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Saudi’s Unified Contract Scheme is Now Optional

  Feb 16, 2009

A joint meeting held last January 21 between the Philippine and Saudi delegation led to an agreement that the proposed Saudi’s unified contract" policy will no longer be mandatory for the Philippine recruitment agencies that sends overseas Filipino workers (OFWS) to Saudi Arabia.

 

The Philippine team was led by Labor Undersecretary Rosalinda Baldoz while the delegates from KSA were headed by Mohammad Al-Mohamadi. As stated in the minutes of the said meeting that bears the signature of both Baldoz and Mohammad, the “unified contract" (UC) “is not mandatory as a document for the recruitment of OFWs."

Only Saudi recruitment agencies from Saudi Arabia that deploys OFWs through manpower agencies from the Philippines would be covered by the unified contract policy. Likewise, UC will not be a prerequisite or requirement for the issuance of visas, except for employers hiring through Saudi recruitment agencies and Philippine recruitment agencies.

 

Also, communication between Philippine agencies and Saudi companies would not be prevented by UC. The two parties can deal directly with each other.


The unified contact scheme was first proposed by the Saudi National Recruitment Committee (Sanarcom). Under the suggested recruitment scheme, employers in
Saudi Arabia can only hire an OFW through agencies that are a member of Sanarcom. It also states that Philippine recruitment agencies would not be allowed to directly communicate with Saudi employers.

 

Associations of recruitment agencies from the Philippines were quick to show and express their protest over the proposed scheme claiming that the one-sided imposition would result in “modern day slavery."

Philippine agencies are worried that Saudi’s fate would be similar to what happened in Taiwan, where Taiwanese brokers controlled and dominated job orders. Philippine recruiters have to bid to the brokers to get jobs for OFWs.  Local agencies think the Sanarcom would like to form a similar policy that would not be of any interest to OFWs.


The Philippine Association of Service Exporters, Inc. (Pasei), one of the groups of land based agencies that go up front to express their objections on UC, reacted to the latest news about the hiring policy with mixed feelings.

 

According to Victor Fernandez Jr., PASEI president, while they are pleased with the decision of Saudi’s government, they are also concerned with its member agencies that choose to deal with Saudi recruitment firms.

In an interview by GMANews.TV, he said, “Impose dapat na maging liable yung counterpart, there should be no case of contract substitution and hindi nadedelay ang recruitment.”


The PASEI president also reminded that the
Philippines should remain watchful and observant. He said that Sanarcom’s sole interest was to pressure the Philippines into agreeing with their terms.

He said, “Originally the unified contract is only for domestic helpers, now it’s also for domestic helpers and skilled workers, and now it covers agencies. Biglang sinabi na ‘di pwedeng i-amend ang contract, ilagay na lang daw sa Section 24 so actually magulo."


On the other hand, Fernandez commended the Philippine government for being vigilant against provisions of the contract that would put OFWs welfare at risk.


Fernandez said, “Hindi pumayag ang Philippine government kung hindi para sa interest ng workers ang contract at kung hindi kasali sa framework ang joint and solidary liability," he said.

Also, representatives of the House Committee on Overseas Workers Affairs emphasized that any changes to be made in the “unified contract" should comply with Philippine laws.

It said, “Congress will be in a position to express its (objection) on the objectionable provisions of the ‘unified contract’ and reject it if it would be (violating) existing laws and regulations to protect the welfare of Filipino workers."

 

The next joint meeting of are scheduled in two months time. Teams from Saudi suggested Riyadh as the next place to hold the meeting but the Philippine delegations rejected the idea. Fenandez said that it was a right decision.

 

He said, “If we meet there, they can intimidate, they can enforce."

 

 

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