Female OFWs in HK deep in ‘dubious’ debt - study
MANILA, Philippines - Long before they receive their first paycheck, hundreds of Filipino overseas workers (OFW) in Hong Kong are already deep in debt.
A study conducted by the non-government Mission for Migrant Workers (HK) Society Ltd showed that most Filipinas working in Hong Kong as domestic helpers paid “dubious" placement fees of P 60,000 to P 100,000 to recruitment agencies.
The study titled Survey Report on Recruitment Fees, Wages and Remittances of Filipino Migrant Workers in Hong Kong - 2007 also claimed that the Philippine government did not only fail to solve the problem, but had made it worse.
The findings were from the results of the Mission’s survey conducted from July 29, 2007 to March 11, 2008. It had 493 correspondents who were mostly female domestic helpers aged 36 to 45.
The study said that before 2007, recruitment agencies were only allowed by law to collect placement fees equivalent to a month's salary of an OFW, or only about P 25,000 for those deployed in Hong Kong.
However, the study found out that recruitment agencies overcharged fees. Forty six percent of the survey’s respondents paid the agencies between P60, 000 to P100, 000, while eight percent paid over P 100, 000.
Around 72 percent of Filipino domestic helpers in HK were hired through recruitment agencies, 19 percent were employed through direct hiring, while 9 percent got their jobs through private individuals, the study showed.
More harm than good
The study said that on March 1, 2007, the Philippine Overseas Employment Administration (POEA) implemented guidelines, stating among others that “any person seeking employment overseas from a registered agency should not pay any placement fee."
However, instead of solving the charging of excessive fees, POEA’s guidelines did more harm than good to Filipino domestic workers in Hong Kong, according to the study.
The Mission said that when the guidelines were implemented, the number of Filipino domestic helpers paying P 60,000 to P100, 000 rose to 51 percent from only 35 percent when the guidelines were not yet observed.
Meanwhile, those who paid over P100, 000 also increased to 10 percent from only 5 percent.
According to the organization, while the agencies did not collect placement fees from the domestic helpers, they charged them with “training" and “TESDA (Technical Education and Skills Development Authority) assessment fees," which are considered “dubious" fees.
“These dubious fees are controversial fees, which have drawn flak from many migrant organizations and service institutions. They cover up for higher recruitment fees and higher government taxation to overseas Filipino workers," the study said.
More headaches
The Filipino domestic helpers’ headache does not end with the recruitment agency, according to the Mission.
It said that once the helpers start their job, agencies in Hong Kong also charge them with other fees. The organization said at least 120 of its respondents also “pa(id) some amount after arriving in Hong Kong."
“Through methods such as salary deduction by their employer, monthly payments to agencies, finance companies or individuals, domestic workers in Hong Kong are paying off debt up to 15 months, with 28 percent of those still in debt making payments for more than three months," the study noted.
High cost of living
Another burden is the high cost of living in Hong Kong. The Mission breaks down an overseas domestic helper’s average monthly expenditure into the following:
HK$ 156 for food
HK$ 63 for clothing
HK$ 85 for personal groceries
HK$ 136 for phone cards
HK$ 381 for savings, and
HK$ 404 for non-agency related debt
The Mission said that with such burden, “it is astonishing" that overseas Filipino workers in Hong Kong can still remit money to their families.
“Coming to a foreign country is hard enough without saddling a migrant worker with debt and bondage to corrupt agencies. The experiences of indebted domestic workers who are seeking to improve the quality of life for their family and their country is appalling. It is apparent that the policies and rules set out by the Philippine government through the POEA are exploitative, and in all actuality, illegal," the study concluded. - ARCS, GMANews.TV
A study conducted by the non-government Mission for Migrant Workers (HK) Society Ltd showed that most Filipinas working in Hong Kong as domestic helpers paid “dubious" placement fees of P 60,000 to P 100,000 to recruitment agencies.
The study titled Survey Report on Recruitment Fees, Wages and Remittances of Filipino Migrant Workers in Hong Kong - 2007 also claimed that the Philippine government did not only fail to solve the problem, but had made it worse.
The findings were from the results of the Mission’s survey conducted from July 29, 2007 to March 11, 2008. It had 493 correspondents who were mostly female domestic helpers aged 36 to 45.
The study said that before 2007, recruitment agencies were only allowed by law to collect placement fees equivalent to a month's salary of an OFW, or only about P 25,000 for those deployed in Hong Kong.
However, the study found out that recruitment agencies overcharged fees. Forty six percent of the survey’s respondents paid the agencies between P60, 000 to P100, 000, while eight percent paid over P 100, 000.
Around 72 percent of Filipino domestic helpers in HK were hired through recruitment agencies, 19 percent were employed through direct hiring, while 9 percent got their jobs through private individuals, the study showed.
More harm than good
The study said that on March 1, 2007, the Philippine Overseas Employment Administration (POEA) implemented guidelines, stating among others that “any person seeking employment overseas from a registered agency should not pay any placement fee."
However, instead of solving the charging of excessive fees, POEA’s guidelines did more harm than good to Filipino domestic workers in Hong Kong, according to the study.
The Mission said that when the guidelines were implemented, the number of Filipino domestic helpers paying P 60,000 to P100, 000 rose to 51 percent from only 35 percent when the guidelines were not yet observed.
Meanwhile, those who paid over P100, 000 also increased to 10 percent from only 5 percent.
According to the organization, while the agencies did not collect placement fees from the domestic helpers, they charged them with “training" and “TESDA (Technical Education and Skills Development Authority) assessment fees," which are considered “dubious" fees.
“These dubious fees are controversial fees, which have drawn flak from many migrant organizations and service institutions. They cover up for higher recruitment fees and higher government taxation to overseas Filipino workers," the study said.
More headaches
The Filipino domestic helpers’ headache does not end with the recruitment agency, according to the Mission.
It said that once the helpers start their job, agencies in Hong Kong also charge them with other fees. The organization said at least 120 of its respondents also “pa(id) some amount after arriving in Hong Kong."
“Through methods such as salary deduction by their employer, monthly payments to agencies, finance companies or individuals, domestic workers in Hong Kong are paying off debt up to 15 months, with 28 percent of those still in debt making payments for more than three months," the study noted.
High cost of living
Another burden is the high cost of living in Hong Kong. The Mission breaks down an overseas domestic helper’s average monthly expenditure into the following:
HK$ 156 for food
HK$ 63 for clothing
HK$ 85 for personal groceries
HK$ 136 for phone cards
HK$ 381 for savings, and
HK$ 404 for non-agency related debt
The Mission said that with such burden, “it is astonishing" that overseas Filipino workers in Hong Kong can still remit money to their families.
“Coming to a foreign country is hard enough without saddling a migrant worker with debt and bondage to corrupt agencies. The experiences of indebted domestic workers who are seeking to improve the quality of life for their family and their country is appalling. It is apparent that the policies and rules set out by the Philippine government through the POEA are exploitative, and in all actuality, illegal," the study concluded. - ARCS, GMANews.TV
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