Thursday, February 07, 2008

Villar warns on threat to labor export

SENATE President Manuel Villar Jr. yesterday warned that the stringent rules imposed on the direct-hiring of Filipino workers, such as requiring prospective employers to place a bond amounting to more than $5,000 will result in the non-competitiveness of Filipino labor.

He wants the Senate to conduct an inquiry into 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.

Villar filed Resolution No. 291 urging the Senate committee on labor to look into the effect of this new policy on direct-hiring issued by the Philippine Overseas Employment Administration (POEA) on the competitiveness of Filipino labor especially at this time when Spain, Italy and Canada have opened up their labor market to the Philippines.

Memorandum Circular No. 4, which took effect last Jan.15, issued by POEA head Rosalinda Baldoz imposed stricter documentation and processing requirements including an approval from the Secretary of the Department of Labor and Employment for foreign employers who want to hire Filipino workers directly.

Villar said the requirements of a performance bond amounting to the workers’ three-month salary, a $5,000 repatriation bond and medical insurance, “could discourage foreign employers from hiring Filipinos.”
By: Bernadette E. Tamayo - Journal online

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