Press Release
30 June 2011
Pres. Aquino’s gigantic task ahead: Jobs creation at home as main labor market shrinks
President Benigno Simeon Aquino III, who will be completing its first year in office today, faces real and maybe its greatest challenge: jobs creation at home and shun away from massive peddling of overseas Filipino workers, said Thursday by an alliance of Filipino migrant rights group in the Middle East.
President Benigno Simeon Aquino III, who will be completing its first year in office today, faces real and maybe its greatest challenge: jobs creation at home and shun away from massive peddling of overseas Filipino workers, said Thursday by an alliance of Filipino migrant rights group in the Middle East.
John Leonard Monterona, Migrante-Middle East regional coordinator, said on Thursday that it is imperative for the Aquino govt. to get focus and give more efforts on jobs creation at home rather than banking on sending OFWs abroad as major labor markets are now shrinking primarily because of the worldwide economic crisis that resulted to high rate of unemployment even in the most economically stable countries in the middle east like Saudi Arabia.
Monterona is referring to the announcement made by the Saudi govt. through its ministry of labor, after temporarily suspending the hiring of household service workers (HSWs) otherwise known as domestic workers last March, fixing its decision that it will no longer hire Filipino domestic workers. The labor ministry also said they will hold the issuance of work visa for Indonesian domestic workers.
A spokesman of the Ministry of Labor has been quoted in Arab News report saying: “The Ministry of Labor will stop issuing work visas for domestic workers for the Philippine and Indonesia from Saturday (July 2).”
“This is a huge setback to the PH economy that is too dependent on OFWs remittances. It will also give rise to the already high rate of unemployment with about 11.2-M Filipinos unemployed in the Philippines,” Monterona averred.
Monterona said the Saudi govt. decision to stop hiring Filipino domestic workers is a result of a breakdown on the negotiations between the two countries –more than 3 months impasse on contending labor issues imposed by the Manila govt. such as the minimum monthly wage of US$400, the submission of prospective Saudi employers of the location map of their residence and the opening of bank account by the employer for the hired domestic workers to ensure that latter will be paid of her salary, among others.
Monterona said the Saudi govt. policy ‘stop hiring’ of Filipino domestic workers and the Saudization’s Nitaqat scheme is a ‘double whammy’ to the Philippines which will have a huge impact to the local economy and will affect about 25,000 to 35,000 prospective domestic workers and 360,000 OFWs employed in Saudi Arabia.
On Wednesday, Department of Labor and Employment (DoLE) Secretary Rosalinda Baldoz issued a statement saying that the Saudi government’s implementation of its labor scheme Saudization has ‘only very minimal impact on prospective OFWs and those already working in Saudi Arabia”, which the migrant group disputed.
“We beg to disagree to the assessment of DoLE Sec. Baldoz on the impact of the Nitaqat system under the Saudization program as we were receiving reports since two weeks ago of jobs terminations, while private companies put a halt on hiring expatriate workers including OFWs here in Saudi Arabia.”
Monterona said the Saudization’s Nitaqat scheme will affect 30% of the 1.2-M which is translated to around 360,000 OFWs employed in Saudi Arabia.
He said recruitment leaders in the Philippines and Saudi Arabia share the same estimate of OFWs to be affected once the Nitaqat will be fully implemented.
“This will affect across all trades, category or position,” Monterona added.
Monterona also revealed that even Filipino banks executives working in major cities of Saudi also expressed their worries as foreign banks have already cut the numbers of their foreign workers by 1/3 to ½ of their staff.
“I was also informed by Filipino engineers working for a consultancy firm in Dammam, about 18 of their co-workers, including Filipino staff, were terminated which they believed was due to their company’s compliance to the Nitaqat scheme,” Monterona added.
On Saturday, Saudi labor minister Adel Fakeih was quoted in local news paper saying “the labor ministry is working on new rules and regulations aimed at phasing out unskilled foreign workers from the Kingdon and replace them with Saudis.”
“With this announcement, even the unskilled construction, factory and farm workers are not spared on the effect of the Saudi’s Nitaqat system,” Monterona added.
Monterona added: “Certainly, Saudi’s shrinking labor market will be shaken up by its Saudization program which primary aim is to employ about 500,000 jobless Saudis. All migrant-sending governments including the Philippines should ready its safety nets to lessen the impact to migrant workers.”
“It is on this view that we are urging the Aquino govt. through the DoLE and other government agencies not only to expect for the best, but also to prepare for the worst in regards to the impact of Saudization,” Monterona averred.
“We are urging the Aquino govt. to bare its safety nets or a comprehensive plan to lessen the impact of jobs termination or dislocation among OFWs who will be affected by the Saudization,” Monterona added.
He added: “Soon the Aquino govt. would realize that intensified labor exportation is not a long-term and viable economic labor policy. To improve the economy he must seriously implements
genuine agrarian reform program and starts towards nationalization of PH basic industries as prerequisites in building a strong economic base.”
Saudi Arabia is the over-all no.1 OFWs top destination and no.4 in the deployment of domestic workers since 2003 to 2010.
Reference:
John Leonard Monterona
Migrante-ME regional coordinator
Mobile No. 00966535921228