EDITORIAL

Bright forecasts, dilemma of overseas Filipino workers

Relief is on the way for overseas Filipino workers OFWs hard-hit by the continuing spike in the value of the peso against the US dollar, according to government officials like Labor Secretary Arturo Brion who said the Development Bank of the Philippines is set to open a special facility that would guarantee a fair return on the remittances of Filipinos working abroad.

He said the facility would reduce the high transaction costs on OFW remittances sparked by the rise of the value of the peso against the US currency. Brion bared this during the “The Cabinet Speaks” television program hosted by Undersecretary Martin Crisostomo, with co-host Paolo Romero of the Philippine Star.

The labor chief said he and DBP Chairperson Patricia Sto. Tomas are scheduled to meet in Hong Kong in a few days to inaugurate a “hedging program.” Under the program, the remittance-deposit by a group of OFWs for a certain period would enjoy a guaranteed return, and a measure of protection against the fluctuating peso-US dollar exchange rate.

“This is not only for the Development Bank of the Philippines. I would hope that in due time other banks would catch on and offer similar if not the same measures,” Brion said. He added he is encouraging OFWs to avail themselves of the hedge program to increase their savings and avoid the pitfalls of the so-called “rags-to-riches-to-rags syndrome. “As far as I know this is a facility that is available,” he said. “What is necessary is there should be a group of employees who will band together.”

President Gloria Macapagal-Arroyo ordered Brion last month to adjust the per-contract membership fee collected from OFWs to P42 per US dollar effective this month to ensure that the earnings of OFWs are protected against the fluctuations of the peso-dollar exchange rate.

This, as prospects for Filipinos seeking employment abroad remain rosy, Brion said pointing out that job opportunities still abound for Filipinos in many foreign countries. “For example in the past two years, we have always topped the one million level of overseas Filipino workers. And I would say that for 2008, we will easily top the one million level.”

Although it is not a policy of the government to send workers abroad, Brion said OFWs continue to help the country’s economic growth through their remittances, especially the OFWs belonging to the higher pay levels.

“One reason why we have steep remittances now is, in 2007, we had more professional and skilled workers going overseas rather than non-skilled workers,” Brion said. In 2006, he said that 60 percent of the more than one million Filipinos who worked abroad were professionals, while 40 percent were non-skilled workers.

In 2007, deployment of skilled overseas workers reportedly increased to 73 percent compared to 27 percent for non-skilled workers, including domestic workers. Brion attributed the shift in the employment pattern of OFWs to the household service worker reform package established last March wherein the Philippines set a minimum $400 salary for Filipino household workers deployed abroad.

He said Filipinos with higher opportunities for deployment abroad are topped by those coming from the medical and health, information and technology, and services sectors. Nurses were reportedly not affected by the nursing examination scandal last year, citing the big employment opportunities in Europe, Canada and even Saudi Arabia .

He said that last year, the Philippines could only send about 3,000 of the 5,000 needed by Saudi Arabia . However, Brion said the DOLE and Department of Health would also adapt a new policy in the deployment of nurses so as not to affect the operation of local hospitals and clinics. Call these positive thinking. But while the peso is “going stronger,” the OFWs are reeling from diminished value of their monetary remittances.