Amid the announcement of Saudi Arabia labor ministry that it is going to implement a ceiling on remittances by expatriate workers including overseas Filipino workers (OFWs) “to protect its economy,” a Filipino migrants rights group yesterday urged the Philippine government to seek clarification on the host government about “salary protection” policy.
Citing local reports, Migrante-Middle East (M-ME) regional coordinator John Leonard Monterona said Saudi labor ministry disclosed last week its plan to implement what it called ‘salary protection’ program under which expatriate workers could only sent a prescribe amount of their salaries to be sent home.
A high-ranking Saudi Labor official was quoted by local newspapers saying, “About nine to 10 workers in the country are foreigners. This has led to millions of riyals being transferred back to their home countries, harming the local economy.”
Based on host government available data, there are around 8-million migrant workers in Saudi Arabia, 6 million of them are employed in the private sector. Expatriate workers are transferring in a form of remittances roughly 100-B Saudi rials to their respective countries.
“The ‘salary protection’ program which the host government announced to implement is a mechanism of control in the outflow of remittance which may violates expatriate workers right on how to manage the fruits of their labor,” Monterona added.
Monterona, however, clarified that the host government labor ministry did not mention how much of the percentage of migrant worker’s income will remain with them and how much is allowed to be sent home to their families once the program is implemented.
“If this will be implemented by the host government, it is but proper for the sending governments, including the Philippines to seek clarification on how it will be implemented as it will surely affect our fellow migrant workers and their families who are dependent on their remittances,” Monterona averred.
Monterona citing POEA 2010 statistics, the 1.2-M OFWs in Saudi Arabia sent $1.5-B remittances on year 2010 placing it 3rd, next to OFWs in Canada (2nd) and those in the United States (1st) with $2 billion and $7.8 billion, respectively.
Last year, a total of $18.76-B remittances sent by OFWs as per POEA 2010 statistics.
Monterona said, in macro-economic perspective, the Saudi government ‘salary protection’ program will certainly affect the Philippines as remittances from OFWs equating to 10 percent of country’s annual gross domestic product is keeping the economy afloat. –Daily Tribune
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