Saudi recruiters endorse 'ladderized' pay scheme

Recruiters of Filipino domestic helpers in Saudi Arabia prefer a proposed “ladderized salary scheme" over the $400 minimum monthly rate under the guidelines of the Philippine Overseas Employment Administration (POEA) in the deployment of household service workers (HSWs). This was learned from a report over the weekend by Jeddah-based Filipino reporter Romy Tangbawan for Arab News. The report said the Saudi Philippine Business Council (SPBC) considered the proposal raised by the Philippine Association of Service Exporters, Inc (PASEI) as “acceptable and reasonable." PASEI is said to be the biggest group of recruitment agencies in the Philippines. The group is seeking a compromise to the POEA guidelines that fully took effect beginning March 1. Arab News reported that SPBC chairman Waleed Al-Swaidan sent a letter dated Feb 25, 2007 to PASEI, indicating his group’s willingness to open more discussions on the ladderized salary scheme as an alternative to the $400 minimum monthly rate. PASEI supports the POEA policy requiring HSWs to undergo skills training and language proficiency test, and to secure a certificate of competency. The group recommends a graduated salary scheme as follows: • Minimum of $200 for ordinary, all-around first-timer HSWs; • $300 for HSWs cum sewer, dress-maker, cook, or babysitter; • $400 for HSW cum tutor, governess or caretaker. PASEI said higher salaries, upon contract renewal, could even be negotiated between the employer and employee. According to the Arab News report, Al-Swaidan warned in a letter to PASEI dated Jan 27 that the $400 minimum monthly salary for domestic helpers from the Philippines would have disastrous effect on the entire industry. He described the $400 minimum salary rate as “exaggerated," and which could lead to contract substitutions with employers forcing the Filipino domestics to sign another contract that prescribes lower salary rate. Worse, employers may refrain from hiring domestic helpers from the Philippines since there are countries offering a lower rate. The increased minimum salary is part of a package of reforms approved last year by the POEA Governing Board, whose members include representatives of service exporters, seafarers, land-based overseas contract workers, and the private sector. The guidelines also raised the minimum hiring age to 23, from 21. HSW is defined to mean not just domestic helpers but any Filipino worker hired for household-related work, including gardeners, caregivers, live-in cooks, dressmakers and babysitters. The Arab News report said Saudi employers are now reportedly no longer allowed to deal directly with Philippine recruitment agencies. They have to pass through Saudi recruitment agencies, who will then act as middlemen. PASEI President Victor E. R. Fernandez Jr., in his reply to Al-Swaidan, said his group had already informed President Gloria Macapagal Arroyo as early as December 2006 about the “middle ground" on the minimum pay issue for domestic workers. He said that “although the concern and motive" of the POEA’s new rule was “very noble," it could “cause havoc" in the overseas employment industry" with everyone, including midwives and teachers, joining the “mad dash" to apply as household workers in view of the minimum entry level salary of $400 even for those trained only for a few days or weeks. “The POEA will actually be promoting inadvertently the deployment of domestic helpers," said the letter signed by Fernandez. It said the $400 minimum entry pay for HSWs would also create distortion and disparity of wages, with an ordinary skilled carpenter or construction worker, electrician or a semi-skilled worker, cleaner or janitor becoming disadvantaged vis-à-vis an HSW. PASEI also warned that seasoned or experienced Filipino HSWs who are receiving a salary lower than $400 could develop ill-feelings toward a new comer who is going to be paid $400. The PASEI further expressed concern that while Taiwan, Hong Kong and Israel may be able to comply with the minimum salary requirement, it could result in rampant contract substitution, decrease in reproduction of job orders, and increase in illegal recruitment activities. For want to work abroad, an HSW connives with the foreign employer by signing a $400 monthly salary contract just to comply with the POEA rule, but will sign another “true" contract agreeing to receive a much lower monthly salary, Arab News reported.. There may also be incidents where an applicant’s contract would be processed as a cleaner or janitress at a lower salary to avoid the minimum salary rule for HSWs, but the worker will actually be a domestic helper. Employers bent on avoiding to pay $400 will require their HSWs not to be documented as a contract worker nor be processed by the POEA. They will be made to travel abroad on a visit or tourist visa or under the so-called direct-hiring or “free" visa, thus depriving the worker of coverage of the OWWA membership. -GMANews.TV