3rd Quarter 2009 Accomplishment Report

POLO-Tokyo Third Quarter 2009 Accomplishment Report

Introduction According to Japan’s major newspapers1, the government’s “tankan” survey showed that Japanese companies are more optimistic now compared to three (3) months ago. Aggressive spending by Japan’s trade partners, especially China, has helped push export demand and factory output allowing industrial output in August to rise 1.8 percent from the previous month. Household spending also rose 2.6 percent from a year earlier despite a two (2) percent drop in average monthly income. But while business confidence is upbeat compared to before, companies remain anxious about investing in workers or factories. Falling investments in plant and equipment and a sluggish domestic demand still remain causes of concern particularly among small and medium companies. At the employment front, the situation remains weak despite the jobless rate improving slightly in seven (7) months. Government economic data revealed that the unemployment rate fell slightly to 5.5 percent in August from a high of 5.7 percent the previous month. But the total number of those who are unemployed increased 890,000 to 3.61 million from a year ago. The overall ratio of job offers to job seekers remained at a record low of 0.42. This means that there were only about 42 job offers for every 100 job seekers. Moreover, it is possible that in the coming months, the labor market could get worse as the benefits created by the economic stimulus measures by the Aso government are expected to narrow down and companies are likely to mount additional job and wage cuts to boost company profitability this year. According to one report, about 239,000 nonregular workers are expected to lose their jobs between October 2008 and December this year due to termination of employment contracts. Temporary workers dispatched by recruitment companies and/or staffing agencies will account for 60 percent of these, or about 142,000 workers. Regular and full-time workers, about 48,000 of them, are expected to lose their jobs in the same period. Clearly, the global financial crisis, despite signs of bottoming out, has put Japan’s economy in a painful situation and is threatening the economic well-being of its people. Overall, the labor market is quite bleak and the economic outlook remains uncertain. The election win by the Democratic Party of Japan could lead to brighter prospects and an opportunity for much stronger economic recovery abilities which could, in the longer term, translate to more positive economic implications. Against this backdrop, POLO-Tokyo pursued its objectives of employment facilitation, OFW protection and welfare services, policy advocacy and networking for the period ended September 2009. The following are the highlights of POLO-Tokyo’s accomplishments during the period covered:

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As reported in the October 2, 2009 issue of the Asahi Shimbun, and the October 3, 2009 issue of the Japan Times.

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Employment Facilitation Confirmation of Procedures Related to Employment Contracts. The number of companies recommended to POEA for accreditation as principals expanded by about four (4) times (+323) in the period ended September 2009. This figure is mainly due to the new policy of instituting a recommendation process in lieu of authentication and/or verification of documents for Filipino performing artists in Japan since September 2008. As a consequence, the Post referred to POEA a total of 432 companies from 109 companies recorded last year (Table 1). Table 1: Confirmation of Procedures Related to Employment Contracts and Issuance of OECs and ECCs, Third Quarter 2009 3Q 2009

3Q 2008

Increment

Number of Contracts Recommended For Registration to POEA

432

109

+323

Number of OECs Issued

449

397

+52

Total Amount Collected from OEC Fee (In Local Currency: Yen) Number of ECCs Issued

112,250

297,750

14

32

-185,500 -18

Source: POLO Tokyo, 3rd Quarter 2009

On-site Issuance of Overseas Employment Certificates (OEC). From July to September 2009, the number of OECs issued on-site totaled 449 (up by 13.10 percent) OECs issued benefiting the same number of OFWs compared to 397 OECs issued on the same period last year. This figure translated to about ¥112,250 collected for the payment of the OEC fee which is 62.30 percent lower than the amount collected last year. This is due mainly to a decrease in the collection fee amount from ¥750 per OEC last year to just ¥200 per OEC in February and ¥250 starting May this year. On-site Issuance of Escrow Clearance Certificates (ECC). Escrow clearance certificates (ECCs) were also issued at Post to assist principals who were withdrawing escrow bond deposits because of cessation of their business operations. From July to September this year, 14 ECCs were issued which is 56.25 percent lower compared to the 32 ECCs issued last year. On-site Verification/Review of Documents. The verification/review of documents related to the hiring of Filipino workers basically ensures that the contract (between the Filipino worker and his employer in Japan) is in compliance with POEA rules and regulations and its terms and conditions are at par with what is prescribed under Japanese 2

laws and standards. For the third quarter of 2009, about 44 documents were verified by POLO-Tokyo, benefiting 1,197 workers. Verified documents during the first half of 2009 involved contracts of mostly overseas performing artists (1,061) and engineers and other skilled workers/professionals (124). Looking more closely at these figures, the number of skilled workers involved decreased by 37 percent from 196 to 124 workers, due mainly to cost-cutting measures implemented by many small and mid-sized employers. In contrast, the number of overseas performing artists involved was not as greatly affected but instead grew by 31 percent from 810 last year to 1,061 requests for overseas performing artists in the third quarter of 2009. Table 2: On-site Verification of Documents, Third Quarter 2009 3Q 2009

3Q 2008

Increment

Total Number of Documents Verified On-site

44

48

-4

Job Orders Recruitment Agreements Manning Agreements Special Power of Attorney Trade License (Company Registration)

11 11 0 11 11

12 11 1 12 12

-1 0 -1 -1 -1

1197

1038

+159

12 1061 0 124

14 810 18 196

+2 +251 -18 -72

Total Number of Workers Involved (as per Job Order) HSWs Overseas Performing Artists Seafarers/Manning Personnel Skilled Workers (i.e., engineers, IT workers) Source: POLO Tokyo, 3rd Quarter 2009

Labor Market Information. As of end of September 2009, Post prepared a total of 26 reports which included policy recommendations forwarded to DOLE Head office. Social Protection and Welfare Services for OFWs OWWA Membership Promotion Program. OWWA Membership Promotion Program during the third quarter of 2009 resulted in the enrolment or renewal of membership of 257 OFWs in OWWA – an increase of about 74 percent (+109) from the year ago OWWA membership. Total revenue collection reached USD 6,455.36 which increased by 79 percent compared to the amount collected during the same period last year (Table 3). Workers Assistance Program. Post handled a total of 37 welfare cases during the third quarter of the year, which is 31 percent lower than the 54 cases recorded last year. Of these cases, some 37 workers were involved complaining about illegal recruitment, unpaid salaries, maltreatment, confiscation of passports, sexual assault, and contract violations. Some cases also involved request for repatriation, temporary shelter, legal advice, report of 3

status of detention and whereabouts, and assistance in filing insurance claim and in securing travel documents. Out of the 37 cases managed by the Post, 20 were resolved or closed while the rest remained pending for resolution at the end of the September 2009. Table 3: Number of OFWs Enrolled to the OWWA Membership Program, Third Quarter 2009 3Q 2009 Number of OWWA Membership Total Amount Collected from Membership Fee (Currency: USD)

3Q 2008

289

148

6,455.36

3,603.31

Increment +141

+2,852.05

Source: POLO Tokyo, 3rd Quarter 2009

Repatriation. Post recorded three (3) cases of on-site repatriation assistance during the period in review. Repatriation assistance included provision of transfer assistance to airport and temporary shelter; facilitation of issuance of travel documents; and coordination with concerned employers, agencies and government authorities. These cases were also coordinated with OWWA RAD for airport transfer, ambulance and legal assistance. Employers shouldered the repatriation expenses in most cases. Policy Advocacy Post updated its Report to Congress on the working conditions of and problems encountered by OFWs in Japan, recommending policy interventions designed to minimize if not eliminate unfavorable working conditions for skilled Filipino professionals about to work in Japan. On 24 September 2009, Post participated in the Tokyo Conference on Japanese-Filipino Children organized by the International Organization for Migration (IOM). The Tokyo conference is a follow-up activity to the first National Conference in Manila in June this year. The Tokyo conference will build upon the objectives and results of the Manila Conference.

On-site Networking, Linkages and Other Key Activities Creation of networks and linkages are an essential component of the development program at the Post. The aim is to explore and sustain cooperation with both local and international institutions for purposes of resources sharing by way of conferences and seminars, professional or worksite and welfare-related visits, publication exchanges and donations.

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On 19 July 2009, Post participated in the Filipino-Japanese Friendship Ceremony and Induction of the 2009 United Filipinos for Peace and Advancement (UFPA) Officers Ceremony in Kawasaki City. Labor Attaché Danilo P. Cruz was the guest of honor and induction officer during the event. The labor office spearheaded an outdoor get-together held last 09 August 2009 for the Filipino community representatives in Tokyo. The gathering was in appreciation for the participation and efforts made by them in relation to the recent visit of President Gloria Macapagal Arroyo to Japan.

On 06 September 2009, Labor Attaché Danilo P. Cruz was the guest of honor and induction officer at the Japan Association of Novo Ecijanos (JANE) Induction of Officers Ceremony in Tokyo. On 29 September 2009, Japan International Training Cooperation Organization (JITCO) commenced the opening ceremony of its Support Program for Japanese Language Education Prior to Dispatch (JLEPD). Labor Attaché Danilo P. Cruz delivered a speech

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during the ceremony. In the afternoon, Filipino participants to the JLEPD program visited the Philippine Embassy. Consul General Sulpicio M. Confiado and Labor Attaché Danilo P. Cruz welcomed the participants and shared afternoon snacks with them. JPEPA Nurses and Caregivers Observation Mission. On 14-15 August 2009, Labor Attaché Danilo P. Cruz and Welfare Officer Ma. Luz L. Talento visited two (2) facilities in Okayama Prefecture, namely Momotaro Rehabilitation Center and the Kibikogen Synthetic Welfare Center. On the second day, they visited the candidate caregivers studying Japanese language at the Hiroshima International Center. On 9-10 September 2009, Welfare Officer Ma. Luz L. Talento and Mr. Dennis M. Cabato of the Philippine Overseas Labor Office (POLO-Tokyo) were on location to carry out an observation mission this time in Nagoya City, Aichi Prefecture (IC NAGOYA training facility) and in Osaka City, Osaka Prefecture (AOTS KANSAI KENSHU CENTER). The observation mission carried out its objectives well and was an opportunity to note down some of the concerns and issues brought up by the nurses and caregivers under the JPEPA. In each of these locations, an open forum was held to entertain questions from the nurses and caregivers. The questions ranged from provisions of employment contract, leave of absence from work, the board exam, and other concerns related to their working conditions. Overall, the nurses and caregivers were in high spirits and renewed their commitment to finish the program.

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