inquiry on new direct-hire guidelines

Senate President Manny Villar today said he wants the Senate to conduct an inquiry on the memorandum restricting the direct-hiring of Filipino workers which was implemented in the wake of pronouncements by various governments allowing Filipino workers to fill up their manpower needs.

"The stringent rules now imposed on the direct-hiring of Filipino workers and the requirement of a bond amounting to more than US $5,000 will result in the non-competitiveness of Filipino labor, especially at this time when Spain, Italy and Canada have opened up their labor market to us," Villar said.

Villar filed in the Senate Proposed Resolution No. 291 urging the Committee on Labor, Employment and Human Resources Development to look into this new policy on direct-hiring issued by the Philippine Overseas Employment Administration (POEA).

Memorandum Circular No. 4 issued by POEA head Rosalinda Baldoz directs stricter documentation and processing requirements including an approval from the Secretary of the Department of Labor and Employment (DOLE) for foreign employers who want to hire Filipino workers directly. It took effect January 15.

Villar said the requirements of a performance bond amounting to the workers' 3-month salary, a USD 5,000 repatriation bond and medical insurance, could discourage foreign employers from hiring Filipinos.

"While we realize that the circular is issued consistent with the noble intentions of the Labor Code in protecting Filipino workers, we want to find out from the Labor Department, if indeed ample consultations with all sectors concerned have been made before the drafting and issuance of these new guidelines for direct-hiring," Villar said.

MC-4 allows direct hiring for members of the diplomatic corps and of international organizations, government officials of ministerial level, and employers who are hiring on a one-time or trial basis. It limits the number of direct-hire employees to a maximum of five.

The Nacionalista Party president said it is ironic that this directive took effect after leading economies of the world have opened up its labor markets to Filipinos.

POEA records show that more than 26,000 OFWs in the household and other services were directly hired by foreign employers last year. Italy was the biggest employer of directly hired household service workers at 5,564 followed by Canada and Spain, while the Middle East hired the most number of non-household service OFWs on direct hiring basis.

"I'm sure many of our kababayans are disheartened by this turn of events, especially those who have found new hopes in the opening up of new labor markets which are not affected by the weakening US dollar, such as Canada and Italy," Villar said.

Villar added that Canada has recently announced the opening up of more than a million jobs in the next 12 years and it has signed a labor accord with the Philippines to address its shortage of skilled workers. Italy has also increased the quota for Filipino workers from 3,000 in 2006 to 5,000 in 2007.

"It is important that we make sure that this directive will not prove to be an additional burden to OFWs. After shelling out this hefty amount of bond to hire a Filipino, what will stop foreign employers from getting this out of the worker's pay?" Villar asked.

The Senate President also said the need to re-assess the policy can be perceived from the suspension of its implementation by the Philippine Embassy in Singapore.

Villar, who had seen first-hand the appalling condition of OFWs in his visit to the Middle East last year, agrees that there is a real and felt need to protect Filipino workers. He saw more than 100 Filipinos crowding the labor offices abroad, awaiting repatriation. This prompted Villar to help in the repatriation of eight minors from Mindanao who suffered maltreatment from their employers in Jordan.

Villar also reiterated his call to uphold the dignity of the Philippine foreign service corps and the need to weed out negligent and uncaring foreign post personnel to the plight of distressed OFWs, as an important step in providing protection to OFWs.

"Ang mga Tatay, Nanay, Kuya at Ate ay umaalis ng bansa dahil sa katotohanang kulang ang oportunidad dito sa ating bansa. Siguro mas makakatulong tayo kung ano mang polisiya na makakaapekto sa higit walong milyong Pilipino sa labas ng bansa at kanilang mga pamilya dito ay sasamahan natin ng puso sa pagpapatupad," Villar said.

Villar said the strengthening of the peso, which has cost OFW families P24 billion, has adversely affected them and issuances such as MC-4 will not help alleviate their suffering.

News Latest News Feed