Sat, Sep 04, 1999 page2

• Taiwan, Philippines reach labor agreement

  MANILA-TAIPEI TALKS After three days of talks and disputes over the use of Taiwan's official name, both sides have signed a memorandum of understanding on the issue of foreign labor

  • By Yu Sen-lun / STAFF REPORTER
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  After three days, the Taipei-Manila Joint Economic Conference ended yesterday on an upscale note with Taiwan and the Philippines finally signing a memorandum of understanding on the direct hiring of laborers.

  But the negotiations became snagged on the second day of the meeting when it was reported that the signing of the new labor accord was to be delayed because Manila was opposed to Taiwan using its official name, the Republic of China.

  During the last 10 minutes of the closing session yesterday, however, the top labor officials for both sides -- Bienvenido E. Laguesma, Secretary of the Department of Labor and Employment of the Philippines, and Chan Hou-sheng (詹火生), Chairman of Taiwan's Council of Labor Affairs -- showed up at the meeting together and immediately announced the signing would go ahead.

  

  Eva Estrada-Kalaw, who chairs the Board of Directors of the Manila Economic and Cultural Office, yesterday signed a memorandum of understanding on the direct hiring of Filipino laborers. Negotiations on the agreement had hit a snag because Manila was opposed to Taiwan using its official name, the Republic of China.

  PHOTO: CHIANG YING-YING, TAIPEI TIMES

  Both sides, in fact, were reluctant to mention the reason for the change in stance, adding that the document was yet to be released to the public.

  According to a Labor Affairs Council statement, the direct hiring project has been proposed for the past five years and the Philippines had agreed to the signing in May 1998. Taiwan's Executive Yuan approved the draft last August, with Taiwan's full name on it.

  Lin Tsong-ming (林聰明), the head of the Vocational Training Administration under the CLA, said that the memorandum stated that the direct hiring project was a probationary scheme with an effective period of one year. He added that the scheme will work alongside the existing hiring system whereby workers are hired through third-party labor brokers.

  "It has opened another channel for employers to hire Filipino workers," Lin said. He said employers could apply for permission to hire from the CLA, and the council would inform the Manila Economic and Cultural Office to recruit employees directly.

  Lin added that as agency fees would be decreased through direct hiring, the rate of desertion and overstaying by Filipino workers would be reduced, thus improving the management of foreign workers.

  "Besides, this project could help employment agencies improve their services in order to gain support from employers. It will be beneficial for all three sides," he said.

  As one of the delegates during the negotiation process, Lin said he proposed a so-called "charge" system to be used in recruiting laborers from the Philippines. In such a system, local and foreign agents would charge NT$30,000 and NT$26,000 respectively -- whereas under Filipino law, agents are currently allowed to charge one month's salary, a restriction that is often bypassed with fees being many times higher.

  "There are many additional under-the-table charges to employees, which makes them suffer the most," Lin said.

  Further details on procedures for the direct hiring project and its fees will be discussed by both sides before it is implemented, Lin added.

  Chan Hou-sheng said that the signing of the memorandum highlights the relationship, not only between the two organizations on the issue of labor reform, but also between the two countries in other aspects.

  As for whether "ROC" actually appears on the document; Manila Economic and Cultural Office labor representative Eliot S. Cojuangco said he "supposed" Taiwan's official name was printed but did not confirm it. Lin, however, confirmed that the signed memorandum was the same edition as the one approved by the Cabinet.
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