GRP UNVEILS MAJOR ANTI-TRAFFICKING INITIATIVE FOR

C O N F I D E N T I A L SECTION 01 OF 02 MANILA 005007 SIPDIS SIPDIS STATE FOR EAP/MTS, EAP/RSP, DRL/IL MMITTELHAUSER, G/TIP SNEUMANN, DEPT OF LABOR FOR ILAB GSCHOEPFLE E.O. 12958: DECL: 12/12/2016 TAGS: ELAB KCRM KTIA PHUM RP SUBJECT: GRP UNVEILS MAJOR ANTI-TRAFFICKING INITIATIVE FOR OVERSEAS HOUSEHOLD WORKERS REF: KUWAIT 4649 Classified By: Scott D. Bellard for reasons 1.4(b) and (d). ¶1. (SBU) Summary: The Philippine Overseas Employment Administration (POEA) recently issued new employment requirements designed to better protect overseas Filipino household workers from trafficking. Among other measures, the new requirements increase the monthly minimum wage from $200 to $400 and raise the minimum age from 18 to 25. While officials publicly state that the new rules are necessary to reduce the damage to the family structure of overseas household workers, POEA officials privately indicate the actual intent is to protect household workers from widespread employer abuse and trafficking in persons. POEA officials estimate the measures will result in a reduction of up to $432 million in remittances annually, but have determined that the benefits to Filipino workers outweigh the costs. The GRP initiative is a positive step that may significantly reduce the number of Filipino trafficking victims overseas. End Summary. ¶2. (SBU) Stella Banawis, Director of Pre-Employment Services at POEA, the office responsible for issuing overseas worker requirements, told Poloff December 13 that the POEA Governing Board, an interagency board chaired by the Secretary of Labor, had adopted new measures to significantly reduce the number of Filipino household workers going overseas, currently estimated at 80,000 annually. In addition to the minimum wage increase and higher minimum age requirements, the new rules also provide that: - Placement costs, typically one-month's salary, will no longer be charged to the employee; - Household workers will be required to secure a Certificate of Competency issued by the Technical Education and Skills Development Authority (TESDA) to attest to their skills; - Household workers will be required to attend a country-specific language and culture orientation course conducted by the Overseas Workers Welfare Administration; - Foreign placement agencies and employers will be required to submit employment contracts for verification of compliance to Philippine Overseas Labor Offices; - Requirements take effect December 16 and immediately apply to new household workers; requirements will apply to current household workers upon renewal of contract. ¶3. (C) Banawis claims the measures were necessary because while household workers account for approximately 10 percent of all overseas workers, they represent 90 percent of all complaints to Filipino labor attaches worldwide. The complaints range from verbal abuse to rape and, in some cases, trafficking for prostitution. Though Banawis was unable to provide concrete data, she alleged that the problem is particularly severe in the Middle East, where "several" abused Filipino women commit suicide every year. According to Banawis, POEA officials believe the problem to be so serious that they sought to bar overseas employment of household workers altogether. However, fear that some countries would retaliate by barring all Filipino overseas workers, including highly-paid professionals, prevented them from issuance of a total ban. Banawis, a lifelong POEA employee, claims the Philippines tried an outright ban for household workers in the 1990's but rescinded it after Saudi Arabia responded with an outright ban on all Filipino workers. ¶4. (C) Although the minimum wage for overseas household workers is currently -- and has been for over 20 years -- $200 per month, many are actually paid less, particularly in the Middle East. It is a common practice for employers to illegally deduct room and board from salaries, and wages are typically $150 per month or less. The practice is so widespread that household workers often leave the Philippines fully cognizant that their wages will be lower than the required minimum (reftel). In addition, recruiters generally garner at least one month's wages as their standard fee, leaving the worker little to send home. According to Banawis, a substantial number of household workers are not paid at all. Though Banawis produced no concrete evidence, she offered anecdotal information that significant numbers of Filipino household workers are subjected to trafficking for MANILA 00005007 002 OF 002 prostitution. ¶5. (SBU) While wages tend to be lower in the Middle East, other countries, such as Taiwan, Hong Kong, Israel, and Canada pay significantly higher -- in many cases well over the new $400 monthly minimum. Thus, the overall average monthly remittance is approximately $150 per household worker. POEA officials calculate that the estimated 300,000 Filipino household workers worldwide account for approximately $540 million annually in remittances to the Philippines. They preliminarily estimate that the measures will result in a 60-80 percent reduction in the total number of overseas household workers, with a corresponding decrease of $324-432 million in annual remittances. Given that an average of only 50 household workers are deployed to the U.S. each year, the new requirements will have no effect on U.S. remittances to the Philippines. ¶6. (SBU) Comment: The new GRP initiative is a step in the right direction that may significantly reduce the number of Filipino household workers induced or coerced into prostitution worldwide. The GRP has justifiably targeted the occupation most at risk and, because the potential for trafficking is greatest in locations where wages are lowest, the impact of the new requirements will be greatest precisely where it is needed most. Conversely, the new measures will have no impact in countries like Israel and Canada, where wages are already considerably higher than the new minimum salary, and where cases of trafficking are rare. Visit Embassy Manila's Classified website: http://www.state.sgov.gov/p/eap/manila/index. cfm You can also access this site through the State Department's Classified SIPRNET website: http://www.state.sgov.gov/ KENNEY