Manning agencies oppose SSS coverage of OFWs

by Mayen Jaymalin (The Philippine Star), Jun 18, 2019

MANILA, Philippines — Major associations of local manning agencies yesterday asked the Supreme Court to stop the implementation of the Social Security System (SSS) Rationalization Act, which requires mandatory membership of overseas Filipino workers (OFWs).

They also asked for the issuance of a temporary restraining order against the law, signed by President Duterte in February and which formally took effect yesterday.

In a petition for certiorari and prohibition, the Joint Ship Manning Group Inc. and eight other associations of manning agencies questioned the constitutionality of Republic Act 11199 and demanded that it be declared unconstitutional for containing irrational provisions.

“The irrational provisions of the SSS law must be declared unconstitutional since it gives the impression that it only seeks to collect the much needed funds for the depleting coffers of the SSS,” Oscar Orbeta, one of the petitioners, said during a press conference prior to the filing of petition.
He stressed that manning agencies are not against the compulsory SSS coverage for OFWs, but do not agree with the unfair and arbitrary treatment of Filipino seafarers under the new law.

“We don’t oppose compulsory SSS coverage. What petitioners condemn is the new law’s harsh and irrational provisions imposed on manning agencies,” Orbeta said.

In particular, the petitioners questioned the imposition of new and increased rates, which they said impairs the existing employment contracts of Filipino seafarers.

Another alleged irrational provision is the classification of manning agencies as employers of seafarers, as provided under Section 9-B, when they are mere recruiters for foreign ship owners or employers.

“In a way, the liabilities are being passed on to the manning agencies, the recruiters, instead of the employers. So, instead of the employers being the ship owners, it would now appear that the manning agencies are the employers when all they did really was to recruit the OFWs,” said Blessilda Abad, one of the petitioners’ lawyers.

The new law, Orbeta said, also burdened manning agencies with several liabilities – as provided under the special criminal liability on managers for acts committed by foreign employers – but did not apply the same treatment to recruitment agencies deploying land-based OFWs abroad.

This, he argued, violated the manning agencies’ rights to due process.

The group also cited a difference in the rates of monthly SSS contributions between land-based OFWs and seafarers.

Also yesterday, the Philippine Association of Service Exporters Inc. (PASEI) sought a three-month moratorium on the implementation of the SSS law, which officially took effect yesterday.

Lito Soriano, PASEI official warned that the increased SSS premium as provided under the new law and the impending Philippine Health Insurance Corp. (PhilHealth) premium hike can lead to further decline in hiring of Filipino workers abroad.

Soriano said the deployment of Filipino workers in the Middle East and other countries dropped by half in the past three years and requiring foreign employers to shoulder the cost of SSS and PhilHealth may discourage them from hiring OFWs.

Under the new law, newly hired OFWs are required to pay in advance the P960 per month SSS premium while returning workers will pay a three-month contribution amounting to P2,880 or they will not be issued the mandatory overseas employment certificate (OECs).

Acting PASEI president Racquel Bracero said OFWs would also shoulder the 1.5 percent yearly increase in SSS premium for the next six years, aside from the burden of paying for the PhilHealth premium.

“While the program is good in itself, payment for the premiums of Pag-IBIG, PhilHealth and SSS should be made voluntary and not tied to the issuance of OEC,” Bracero said as she expressed fear that such impositions will drive Filipinos to leave the country illegally.

The Blas Ople Center shared the sentiments of the recruitment and manning agencies, saying the government should take it slow in enforcing premium hikes for OFWs.

“The outlook for OFWs is not at its brightest with tensions rising throughout the Middle East. Any imposition of additional financial burdens would push our workers away from existing legal deployment channel,” Center head Susan Ople said.

Ople said SSS and PhilHealth should look into the concerns of OFWs before fully implementing the premium hikes.

SSS president and chief executive officer Emmanuel Dooc said requiring all OFWs to become members of the SSS will secure their retirement through entitlements to lifetime pension benefits.

He lamented that less than 600,000 of an estimated three million OFWs are registered as SSS members. – With Edu Punay