Saudi OFWs divided on suspension of POEA MC 4
The suspension of the controversial Memorandum Circular 4 of the Philippine Oversas Employment Administration earned a variety of responses from overseas Filipino workers (OFWs) in Jeddah.
A Filipino entrepreneur interviewed in Al-Khobar, Saudi Arabia by ABS-CBN Middle East Bureau said the circular is neither pro-employee nor pro-employer.
The said circular governing the direct hiring of OFWs was suspended last February 14 after a board of governors meeting at the POEA. But it had been in effect since January 15.
Ditto Laceda, 45, the owner of a small shop in Saudi Arabia’s Eastern Region, said he was overjoyed that the campaign to have MC 4 suspended he launched together with some friends bore positive results.
Laceda was only one of the thousands of OFWs who petitioned to abolish MC 4 as it would have adverse effects both on prospective OFWs and prospective OFW-employers.
"It has to be abolished because small entrepreneurs in Saudi Arabia like me who plan to get two Filipino workers to help out in my business can no longer do so. $8,000 is just too expensive," Ditto said in the vernacular.
As part of the POEA’s MC 4, foreign employers were required to pay an $8,000 repatriation and performance bond per employee.
Like Laceda, Beda Escobedo of Al-Khobar also wanted MC 4 suspended because it would be a hindrance to employment overseas.
But he said "I think suspension is not enough but to abolish as it could not help for both employer and employee and the other it was issued without further detailed studies."
Just like on any other issue, there are also some OFWs with opposing views.
One of them is Roger Narne who believes MC 4 was instituted for then protection of OFWs.
"Why didn’t they just leave this in force for a year and if it does have adverse effects, then that will be the time we petition for its abolition," Narne said in Pilipino.
Nurse Bernadette Lisaba in Dammam said "I am in favor of the circular for OFWs and I totally disagree to the suspension of the said Circular because we are here not just to earn money but of course we have to think of our own safety so that bond even if it cost too much, for me it's for the good of all."
The POEA said more than 26,000 Filipinos were directly hired by foreign employers in 2007. On this basis, Labor Secretary Arturo Brion said they decided to re-implement an existing ruling and implemented MC 4, only to suspend it a month later.
The new circular ruled that direct hiring would be subject to screening of employers and employment contract verification by the Labor Attaché or the Philippine Embassy.
Employers of directly hired OFWs would, after January 15, 2008, have to comply with stricter documentation and processing requirements which include the posting a US$5,000 repatriation bond per employee to guarantee the return of the worker or of his remains, in the event of death. They are also required to post a US$3,000 performance bond per employee to guarantee payment of the employee’s salary for the duration of the employment contract. The bonds should be secured from local bonding companies.
Brion, also concurrent POEA Board Chairman, said the adoption of a stricter policy on direct hires was aimed at strengthening the protection of the OFWs. -With reports from Florante Catanus
A Filipino entrepreneur interviewed in Al-Khobar, Saudi Arabia by ABS-CBN Middle East Bureau said the circular is neither pro-employee nor pro-employer.
The said circular governing the direct hiring of OFWs was suspended last February 14 after a board of governors meeting at the POEA. But it had been in effect since January 15.
Ditto Laceda, 45, the owner of a small shop in Saudi Arabia’s Eastern Region, said he was overjoyed that the campaign to have MC 4 suspended he launched together with some friends bore positive results.
Laceda was only one of the thousands of OFWs who petitioned to abolish MC 4 as it would have adverse effects both on prospective OFWs and prospective OFW-employers.
"It has to be abolished because small entrepreneurs in Saudi Arabia like me who plan to get two Filipino workers to help out in my business can no longer do so. $8,000 is just too expensive," Ditto said in the vernacular.
As part of the POEA’s MC 4, foreign employers were required to pay an $8,000 repatriation and performance bond per employee.
Like Laceda, Beda Escobedo of Al-Khobar also wanted MC 4 suspended because it would be a hindrance to employment overseas.
But he said "I think suspension is not enough but to abolish as it could not help for both employer and employee and the other it was issued without further detailed studies."
Just like on any other issue, there are also some OFWs with opposing views.
One of them is Roger Narne who believes MC 4 was instituted for then protection of OFWs.
"Why didn’t they just leave this in force for a year and if it does have adverse effects, then that will be the time we petition for its abolition," Narne said in Pilipino.
Nurse Bernadette Lisaba in Dammam said "I am in favor of the circular for OFWs and I totally disagree to the suspension of the said Circular because we are here not just to earn money but of course we have to think of our own safety so that bond even if it cost too much, for me it's for the good of all."
The POEA said more than 26,000 Filipinos were directly hired by foreign employers in 2007. On this basis, Labor Secretary Arturo Brion said they decided to re-implement an existing ruling and implemented MC 4, only to suspend it a month later.
The new circular ruled that direct hiring would be subject to screening of employers and employment contract verification by the Labor Attaché or the Philippine Embassy.
Employers of directly hired OFWs would, after January 15, 2008, have to comply with stricter documentation and processing requirements which include the posting a US$5,000 repatriation bond per employee to guarantee the return of the worker or of his remains, in the event of death. They are also required to post a US$3,000 performance bond per employee to guarantee payment of the employee’s salary for the duration of the employment contract. The bonds should be secured from local bonding companies.
Brion, also concurrent POEA Board Chairman, said the adoption of a stricter policy on direct hires was aimed at strengthening the protection of the OFWs. -With reports from Florante Catanus
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