International Labor Market Update
2007

Asia Pacific

AUSTRALIA’S NEW VISA POLICY FOR FOREIGN SEAFARERS

The government of Australia will implement a new visa policy procedure for foreign crew members starting 1 July 2007.

The Philippine Department of Foreign Affairs has reported last May that the Migration Amendment (Maritime Crew) Act of 2007, passed by the Australian Parliament on 10 May 2007, would require security checks before foreign crews are granted visas to enter Australia.  The Act seeks to strike a balance between Australia’s national security interests and the demands of the shipping industry.

Under the Act, the Maritime Crew Visa (MCV) will replace the current Special Purpose Visa (SPV) granted on arrival of foreign crew holding a valid passport and have been issued with a document that establishes their employment on the ship.  It largely follows the existing SPV arrangements for foreign crew and their accompanying spouse and dependent children (where traveling with crew).  However, the MCV will require a formal visa application to be made outside Australia to allow security checking of foreign crew and align them with other categories of temporary entrants who travel to Australia.  

The new visa policy for seafarers provides for the following:

• There will be a six-month transitional period from 1 July 2007 (also the start of application for MCV) to 31 December 2007.  This will give the industry time to comply with the MCV requirements.  During this period, the SPV arrangements will continue to apply to ensure that foreign crew will still arrive lawfully in Australia, even without an MCV.

• The Mandatory requirements from 1 January 2008 for the lawful arrival in Australia of foreign crew are as follows:

a.   The crew must hold a valid national passport.
b.   The crew must hold a Marine Crew Visa granted on the same passport.
c.   There must be another document establishing the crew member’s employment on the ship (for example, crew list, articles, seaman’s book or contract of employment).

Failure to meet the above requirements may lead to restriction in boarding the ship.  The operator, master, charterer and agent may also be fined AUD5,000 for each person who is  refused  immigration clearance.

• MCV key features:

a.   This will be required for foreign sea crews (except New Zealanders and Australian permanent Visa Holders)  arriving and staying  in Australia.

b.   This will be valid only for travel to Australia by sea for the ship’s crew and will not be allowed for air travel.

c.   This will be free of charge and applicants can apply via the internet, or by mail or courier.

d.  The holder of MCV must be cleared by the immigration authorities (as advised by Customs) before the ship departs, otherwise MCV ceases.

e.   It allows multiple entries by sea (as sea ship’s crew only) during the validity of the visa, which is for three years from date of issuance.

Source:  Thyne & Macartney
                          Brisbane, Queensland. Australia
                          March 2007

                          Office of Asian and Pacific Affairs, DFA

24 May 2007

DEMAND FOR OFWs IN ASIA REMAINS BRIGHT

At the recently concluded Philippine Overseas Labor Office (POLO) Command Conference in Manila, the POLOs in Asia reported that the demand for OFWs in Asia remained bright despite competition posed by other labor sending-countries and restrictive labor and nationalization policies of some host countries.

The region’s continued economic growth has resulted to  construction of major infrastructures and industrial projects.  Consequently, it has induced a steady increase in the demand for foreign workers such as professionals (engineers, teachers and IT workers) and skilled workers.  Asian countries, particularly Korea (under the Employment Permit System) and Taiwan remain to be major destinations for Filipino factory workers.  There are also emerging opportunities for IT and healthcare workers in Taiwan, while Korea will require skilled workers in the construction and ship-building sectors. On the other hand,   Singapore’s hotel and gaming industry offers bright employment prospects for managers, supervisors and skilled workers that includes croupiers, dealers, chambermaids and waiters/waitresses. There are also demands for architects, engineers and draftsmen in Singapore’s construction sector.

Filipino nurses will now have easier access to employment opportunities in the ASEAN healthcare sectors, particularly in Brunei,   Malaysia and Singapore with the recent signing of the ASEAN Mutual  Recognition Arrangement (MRA) on Nursing Services. Prior to the signing of the MRA, these countries which are the top destinations of Filipino nurses in Southeast Asia, did not recognized the license of Filipino nurses and  required them to  pass an examination before they can practice their profession. Under the MRA, licensed Filipino nurses will be recognized by the host country and allowed to practice their profession in ASEAN    member countries and vice versa.

There is a rising demand for IT and related skills in Penang, Johore and Kuala Lumpur in Malaysia. The construction and shipbuilding and ship repair industries in Johore are also in need of skilled workers, while Genting Highlands Hotels and Resorts are in need of casino workers and entertainers. Brunei’s oil and gas, hotel and restaurant and construction industries present good employment opportunities for skilled workers and professionals such as fabricators, riggers, high pressure operators,  managers and engineers (civil, structural, electrical and pipe).

Europe

JOINT VENTURE OF CARNIVAL AND IBEROJET CRUCEROS IN SPAIN

The Lloyd’s List of February 2007 has reported the 320 M euro joint venture between Miami-based Carnival and Iberojet Cruceros of the  Orizonia Corporacion, reputed to be the largest and oldest in the Spanish     cruising industry.

Carnival Chairman and Chief Executive Micky Arison identified Iberojet as a key partner in his company’s Spanish ambitions. “Iberojet   operates a very successful brand with a wide range of quality affordable vacation products which have gained extremely strong brand awareness with Spanish consumers. Their marketing experience combined with a keen understanding of Spanish vacation trends makes for a solid partnership,” said Mr. Arison.

The joint venture will target the Spanish mass market segment while Carnival’s Costa Cruises unit, already a player in the Spanish market, caters to its upscale consumers. Even as the joint venture appears to      compete with Costa Cruise, the idea is to expand Carnival’s market reach. “The combined strengths of Costa and Iberojet’s organizations would    generate even greater brand recognition in our efforts to grow the cruising market that we believe is primed and ready for expansion,” Pier Luigi   Foschi, Chairman and Chief Executive of Costa Cruise, said.        

Carnival intends to increase its fleet over the next several years through the acquisition of existing tonnage from Carnival’s current fleet. Initially, the joint venture will start with two modern-cruise ships of   Iberojet, the 1,196-passenger Grand Mistral (1999-built) and the 834-passenger Grand Voyager (2000-built).

Last year, Spain was ranked as the 4th largest in the European   market, registering a year-on-year passenger volume increase of 26% over the previous year.

NEW GREEN CARD SYSTEM EASES ENTRY OF FOREIGN PROFESSIONALS IN DENMARK

A new green card system similar to the green card system of the United States and Canada will make it easier for skilled foreign  professionals to enter and work in Denmark.

The Danish government and the Danish People’s Party signed on June 2006 an agreement that will allow highly qualified manpower from the non-EU countries to obtain jobs in Denmark. The agreement will implement the green card system that will allow foreign workers with specialized skills to go to Denmark and reside in the country of up to six months while looking for a job.

The green card system is a points system, whereby applicants earn points according to the following criteria: Education, Language Ability, Work Experience, Salary, Age

A score of 80 points earns an applicant a six month work and residency permit so he can find a job in Denmark. If the foreign national does not find a job within six months, the extended work application visa  expires and he has to leave Denmark. However, the criteria for earning points will continuously be adjusted against the background of the  experiences from the system and the need for workers. 

To be able to gain permanent residency in Denmark, workers will be required to find a permanent job in areas where there is a shortage of qualified manpower and earn a salary exceeding 450,000 DKK or approximately US$70,000 per annum. The skills shortage in Demark are IT specialists, engineers, and physicians.

IRELAND’S NEW EMPLOYMENT PERMIT   ARRANGEMENTS

On 1 February 2007, Ireland implemented new economic and  employment permit arrangements which catered to highly skilled workers under Employment Permits Act of 2003 and 2006. The employment arrangement replaced the work visa/work authorization system introduced in 2000.

The new arrangement reflected a shift in the economic regulation     policy of Ireland, to help the country meet its objective of becoming an innovation-driven and knowledge-based economy.

The new categories of employment permits under the Irish  Employment Permits Act are:

    The Green Card Scheme is intended for occupations where Ireland has strategically important  high level skills shortages. The scheme is     available for an extensive list of occupations with annual salaries of €60,000 and above, and for a specified list of occupations with salaries between €30,000 and €60,000. The list includes professional and  associate professional occupations such as information and   communications technology, health care, construction, engineering, financial services, and research sectors. The green cards are issued    initially for 2 years and normally lead to the granting of permanent or long-term residence.

    The Work Permit Scheme is mainly for non-green card occupations in the €30,000 to €60,000 annual salary range. It can be granted in exceptional circumstances for occupations with salaries below €30,000. Work permits are granted initially for a period of 2 years and then for a further period of up to 3 years.

   The Intra-Company Transfer (ICT) Scheme is designed to facilitate the transfer of senior management, key personnel, and trainees who are foreign nationals from an overseas branch of multinational corporations to its branch in Ireland. The duration of the ICT permit is 24 months and may be extended up to a maximum stay of 5 years.

    The Spouse/Dependent Scheme is intended for spouses and dependents of all employment permit holders who are entitled to reside in Ireland to apply for work permits in respect of all  occupations.  In addition, the duration of work permit for spouse and dependents is valid up to the expiry of the employment permit holder.

    The Graduate Scheme is an additional scheme intended to provide opportunity to foreign nationals who have completed third level studies in Ireland to seek employment and apply for either green card or work permit.

Current visa holders are not affected by the new arrangements and can continue to work on their existing visas and may renew the same. However, the changes are not clear on the status and rights of the  following: 

    Dependent children of the old work permit holders who have reached the age of 18 in Ireland and who were given student visas.

     Undocumented workers.

     Workers who charge employers within the initial 12 months in case of employers fault or in the event of redundancy and similar      circumstances.

 NEW MEASURES ON THE ENTRY OF WORKERS PROPOSED BY THE GOVERNMENT OF ITALY

 The Philippine Embassy in Rome had reported that the government of Italy was considering the following main channels through which foreign nationals who are outside the European Union can legally enter and work in Italy:

 ·         The first channel is for qualified professionals, such as doctors and engineers, who are hired by Italian firms and institutions.

·         The second channel is for those who want to go to Italy to work as babysitters and manual laborers.  These people would have to apply at Italian Diplomatic Missions abroad before they leave for Italy.

The proposed measure was reportedly still under discussion by the legislative bodies of Italy. Italian Prime Minister Romano Prodi, who won the elections in early 2006, proposed the two-channel approach in     amending the current immigration law because he believed that it reflected the reality of thousands of immigrants working illegally in Italy.

The proposed legislation seeks to amend a key provision of the existing Bossi-Fini Law approved in 2002 that required an applicant to have a work contract before a residency permit is issued.  This law adopted the Direct Hire System wherein the employer shall identify the worker in the application for Nulla Osta  (No Objection) from the Italian Ministry of    Labor.  The Nulla Osta is the basis for the issuance of the work visa by the Italian Embassy.  The Bossi-Fini law also imposed an annual quota on    foreign workers and allowed the expulsion of undocumented workers.

Americas

MICROSOFT PLANS TO OPEN DEVELOPMENT CENTER IN CANADA 

Microsoft announced its plans to open this fall a new development center that is envisioned to become “home to software developers from around the world” in the Vancouver, British Columbia area. Vancouver, a global gateway with a diverse population, is close to Microsoft’s corporate offices in Redmond (state of Washington), and allows the company to recruit and retain highly skilled people affected by immigration issues in the U.S.

This announcement follows the recent “death” of the immigration bill that would have expanded the number of foreign high-tech workers that could enter the U.S. each year on H-1B visas.

High-tech companies have been pushing hard for Congress to increase the number of visas they are allotted. Microsoft Chairman Bill Gates made a strong plea for unlimited H-1B visas while Google called for expanded ability to hire foreigners which it credits for the company’s success.

According to Microsoft spokesman Lou Gellos, while the immigration issue was a factor, the company would be opening the center in Vancouver even if it were not for the immigration challenges. However, this plan will help the company address the challenge it has in the United States of hiring very qualified people, many of whom are graduating from schools in the U.S., but who cannot acquire the necessary documentation to work in the U.S.

Microsoft Canada President Phil Sorgen said his unit had long pushed Canada as a great place for the software maker to do development work given its burgeoning high-tech and software industries and a globally envied quality of life. This center will help Microsoft remain globally competitive while providing strong economic benefits to British Columbia and Canada.

The software maker currently has just over 900 workers based in Toronto, where Microsoft has a local subsidiary.

POTENTIAL EMPLOYMENT OPPORTUNITIES FOR OFWs IN GUAM

The Philippine Consulate General in Agana, Guam has reported on the possible employment for OFWs in Guam on the U.S. marines relocation project from Okinawa to Guam which will start in 2010.

According to  Capt. Robert Lee, Director of the Guam Joint Program Office, the unit tasked to prepare Guam and the Northern Marianas for the U.S. marines relocation project, construction work for the military build-up will start in 2010 and the actual relocation of 8,000 U.S. marines from Okinawa to Guam will begin in the latter part of 2012. This will  include completion of housing and other infrastructural facilities needed for the relocation. The major issue of the relocation is Guam’s shortage of skilled workers, which will need an estimate of 12,000 to 15,000 workers to work on military-related projects. In addition, Capt. Lee said that his group is taking appropriate measures to get a special exemption for the foreign workers that will come to Guam.

Guam officials have cited that plans are being considered to provide full authority to award the recruitment contracts to sub-contractors. The sub-contractors shall, in turn, take charge of directly undertaking the recruitment efforts, for the construction industry and other sectors of Guam’s economy (such as the education, health and services sectors) and society, that will be affected by the growth and development resulting from the military build-up. Pending the submission of the environment impact statement that is being required under the U.S. National Environmental Policy Act, and until the decision on the relocation project is signed by the Assistant Secretary of the U.S. Navy, no contract yet can be the subject of bids  and awards.

Guam Governor Felix Camacho also stressed that his government will ensure that foreign workers who will be recruited to Guam have the necessary qualifications for the jobs and that they will not be exploited by unscrupulous recruitment agents who ask for placement fees that are higher than what is allowed by the law.

Source:  Department of Foreign Affairs,  July 2007

INCREASE IN US MINIMUM WAGE

The Philippine Overseas Labor Office (POLO) in Washington, D.C. has reported on the pending increase in the hourly minimum wage in the United States of America. The US House of Representatives recently       approved the bill that would increase the minimum wage to $7.25 per hour over two years, setting the stage for the first minimum wage increase in almost ten years. President George Bush and the Senate Republicans have proposed a series of tax breaks for business in return for their support of the minimum wage hike.  

The US House of Representatives passed the Fair Minimum Wage Act on 10 January 2007 and the US Senate passed its version on 01 February 2007 calling for a gradual increase in the minimum wage by 11 March 2009. The two bills must be reconciled in the committees before being sent to the President.

The US has a minimum wage in each state. Some counties and   cities within states may observe a higher minimum wage that the rest of the state. Presently, Washington State has the highest minimum wage, while Kansas has the lowest minimum wage.

TEMPORARY FOREIGN WORKER PROGRAM FOR PROVINCES OF ALBERTA AND BRITISH COLUMBIA IN CANADA

The Ministry of Immigration and Ministry of Human Resources and Social Development of Canada have announced improvements in its labor and immigration policies to facilitate the hiring of temporary foreign workers to where there are no available Canadian citizens or permanent residents available to fill the positions.

a.   Regional lists of occupations under pressure that will cut the recruitment time for employers.  Employers in certain regions that face critical labor shortages may now be eligible to follow shorter, simpler and less costly advertising requirements to recruit the needed workers.

 b.   Better information for employers.  A step-by-step guide has been developed specifically for employers who need to hire temporary foreign workers.

 c.   Creation of federal provincial working groups.  Working groups in Alberta and British Columbia will speed up the identification of existing and emerging skill shortages and determine the best ways the foreign worker program can help address these shortages. The Foreign Worker Units in Vancouver and Calgary are now fully operational and provide  advice to employers seeking to employ temporary foreign workers. 

            These initiatives are expected to reduce overall costs and reduce hiring time (two (2) weeks to four (4) weeks) faster for employers to hire temporary foreign workers, while continuing to protect the access of Canadian workers to the labor market.

OIL SANDS MEGA PROJECT IN NORTHERN ALBERTA, CANADA

             Bechtel’s Oil, Gas and Chemical (OG&C) and Global Business Unit (GBU) and Canadian affiliate Bantrel have begun Engineering,  Procurement and Construction Management (EPCM) work on Scotford Upgrader Expansion  1.  This is part of an oil sands mega project worth an estimated US$8.7 - 11.1 Billion, in Northern Alberta, Canada, a joint venture between Shell Canada Ltd., Chevron Canada Ltd., and Western Oil Sands.  The overall Athabasca Oil Sands Project (AOSP) consists of two components: upstream expansion at AOSP mining facilities north of Fort McMurray, Alberta, and downstream expansion to produce an additional 100,000 barrels per day of synthetic crude at the Scotford Upgrader near Edmonton.  Bechtel and Bantrel teams in Calgary and Houston have completed front-end design for the expansion project in June 2006.

            According to Bechtel Project Director Mr. Bill Sharp, the project would be too large to complete solely using Alberta resources.  The project will be managed from Bantrel’s Calgary office with engineering performed in Calgary, Houston (USA), Toronto and New Delhi (India). With Alberta’s severe weather conditions and tight labor market, the project will use a global   procurement strategy and modularization plan that reduces the need for on-site labor.  With a current workforce of 850 employees, home office employment is expected to peak at about 1,100 in mid 2007.  Construction management staff will peak at 300 in January 2008, while the Scotford expansion will peak at 6,500 people.  The team has already placed orders for major    equipment and has begun contracting construction services.

NURSING SHORTAGE IN HAWAII BRINGS EMPLOYMENT OPPORTUNITIES

The Philippine Consulate General in Honolulu, Hawaii, USA has reported on the present nursing shortage in Hawaii. Hawaii’s State Center for Nursing opined that a significant number of nurses and nurse faculty positions will be lost in the next ten years.

A study by the Center for Nursing estimated that the state was short of the equivalent of 960 registered-nurse positions in 2006. The    nursing gap is expected to widen in the next several years, with a shortage projection of 2,669 nurses in 2010.

Some of the factors cited on the shortage of nurses in Hawaii were:

·         Hawaii’s nursing schools are not turning out enough to meet demand;

·         Shortage of teachers for nursing schools; and

·         More nurses are projected to leave the workforce as they retire.

There are already many Filipino nurses in Hawaii, but they are working as nursing assistants/aides. This is because they have not yet passed the required state examination for registered nurses. At present, there are two Filipino nurses associations in Honolulu that have been offering free review classes for the state examinations.

The nursing shortage in Hawaii bears watching as it could provide employment opportunities for Philippine nurses to enter the United States as professionals.

Middle East

CONTRACTS AWARDED IN THE MIDDLE EAST IN MAY 2007

 The Middle East Economic Digest (MEED) has reported that more than US5,351 million worth of contract was awarded in the Middle East in May 2007.  For up-to-date information on the region’s largest projects, go to www.meedprojects.com. Below is the selected checklist compiled from MEED reports:

Source: MEED Special Report

EMPLOYMENT OPPORTUNITIES IN THE MIDDLE EAST FOR 2007-2009

The Gulf States in the Middle East, namely:  Saudi Arabia, UAE, Qatar, Kuwait, Bahrain, and Oman continue to offer  vast  opportunities to foreign labor in the construction, medical, tourism, retail, energy, engineers and planners, telecommunication, operation and maintenance, hotel and     restaurant and IT sectors.  These sectors are experiencing growth and   expansion due to major infrastructure projects, expansion of exploration and production of the oil and gas sectors.

Due to the economic boom in the Kingdom of Saudi Arabia, the Saudi government has announced mega projects in the country, such as the           Economic Cities in Rabigh and Jizan, railway projects linking east and west of the Kingdom, petrochemical projects, new hospitals, new universities and a wave of new industries. Major companies like Saudi Aramco and Saudi Basic Industries (SABIC) will need more engineers and construction workers until 2010 to work on $95 million worth of projects in the        Kingdom. The largest new project of Aramco – the $9,000 million offshore Manifa Field Development Plan called for the construction of a 40-kilometer long causeway from the Saudi Coast which would be used to provide access to Manifa production rigs. 

Qatar has embarked on one of the most ambitious development     programs in the world today, which encompasses the oil and gas sector,      infrastructure, non-oil and gas-related industry, education, health and  tourism. In the light of the government’s policy to provide health care for all the residents of the country, plans are underway to develop the Middle East’s  largest comprehensive medical facility, the Hamad Medical City Complex.

In United Arab Emirates, the General Authority for Health Services (GAHS) for Abu Dhabi will take over the operation of 13 government  hospitals and primary health centers, constructs hospitals, clinics and health centers to be completed in three (3) years.  Al Habtoor Group of Companies announced a  6 Billion dirham expansion project involving the development of new residential,          commercial and hospitality projects in two years time.

Construction projects are booming in Kuwait.  The Kuwait Ministry of Housing and Public Works said the construction of 9,625 residential units in Sabah al Ahmad City will create 11,356 job openings. The city project will have state of the art amenities which includes residential, commercial, educational, medical, tourism and entertainment services.  The first phase of the Silk City Project also in Kuwait, which is considered as one of the major additions in the field of development, will be completed in the next 5-7 years.  It will be the biggest waterfront project in the world and the  expected benefits out of the project will generate additional job opportunities in the hotel, restaurant and cleaning industry.

There are other employment opportunities in the health  services, tourism, fisheries, construction and oil exploration sectors in Libya;  nurses and skilled workers in construction and steel production sector in Jordan; industrial workers in Israel; and hotel and restaurant workers in Lebanon.

NEW WORK PERMIT REGULATIONS AND OTHER NEW REGULATIONS FOR FOREIGN WORKERS IN ISRAEL

The Philippine Overseas Labor Office (POLO) in Israel has  reported on   Government Decision No. 4099 issued on 09 August 2005, a new regulation on work permit for foreign workers in Israel that will be implemented on May 2007.

 The following are the summary of the general policies in  Caregiving under this new regulation:   

 Work Permit. - The work permit shall be given only to workers who are registered in a manpower agency. Hence, the employment of a foreign caregiver shall only be through a private manpower agency which has a Permit to Hire Foreign Workers. Direct hiring  of foreign worker-caregiver shall be not allowed.

Portability Of Visa/Work Permit. - The visa of foreign caregivers will no longer be under the name of the employer, but denominated as Nursing Services in their respective passports. As a consequence, foreign workers who are permit holders for nursing services can move among employers and among licensed manpower agencies.

Skills Requirement. - The foreign workers’ skills shall be  compatible with the needs of the employer.  Manpower agencies     are responsible to train the foreign worker in the house of the employer and shall supervise, with the assistance of a social worker, the services of the caregiver given to the employer.

Restrictions On Hiring  Of  Foreign Workers  To Enter Israel. -   Foreign workers who are already in Israel and are registered with licensed manpower agencies shall be the first to be provided employment before additional workers are allowed to enter Israel. 

 For those who cannot register with any of the licensed agencies, they      will have to register with the Foreign Workers Bureau of the Ministry   of Industry, Trade and Labor for placement assistance.  The Foreign        Worker’s Bureau has issued 44,000 permits to hire caregivers.  How            ever, this number keeps increasing as there is no quota on the hiring      of foreign workers for caregiving.

Creation Of A Foreign Workers Fund, Pursuant To Section 1k Of The Foreign Workers Law. - Pursuant to this provision, the Ministry       of Industry, Trade and Labor was directed to establish a Fund for the foreign workers based on compulsory contributions made by the employer for every worker employed by the former.  Hence, every employer that will employ a foreign caregiver will pay an amount of 300NIS per month.  The proceeds of this fund will be given to the caregiver at the end of his/her legal stay in Israel or upon his/her leaving the country.

New Licensing Regulations. - Licenses and permits for caregivers   shall be given only to private companies exclusively for the  placement and services of foreign workers in caregiving.  These  companies are required to have a bank deposit or a performance bond in the amount of 500.000NIS (Php5M) to assume all the contractual liabilities of the agency.