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    POEA suspends direct-
    hiring policy for OFWs
     
    By Cher Jimenez
    Reporter
     

    THE Philippine Overseas Employment Administration (POEA) has suspended its new direct-hiring policy toward overseas Filipino workers (OFWs), apparently because of pressures from recruitment agencies and migrants themselves.

    Labor Secretary Arturo Brion ordered the POEA to immediately suspend Memorandum Circular No. 4 pending a review by its board, which he also chairs.

    “There is a schedule to review the circular and, pending its completion, there is an immediate order to suspend the new hiring rules,” said POEA administrator Rosalinda Baldoz in a phone interview Thursday.

    Implemented last month, the amendment to the direct-hiring policy of the POEA drew flack from recruitment agencies and migrant organizations overseas, with some even launching a signature campaign to show their opposition.

    Under the new measure, foreign employers are required to comply with stricter rules in name hires, including posting a repatriation bond of $5,000 and a performance bond of $3,000 per OFW hired.

    The bonds are meant to ensure the repatriation of OFWs in distress or those who die abroad, while the performance bond is a guarantee that the salary of the migrant would be paid until the end of the employment contract.

    The government said the policy is meant to protect OFWs since name hires do not have recruitment agencies which will be responsible for them in case they get into trouble abroad.

    The new policy, which was in effect since January 15, drew strong criticisms from OFWs who protest that it is disadvantageous to them, since these bonds would surely be extracted from them.

    Manpower firms, on the other hand, warned that placing stricter measures on name hires would cut the Philippine overseas market and increase illegal deployment.

    Brion said the POEA board would meet on Monday to discuss President Arroyo’s directive for them to review the policy and exempt white-collar jobs.

    “The board will convene to discuss further amendments to MC 4 [regarding] relaxing the rules on professionals and those to be employed by reputable companies already providing adequate protection and similarly situated employers,” a statement from the POEA said.

    The board earlier exempted Italy, Hong Kong and Canada from the policy, since these countries have available protection mechanisms for OFWs.

    Brion also ordered Philippine labor attachés to check if similar protection schemes are also in place in their countries of assignment.

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