Protecting Temporary Workers Lessons and Cautions from the Philippines Dovelyn Rannveig Agunias Migration Policy Institute Washington, DC USA [email_address] November 2, 2007

OUTLINE Background: Emigration from the Philippines What is OWWA? Challenges for OWWA

Background: Emigration from the Philippines

What is OWWA?

Challenges for OWWA

I. Deployed OFWs, 1975-2006 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

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

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 ?

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 0.03% 0.2% .95 % (of sea-based workers) Maintained 269 Education for Development Scholarship Program (EDSP) grants Made 1,981 Skills-for-Employment Scholarship Program (SESP) grants Made 2,177 Seafarers Upgrading Program (SUP) grants Education and training 0.01% 0.05% 0.03% 0.02% Made 137 Predeparture Loans (PDLs) to OWFs Made 543 Family Assistance Loans (FALs) to OFWs Made 261 GROCERIAS loans Made 198 loans through OWWA-NLSF Livelihood Development Program Loans 0.11% 0.04% Paid 1,122 OFWs’ claims for insurance and burial benefits Paid 395 OFWs’ claims for disability and dismemberment Insurance 61.83% Assisted 614,697 (local and overseas) workers at 24/7 operations center Workers assistance 1.09% Repatriated 10,834 Repatriation Number of beneficiaries/claims/loans/ grants as a percentage of total membership in 2006 Number of beneficiaries/claims/loans/grants in 2006 Services

Challenge # 2: Migrant Workers Representation and Participation

Challenge # 3: Transparency and Accountability No periodical and accessible update on the fund’s financial standing and, the services rendered in a given period 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

No periodical and accessible update on the fund’s

financial standing and,

the services rendered in a given period

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: Developing mechanisms for protecting the welfare of temporary workers (bilateral agreements or protecting in employment-related matters) Complement offerings of welfare funds

Countries of destination should consider:

Developing mechanisms for protecting the welfare of temporary workers (bilateral agreements or protecting in employment-related matters)

Complement offerings of welfare funds

MARAMING SALAMAT PO! Dovelyn Rannveig Agunias Migration Policy Institute 1400 16th Street NW, Suite 300 Washington, DC 20036, USA Phone: 00-1-202-266-1925 Email: [email_address] Web: www.migrationpolicy.org CONTACT INFORMATION: