Labour Migration Infrastructure and Services in Destination Countries
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Transcript of Labour Migration Infrastructure and Services in Destination Countries
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Labour migration infrastructure
and services in destinationcountries
Manolo I. Abella and Sabrina Kouba
The views expressed in this presentation are the views of the author and do not necessarily reflect theviews or policies of the Asian Development Bank Institute (ADBI), the Asian Development Bank (ADB), itsBoard of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the dataincluded in this paper and accepts no responsibility for any consequences of their use. Terminology used
may not necessarily be consistent with ADB official terms.
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Policies and processes ofinterest
Admission and employment of foreign workers Protection of foreign workers
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Questions addressed How do countries regulate the admission and
employment of foreign workers? What governmentinstitutions are involved? What information isshared?
How efficient are these governance systems? Howwell are the foreign workers protected as a result?
What evidence exists that their policy objectives areachieved? E.g. increasing growth without
increasing unemployment of native workers?lowering social costs?
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Admission of foreign
workers State-prioritized admission system (Japan)
Trust-theemployer admission system (Singapore)
State-organized recruitment system (Republic ofKorea)
Similarities all strong modern states with highcapacity for governance
Differences types of workers admitted; controllevers employed to manage migration; role ofsource countries
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Japan: state-prioritizedadmission system
Key Features
Categories of workers that can be admitted andconditions of admission set by immigration law.Current law allows admission of 27 categories.
Employers may only apply for worker falling underone of the 27 categories. Applies with Bureau ofImmigration under Ministry of Justice for visa which isissued abroad through Ministry of Foreign Affairs;
Ministry of Labour and Social Welfare responsible forinsuring equal treatment of foreign workers.
Local Governments provide social services tomigrants at local levels.
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Japans simple infrastructure of
state-prioritized system
Diet passesImmigration Law >
stipulates the categoriesand conditions ofskilled foreign workers
Implementation mainly
by Ministry of Justice(Immigration Bureau)
Local implementation >
city, town or villagegovernments create
peaceful co-existence andare responsible forservices / protection of
foreign workers
Council onEconomic andFiscal Policy
(advisorycommittee for theprime minister)
Cabinet Office > coordinator
MinistriesEconomic SectorsCONSULT
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Japan : process for admission
Ministry of Justice
Employer applies forcertificate of
eligibility for aforeign worker whofalls under one of 27allowed occupations
reviews workerqualifications and
suitability for the job,and issues the
employer acertificate of
eligibility
EmployerMinistry of
Foreign Affairs
Worker
JapanConsulateissues visa
Bureau ofImmigration
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Japan infrastructure forworker protection
Ministry of Justice (Immigration
Bureau)
Local Governments
City, town or village governments
Ministry of Labour and SocialWelfare
Trade Unions /Migrant NGOs
required toregister foreign
worker with
MLSW
required toregister foreign
worker withMLSW
Employers
enforces labour standardsattends to disputes/complaints/requiresemployers to report on employment of
foreign workers
responsible for peaceful co-existence and providingservices / protection of foreign workers
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Japans program for highly-skilled
foreign professionals
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Singapore: key considerations behind
policyACTIONS CONSIDERED
Take in between 15,000 and25,000 new citizens eachyear
Keep a stable permanent
resident population ofbetween 0.5 and 0.6 million
Continue to admit foreignworkers to complement theSingaporean core in the
workforce Limit number to avoid
depressing wages andreducing the incentive forfirms to upgrade workersand raise productivity
DEMOGRAPHIC FACTS
Population : 5.47 million(June 2014)
Growth rate= 1.3% fromJune 2013 (slowest in 10
years) Non-resident population
growth has slowed to2.9%, (2014) compared to4.0% (2013)
Ageing rapidly, startdeclining from 2025
Permanent residentsgranted = 79,000 (2008)30,000 (2014)
t t
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ngapore : o e o conom c trateg es
Committee recommends policy
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Trust-the-EmployerSystem (Singapore)
Employment of foreign nationals including low-skilledallowed but subject to various controls.
Key instruments for control:
Enterprise-level quota expressed as dependencyceiling (ratio of Foreign to Local Worker).
Levy on employment of foreign workers whichdeclines the higher the skill level & varies by industry.
Types of work permit (based on salary) with differentrights attached to each.
Policy changes usually through changes in any or allof the above, and usually upon recommendation ofhigh-level Economic Strategies Committee (ESC)
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Singapore : Employment Pass High skilled
Employer Jobs Bank of SingaporeWorkforce Development Agency
workerJob Portal
1Consults portal for
vacancies
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Singapore : Employment Pass High skilled
Employer Jobs Bank of SingaporeWorkforce Development Agency
workerJob Portal
The Strategic and Skills-in-Demand List (SSL) is based on feedbackfrom economic agencies overseeing the respective sectors. The
Quarterly Labour Market Survey and the annual Job Vacancy Surveyare solely based on surveying companies.
Select sector survey results are available online. Some examples ofpublicly-available survey results are the Economic Survey ofSingapore, Business Expectation for the Services Sector as well as theBusiness Expectations of the Manufacturing Sector.
1Consults portal for
vacancies
http://www.mti.gov.sg/ResearchRoom/Pages/Economic-Surveys-ESS.aspx?cat=Research%20Roomhttp://www.mti.gov.sg/ResearchRoom/Pages/Economic-Surveys-ESS.aspx?cat=Research%20Roomhttp://www.singstat.gov.sg/docs/default-source/default-document-library/news/press_releases/bes4q2014.pdfhttp://www.edb.gov.sg/content/edb/en/news-and-events/news/2014-news/business-expectations-of-the-manufacturing-sector-business-sentiments-for-oct-2014-mar-2015.htmlhttp://www.edb.gov.sg/content/edb/en/news-and-events/news/2014-news/business-expectations-of-the-manufacturing-sector-business-sentiments-for-oct-2014-mar-2015.htmlhttp://www.edb.gov.sg/content/edb/en/news-and-events/news/2014-news/business-expectations-of-the-manufacturing-sector-business-sentiments-for-oct-2014-mar-2015.htmlhttp://www.singstat.gov.sg/docs/default-source/default-document-library/news/press_releases/bes4q2014.pdfhttp://www.mti.gov.sg/ResearchRoom/Pages/Economic-Surveys-ESS.aspx?cat=Research%20Roomhttp://www.mti.gov.sg/ResearchRoom/Pages/Economic-Surveys-ESS.aspx?cat=Research%20Room -
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Singapore : Employment Pass High skilled
Employer Jobs Bank of SingaporeWorkforce Development Agency
workerJob Portal
Employers must advertise job for minimum of 14 daysexcept Jobs in firms with 25 or fewer employees; or Jobs that pay a fixed monthly salary of S$12,000 and
above; Jobs to be filled by intra-corporate transferees (ICTs).Under the World Trade Organizations General Agreementon Trade in Services (WTO GATS), ICTs would refer tothose holding senior positions in the organization or havean advanced level of expertise; or Jobs that are necessary for short-term contingencies (i.e.
period of employment in Singapore for not more than onemonth)
1Consults portal for
vacancies
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Singapore : Employment Pass High skilled
Employer
Jobs Bank ofSingapore
WorkforceDevelopment
Agency
Ministry ofManpower
2
Apply for EP online
or at EmploymentPass Services Centre
1Must advertise job min 14 d
unless salary S$12000
Hire localskilledworker
EmploymentAgent
Job PortalForeignworker
1Consults portal for
vacancies
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Singapore : Employment Pass High skilled
Employe
r
Jobs Bank ofSingapore
WorkforceDevelopment
Agency
2
Apply for EP
online or atEmploymentPass Services
Centre
Ministry ofManpower
Skilled foreignworker enters
Singaporewith In-
PrincipleApproval
letter
Employment
Pass ServicesCentre (EPSC))
new EPcard
delivered4working
days
1Must advertise job min 14 d
unless salary S$12000
Find Housing
Hire localskilledworker
Rejection and potentialappeal (only employer orhis appointed agent) for
same category online withinthree months
Dependant'sPass if salary
S$4,000 -S$8,000
Employment
Agent
Self-AssessmentTool (SAT)
Registers atEPSCfinger[print &
photo
Job PortalForeignworker
1Consults portal for
vacancies
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Protection of migrant workers:
recent measures in Singapore Increased inspection of housing for migrant workers.
Complaints mechanism claims for employmentinjury benefits, payment of overtime, unfair dismissal,
Employment Standards Online
http://twc2.org.sg/wp-content/uploads/2013/09/Housing_conditions_report_v6-9.pdf
25% cap on deductions for accommodation and
related services Contracts in native language
Weekly day-off for domestic helpers
http://twc2.org.sg/wp-content/uploads/2013/09/Housing_conditions_report_v6-9.pdfhttp://twc2.org.sg/wp-content/uploads/2013/09/Housing_conditions_report_v6-9.pdfhttp://twc2.org.sg/wp-content/uploads/2013/09/Housing_conditions_report_v6-9.pdfhttp://www.mom.gov.sg/newsroom/Pages/PressReleasesDetail.aspx?listid=502http://www.mom.gov.sg/newsroom/Pages/PressReleasesDetail.aspx?listid=502http://twc2.org.sg/wp-content/uploads/2013/09/Housing_conditions_report_v6-9.pdfhttp://twc2.org.sg/wp-content/uploads/2013/09/Housing_conditions_report_v6-9.pdfhttp://twc2.org.sg/wp-content/uploads/2013/09/Housing_conditions_report_v6-9.pdfhttp://twc2.org.sg/wp-content/uploads/2013/09/Housing_conditions_report_v6-9.pdf -
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Republic of Koreas state-organized
recruitment systemMain features of Employment Permit System:
A. Guest worker program for temporary admission and employment of foreignworkers replaced trainee system
B. G to G recruitment (no private agencies) covered by bilateral agreement (MOUs)between Republic of Korea and source country governments
C. Foreign workers must first qualify by passing test of proficiency in Koreanlanguage. Testadministered by HRDKorea jointly with source government
D. HRDKorea screens Korean employers while counterpart agency in source countrychecks worker skills/qualifications
E. Equal treatmentunder labour laws and standards of Republic of Korea, but withno right to family reunification, and change of employers subject to prior approval
Intranet (www1.eps.go.kr)
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Foreign Workforce Policy Committee
Annual quota set by Republic of Koreas Government uponrecommendation of Foreign Workforce Policy Committee whichhas following 12 members: Office of Government Coordination, Ministry of Strategy and Finance,
Ministry of Foreign Affairs and Trade Ministry of Justice Ministry of Public Administration and Security Ministry of Culture and Sports Ministry of Agriculture and Forestry and Fisheries Ministry of Knowledge Economy Ministry of Health and Welfare Ministry of Employment and Labour Ministry of Land, Transport, and Maritime Affairs Small and Medium Business Administration
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Republic of Korea: State-organized recruitment System
1
Test of Koreanlanguage proficiency
2notifies successfulcandidates, go for medexam, and apply for job
3Worker qualifications
verified 2 months
5recommends 3
candidates per job
applies for permitto employ foreignworkers specifyage, nationality,
gender
7Issues
employmentpermit
Koreanemployer
4Sends roster of
qualifiedapplicants
Agencyin sourcecountry
JobsCentre
Ministryof Labour
HRDKorea
screensemployers
ImmigrationOfficeMinistry of
Justice
6Issues CCVI ifemployer not
previouslyemploying foreign
workers
illegally/foreignworker no recordunlawful residence
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2After 3 monthscan apply forpermit to employforeign workers
specify age,nationality,gender
Korean employer
Jobs CentreMinistry of
Labour
3screens employers
Must not have laid off ortransferred domesticworkers
Did not delay payment ofwages to existingemployees
New Points System toreward good employers
1
Must try to finddomestic workers
Republic of Korea: State-organized recruitment System
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1
Test of Koreanlanguage proficiency
2notifies successfulcandidates, go for medexam, and apply for job
3Worker qualifications
verified 2 months 5
recommends 3candidates per job
6
Issuesemployment
permit
4Sends roster of
qualifiedapplicants
Agencyin sourcecountry
Jobs CentreMinistry of
Labour
HRDKorea
Requirements Employer must buy
employmentinsurance,
insurance for return, accident insurance,
Guarantee insurance
Republic of Korea: State-organized recruitment System
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1
Test of Koreanlanguage proficiency
2notifies successfulcandidates, go for medexam, and apply for job
3Worker qualifications
verified 2 months
5recommends 3
candidates per job
applies for permitto employ foreignworkers specifyage, nationality,
gender
6Issues
employmentpermit
Koreanemployer
4Sends roster of
qualifiedapplicants
Agencyin sourcecountry
JobsCentre
Ministryof Labour
HRDKorea
screensemployers
Republic of Korea: State-organized recruitment System
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Republic of Korea : Measures for protection of
migrant workers and indicators of conditions
CONDITIONS
Inspection of workplaces in 2013, out
of 3,048 companies 1,992 companies
fined
952 companies found violating foreign
employment law 84% found violating regulation on
insurance of workers
470 companies found in breach of thelabor standards, 207 on minimumwages
26 companies violated immigrationcontrol law
MEASURES
Conduct labor inspection on
workplace which employs foreign
workers (MOEL)
Provide post management services
such as consultation and free
education (MOEL, HRD Korea and
NGOs)
Permits change of workplace due to
suspension or closing of business,
delaying wage and other justifiable
reasons.
Execute strict sojourn managementthrough strengthening the
immigration control administration
and establishing a link system
between MOJ and MOEL
H ffi i h
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How efficient are thesesystems?
Singapore has significantly reduced transactioncosts in admission of foreign labour with use ofon-line systems.
Singapore was able to use information provided by
employers to adapt enterprise-level quota tospecific situations.
Republic of Korea : computerized system facilitatedexchange of information with source country
agency roster of qualified workers, list of selectedworkers.
Japan :
H h hi d h i
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Have they achieved theirobjectives?
Has labour immigration enhanced economicgrowthby easing labour supply constraints?
Has labour immigration been controlled so as tominimize social costs?
Have migrant workers received fair treatment andtheir rights are protected?
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Singapore: increasing dependence on
foreign workers despite policies
Vacancies, vacancy rate, andratio of vacancy to unemployed
Singapore economy isincreasingly dependenton foreign workers who
now comprise over 30 %of LF
Somestructuralfactorsbehind rising ratio ofjobvacancies:unemployed
MOM able to monito
potential mismatchbetween the local LFand skills/qualificationsneeded
2002 2004 2006 2008 2010 2012 2014
0
0.5
1
1.5
2
2.5
3
3.5
0
10
20
30
40
50
60
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Vacancies in
000s
Job Vacancy
Annual Ave
Job Vaxancy
to
unemploye
d Ratio
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Japan: policy to attract highly-
skilled appears to be workingForeigners registered for work by occupation
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Japan: fewer and fewer in low-skill
occupations among new foreigners hired
J d li i b f
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Japan: declining number of
undocumented and over-stayers
Cases of violations ofImmigration Control Act
Estimatedundocumentedpopulation droppedfrom over 300,000 in
1990s to 50,000 overpast decade
Most problemsassociated with traineescheme. Case ofnurses. New body tosupervise scheme nowbeing planned
Economic situationlargely responsible fordecline
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Japan: foreigners over-staying theirvisas on the decline for some time
Japan: technical internship as door
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Japan: technical internship as door
to low-skill foreign workers
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Republic of Korea: immigration admissions tracksincome and employment growth
Government allows
employment of foreign
labour in selected sectors -
manufacturing, --
construction, fishery and
agriculture
Policy differs for admission
of ethnic Koreans coming
from PRC and refugees
from Democratic Peoples
Republic of Korea, from
policies towards EPS source
countries
Path dependence of
small business on previous
cheap foreign labour
policy took time to change0
200
400
600
800
1000
1200
1400
1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Immigration
In 000s
-10
-5
0
5
10
15
20
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
GDP
Employment
R bli f K d li i
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Republic of Korea: decline in
irregular employment
Korea: Coast Guardapprehensions
Improvements followed
replacement of trainee-
scheme with regular
guest worker scheme
Labour inspections have
increased
Penalties against
employers foundemploying
undocumented workers
Republic of Korea: Coast Guardapprehensions
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Republic of Korea: sectors employing
foreign workforce in irregular situation
Status of E-visa holders Manufacturing is the
largest sectoremploying foreign
workers and most arelegal
Second largestsector is constructionwhere 1 in 10 are inirregular situation
In fishery 3 out ofevery 10 irregular
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Some conclusions The 3 countries have followed different approaches to managing
migration but have adopted similar structures for its governance.The three are strong capitalist states with high incomes, liberaleconomic systems, and capacity for implementing laws andregulations.
Admissions reflect the dominance of economic factors in labour
immigration. Singapore and the Republic of Korea offerrevolving door for low-skill; Japan and Singapore allows easyentry for high skill; Singapore offers permanence for the high-skill.
Outcomes differ however: Singapore was able to maintain higheconomic growth but not able to escape growing dependenceon foreign labour; Japan has managed to avoid dependence onforeign labour who still constitute an insignificant part of its LF, but
has not managed to revive its economy. The Republic of Koreahas succeeded in attuning admissions to shortages in LM and incontrolling the appetite of small and medium scale enterprises forcheap labour, but too early to say if path dependence willdevelop.