TEMPORARY LABOUR MIGRATION PROGRAM

IOM International Organization for Migration OIM Organización Internacional para las Migraciones TEMPORARY LABOUR MIGRATION PROGRAM GUATEMALA - CANADA Günther Müssig Quebec, Canada, February 2009

LABOUR MIGRATION TO CANADA Part of Temporary Foreign Workers Program (TFWP) and according to NOC, classification C and D as lowskilled Private initiative based, MOU between FERME and IOM Carried out by Ministries of Foreign Affairs and Labour with technical assistance of IOM Started 2003 in Québec with 215 workers and expanded to other 4 Canadian Provinces. In 2008: 3,313 workers Started in agriculture and expanded to other sectors, such as poultry farms, landscaping, laundry, construction, etc.

OPERATIONAL ASPECTS Recruitment upon request of employers organizations, i.e. FERME, FARMS, WALI or individual employers Recruitment criteria: Demand of employers and special requirements for type of work In accordance with local economy Poverty rate Operational cost of USD 120 is covered by tax exemption Upfront cost for workers less USD 340 to pay before departure: USD 160 for visa, USD 75 for medex, USD 70 for airport tax, and USD 36 for medical insurance for family members in Guatemala. No external recruitment agents involved No recommendations accepted from any institutions or organizations

PROCESS OF THE PROGRAM 1. Recruitment; 2. Processing Recruitment Form; 3. Handling of documents required from workers; 4. Payment of expenses; 5. Sending visa request to the Embassy of Canada; 6. Medical examination; 7. Workers requirements; 8. Appointment of workers according to requirements; 9. HRSDC Request (Work Permit); 10. Obtaining visas; 11. Briefing for travel; 12. Airport Assistance 13. Protection of workers in Canada; 14. Contact and evaluation after workers return; 15. Additional products that strengthen the Program Remittance banking Medical Plan for the families of workers

LEGAL ASPECTS Whole process for temporary foreign workers starts with LMO (Labour Market Opinion) Employer has to prove that no national or permanent resident is available to carry out that work. No potentially negative impact on the level of employment. Establishes wages, which are higher than minimum wage. Important is that foreign workers do not lower wages and working conditions and do not displace nationals. Regulates work hours (minimum 40 per week) and duration of contract. Signed contracts approved by authorities (salary, deductions, social security, housing, payment of return ticket, finalization of work, etc).

TEMPORARY WORKERS IN CANADA 2008 Baffin Island YUKON TERRITORY Iqaluit NORTHWEST TERRITORIES NUNAVUT Hudson Strait BRITISH COLUMBIA 252 ALBERTA 165 MANITOBA Hudson Bay ONTARIO 258 QUEBEC 2,632 NEWFOUNDLAND & LABRADOR PRINCE EDWARD ISLAND 6 NOVA SCOTIA

ORIGIN OF WORKERS PET 6 RET 9 HUE 10 QUI 104 BV 7 SM TOT 372 10 QUET CHIM 10 SOL 1,565 38 GUA SAC 234 304 SUCH 13 ESC 14 SR 197 AV 13 EP 273 JAL 5 JUT 105 ZAC 4 CHIQ 5 IZ 11 Niveles de Pobreza (%) Total de Trabajadores Total Deptos. Menos de 30 234 (7.1%) 1 31 a 50 616 (18.6%) 6 51-70 1,904 (57.5%) 7 71 y Más 559 (16.9%) 8 TOTAL 3,313 22

CONTRACTS 600 500 539 24.0% 545 24.2% 400 319 14.1% 301 13.3% 300 214 9.1% 207 9.2% 200 100 0 0% 92 4.2% 19 0.8% 19 0.8% 0 One Tw o Three Four Five Six Seven Eight Nine Ten AVERAGE ANNUAL STAY 5.6 MONTHS

CONTRACT FULFILLMENT OF GUATEMALAN WORKERS IN CANADA 93.2% of 2,255 workers fulfilled the contract in 2007. 45% (1,015) of the workers had traveled previously and 55% (1,237) traveled for the first time. 6.8% of the workers did not fulfill their contract due to different causes: 2.8% behavior/low productivity 1.7% health problems 1.4% family reasons 0.8% problems of adaptation 0.1% AWOL

COMPARED PERCENTAGE DISTRIBUTION OF EARNINGS BY WORKERS (PERIOD 2005-2007) DISTRIBUTION OF EXPENSES Percentage 2005 Percentage 2007 TOTAL 100.0 100.0 Difference 2007-2005 House building 45.3 10.5-34.8 Paying debts (trip) 10.8 10.8 0.0 Basic needs 9.8 15.4 5.6 House enlargement 7.8 4.3-3.5 Clothing and shoes 5.5 4.1-1.4 Furniture and equipment 4.5 1.8-2.7 Education expenses 3.8 2.3-1.5 Purchase of land and/or houses 3.4 12.9 9.5 Savings 3.1 31.9 28.8 Health expenses 3.1 1.9-1.2 Other expenses 2.8 0.4-2.4 Purchase of agricultural tools 0.1 1.0 0.9 Purchase of vehicle 0.0 2.1 2.1 Recreation and culture 0.0 0.6 0.6

REMITTANCE TRANSFER MECHANISM Payroll and wire transfer instructions VEGETABLE FARM LTD. FORMAT 2 Canadian Format Check Amount Transfer Fees: Balance in Can$.: Exchange Rate CAN$ / USD$ CAN$. CAN$. CAN$. CAN$. 51,216.02 35.00 51,181.02 1.13 Transfer Amount US$ Transfer Fees USA Bank USD$. USD$. 45,494.24 20.00 Date: 16/02/2007 No. Exchange Mi Gente 1 Mi Ahorro Name Account Number Salary in Can $ FEES SALDO in Can $ Saldo in USD$ Tax USA SALDO USD$ Rate (Remittance) (Saving) (1) (2) (3) (4) (5) (6) (7) US$ (10) (11) (4-3) (5 / 6) (8) (9) 01 PATZ, ROMAN 83-05-12569-3 850.00 0.58 849.42 1.13 755.04 0.33 754.71 550.00 204.71 02 SAPON, EULALIO 83-05-12569-4 800.00 0.55 799.45 1.13 710.62 0.31 710.31 710.31-03 YAT, LEONEL ESTUARDO 83-05-12569-5 900.00 0.62 899.38 1.13 799.45 0.35 799.10 500.00 299.10 04 CHAMAN LOPEZ, JOSE 83-05-12569-6 800.00 0.55 799.45 1.13 710.62 0.31 710.31 710.31-05 PEREZ JUAREZ, JUAN 83-05-12569-7 1,104.73 0.75 1,103.98 1.13 981.32 0.43 980.89 980.89-06 CORNELIO, JORGE 83-05-12569-8 900.00 0.62 899.38 1.13 799.45 0.35 799.10 700.00 99.10 07 VASQUEZ, BERNARDINO 83-05-12569-9 - - - - - - - - - 08 AGUETA, MARIO RAFAEL 83-05-12569-10 800.00 0.55 799.45 1.13 710.62 0.31 710.31 450.00 260.31 09 DIAZ COLOP, FRANCISCO 83-05-12569-11 800.00 0.55 799.45 1.13 710.62 0.31 710.31 710.31-10 LOPEZ, PEDRO 83-05-12569-12 1,000.00 0.68 999.32 1.13 888.28 0.39 887.89 500.00 387.89 11 PEREZ MARTINEZ, EMILIO 83-05-12569-13 750.00 0.51 749.49 1.13 666.21 0.29 665.92 665.92-12 SANTOS, JUAN 83-05-12569-14 800.00 0.55 799.45 1.13 710.62 0.31 710.31 300.00 410.31

OPTIONS OF THE PROGRAM YEARLY COST IN US$ TYPE OF PLAN FAMILY INDIVIDUAL A) BASIC PLAN 36 18 SERVICES - General physician, gynecologist and pediatrician - Orthopedist B) SILVER PLAN 260 100 C) GOLD PLAN 450 185 - Laboratory: urine, feces, blood tests - Diagnostic images: X-rays - Emergency services and programmed movements - Dentist - Specialists (Orthopedists, Gastroenterologists, etc) - Maternity

3,400 3,200 3,000 2,800 2,600 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 Growth of number of workers Permanent old workers Workers of previous years New workers 324 215 195 129 CIRCULARITY 668 280 388 149 131 1,263 740 295 128 100 2,252 1,237 2003 2004 2005 2006 2007 2008 523 1,015 537 269 117 92 3,313 1,642 1,671 814 443 203 102 80

CIRCULARITY 3,400 3,200 3,000 2,800 New workers Workers of previous years 3,313 2,600 2,400 2,200 2,252 1,671 50% 2,000 1,800 1,600 1,237 55% 1,400 1,200 1,263 814 1,000 800 600 400 200 0 215 740 59% 537 443 45% 388 58% 295 269 203 195 60% 41% 149 42% 128 117 102 129 40% 131 100 92 80 324 668 2003 2004 2005 2006 2007 2008 50%

IOM International Organization for Migration OIM Organización Internacional para las Migraciones E-mail: iomguatemala@iom.int Web site: http://www.oim.org.gt Working Notebooks on Migration No. 22 & 25