Feasibility Study on the Establishment of Migrant Welfare ... · The Concept mission was conducted...

Feasibility Study on the Establishment of

Migrant Welfare Fund Programmes in Laos

LAO PDR CONTEXT

SanyaVathanakoune, National Consultant

May 2015

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.

Feasibility Study in Laos

• Lao Government/ MOLSW

and LTU

• ILO / Regional and in Lao PDR

• Lead Consultant

• National Consultant

Background

� 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.

Objectives of studyObjectives of studyObjectives of studyObjectives of study

The Concept mission was conducted between the end of December 2014 and January 2015.

Methodology

• Develop feasibility design

• Desk research, literature review

• Key stakeholder interviews,

• Informant interviews,

• Data analysis and report writing

Conception mission � 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

ResultsResultsResultsResults

FINDINGS

Current national policies and frameworks on

government protection and welfare services to migrant

workers

Current national trends and challenges in the provision

of 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

Lao migrant Situation and 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.

� 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.

� A large amount of labour migration to Thailand began in the 1990s. Adoption

reform programme of the New Economic Mechanism in 1986/ CDRI , 2009

� However, these are populations who are irregular labour migration through

irregular channels and constitute major part of labour movement

Lao migrant Situation and Trend(Cont’)

� There is no official figure for the number of Lao migrant workers in

Thailand.

� An estimated 588,561 Lao migrant workers were employed worldwide in 2010

and this number increased even more by 2013/ SDC, 2014

� There is no reliable statistics of Lao migrant workers in Thailand but recent

estimates vary from 150,000 to 300,000/ CDRI, 2009

� 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

� Champasak pro 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


Descriptions 2010-2011 2011-2012 2012-2013 2013-2014

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 25,066 0 11,798 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

Table 1 compared the data information from two sources within MOLSW


274,904 280,974 287,178 293,519

300,000 306,624

33,588 7,414

20,495 8,304

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2008 2009 2010 2011 2012 2013

KKE

MOLSW

Estimates of Lao Migrant Workers in Thailand, 2008 - 2013

Sources: Estimated based on KKE (Khon Kaen Expert) consensus, at a September

2013 meeting at Khon Kaen University, 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

Gender and Occupational Distribution

� According to Huguetetal (2011), cited in report by SDC, 2014. 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%).

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 1000-10.000 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

CHALLENGES

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 requires creating the

regulations and direction how

to conduct the labour fund in

practice.

Legal Policy Framework

CHALLENGES (Cont )

Opportunity

• 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

Structure

CHALLENGES (Cont )

Opportunity

• 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.

Challenge

• 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

Services

CHALLENGES(Cont )

Article 136:

Labour Fund Aims

Article 137:

Sources of Labour Fund

Article 138:

Administration and Use of

Funds

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.

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

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

Source: the labour law (amended version)

The Section X: Labour fund (Labour law)

FINDINGS



workers




programme



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

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)


� 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


�The 2011-2020 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.


Figure of Monitoring and Reporting for administration of labour

MOLSWMOLSWMOLSWMOLSWRecruitment AgencyRecruitment AgencyRecruitment AgencyRecruitment Agency

The Embassy of The Embassy of The Embassy of The Embassy of Lao PDRLao PDRLao PDRLao PDR

Representative of Representative of Representative of Representative of Recruitment AgencyRecruitment AgencyRecruitment AgencyRecruitment Agency

Dept of LSWDept of LSWDept of LSWDept of LSW

The office of LSWThe office of LSWThe office of LSWThe office of LSW

Village LSWVillage LSWVillage LSWVillage LSW

Recruitment Agency in Recruitment Agency in Recruitment Agency in Recruitment Agency in provincialprovincialprovincialprovincial

AboardAboardAboardAboard

NationalNationalNationalNational

ProvinceProvinceProvinceProvince

DistrictDistrictDistrictDistrict

VillageVillageVillageVillage

Individual crossing the




border to Thailand

border to Thailand

border to Thailand

border to Thailand

Prospective migrant Prospective migrant Prospective migrant Prospective migrant workersworkersworkersworkers

Lao migrant workersLao migrant workersLao migrant workersLao migrant workers

FINDINGS



workers




programme



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.

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.

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.

FINDINGS



workers




programme



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.

Interest and preparedness

“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 and stakeholders really express the interest to establish

welfare program for migrant workers but the challenge is how it happens by limited

resources:

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.

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