Feasibility Study on the Establishment of Migrant Welfare Fund Programmes in Laos

Transcription

1 Feasibility Study on the Establishment of Migrant Welfare Fund Programmes in Laos LAO PDR CONTEXT Sanya Vathanakoune, National Consultant May 2015

2 Feasibility Study in Laos The Aim is to build consensus and understanding among the government agencies and key stakeholders of the future needs and commitment required to implement the welfare fund project. Objectives of study Background Lao Government/ MOLSW and LTU ILO / Regional and in Lao PDR Lead Consultant National Consultant Describe the profile of migrant workers in Laos Analyze the current welfare program and support services for migrant workers Analyze opportunity and challenge in current labour migration governance system. Identify the recommendation and action to be taken in order to develop migrant welfare fund in the future.

3 Methodology The Concept mission was conducted between the end of December 2014 and January Results Conception mission Develop feasibility design Desk research, literature review Key stakeholder interviews, Informant interviews, Data analysis and report writing 14 Key informant interviews/ Ministries & mass organization (1 pro) 6 INGOs/UN agency and NGO 22 Distressed worker interviews (returned home) NA/ for worker who are going to leave for working aboard and FGD

4 FINDINGS Current national trends and challenges in the provision of welfare services to migrant workers Current national policies and frameworks on government protection and welfare services to migrant workers Needs assessment for a national migrant welfare fund programme Views of the national government and other stakeholders for establishing a national MWF programme

5 Lao migrant Situationand Trend Laos faces an increase in the number of migrants leaving the country to seek employment in foreign countries, mostly in Thailand through unofficial channels. A large amount of labour migration to Thailand began in the 1990s. Adoption reform programme of the New Economic Mechanism in 1986/ CDRI, 2009 An open door policy to the region and the economic development of Thailand Information, transportation & communication networks linking the two countries were built to facilitate the movement of goods, capital and labour Crossing the border to visit family, trade, or work is common activity without legal channels. Lao & Thai speak a similar language, same religion, culture & have family members or relatives living on the Thai side. However, these are populations who are irregular labour migration through irregular channels and constitute major part of labour movement

6 Lao migrant Situation and Trend(Cont ) There is no official figure for the number of Lao migrant workers in Thailand. Champasakpro is highest number of migrant workers as 84.1% of all Lao migrant workers in Thailand and 83.7% is from urban area, 73.7% migrated during year of 2000 to 2003, and less than 5% migrated before year of 1989/ ILO 2003 There is no reliable statistics of Lao migrant workers in Thailand but recent estimates vary from 150,000 to 300,000/ CDRI, 2009 An estimated 588,561 Lao migrant workers were employed worldwide in 2010 and this number increased even more by 2013/SDC, 2014 Labour migration between the two countries of Laos and Thailand is not new. There is a long history of good relationships between villagers on both sides of the Mekong River

7 Lao migrant Situation and Trend(Cont ) Table 1 compared the data information from two sources within MOLSW Descriptions PCD SKDR PCD SKDR PCD SKDR PCD SKDR Internal employment 23,072 50,066 50,066 21,133 16,790 47,882 Labour export 33,588 7,414 7,414 22,537 20,495 8,304 Nationality Verification 25, ,798 9,756 0 New Application 7,464 15,944 15,944 19,350 18,847 6,249 Remarks/Source: 1. PCD: Planning and Cooperation Department, MOLSW. 2. SKDR: Skills Development and Recruitment Department, MOLSW

8 Lao migrant Situation and Trend(Cont ) Estimates of Lao Migrant Workers in Thailand, , , , , , , , , , , ,000 KKE MOLSW 100,000 50,000-33,588 20,495 7,414 8, Sources: Estimated based on KKE (KhonKaenExpert) consensus, at a September 2013 meeting at KhonKaenUniversity, that there were approximately 300,000 Lao migrant workers in Thailand, legal and illegal combined. Other, MOLSW/ Laos (Dec, 2014) (registration). Remark: the information based on citation in the report of Labour Migration and Remittance/SDC

9 Gender and Occupational Distribution According to Huguetetal(2011), cited in report by SDC, The top five occupations the 110,854 registered Lao migrant workers in Thailand: Household work (19.2%), Agriculture(16.3%), Other (11.8%each) and food sales (11.8%) and Construction (11.4%). Others were trade, garment, agricultural processing, etc. Most females (31%) engaged in household work and food sales (14%), while most males engaged in agriculture (21%) and construction (16%).

10 Remittance For this study. Most of all informants sent remittance to their families left behind. There were 20 out of 22 informants Sending with different amount from Thai baht (US$30-300) per month on average 3,212 Thai baht (US$107) The remittances sending by 11 through bank in Thailand into Brokers account in community, 6 by money transfer operators, 2 by informal channel, and 1 by other workers. 2 / did not send because one receive very low wage and one was violated and exploited by their employer with no pay wage

11 CHALLENGES Legal Policy Framework Opportunity The Labour law state in the Section X: Labour fund with 3 articles (Aims, Source, and Administration and use of fund) In the section XIV: Tripartite Organization: Labour Administration Agency, Agencies Representing Employers, and Agencies Representing Employees. The article 155 (Labour Administration Agency):The Government is the central body that manages labour uniformly across the nation by appointing the MOLSW as the body directly responsible for coordination such management with relevant local sectors and authorities.the Labour Administration Agency MOLSW, LSW Division of province, LSW Office of district, and LSW Units at the village. Under the Labour law. The MOLSW and Division of LSW of province responsible for the administration and use of funds as article 156/10 with statement Administer, use of labour funds in Accordance with the law. Challenge It is not clear statement outline that which organization the labour fund belongs to (central or provincial level). There is no direction for when, who, or how to collect money contribution into labour fund. What kind of service the fund will provide, There is no the condition and criteria of member and beneficiary. It requirescreating the regulations and direction how to conduct the labour fund in practice.

12 CHALLENGES (Cont ) Opportunity Structure The MOLSW: The Dept of Skills development&recruitment Under the Labour law (Article 161). National Labour Committee,is comprised of representatives from major tripartite organizations. the Lao National Chamber of Commerce and Industry (Est 2009) Decree No 316/PMO, The employers Organization is one central level organization, is the representing of the enterprises and private company, consulting and negotiating with Lao Gov to address the business problem in order to facilitate the business activity in line with legal documents and framework. The LTFU,LTFU is responsible for protection the rights and benefits of Lao workers, so it is its rights and duties to support this fund establishment in accordance with the laws. INGOs is to play important roles in supporting welfare fund for Lao migrant workers. Challenge The organization is not functioning well because it is lack of staff, limited knowledge and skills, lack of financial support, lack of cooperation mechanism No respect the roles and duties. There is no any recruitment agency to register for membership, so it is not functioning well. The recruitment agencies do not contribute for payment and responsible for any task with no profits for them

13 Opportunity Services CHALLENGES (Cont ) Challenge The recruitment agencies serve Lao migrant workers in the whole migration cycle: Pre departure, During their time aboard, and Post complete contract. The enterprise is first person to contact with labours and will be the person who they will trust to make decision for registration It requires having a professional staff that have knowledge, skills, and understanding about safe migration and welfare fund to ensure that migrant workers register to be welfare fund members. The enterprises do not want to pay contribution into labour fund whether ignore to provide the information to migrant workers and refuse to assign new staff to be social worker/counsellor Because of limited resources

14 The Section X: Labour fund (Labour law) CHALLENGES(Cont ) Article 136: Labour Fund Aims A labour fund is a fund created to serve the creation and development of labour skills, assist Lao employees working aboard, and assist foreign employees working in the Laos. Article 137: Sources of Labour Fund 1. One percent (1%) of employees from tax amount of income or wage of employees which is transferred by the Ministry of Finance to the fund 2. One percent (1%) of salary or wages of employees without deducting from the salary or wages from the employees but deducting from the fund of the labour unit directly 3. employees working aboard equal to five percent (5%) of one month s salary or wages in accordance with the employment contract 4. Those who import foreign labour work in the Laos equal to fifteen percent (15%) of registration fees for issuing work permits for one person per month 5. Contributions by individuals, legal entities, international organizations, both domestic and foreign, mass organizations, and social organizations 6. Benefits derived from the fund and from other activities Source: the labour law (amended version) Article 138: Administration and Use of Funds Administration and use of the labour fund must be carried out transparently and can be audited according to its objectives in accordance with Article 136 of this law, the law on state budget and other relevant laws, details are determined by specific legislation

15 FINDINGS Current national trends and challenges in the provision of welfare services to migrant workers Current national policies and frameworks on government protection and welfare services to migrant workers Needs assessment for a national migrant welfare fund programme Views of the national government and other stakeholders for establishing a national MWF programme

16 Policies and frameworks on migrant protection The MOLSW laid out the number of policy, regulation, and measures on migrant protection such as the Decree No.68/PMO, No. 2417/MLSW, No.3824/MLSW, No.043/MLSW, and labour law Decrees No.68/PMO (article No.8) and No.2417/MOLSW permit agencies to undertake: To manage the Lao workers To provide information to the MOLSW To be responsible of the benefits of Lao workers that sent to work aboard To protect the interests of the company in accordance with the law The responsibilities of MOLSW regarding on Sending Lao worker aboard are: To issue permits for recruitment and employment agencies; To establish clear regulations to manage these agencies To monitor the deployment of Lao national employed aboard To contact and cooperate with concerned organizations, and To formulate action plan in sending Lao workers aboard in accordance with a five years and annual plans

17 Policies and frameworks on migrant protection(cont ) According to No.043/MOLSW (Article 21) the agencies have following duties: (Some duties) To search, collaborate and explore on Labour market demand in domestic and aboard To sign a contract with other recruitment agencies to supply Lao workers in accordance with Labour market demand in domestic and aboard. To create the labour contract supply, contract of cooperation and Labour between the company with contract party and with workers, as well as between employers and each worker. To monitor, protect the rights and benefits of Lao workers that have been sent to work aboard with safety and send them back home if contract completely. In the case of dispute or anything happen with Lao workers that have to solve the problem urgently and immediately report to State Recruitment Authority (Department of Skills development and Recruitment/MOLSW) To apply to be member of Social security system automatically after the establishment approval. (No mention about migrant sending aboard)

18 Policies and frameworks on migrant protection(cont ) Migrant protection is included in Labour Law (amended version): Section IV: Labour Protection/Article 66 Administration of Lao Labour working aboard.section XI: Information on Labour, Article 141: Information on Labour protection. Under Labour law,in Section XIV: Tripartite Organization.The chapter 3, the agencies representing employees is Trade Union, and the roles, rights, and duties of agencies representing employees, which aims to participate in the protection of the rights and benefits of employees that work within a labour unit. It seems to be clear that Lao workers rights and benefit will be protected, but there is no paragraph mention and cover to Lao migrant workers working in aboard. In other words, it is still not clear for Lao migrant workers working aboard that have the representative or not for protection their rights and benefits, or If labour law will cover Lao migrant workers working aboard, different practices in reality

19 Policies and frameworks on migrant protection(cont ) The National Labour Development Strategy stated two key points in general target section: 1. Manage and use the Lao labour force by focusing to the safety, health, and environment based on the international labour standard, develop the industrial relation and welfare system in order to worker have protected the rights and job stability, well-being and better quality of life 2. Strengthen to the tripartite industrial relation and multi consultation and settlement the labour disputes including promote the collective agreement in labour units However,it is not clear for any strategy to respond and support to the targets whether will achieve its goal or not. As a result, Lao migrant workers in Thailand is not cover by Laws and unprotected. Additionally,there is no independent organization responsible for protection the rights of labour migration.

20 Policies and frameworks on migrant protection(cont ) Figure of Monitoring and Reporting for administration of labour Village District Village LSW The office of LSW Prospective migrant workers Province National Dept of LSW MOLSW Recruitment Agency in provincial Recruitment Agency Individual crossing the border to Thailand Aboard The Embassy of Lao PDR Representative of Recruitment Agency Lao migrant workers

21 FINDINGS Current national trends and challenges in the provision of welfare services to migrant workers Current national policies and frameworks on government protection and welfare services to migrant workers Needs assessment for a national migrant welfare fund programme Views of the national government and other stakeholders for establishing a national MWF programme

22 Pre-departure period It is slow process for proceeding the official documentation, take long time, and also pay high cost for travelling fees because of living in rural area and long distance It is high cost for fee charges. There are some prospective migrants had to owe, loan, or sold family s resources to pay for fees charge. Therefore, it is good to support the finance assistance from welfare fund intervention into this process At the recruitment centre, there is no staff providing counselling for migrant. While providing information to migrants, providing welfare fund is occurred in the same time. It requires assigning a person to provide counselling on migration and welfare fund information Allocate the budget support for training.

23 During working aboard Similar to pre-departure, the migrant workers face a difficult situations (homesick, miss families, exploitation, violence, abuse, and lack of money sending home). All these things influence not only migrant workers, but also their family left behind into difficulty. Therefore, it is necessary for providing assistance to migrant workers and family members. First, providing counselling in workplace, working dispute in the workplace, financial assistance or loan for family left behind and themselves base on conditions Second, integrate welfare fund information during monitoring activity of the representative of recruitment agency in Thailand.According to the Labour Law, the representative will monitor the Lao migrant workers in two times per year. As a result, the comprehensive assistance of welfare fund is available for providing in both destination and hometown such as finance assistance, counselling, dispute solution, and health insurance.

24 Return Home period Migrant workers should receive assistance even they return home when contract is expired. They might want to improve skills, continue their own business, start new job Providing assistance during unemployment. Such as financial loan, training for skills improvement. The government authority/recruitment centre should provide the counselling for returnee group. Although mentioned in the recruitment process, but not happened in practice for migration circumstance. The recruitment agency is key implementing agency for providing the counselling (find new jobs, improve skills or reintegrate to community. Because they are in the unemployment or looking for new jobs, they need finance assistance, social support, and counselling. The assistance of welfare fund is needs and importance for migrant workers in a whole migration cycle. The welfare fund is emotional and physical support to migration workers in terms of labour skills development recruitment, humanitarian, and social-economic development in both micro and macro levels.

25 FINDINGS Current national trends and challenges in the provision of welfare services to migrant workers Current national policies and frameworks on government protection and welfare services to migrant workers Needs assessment for a national migrant welfare fund programme Views of the national government and other stakeholders for establishing a national MWF programme

26 Interest and preparedness The Lao Government is committed to the protection of migrant s rights and well-being, but concerned how to transform for the practical application of limited resource context. To demonstrate the commitment to migrant protection, the Lao government has laid out a number of decrees, MOU, and Laws. The Government of Laos amended and added valuable statement in the Labour law/ Labour fund is very meaningful for establishment labour fund for protection the rights and benefits of migrants because there was not include in previous version. In 2007, the ASEAN countries signed the Declaration on the Protection and Promotion of the Rights of Migrant Workers. Lao PDR is also support Lao PDR is part of project and the Lao Government strongly supports the aim to protect and promote the rights and well-being of Lao migrant workers within the country and abroad through numbers of program intervention.

27 Interest and preparedness Lao government and stakeholders really express the interest to establish welfare program for migrant workers but the challenge is how it happens by limited resources: The welfare fund will be very important for providing assistance to migrant workers who were not include in social welfare program of government,... Therefore, the government included the labour fund in the labour law, and also it is possible for establishment funds...however, what kind of service, where the financial resource, which organization/who will take responsible, it is possible or not for contribution from migrant, it is possible or not for limited resource for government to pay into the fund, or assign new staff to take action for this task, and we still needs funding support from outside and need to study more about the rules, policy, regulations, management, and purpose as well. That is like doing this study right now. Lao government is ready for establishment welfare program with legal framework support, but it is the challenge how to commencement although the shortage funding support, limited numbers of staff, and lack of knowledge and skills to take responsibility for comprehensive system for migrant workers protection, and labour migration circumstance.