Labour Migration Infrastructure and Services in Destination Countries

7/23/2019 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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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.


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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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)


vacancies


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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


vacancies


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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


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



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1




verified 2 months 5

recommends 3candidates per job

6

Issuesemployment

permit

4Sends roster of

qualifiedapplicants


Jobs CentreMinistry of

Labour

HRDKorea

Requirements Employer must buy

employmentinsurance,

insurance for return, accident insurance,

Guarantee insurance



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1




verified 2 months

5recommends 3

candidates per job

applies for permitto employ foreignworkers specifyage, nationality,

gender

6Issues

employmentpermit

Koreanemployer

4Sends roster of

qualifiedapplicants


JobsCentre

Ministryof Labour

HRDKorea

screensemployers



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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.

Labour Migration Infrastructure and Services in Destination Countries

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