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Saturday, May 26, 2018

Maximize Economic Benefit of Foreign Employment. Introduction.

International migration is a major driver of social and economic change in our country. Foreign Employment provided a remittance income having significant economic and social consequences. Every year over 250,000 Sri Lankans leave the country for foreign employment. This outflow of migrants has increased steadily over time, increased 20 times from 1986 to 2012. The numbers have dropped however by 12.5 per cent in 2015. But, little is known about those who return to the country after working abroad, although returnees can be greater benefit to the economy than migrants. Returnee migrants bring back new skills, knowledge and capital which can provide more value addition and create new employment opportunities among others, if properly directed and integrated into the economy and the society of the home country.



However, after an extended period away from the country, most returnees find it challenging to reintegrate both socially, psychologically and economically. Finding suitable employment, lack of savings, lack of information or access to potential business activities are some of the key economic challenges they face. On the other hand, weakened family ties with spouse, children and local community structures make social reintegration difficult.  The number of other individual and structural factors too affect the degree of integration of the returnees.[1].

In 2015, the Ministry of Foreign Employment launched the Sub-policy and National Action Plan on return and reintegration of Sri Lankan migrant workers. The NAP has 5 focus areas which have been prioritized based on the issues and challenges faced by returning migrant and focuses mainly on the low-skilled returnees with the assumption that they require the most support.

Recently foreign employment has become the largest source of foreign exchange of the Sri Lankan economy during the past few years. A total of 263,307 persons (males 66%, females 34%) left for foreign employment in 2015. During the year 2015, the workers’ remittances accounted a sum of Rs. 948,957 million and it was around 9% of the GDP of the Country, Foreign employment has also been important in terms of skills transfer, investment, brain circulation in addition to contributing to overcome the problems of balance of payment, unemployment and underemployment etc. Analysis of statistics discloses that the total departures for foreign employment in 2015 decreased by 12.4% compared to 2014. Increase in departures through private sources by 18.2% and decrease from recruitment by licensed foreign employment agencies by 33.9% caused this change in total departures.[2] The introduction of regulations limiting foreign employment of women in the domestic sector, especially those with young children, has pushed women to also seek irregular means of recruitment which is not through a licensed recruitment agent and not reflected in official data.

Purpose: prepare concept paper to summit PM to implement the strategies of this concept paper through relevant agencies

Exiting Challenges
·         Sri Lanka continues to face a number of challenges in the field of foreign employment such as the vulnerability of workers who migrate under risky and unsafe conditions and the predominance of low-remittance, low-skilled jobs mainly for women with heavy social costs for families.
·         Sri Lanka has not been able to supply the numbers of workers in mid-professional, skilled and semi-skilled job categories, for whom there was demand from various countries.
·         According to data from the Sri Lanka Bureau of Foreign Employment (SLBFE), many migrant workers from the country occupy low-skilled positions.
·         Increase in local wage levels, high cost of recruitment especially for non-demostic sector and semi-skilled and skilled categories, and decrease from wage levels offered by foreign employers are among the factors lowering the motivation of Sri Lankan employees to go for foreign employment.
·         The large proportion of unskilled or semi-skilled Sri Lankan migrants possess comparatively inadequate English language skills, which is the primary medium of communication between foreign employers and fellow migrants.
·        Kafala is a system used to monitor migrant laborers, working primarily in the construction and domestic sectors, in Lebanon, Bahrain, Iraq, Jordan, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE. The system requires all unskilled laborers to have an in-country sponsor, usually their employer, who is responsible for their visa and legal status. The system offers no labour mobility within employers and tantamount to a system of slavery especially when employers are abusive and exploitative. This practice has been criticized by human rights organizations for creating easy opportunities for the exploitation of workers, as many employers take away passports and abuse their workers with little chance of legal repercussions and no means of escape without exit clearance by the host employer.

Targets
·         Reduce youth unemployment rate 20 % in 2014 to 14.1 % by 2020.
·         Increase Female labour force participation rate from 34.7 % in 2014 to 40 % by 2020
·         Increase EPF beneficiary coverage to 80 % by 2020
·         Reduce work related accidents and deaths by 50% by 2020.
·         Reduce low-skilled labour migration and increase skilled labour migration
·         Increase the protection of migrant workers and minimize their vulnerabilities
·         Enter into new markets
·         Facilitate to access available financial and other services such as business development services



Strategic Directions

 

1. Upgrade the skills of migrants.

·         Produce a skilled labor force which has greater demand from global labor markets               (ExThe Philippines model and Keralian model - India) in the health sector.

·         Review the current Education system on career guidance and aware students and parents on available career options, sources of employment and career paths.
·         Increase the quality and relevance of existing academic programs at the higher educational institutions.
§  Soft skills development of students
§  Updating curriculum 
§  Development of new academic programme
§  Staff skill development
· Establish a guidance mechanism in schools targeting students (and parents) in Primary/secondary School regarding career options and openings available in the TVET sector in line with market demand for employment.
·      Practical training to be set up under the vocational training department and certificates to be issued.
·       Develop joint minimum standards for skills training, certification and recognition.
·      Strengthen skills testing and recognition mechanisms for potential and returning migrants including recognition of prior learning (RPL) certification
·     Meet the recurrent costs of this sector through a ‘voucher’ system, where students who are qualified to receive this education have freedom to spend it at institutions of their choice.

2.   Finding new markets
·  
   Establish decent employment and working conditions and support in relation to travel document, wages, Social protection, complaint mechanisms, occupation safety and health.
·         Improve fair recruitment and reduce migration costs
·         Establishment of one-stop shop center for migrant workers,
·         To reduce the social cost of labour migration and enhance development outcomes for migrant workers and their families, as well as for countries of origin and destination

3.   Encourage the Diaspora (Overseas Sri Lankans) to make their contribution back to Sri Lanka?
Organize a Diaspora Forum with the representatives of the developed nations to get their views and ideas, then prepare a comprehensive report to share with relevant organization to be implement. Engagement of Officers of SL Diplomatic Missions

4.   Motivate the private sector to be education/training opportunity providers in this sector, especially given the availability of the voucher system. Such indirect support of the private sector should be encouraged, because it will create competition; also the real support is directly to interns/students. Lie it with Corporate Social Responsibility initiatives.

5.   Awareness programmes should be organized for more females to undertake studies in the fields of nursing, home economics, hotel receptionists Food and beverage, airline ticketing, beautician courses etc., innovation etc

6.   More focus should be given to deal with issues within Sri Lanka by improving the relevancy and quality of training programmes, using better marketing strategies, streamlining recruitment processes and enhancing cooperation within the industry, commerce and trade sectors

7.   In terms of training, much more attention needs to be given in improving soft skills and spoken English amongst migrants, which could be done through establishing training institutes in rural areas, upgrading the training course of SLBFE, and conducting courses to develop skills that meet the requirements of destination countries and the job. 

8.   Identify the requested skills from Israel, Thailand and South Korea for the job market to promote youth overseas employment. Promote Government to Government employment schemes and follow-up periodically on bilateral agreements and MoUs between Sri Lanka and other countries.

9.   Develop the strategies and make awareness on available facilities especially on “Kafala system” which is cover the Insurance and short of other cost before they leave the country.

10.        The Kafala or sponsorship system have to maintain and monitor through respected agencies to facilitate low skilled labour and have to protect them  from abuse of the rights of low-income migrant workers.



Reference
·         Annual Statistical Report of Foreign Employment 2015
·         Sri Lanka Human Capital Submit report 2016
·         http://www.nitc.lk/old/images/Diaspora%20Contribution%2010%20June%202012.pdf




Annexed: 01
Details of the MOUs/ Agreements Signed with Government of Sri Lanka

No
Country
Subject
Date of Signing
Remarks
01
Kingdom of Jordan
The aim of further development of ways and means of finding solutions to the problems related to the export and import of labour and placement of such Labour on Contractual Development.
06.02.2006
Lapsed
02
State of Qatar
Agreement concerning the regulation of Sri Lankan Manpower Employment in the State of Qatar.
09.01.2008
Not active
03
Kingdom of Bahrain
In the areas of Labour and Occupational Training.
23.04.2008
Lapsed
04
State of Kuwait
The field of Labour, Recruitment and Development of Manpower.
10.05.2012

05
Israel
Recruitment of Seasonal Agricultural Workers
2015
With SLBFE MOU
06
Iraq
The field of Employment and Vocational Training.
05.09.2013
Not active
07
Sultan of Oman
The encouragement of cooperation between the two sides in the areas of labour and training and in particularly.
22.06.2014

08
Switzerland
Decent work safety and well - being for labour migrants and their families in Sri Lanka.
25.07.2014
MoU with the MFE
09
Korea
Employment Permit System.
2004
MoU with the MFE
10
Korea Electric Power Corporation
For Cooperation in employment of Sri Lankan Manpower for Barakah Nuclear Power Project.
01.04.2014

11
Israel
Joint Pilot Program for the Recruitment and Placement of up to 50 caregivers from Sri Lanka to Treat Elderly Disabled Employers in Israel.
25.05.2016
With SLBFE
MOU
12
K.S.A.
Agreement on Domestic Worker Recruitment.
2014
With MFE –
MOU
13
Cyprus
Being processed – On Manpower recruitment.


14
USA
Recruitment of Nurses – with an Ethical Recruitment company named KARMA
2016
With SLBFE
Business agreement
15
Lebanon
Being Processed – On Manpower Recruitment.


S.Thanigaseelan, Assistant Director, NHRDC.




[1] file:///D:/Foreign%20Employment/supportive%20doc/ReturningHomeSuwendrani.pdf

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