MIGRANTS
Once Again,
the OFW Saves the Day for RP Economy
It is
undeniable that OFW remittances have kept the ailing economy afloat. Labor
migration, once a mere stop-gap measure to tide the economy over in the
economic crunch of the ‘70s, has become a major government policy, with
the local government units even facilitating the recruitment of OFWs.
BY
AUBREY SC MAKILAN
Bulatlat
It is
undeniable that remittances by overseas Filipino workers (OFWs) have kept
the ailing economy afloat. Labor migration, once a mere stop-gap measure
to tide the economy over in the economic crunch of the ‘70s, has become a
major government policy, with the local government units even facilitating
OFW recruitment.
Dependence on remittances
Based on the Bangko
Sentral ng Pilipinas (BSP or Central Bank of the Philippines) data, the
cumulative OFW remittances for the first 10 months of the year soared to
US$8.8 billion or 27.1 percent higher than the US$6.9 billion posted in
the same period last year. This is even higher than last year’s total
remittances of US$8.5 million.
BSP said a
significant portion of remittances continue to come from the U.S., Saudi
Arabia, Italy, Japan, Hong Kong, United Kingdom, United Arab Emirates and
Singapore.
The BSP figures show
remittances from OFWs could total some $10.3 billion by end-2005, or 20
percent higher than 2004 inflows.
Migrante
International secretary general Maita Santiago, however, said remittances
will surpass BSP’s target due to increasing deployment of professional
workers for overseas jobs and their unmonitored remittances through
informal channels.
The increase in
remittances is a positive development for the Arroyo government, which has
become dependent on OFW remittances to keep the economy afloat
-
something even the World Bank (WB) is critical of.
Joachim
von
Amsberg,
one of the authors of World Bank’s 2005
Global Economic Prospects
(GEP)
released in December, said,
referring to the
Philippines, “migration should not be
viewed as a substitute for economic development in the origin country as
ultimately, development depends on sound domestic economic policies.”
The same report noted
that more than US$11.6 billion were recorded in remittances to the
Philippines, making it the fifth largest recipient in 2004. This figure,
which accounted for
around 13.5 percent of the country’s gross domestic product (GDP), was the
largest share of remittances to GDP among the top five recipient
countries.
The countries
receiving the biggest recorded remittances are India ($21.7 billion),
China ($21.3 billion), Mexico ($18.1 billion), France ($12.7 billion), and
the Philippines ($11.6 billion).
Meanwhile, the International Labor Organization (ILO) has a much bigger
figure: $21 billion yearly, with about $8.5 billion remitted through
official bank channels. ILO recognizes the
Philippines
as the No. 1 exporter of migrant workers in the world.
Deployment
Data
from the Philippine Overseas Employment Administration (POEA) show the
total number of new OFWs in the first 10 months of 2005 increased to
809,140 from 794,806 in the same period in 2004.
POEA points to an
average of 2,700 land-based and sea-based OFW departures each day for this
year. The POEA even expects the year-end average to reach 3,000 a day,
much higher than the 2,500 daily average recorded last year.
Santiago said that if
the undocumented workers are included, the daily average could reach up to
3,500 to 4,000 OFWs.
OFWs
now account for the 10 percent of the country’s population or about 8.5
million.
This
year, Santiago said, more highly-skilled workers and professionals have
been deployed. This, said the POEA, led to the 22.1
percent surge in remittances in the first six months of 2005.
Santiago said,
however, that many of these professionals work below their degree or
training, like the teachers who work as domestic helpers, nurses as
caregivers, and doctors as nurses.
Santiago said the
government’s target of one million jobs yearly is actually deployment
abroad.
It must also be noted
that government profits from the fees being charged to OFWs. An OFW
applicant pays an average of P17,925 in government fees before he or she
leaves the country. This does not include the astronomical charges of
recruitment and manning agencies.
OFW
woes
Santiago bewails that
OFWs have saved the country from economic collapse because of their
remittances but when they are having problems, the government could not do
anything to protect them.
Santiago said that
since she joined Migrante in 1999, it is in 2005 that she has received the
most number of text messages from stranded OFWs and those on death row.
She
said there are mornings when she would read text messages from Rey Cortez
or Rodelio “Dondon”
Lanuza, both on the death row in
Saudi Arabia. Lanuza in fact
texts her in the wee hours of the night expressing fears that he would be
hanged next. Lanuza was meted the death penalty in 2002 for allegedly
killing a Saudi national who tried to sexually harassed him.
The Office of the
Undersecretary for Migrant Workers Affairs (OUMWA) is presently monitoring
25 death penalty cases involving OFWs. This figure excludes “potential”
death penalty cases, where trial is still on-going or the conviction is
not yet final.
Migrante reports that
four Filipinos have already been executed as of March 14 in Saudi. They
were Sergio Aldana, Miguel Fernandez Jr., Wilfredo Bautista and Antonio
Alvesa.
Meanwhile, based on the DFA
records, at least 4,775 Filipinos were in detention as of end of 2004,
mainly for violation of immigration laws. Of these, 1,103 were women.
Of the 82 Philippine
diplomatic posts abroad, only 12 reported having no Filipino detained or
awaiting trial in their area of jurisdiction.
Migrante also
reported an increase in the number of “mysterious deaths” of OFWs. Based
on its records, at least 18 cases of OFWs who were victims of "mysterious
deaths" abroad had remained unsolved since President Gloria Macapagal-Arroyo
assumed presidency in 2001. At least seven occurred in 2005.
One was the case of
domestic helper Ivy Collantes Bautista who was found dead Sept. 27 in her
employer’s residence in Santander,
Cantabria, Spain. Bautista’s body
was found with a kitchen knife still lodged in her neck, a slash wound on
her chest, and bruises on different parts of her body. The Spanish police,
however, said Bautista committed suicide.
Santiago also said
that, like the “mysterious deaths,” rape cases have remained unsolved.
Worse, she said, there have been reports that Filipino officials assigned
in countries where many of the cases took place, have not been of help to
the victims.
The group also scored
the Macapagal-Arroyo administration's inability to seek justice for the
victims. Santiago said Migrante usually writes to the DFA about these
cases and the DFA simply receives the letters and does nothing more.
Meanwhile, crackdowns against undocumented Filipinos also came left and
right in various countries, including Malaysia, Japan, Oman and Brunei.
Meanwhile, early this year, Japan
amended its Immigration Control and Refugee Recognition Act and imposed
stiffer entry requirements for “overseas performing artists”.
Santiago said these
new policies may have resulted in an even greater number of undocumented
workers, greater incidence of trafficking and heightened exploitation for
Filipino migrants in and bound for Japan.
Based on Migrante’s
records, more than 300,000 Filipinos, including an estimated 77,000
undocumented workers, are affected by Japan’s new policies.
No economic
comfort
Despite the abuses
against the OFWs and the alleged abandonment of the Philippine government,
Filipinos are still enticed to work abroad in the hope of achieving a more
comfortable life for them and their families.
On the contrary,
Santiago said, many OFWs are forced to accept low-paying and difficult
jobs, like in Saudi which offers as low as US$100-150 per day for
unskilled workers, because locals of these countries refuse to do these
works.
OFWs endure wage
cuts, lack of benefits or absence of day-offs just to send any amount of
money to their families in the
Philippines. Although there are
countries that offer higher salaries, like the UK and the U.S.,
Santiago
said the cost of living in those countries are also high.
Meanwhile, the cost
of living in the Philippines is also rising, lowering the real value of
their remittances. Based on data from the National Wages and Productivity
Commission (NWPC), the daily family living wage for a family of six – the
average Filipino family – amounts to a nationwide average of P667.20 as of
last September. This is P126.60 higher than last year’s national average
of P540.60.
Conversely, the
minimum wage stands at a national average of only P222.93 daily as of last
June, or P444.27 less than the P667.20 national average family living wage
for a family of six. The National Capital Region (NCR) has the highest
regional minimum wage rate at P325 – as opposed to its family living wage
rate of P681 as of last September.
According to the National Wages and Productivity Commission (NWPC), the
family living wage in the National Capital Region (NCR) as of October 2005
amounts to P20,520 a month.
Policies
Santiago pointed out
how the Macapagal-Arroyo administration has never hidden its dependence on
OFWs, with bigger OFW deployment a major target in its national
development strategy.
When the hiring of
Filipino domestic helpers by Hong Kong employers declined last year due to
stiff competition from the Indonesians, Labor Secretary Patricia Sto.
Tomas reportedly called it "saddening, but not alarming.”
To prepare for 2005,
the Department of Labor and Employment (DoLE) initiated the first
international forum on labor opportunities abroad held at the Philippine
International Convention Center (PICC) in September last year. It brought
together major players in the international labor market, tackling
employment opportunities for Filipino workers.
To
attract more OFWs, DoLE has made local government units (LGUs) conduits in
the recruitment and deployment of OFWs in their respective provinces.
The DoLE’s Public
Employment Services Office (PESO), which is supposed to offer local
employment, would now focus on overseas job placement.
Meanwhile, Santiago is alarmed at Sto. Tomas’ statement last November that
the government is willing to accept wages below the minimum level for OFWs
in some unskilled occupation.
Santiago said that
the labor department has agreed to special arrangements for Filipinos in
regions that are most depressed.
In Mindanao,
particularly Davao
City, the POEA has been offering "free deployment" assistance to female
OFWs willing to work in Kuwait and Saudi Arabia. Through its "Special
Employment Program for Mindanao",
the government will shoulder the expenses for placement, passport
processing, training, medical and airfare. The chosen applicants will
however only receive a monthly salary of P8,400 compared to the usual
P11,200 minimum wage in Kuwait.
In
Sarangani, the provincial government has decided to adopt the "Fly Now,
Pay Later Program", allocating P1.1 million for assistance to jobseekers
from their province.
With
these schemes, it is not surprising then that
Mindanao
topped the country's deployment of women workers abroad over the last
three years, with Region 12 or the Soccsksargen leading over the island's
six regions.
On the other hand, a
National Statistical Coordination Board (NSCB) report in Region 12 said
six out of 10 OFWs coming from Mindanao are women, compared to only four
in Luzon and Visayas. (Region 12 covers the provinces of South Cotabato,
Sarangani, Sultan Kudarat, (North) Cotabato and the cities of Koronadal,
General Santos, Tacurong, Kidapawan and Cotabato.)
According to the Overseas Workers Welfare Administration, Soccsksargen
Region currently has more than 500,000 OFWs deployed either as skilled or
professional workers.
“Migration is the reflection of intensified crisis in the country,”
Santiago said. And in this condition, she said, the welfare of OFWs are
being neglected and sacrificed “in the name of higher remittances and more
market for OFWs.”
But
Santiago believes that the worse is yet to come. She said it could arrive
at a “raise to the bottom” state.
Bulatlat
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