Assessing temporary labour mobility schemes for low-skilled workers Lessons for GATS Mode 4 and other initiatives
Structure of Presentation Section 1 Overview of lessons learned from existing initiatives for low-skilled workers Section 2 Ideas on strengthening the links from temporary worker schemes for low-skilled workers to development
Bilateral Arrangements Examples of Bilateral Initiatives Spain Ecuador Agreement Canadian Seasonal Agricultural Worker Program (CSAWP) with Mexico and the Caribbean Successful Features Origin and host countries are both stakeholders Both are able to focus on markets and sectors of interest Examples reviewed had well defined institutional frameworks (for requests, screening, placement, extensions) which helps to minimize abuses
Bilateral Agreements Successful Features Obligations and incentives to return (priority placement, exclusion for violations) Facilitated remittances and access to financial services Reduced transfer charges for migrant remittances Compulsory savings schemes have guaranteed remittances (CSAWP), although concerns over delays, double taxation Savings accounts plans have allowed microcreditto be extended to returning seasonal workers in country of origin (Spain- Ecuador) More likely to include capacity building and development projects (skills training etc) Can offer a pathway to permanent migration for migrants and their families
Bilateral Agreements Concerns Can be conflicts of interest Conflict arbitration and settlement liaison officers may be incentivized to side with host countries Migrant laborers may receive depleted salaries as employers attempt to recoup transportation and housing expenses Governments may not wish to highlight incidences of substandard living conditions for workers (both host and source) Safety requirements Migrant workers exempt from safety standards for local workers Limited agreements are essentially preferential schemes, and may thus preclude competition and efficiency
Unilateral Arrangements Examples of Unilateral Initiatives United States H-2A and H-2B United Kingdom SAWS, SBS, domestic worker scheme, and au pairs scheme The Republic of Korea Employment Permit System and Industrial Trainee System Successful Features Adjustable to host country s economic cycles Host government can specify workers / skills required
Unilateral Agreements Successful Features Insurance plans guarantee funds for return to origin country, e.g. Korea EPS Extended stay initiatives can provide education and cultural adaptation programmes e.g. in Korea Concerns Weaker institutional frameworks can make selection, placement and the visa process more difficult, e.g. Kuwait, Saudi Arabia Difficulty enforcing temporary stay without source country buy-in
Unilateral Labor Agreements Covering Low-Skilled Workers Concerns about Current Unilateral Initiatives Outside of a bilateral framework, less likely to: Include a focus on capacity building, skills training etc Include government support or involvement in facilitating remittances, or encouraging access to financial services Resident protections and services not extended to migrants Often exempt from unemployment, health and social security benefits Right to collective bargaining not assured Private sponsorship may result in indentured labour situation Difficulty in Abiding by the System Labor Certification Requirements difficult for employers to follow Little institutional involvement and full employer responsibility
Best practices from unilateral and bilateral initiatives lessons for GATS Mode 4? Specificity and transparency Clearly delineated processes for recruitment, placement, and return Coordinated documentation and tracking mechanisms Preference given to workers with proven record Incentivizingformal banking channels for remittances/financial services Defined distribution of transport and other costs Reintegration assistance for returning workers Granting of social and legal rights Capacity building through vocational training, community level programmes, and co-development projects
Ideas on strengthening the development potential of future arrangements Concept of development Sustainable accumulation of assets within a defined group, which leads to greater wellbeing Multidimensional, overlapping Income, savings, wealth Reduced risk and vulnerability Access to services health & education Empowerment Needs to include sending countries and migrant communities, i.e. a transnational development concept
Ideas on strengthening the development potential of future arrangements Improving incomes, savings, wealth Incomes Enforcement of minimum wage legislation for migrants Incentives to reduce dependency behavior in receiving communities, including through job creation Remittances Reducing sending and receiving costs (registration, competition) Developing potential for pooled and matched remittance flows Collateralizing of remittances for loans to remittance recipients in origin countries
Ideas on strengthening the development potential of future arrangements Improving incomes, savings, wealth Development of, and access to, cross-border financial services Pensions portability Transferable / recognition of credit ratings Access to savings accounts, savings schemes Skills development programmesfor future employment, to provide a pathway for higher returns on labourassets, whether in host or source country
Ideas on strengthening the development potential of future arrangements Reducing risk and vulnerability Clear institutional structures and parameters of schemes; information accessible to potential and actual migrants Pre-migration training; host country reception Facilitated access to legal advice, citizens advice Sensitive policing services, access to justice Access to insurance schemes (health, life, travel) Employer accountability, enforcement of regulations
Ideas on strengthening the development potential of future arrangements Reducing risk and vulnerability Social protection schemes and support services for families of migrants in sending communities (single headed households, children left behind) Making it easy to stay in touch. facilitated access to communications Reintegration services for returning workers and their families
Ideas on strengthening the development potential of future arrangements Improving access to services Health services for migrants: e.g. health insurance schemes met by contributions from employers and migrants Training opportunities for migrants School places for children travellingwith migrant workers Pre-school, school and after-care services for children in sending communities
Ideas for strengthening the development potential of future arrangements Necessary Conditions for Empowerment Information = power Assurance of labour rights Right to organize Freedom of Movement Within host countries Between source and host countries: multi-entry visas
Making the ideas happen Possible Paths to Implementation Public sector Host governments, source governments, international agencies Design, coherent oversight, incentivizingservices (inc. subsidies), direct contracting of services, enforcement of regulations, social protection, monitoring Private sector Especially insurance services, cross-border financial products (inc. pensions), selection and recruitment, skills training Third sector Contracted provision of services, advice bureaus (inc. legal), access to communications, independent monitoring and advocacy