Post on 30-Jan-2016
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LABOUR MIGRATION STRUCTURES AND FINANCING IN ASIA
Study commissioned by ILO
Rakkee Thimothy S.K. Sasikumar
Padmini Ratnayake Alvin P. Ang
January 2015
The views expressed in this presentation are the views of the author and do not necessarily reflect the views or policies of the Asian Development Bank Institute (ADBI), the Asian Development Bank (ADB), its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.
Key Observations
• With increasing magnitude and heterogeneity of international labour flows, migration management is becoming complex
• Labour receiving countries seen imposing conditionalities on the entry and rights of migrant workers
• Labour sending countries moving from protection to promotion of labour migration
2
The Context
• Identify the present administrative structures, services that labour sending countries provide and their financial efficiency and sustainability
• This study attempts to explore these interrelated issues by taking up the case of three major labour sending countries in Asia—India, the Philippines and Sri Lanka
3
The Context
• India, the Philippines and Sri Lanka demonstrate several commonalities and distinctions with respect to international labour flows
• The outcome of the study will also provide pointers to emerging migrant sending countries in evolving labour migration as a development strategy
4
Objectives
• Assess administrative structures, manpower requirements and new responses to facilitate labour mobility
• Examine the various migrant services extended by the government agencies
• Analyse the financial efficiency of managing migration
5
Conceptual Framework
Conceptual Framework of the Study
MIGRATION MANAGEMENT
REGULATING LABOUR MIGRATION & MIGRANT SERVICES
Information & Pre Departure Services; Skill Development; Regulating Recruitment; Services at the Destination; Welfare Services and; Inter Country Cooperation
ADMINISTRATIVE STRUCTURE
Mission & Vision of the Ministry & its Structure; Legislation; Policies; Available Manpower; Promotion & Training Opportunities and; New Administrative Initiatives
FINANCING
Income & Expenditure of the Ministry & Attached Institutions and; Financing of various Migrant Services
6
Location Labour Mobility: Comparisons
• Compared to Sri Lanka and the Philippines, data on labour outflows/inflows in India is limited
• In Sri Lanka and the Philippines the labour flows are observed to be feminised
• There are similarities with respect to destination and skill composition of migrants
7
Migration of Indian Population to Major Regions, 2012
8
Labour Outflows from India (in percent)
Country 2008 2009 2010 2011 2012
Saudi Arabia 26.9 46.1 42.9 46.2 47.9 UAE 41.3 21.4 20.4 22.2 18.9 Oman 10.6 12.3 16.5 11.8 11.3 Qatar 9.8 7.6 7.1 6.7 8.4 Kuwait 4.2 6.9 5.9 7.2 7.5 Malaysia 2.5 1.9 3.2 2.9 2.8 Bahrain 3.8 2.9 2.4 2.3 2.7 Others 1.0 1.0 1.6 0.9 0.5 TOTAL 847,994 610,270 641,355 626,565 747,041
9
Sri Lanka
10
Philippines
11
Description 2008 2009 2010 2011 2012
Occupational Category* Household Service workers 36.3 47.0 55.8 62.5 62.1 Nurses 8.3 8.5 7.0 7.5 6.2 Cook, Waiters, Bartenders and Related Workers 14.3 11.2 7.6 7.7 8.5 Wiremen, Electrical Workers, Plumbers and Welders 18.4 15.3 12.7 11.8 12.0 Labourers and Cleaners 15.5 11.9 11.5 6.1 6.9 Caregivers 7.3 6.1 5.4 4.4 4.2 Major Destination** Saudi Arabia 28.3 26.7 26.1 24.0 23.0 UAE 19.9 18.0 17.9 17.9 18.1 Singapore 4.3 5.0 6.3 11.1 12.0 Hong Kong SAR 8.0 9.2 9.0 9.8 9.2 Qatar 8.7 8.2 7.8 7.6 7.3 Kuwait 4.0 4.2 4.7 5.0 5.2 Taiwan 4.0 3.1 3.3 3.2 2.9 Italy 2.3 2.1 2.3 2.4 1.8 Bahrain 1.3 1.4 1.4 1.4 1.6 Malaysia 0.6 0.7 0.9 1.3 2.7 Others 18.6 21.5 20.4 16.3 16.3
Taipei,China
Hong Kong, China
Remittance Inflows
12
0
20,000
40,000
60,000
80,000
India Philippines Sri Lanka
2010 2013e
0
20
40
60
80
America Asia Europe Middle East
Others
2010 2013r
010203040506070
Middle East
Europe Asia America Others
2010 2012p
Figure 2.3A: Workers' Remittances: Inflows (USD million)
Figure 2.3B: Region-Wise Distribution of Private Transfers Inflows to India (in per cent)
Figure 2.3C: Workers Remittances to
Sri Lanka (in per cent) Figure 2.3D: Overseas Filipinos Cash Remittances
(in per cent)
0
10
20
30
40
Gulf Countries
North America
South America
Europe Africa East Asia Others
2009-10 2012-13
Legal framework to Manage Labour Migration
13
INDIA PHILIPPINES SRI LANKA Legal Basis Emigration Act
1983 Labor Code of 1974 Foreign
Employment Agencies Act 32 of 1980
Key Provisions
Facilitate Recruitment of Indian Workers on best possible terms and conditions of employment
Created the Bureau of Employment Services and facilitation of overseas work
Regulate recruitment and related aspects of foreign employment
Key Functions of Overseas Migration Administrative Structures: A Comparison
MOIA, India DOLE, the Philippines MOFEPW, Sri Lanka Diaspora Services Emigration Services Financial Services Management Services Economic Services
Information & publication Service
Administrative Service Legal Service Financial Management
Service Human Resource
Development Service Planning Service Training and skills
development Regulation of Foreign
Employment Welfare Services of
OFWs Reintegration
Formulation & Implementation of Policies/Programmes/ Projects for Foreign Employment Industry Promotion of Foreign
Employment Migrant Workers Welfare Regulation & Supervision of
Employment Agencies Career Guidance on Foreign
Employment Supervision of SLBFE and SLFEA Welfare of Expatriate Sri
Lankans
14
Human Resources to Manage Migration
• India has a lean staff based on the Ministry of Overseas Indian Affairs (MOIA) structure
• Philippines has about 1,151 staff with 354 based overseas
• Sri Lanka has about 1,252 staff positions
15
Initiatives to Improve Migration Administration
16
INDIA PHILIPPINES SRI LANKA New Responses to improve Administrative Services
e-Governance project to make migration management efficient
Creation of the Philippine Statistical Authority (PSA) is expected to improve data on international migration Creation of subcommittee on Migration and development at national level Work with local government units
Increased manpower, improved administrative efficiency, established Regional Administration for district and divisional based welfare activities Establishment of a national advisory council on Labour Migration
Training of Labour Welfare Officers in Sri Lanka
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Programmes Duration Organisers Content
Certificate Course on Labour Migration and Operational Procedures in Sri Lanka Diplomatic Missions in Labour Receiving countries
3 Months
• MOFEPW • SLBFE • Ministry of External
Affairs • Diplomatic Officers
Training Institute. (Bandaranayake International Diplomatic Training Institute, Colombo)
• International labour migration in historical and contemporary perspective;
• Socio-economic impacts of migration;
• Rights of migrant workers and international Conventions on labour migration; diplomatic practices and protocols
• Strategies for promoting labour migration and migrant services
Special Training for selected LWOs to familiarise with the functions and procedures
2-3 weeks
• Ministry of External Affairs,
• Consular Affairs Division, MOFEPW
• SLBFE
• Functions and responsibilities of LWOs
• Migrant workers grievance handling mechanism
• Familiarise duties and responsibilities of the SLBFE and the Consular Affairs Division of the Ministry of External Affairs
• Special training on Manual of procedure of the Labour Divisions of the Sri Lanka Diplomatic Missions
Continuous Capacity Building Programmes of the LWOs while in service
2-3 Days • MOFEPW • SLBFE
New developments related to labour migration, manual of procedures etc.
Information Services for Migrants
• India provides information through tri media and electronic media on the legal routes of migration mostly focused on migration to the Gulf countries
• There are existing 24 hours helpline and walk in counselling through Overseas Workers Resource Centers (OWRCs)
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Pre-departure Orientation Services
In India pre-departure orientation not mandatory
In the Philippines and in Sri Lanka, pre departure is mandatory Government and CSOs provide a joint platform to extend
pre-departure services in the Philippines
Sri Lanka has pre departure orientation programme catering to the requirements of different migrant groups
Delivery of pre departure orientation subjected to periodical review
19
20
INDIA PHILIPPINES SRI LANKA
Pre-departure Orientation
Not mandatory Compulsory Offers customised departure programmes for different categories of migrants. Also provide Pre-Employment Orientation Seminar (PEOS) and Post-Arrival Orientation Seminar (PAOS)
Compulsory Offers customised departure programmes for different categories of migrants - Certificate is mandatory before registering for SLBFE
Pre-departure Orientation Services
Migrant Services at the Country of Origin
Skill Development
• In India Centre of Excellence in the North East Region Recently announced Swarna Pravas Yojana – train 5 million
people up to 2022 to make India the main source of skilled labour
National Skill Qualification Framework adopted
• In the Philippines, Technical Education and Skills Development Authority (TESDA) is the main body responsible for training, assessment and certification of skills – National Skill Qualification Framework adopted
21
22
INDIA PHILIPPINES SRI LANKA
Skill Development Skills Training Initiative for North Eastern States; propose to implement Sarna Pravas Yojan
Training, assessment and certification provided by Technical Education and Skills Development Authority (TESDA); OWWA also conducts specialised programmes like Skills-for-Employment Scholarship Program (SESP) and Seafarer’s Upgrading Program (SUP)
Skill development programmes conducted with technical support from the Ministry of Youth Affairs and Skill Development and the State and Non State Technical Education and Vocational Training (TEVT) network Country specific training programmes
Skills Development
Sri Lanka Training for Prospective Migrants
23
Training Course Target Group Age
Limit (yrs)
Duration (Days)
Fees (USD)
Domestic Housekeeping (Sinhala & Tamil Medium)
Female workers to Middle East 21-45 21 57*
Domestic Housekeeping & Care giving Male & female workers to Cyprus and who can speak English
21-45 30 69*
Domestic Housekeeping & Care giving Female workers to Singapore/Hong Kong, China and who can speak English
21-45 30 69*
Training Programme for Experienced Domestic Sector Workers
Female workers who can speak Arabic (Middle East) and Greek (Cyprus)
21-45 07/63 46
Care Giving Male & female health care workers to Israel
21-45 25/28 27
Care Giving Male & female experienced health care workers to Israel
21-45 15 46
Literacy Training (Sinhala &, Tamil medium) Illiterate migrant workers 21-45 18 19
Special English Literacy Training Migrant workers to Cyprus, who cannot read, write & speak English**
21-45 18/180 23
Special Training Programme for Oversees Job Seekers other than domestic housekeeping
First time migrant workers (male/female) to Middle East, Maldives & Malaysia
18-45 21 57*
Regulating Recruitment
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INDIA PHILIPPINES SRI LANKA Regulating Recruitment
Licensing recruitment agencies, granting of emigration clearance and verification of contracts - Ceilings imposed on recruitment fees based on skills category (USD 37 for unskilled to USD 184 for other categories)
Monitoring operation of recruitment agencies, facilitating recruitment and validation of employment contracts
Regulating and monitoring operation of recruiting agencies and provide clearance to migrant workers. - Introduced the grading of licensed recruitment agencies
India
25
Status 2010 2011 2012*
Regi
ster
ed
Show Cause Notice issued 145 212 234 Registration Certificate - Suspended
10 20 37
Registration Certificate - Cancelled
29 44 15
Dropped/Settled/Revoked 82 94 36
Unr
egis
tere
d Cases referred to State Government/POE for action
166 225 240
Prosecution sanctions sought 10 9 14 Prosecution sanctions issued 10 9 14
Complaints and actions taken against recruiting Agents
Sri Lanka • Redress mechanism in Sri Lanka
– The SLBFE Is the key institution handling complaints and grievances of Migrant Workers.
– Conciliation Division, Foreign Relations Division, Investigation Division and Welfare Division of the SLBFE handles the complaints according to the nature of the complaints.
– Web-based complaint handling system is in operation connecting the SLBFE, Diplomatic Mission and Recruitment Agencies for speedy resolutions of complaints.
– SLBFE officials can conduct inquiries, make awards/decisions and take legal action against the recruiting agents.
– 24hr/365 days operational migrant resource centre/complaint receiving centre at the SLBFE Head Office.
26
INDIA PHILIPPINES SRI LANKA Key programmes to assist migrant workers & their families at the country of origin
Pravasi Bharatiya Bima Yojana (PBBY) – compulsory insurance scheme for overseas workers include work insurance, health insurance and a 1 way airfare and maternity benefits. Mahatma Gandhi Pravasi Suraksha Yojana (MGPSY) – voluntary life insurance, education loan and scholarships for children, reintegration services like OIFC
Philippine Health Insurance Corporation (PhilHealth) and Pag-IBIG, Education and Livelihood Assistance Program (ELAP), Livelihood Program, Groceria Project, National Reintegration Center for Overseas Filipino Workers Compulsory insurance for all workers in 2010.
Upon registration with SLBFE coverage. Videsha Rakia (Foreign Workers insurance) - medical and also extendable to family members. compulsory insurance schemes per country e.g. Saudi Arabia and Jordan
Social Protection
27
Migrant Services at the Destination
Indian Community Welfare Fund (ICWF) established by MOIA in 2009
Labour attaches functioning within the Indian Embassy/Consulate in foreign countries
In the Philippines several agencies are involved in providing on-site services
In Sri Lankan Diplomatic Missions in the labour receiving countries is assigned the task of providing migrant services at the destination
28
29
India Philippines Sri Lanka
Key Agencies that provide migrant services at destination
Indian Community Welfare Fund (ICWF) and labour attaches functioning within Embassy/ Consulate
POLO Network - Filipino Workers Resource Centre (FWRC) in 32 sites in 25 countries
Labour attaches in 13 countries – legal, medical, counselling and sheltering facilities. There is also an e-ombudsman operating from the SLBFE office, Sahana Piyasa
Migrant Services at the Destination
Sri Lanka
30
• Labour Welfare Services are provided through Labour Welfare Officials in 14 Diplomatic Missions in the destinations.
• Duties and responsibilities of the LWOs are defined in the Act, which is mainly the protection of the rights of Migrant Workers and promoting safe migration, welfare of the Migrant Workers and promotion of employment opportunities.
• All the expenses on welfare and protection of Migrant Workers are borne by the Workers Welfare Fund of the SLBFE.
Migrant Services: Cooperation Between Origin and Destination Countries
• INDIA - MOIA has several operative bilateral SSAs and is in the process of formalising such agreements with many countries
• There also exist MoU and Agreement on Human Resource Mobility Partnership (HRMP) with many countries
31
Signed & Operative Signed but not Ratified Draft Finalised
Belgium (2006), Denmark (2010), France (2008), Germany (Social Insurance) (2008), Germany (Comprehensive) (2011), Luxemburg (2009), Netherlands (2009), Republic of Korea (2010), Switzerland (2009)
Austria (2013), Canada (2012), Czech Republic (2010), Finland (2012), Hungry (2010), Japan (2012), Norway (2010), Portugal (2013), Sweden (2012)
Quebec
32
INDIA PHILIPPINES SRI LANKA
Cooperation between countries of origin and destination
Signed several bilateral social security agreements, MoUs, Labour Mobility Partnership Agreement (LMPA)
Signed several Bilateral Labour Agreements (BLAs) – 82 with 59 receiving countries
Singed a number of MoUs/ Agreements, initiated a social security programme for workers migrating to Republic of Korea and signed an agreement with a private entity in Saudi Arabia
Migrant Services: Cooperation Between Origin and Destination Countries
Migrant Services: Reintegration
• MOIA provides various reintegration services to migrant workers
Overseas Indian Facilitation Centre (OIFC)
Special packages are announced to meet emergencies
In the Philippines and Sri Lanka, reintegration issues are seen in a holistic perspective
A range of services are offered both monetary and non monetary support and investment options to different categories of migrant workers
33
Philippines
34
Table 4.12: Performance of Re-integration Programme in the Philippines
Item 2010 2011 2012
OFW Groceria Project Number of Projects Maintained 100 1,970 - Total Amount Released/Collected (USD) 5,387 1,417,560 - Number of Members/Beneficiaries - - - OWWA-NLSF Livelihood Development Number of Projects Approved 203 267 169 Amount of Loans Released (USD) 628,247 896,610 650,386 Total Number of Beneficiaries 585 697 524
Note: Based on average peso-dollar conversion rates for 2010, 2011 and 2012. Source: BLES, 2013.
Other major programmes that provide loans to returnee workers include the following: (a) The 2 Billion-Peso Reintegration Fund for enterprise development; (b) Balik-Pinas, Balik Hanapbuhay (return to the Philippines, return to work) programme for displaced/distressed workers and; (c) a micro-credit programme to meet credit needs of aspiring and existing entrepreneurs by utilising established NGOs as partners in lending and technical assistance.
Sri Lanka
35
• Initiate special programmes on re-integration at district and
divisional levels, loan schemes, entrepreneurship development programmes, health and safety of Migrant Workers and their family members, financial literacy, counselling programmes etc.
• Established ‘Rata Viruwo’ programme in 2010 (Heroes of the Nation) to strengthen services to returnees
• Working with Samurdhi Authority (Poverty Alleviation agency) to facilitate housing loans and support to build a house.
FINANCING MIGRANT SERVICES
36
INDIA PHILIPPINES SRI LANKA
Major Items of Expenditure
MOIA--various programmes and schemes for migrants and organising Pravasi Bharatiya Divas (PBD) - Day of Migrants
OWWA-- social protection programmes including disability and death benefits and livelihood support to families of deceased OFWs. POEA - salaries/wages and other administrative services and PhilHealth CFOs--various welfare programmes to migrants
SLBFE--Workers Welfare Fund and staff salary. SLFEA--administration services
Major Source of Revenue Mainly Government Funds Mainly Government Funds. In the case of OWWA significant revenue is generated through membership fees and interest income of investments
Mainly Government Funds. In the case of SLBFE significant share of revenue is generated through recruitment fees, receipts to the Workers Welfare Fund, registration fees on contract agreements and job orders collected from the foreign employers and recruitment agencies and for SLFEA through Korean Programme and migrants’ insurance
Non-plan Revenue Expenditure of MOIA, 2013-14 (Budget Estimate)
37
Expenditure of OWWA and POEA
38
Expenditure of OWWA, 2012 Expenditure of POEA, 2011
Income and Expenditure of SLBFE
2005 2011 INCOME Recruitment Fees 52.9 45.7 Facilities Fees 4.6 2.3 Licence Fees 0.6 0.3 Cess Income 0.8 0.9 Korean Programme 12.0 4.2 Workers Welfare Fund 27.5 43.7 Others 1.5 2.8 EXPENDITURE Staff cost 19.8 28.4 Establishment Charges 8.7 10.6 Operational costs 20.0 10.1 Advertisement and Publicity 1.3 2.9 Business Promotion 2.6 4.0 Workers Welfare Fund 47.5 44.0
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Key Trends Emerging from Income and
Expenditure Assessments
In India mainly from government grants
Philippines and Sri Lanka, income generated from diversified sources
Administrative expenses dominate in Sri Lanka and Philippines, in Sri Lanka’s SLBFE case more expenditure on workers welfare fund
40
Policy Implications
• Strengthen the human resource to manage migration both at the countries of origin and destination
• Orientation programmes on migration related issues
should also be designed for officers in other ministries/departments—of skill development or health, for instance—to develop a coherence in the administrative arrangement to manage migration.
41
Policy Implications
• Need to reorient budget allocations in favour of activities like pre-departure orientation, skill upgradation programmes
• Measure like diversified investment portfolio of welfare funds resources critical to step up income generation efforts
42
Thank You
43
For further correspondence: sasikumarsk2@gmail.com S.K. Sasikumar V.V. Giri National Labour Institute , India
Alvin P Ang Economics Department Ateneo de Manila University apang@ateneo.edu