Most OFWs pay too much in placement fees - survey
HONG KONG - A survey recently released by the Mission for Migrant Workers shows most overseas Filipino workers in Hong Kong pay processing fees that are far higher than what is required under the law. And, despite the supposed ban imposed in late 2006 by the Philippine Overseas Employment Administration (POEA) against the collection of placement fees from Filipinos deployed as domestic workers abroad, the practice has not only continued, but has even resulted in OFWs paying more to recruitment agents.
The findings are contained in the survey report on "Recruitment Fees, Wages and Remittances of Filipino Migrant Workers in Hong Kong - 2007" which has just been made available on the Mission's website.
The study was conducted between July 29, 2007 until Mar. 11 this year, and involved 493 OFWs who returned survey forms distributed mainly during various cultural events on Chater Road in Central. The other respondents were members of organizations affiliated with the Mission, and its walk-in clients.
The survey shows that an overwhelming majority of OFWs in HK (72%) landed their jobs through recruitment agencies. Of these, 46% paid the agencies between Php60,000 and Php100,000, or three to four times more than the allowed processing fees before the POEA guidelines came in force.
After the guidelines were implemented in mid-December 2006, the illegal exactions became even more rampant, says the survey.
Of the 291 respondents who were already in HK before this date, only 35% had paid between Php60,000 and Php100,000 in processing fees, and only 5% had paid over Php100,000.
But after the POEA guidelines were introduced, more than 51% said they paid between Php60,000 and Php100,000 to their recruiters, and more than 10% said they paid in excess of Php100,000.
"It can be easily seen from the results of this survey that the recent POEA Guidelines have done nothing to ease the financial burden of foreign domestic workers, but have in fact, worsened their situation, causing added stress and strain on the worker and their family," says the survey.
According to the Mission's executive director, Cynthia Tellez, the survey results merely affirm the position taken by many migrant organizations: that most agencies are able to circumvent the "no agency fee" provision of the POEA guidelines because of the unlimited fees allowed to be charged from OFWs undergoing mandatory training.
"This has been challenged at the onset but POEA ignored the demand to set a separate Guidelines or memo for the "No Agency Fees"," says Tellez.
Armed with the results of their year-long survey, Tellez says the Mission intends to hold dialogues with various HK and Philippine government agencies so problems concerning overcharging and/or illegal exaction of fees could be addressed.
Part of the plan, she says, is to challenge HK's Employment Agency Administration into acting on malpractices committed by agencies based here.
At the same time, she says the Mission intends to prove "that the POEA Guidelines (are) in fact a `legal' cover to what used to be illegal exaction of fees by placement agencies."
Asked for a reaction, Labor Attache Romulo Salud readily acknowledged that the problem of overcharging has been the bane of OFWs all over the world.
"That problem is bigger than me, hindi ko kaya," said Labatt Salud candidly. "What is needed is political will on the part of everyone concerned: from the OFWs to the recruiters, to comply with what is provided for by law."
Given this, his office is bound to take a more reactive stance on the issue.
"Kung may nagreklamo (about overcharging), we try our best to help," he says.
For Tellez, there is just one way for OFWs to help address the problem.
"Join the campaign to scrap the POEA Guidelines!," she says. - GMANews.TV
The findings are contained in the survey report on "Recruitment Fees, Wages and Remittances of Filipino Migrant Workers in Hong Kong - 2007" which has just been made available on the Mission's website.
The study was conducted between July 29, 2007 until Mar. 11 this year, and involved 493 OFWs who returned survey forms distributed mainly during various cultural events on Chater Road in Central. The other respondents were members of organizations affiliated with the Mission, and its walk-in clients.
The survey shows that an overwhelming majority of OFWs in HK (72%) landed their jobs through recruitment agencies. Of these, 46% paid the agencies between Php60,000 and Php100,000, or three to four times more than the allowed processing fees before the POEA guidelines came in force.
After the guidelines were implemented in mid-December 2006, the illegal exactions became even more rampant, says the survey.
Of the 291 respondents who were already in HK before this date, only 35% had paid between Php60,000 and Php100,000 in processing fees, and only 5% had paid over Php100,000.
But after the POEA guidelines were introduced, more than 51% said they paid between Php60,000 and Php100,000 to their recruiters, and more than 10% said they paid in excess of Php100,000.
"It can be easily seen from the results of this survey that the recent POEA Guidelines have done nothing to ease the financial burden of foreign domestic workers, but have in fact, worsened their situation, causing added stress and strain on the worker and their family," says the survey.
According to the Mission's executive director, Cynthia Tellez, the survey results merely affirm the position taken by many migrant organizations: that most agencies are able to circumvent the "no agency fee" provision of the POEA guidelines because of the unlimited fees allowed to be charged from OFWs undergoing mandatory training.
"This has been challenged at the onset but POEA ignored the demand to set a separate Guidelines or memo for the "No Agency Fees"," says Tellez.
Armed with the results of their year-long survey, Tellez says the Mission intends to hold dialogues with various HK and Philippine government agencies so problems concerning overcharging and/or illegal exaction of fees could be addressed.
Part of the plan, she says, is to challenge HK's Employment Agency Administration into acting on malpractices committed by agencies based here.
At the same time, she says the Mission intends to prove "that the POEA Guidelines (are) in fact a `legal' cover to what used to be illegal exaction of fees by placement agencies."
Asked for a reaction, Labor Attache Romulo Salud readily acknowledged that the problem of overcharging has been the bane of OFWs all over the world.
"That problem is bigger than me, hindi ko kaya," said Labatt Salud candidly. "What is needed is political will on the part of everyone concerned: from the OFWs to the recruiters, to comply with what is provided for by law."
Given this, his office is bound to take a more reactive stance on the issue.
"Kung may nagreklamo (about overcharging), we try our best to help," he says.
For Tellez, there is just one way for OFWs to help address the problem.
"Join the campaign to scrap the POEA Guidelines!," she says. - GMANews.TV
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