MANILA, Philippines - Recruitment agencies have blamed the law that requires recruiters and employers to pay for the migrant workers' insurance for their sluggish business.
A placement agency in Ermita, Manila used to have long lines of overseas Filipino workers applying for jobs.
Estrelita Hizon, who owns the agency, said this situation can also be observed in over a hundred other recruitment agencies all over the country.
In Hizon's own company, she had to lay off 4 employees when some of her clients overseas stopped hiring workers recommended by her office.
“Like in my case, paalis na iyong tao ko, hindi makaalis-alis kasi ayaw nga ng employer na bayaran. Ang sinabi pa sa amin 'you need us more than we need your people'," said Hizon.
The employers of some domestic helpers in Kuwait almost withdrew the helpers' contracts after learning about the new insurance policy in the Philippines.
The OFWs' jobs were saved only after their recruiter and employers agreed to share the expense of paying for the insurance.
If this obligation is not paid, the Philippine Overseas Employment Administration will not allow the OFWs to leave the country.
“Naiipit na kami. Paano kung iyong Ma'am namin hindi makapagbayad kahit kalahati? Wala silang maibayad kasi lugi marami kami, paano iyon?” asked Agnes Fernandez.
Hizon said she cannot anymore work out similar arrangements for the other incoming job applicants.
The law requires recruiters and employers to pay an insurance of P6,000 for every OFW with a two-year contract abroad.
Right now, the applications of about 50 OFWs are on hold in Hizon's office.
Recruiters complained that they were not even consulted prior to the enactment of the new law.
“Gawin nilang free market naman iyong price. Payag iyong ibang insurance company na ibaba with the same coverage, same benefits. Ayaw ng Insurance Commission baka daw malugi yung insurance company,” lamented Hizon.
The recruiters warn, if the amount of insurance that needs to be paid will not be reduced or if the implementation of the new policy will not be lifted, more OFWs could fall prey to the operations of illegal recruiters. With ANC and Dominic Almelor, ABS-CBN News
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