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Pinoy Abroad

OFWs may lose Taiwan jobs as firms buck mandatory insurance – recruiters


Criticism against the compulsory insurance policy of the Philippine government for overseas Filipino workers continue to mount, with Taiwanese employers also threatening a moratorium on hiring Filipino workers unless the policy is scrapped. The Pilipino Manpower Agencies Accredited to Taiwan Inc. (PILMAT) said companies in Taiwan have threatened to cancel some 50,000 job orders for Filipinos next year and instead source workers from other countries, such as Indonesia and Vietnam, if the government insists on implementing the policy. “With the imposition of this insurance scheme, we will lose our competitiveness in the labor market," PILMAT president Jackson Gan said. Gan said Taiwanese companies have expressed “strong opposition" to the policy, as labor laws in the island already mandate insurance coverage for contract workers. According to Gan, Taiwan’s labor laws mandate personal insurance for contract workers, with coverage amounting to $800,000 NT dollars or about P1.2 million, and group insurance covering all workers in the facility. “This is definitely superior to the insurance coverage under the (Philippine) law," Gan maintained. The compulsory insurance coverage, under Republic Act 10022 which took effect on November 8, requires employers or recruiters to secure a two-year policy coverage for overseas Filipino workers (OFWs) amounting to a fixed rate of US$144, on top of the premiums. The policy includes benefits of $15,000 in case of accidental death; $10,000 in case of natural death; and $7,500 in case of permanent disablement, including repatriation costs, subsistence allowance benefit, money claims, compassionate visit, medical evacuation and medical repatriation. A certificate of cover provided by an insurance company that is licensed and certified by the Insurance Commission is now required before the issuance of overseas employment certificate or exit clearance of agency-hired overseas workers. Hong Kong-based news sites earlier reported some 100 employers have canceled contracts for Filipino domestic helpers to protest the new law, as households already shell out about HK$900 every two years for foreign domestic workers’ insurance as mandated by the region’s laws. Amid issues with the new law, the Philippine Overseas Employment Administration (POEA) maintained it is merely implementing the law, and that it will have to consult Congress about exempting Hong Kong and Taiwan from the law. POEA administrator Jennifer Manalili added that while it recognizes that some countries or destinations provide insurance policies for OFWs, these do not cover all risks required under Republic Act 10022. Recruitment consultant Emmanuel Geslani, however, said Taiwan and Hong Kong offer better insurance coverage to workers with higher death benefits. He added some employers in Hong Kong also offer their workers a comprehensive insurance package, which includes medical benefits. Geslani warned that the country stands to lose some 80,000 jobs in Taiwan and Hong Kong if the POEA insists on implementing the new policy. Manalili earlier said the POEA has already asked Labor Secretary Rosalinda Baldoz to “immediately" convene the inter-agency committee on insurance to discuss the issues in implementing the compulsory insurance. Records from the POEA show over 280,000 Filipino workers were deployed to Taiwan in the last seven years, most of whom are caregivers and workers in the electronic and manufacturing factories. As of December 2009, the Commission on Filipinos Overseas has recorded over 90,000 Filipinos in Taiwan, whose remittances have reached over US$91 million in 2009. – Jerry M. Abella/KBK, GMANews.TV

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