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    What Brion left behind
     

    Depending on whom you talk to, sighs of relief, or regret, marked the recruitment industry when Labor Secretary Arturo Brion was sworn in last week as Associate Justice of the Supreme Court. Then again, the industry might be celebrating or mourning too soon. The acting labor secretary is the current head of the Overseas Workers Welfare Administration, Marianito Roque Jr.

    Brion’s stint as head of the Department of Labor and Employment was marked by closures of more recruitment agencies than usual, particularly those deploying domestic helpers to the Middle East. You see, Brion pegged the minimum monthly salary of domestic helpers at $400, almost twice the amount being paid in the Middle East, but slightly lower than what they get in Hong Kong.

    As a manager, Brion believed in centralization. For example, all applications for new licenses or renewal of licenses of recruitment agencies needed his signature. Prior to leaving DOLE (read: he didn’t know then he was moving up), Brion returned 50 applications for license renewals to the Philippine Overseas Employment Administration (POEA). His new instruction to POEA Administrator Rosalinda Dimapilis Baldoz was to send up only such applications for renewals, which did not have pending cases.

    The standard rule followed by Brion’s predecessors was to approve license renewals of recruitment agencies with four or less pending cases as along as such applications were recommended by the POEA. The idea then was that pending cases (which range from an employer’s discovery that the worker didn’t have a high-school diploma, or was underaged, to the failure of the employer to pay the worker the salary on contract and employment in the company on contract) before the POEA’s adjudication division took its time.

    As such, or until Roque or the permanent DOLE rescinds Brion’s order, this means a further decrease in the number of recruitment agencies which may deploy workers.

    ****

    Did you know 1: The cheapest pay rest room in Metro Manila is the one outside Manila Ocean Park. It charges P2.50 per person, which was waived Maundy Thursday and Good Friday, compared with the standard P10 in malls.

    Did you know 2: Vietnam is unable to fully meet our rice order for the lean months of July to September this year because it has sold 100,000 hectares of land formerly planted with rice to China.

    Yup, China is moving 10,000 factories to Vietnam because, get this, of its cheaper labor. In our case, former rice lands were converted to subdivisions rather than placed under agrarian reform.

    ****

    For quite some time now, Development Bank of the Philippines (DBP) president Reynaldo David has been trying to sell the bank’s 37-percent share in LGU Guaranty Corp. to its fellow shareholders, but hasn’t received an offer worth talking about. LGUGC is 25-percent owned by Asian Development Bank and 38 percent by about 10 member-banks of the Bankers Association of the Philippines.

    Then again, DBP used to own 49 percent of LGUGC when it started. The idea then was to provide guarantees for project loans (read: public markets, hospitals and such) by local government units (LGUs).

    This is, of course, in line with the mandate of the country’s biggest development bank, which is to serve as a catalyst for development in the countryside (read: teach a person how to fish rather than just giving him fish). Once other investors come in, the development bank is supposed to make its exit so it can use its money elsewhere.

    In the case of DBP, it has since been lending directly to LGUs, which raises the issue of conflict of interest for David, who also sits on the LGUGC board but, more often than not, inhibits himself from discussing LGUGC projects.

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