Law ‘may hit remittances’
By EUNICE del ROSARIO
Published: 20 November 2006
BAHRAIN recruiting agencies are backing a new study predicting losses of up to $250 million (BD94.5m) in annual remittances to the Philippines if it approves a new proposal to double Filipina housemaids’ pay to $400 (BD151).
A wage rise would mean that foreign employers would turn to other expat maids willing to work for less, leaving many Filipina domestic helpers unemployed, according to a study compiled by the Philippines-based Federated Association of Manpower Exporters (Fame).
It is estimated that eight million Filipinos work overseas, out of which officials estimate that 80,000 work as maids in various countries.
Law ‘may hit remittances’
By EUNICE del ROSARIO
Published: 20 November 2006
BAHRAIN recruiting agencies are backing a new study predicting losses of up to $250 million (BD94.5m) in annual remittances to the Philippines if it approves a new proposal to double Filipina housemaids’ pay to $400 (BD151).
A wage rise would mean that foreign employers would turn to other expat maids willing to work for less, leaving many Filipina domestic helpers unemployed, according to a study compiled by the Philippines-based Federated Association of Manpower Exporters (Fame).
It is estimated that eight million Filipinos work overseas, out of which officials estimate that 80,000 work as maids in various countries.
Overall remittances to the Philippines grow yearly and is expected to reach the $13 billion (BD4.9bn) mark.
A Bahrain Recruiters Society (BRS) spokesman told the GDN yesterdaythat manpower agencies in the country were supportive of the new study, which they hope would enlighten the Philippine government.
“Here in Bahrain, not only has the BRS slammed the plans of increasing the salaries of Filipina maids from $200 to $400 but the Labour Ministry has also stated that any minimum wage for maids was not legally binding.”
The Fame study, released earlier this month, showed that the loss – which is equivalent to the amount of money annually remitted home to the Philippines by the estimated 80,000 Filipino housemaids overseas – was just one of the economic repercussions of the wage hike.
Fame chairman Alfredo Palmiery told reporters in Manila that because of the new regulation, not only would recruitment agencies suffer, but also banks, medical clinics, training centres and families of housemaids who want to work abroad.
During a meeting held in Manila earlier this month, representatives of recruitment agencies agreed that a higher wage peg for Filipina maids would make foreign employers turn to other foreign domestic workers willing to work for less.
Filipino recruiters are pinning their hopes on Philippines President Gloria Macapagal-Arroyo.
Fame president Eduardo Mahiya appealed to the president to hold off the implementation of what his group described as “an unrealistic wage hike for the sake of the families of Filipino domestic workers”.
But Philippine Embassy labour attaché Alejandro Santos told the GDN yesterday that he and his staff would stand by what they said in the meeting held last September at the Labour Ministry, in Isa Town.
The closed-door meeting was chaired by ministry labour relations director Shaikh Ali bin Abdulrahman Al Khalifa and attended by representatives from the Bangladeshi, Indian, Indonesian, Pakistani, Philippine and Thai embassies.
There is no minimum wage for foreign workers in Bahrain, said the ministry official at the meeting.
“The salary of housemaids is an issue between the sponsor and the employee,” he added.
Mr Santos said during that meeting it was the embassy’s job to carry out orders of the Philippine government. “We are not forcing anyone to hire Filipina maids,” he said.
“Other than the minimum wage issue, there are still many other issues that need to be tackled – including the persistent problem of illegal recruiting of our nationals.
“Other problems faced by maids in Bahrain include maltreatment, sexual abuse, delayed or even non-payment of salaries – the list goes on.”
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