protecting temporary workers, dovelyn agunias
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Protecting Temporary Workers
Lessons and Cautions from the Philippines
Dovelyn Rannveig Agunias
Migration Policy Institute
Washington, DC USA
November 2, 2007
OUTLINE
I. Background: Emigration from the Philippines
II. What is OWWA?III. Challenges for OWWA
I. Deployed OFWs, 1975-2006
0
200
400
600
800
1000
1200
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
Year
Nu
mb
er o
f O
FW
s (i
n t
ho
usa
nd
s)
Total Land-based Seafarers
Source: Dovelyn Agunias and Neil Ruiz. “Protecting Overseas Workers: Lessons and
Cautions from the Philippines," Insight (Migration Policy Institute), September 2007.
Deployed OFWs by Destination, 2002-2006
What is OWWA?
• Government-managed fund – Primarily comprise of a mandatory $25
membership contribution of OFWs and/or their employers
• Fully self funded
• International Operation with a complex organizational structure
OWWA within the Philippine Government
OWWA Welfare Officers by Destination, 2006
OWWA Services and Benefits• Repatriation• Workers Assistance• Insurance
– Life: $2,000 for natural death and $4,000 for accidental death
– Burial benefit: $400 Loans
– Work-related injuries, illness & disabilities: $40 to $2000
– Medical insurance (for additional US$ 20)
• Loans – Pre-departure loans: $800
– Family-assistance loans: $ 800
– Livelihood Loans: $4000 to $20,000
– Groceria Project : $1,000 worth of groceries
• Education and Training– Pre-departure Orientation Seminar
– Education for Development Scholarship : $1,200 p/yr
– Seafarers Upgrading Program: $24 to $150 p/course
Challenge # 1: Protecting Overseas Workers on a Budget
Juggling Two Tasks: Achieving Fund Stability and Providing Services
OWWA is a US$172 million fund Grew 4-fold in 11 years Average Income from 2002-2006:
1.9 Billion pesos (US$ 38 million)
Expenditures in services in 2005 equals 3% percent of the fund balance 78% of fund balance in investment Average expenses from 2002-2006:
865 million pesos (US$17 million)
Why Save First-Spend Later ?
Finding the right balance of services
Services Number of beneficiaries/claims/loans/grants in 2006
Number of beneficiaries/claims/l
oans/grants as a
percentage of total membership in 2006
Repatriation Repatriated 10,834 1.09%
Workers assistance Assisted 614,697 (local and overseas) workers at 24/7 operations center
61.83%
Insurance Paid 1,122 OFWs’ claims for insurance and burial benefitsPaid 395 OFWs’ claims for disability and dismemberment
0.11%0.04%
Loans Made 137 Predeparture Loans (PDLs) to OWFsMade 543 Family Assistance Loans (FALs) to OFWsMade 261 GROCERIAS loansMade 198 loans through OWWA-NLSF Livelihood Development Program
0.01%0.05%0.03%0.02%
Education and training
Maintained 269 Education for Development Scholarship Program (EDSP) grantsMade 1,981 Skills-for-Employment Scholarship Program (SESP) grantsMade 2,177 Seafarers Upgrading Program (SUP) grants
0.03%
0.2%
.95 % (of sea-based workers)
Challenge # 2: Migrant Workers Representation and Participation
Challenge # 3: Transparency and Accountability
1.No periodical and accessible update on the fund’s
• financial standing and,
• the services rendered in a given period
2.Board meeting minutes off-record
Especially important given past cases of mismanagement of funds• millions of pesos in unrecoverable or “doubtful accounts,”
and nonliquidated cash advances
• 479 million pesos (US$10.6 million) unredeemable investment in the Smokey Mountain Project
Challenge # 4: Involve Destination Countries Countries of destination should
consider: 1.Developing mechanisms for
protecting the welfare of temporaryworkers (bilateral agreements or protecting in employment-related matters)
2.Complement offerings of welfare funds
MARAMING SALAMAT PO!
Dovelyn Rannveig AguniasMigration Policy Institute
1400 16th Street NW, Suite 300Washington, DC 20036, USAPhone: 00-1-202-266-1925
Email: [email protected]: www.migrationpolicy.org
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