POLO-Tokyo

Third Quarter 2009 Accomplishment Report

Introduction

According to Japan’s major newspapers1, the government’s “tankan” survey showed that
Japanese companies are more optimistic now compared to three (3) months ago.
Aggressive spending by Japan’s trade partners, especially China, has helped push export
demand and factory output allowing industrial output in August to rise 1.8 percent from
the previous month. Household spending also rose 2.6 percent from a year earlier despite a
two (2) percent drop in average monthly income. But while business confidence is upbeat
compared to before, companies remain anxious about investing in workers or factories.
Falling investments in plant and equipment and a sluggish domestic demand still remain
causes of concern particularly among small and medium companies.

At the employment front, the situation remains weak despite the jobless rate improving
slightly in seven (7) months. Government economic data revealed that the unemployment
rate fell slightly to 5.5 percent in August from a high of 5.7 percent the previous month. But
the total number of those who are unemployed increased 890,000 to 3.61 million from a
year ago. The overall ratio of job offers to job seekers remained at a record low of 0.42. This
means that there were only about 42 job offers for every 100 job seekers. Moreover, it is
possible that in the coming months, the labor market could get worse as the benefits
created by the economic stimulus measures by the Aso government are expected to narrow
down and companies are likely to mount additional job and wage cuts to boost company
profitability this year. According to one report, about 239,000 nonregular workers are
expected to lose their jobs between October 2008 and December this year due to
termination of employment contracts. Temporary workers dispatched by recruitment
companies and/or staffing agencies will account for 60 percent of these, or about 142,000
workers. Regular and full-time workers, about 48,000 of them, are expected to lose their
jobs in the same period. Clearly, the global financial crisis, despite signs of bottoming out,
has put Japan’s economy in a painful situation and is threatening the economic well-being
of its people. Overall, the labor market is quite bleak and the economic outlook remains
uncertain. The election win by the Democratic Party of Japan could lead to brighter
prospects and an opportunity for much stronger economic recovery abilities which could,
in the longer term, translate to more positive economic implications.

Against this backdrop, POLO-Tokyo pursued its objectives of employment facilitation, OFW
protection and welfare services, policy advocacy and networking for the period ended
September 2009. The following are the highlights of POLO-Tokyo’s accomplishments
during the period covered:

1
As reported in the October 2, 2009 issue of the Asahi Shimbun, and the October 3, 2009 issue of the
Japan Times.

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 Employment Facilitation

Confirmation of Procedures Related to Employment Contracts. The number of

companies recommended to POEA for accreditation as principals expanded by about four
(4) times (+323) in the period ended September 2009. This figure is mainly due to the new
policy of instituting a recommendation process in lieu of authentication and/or verification
of documents for Filipino performing artists in Japan since September 2008. As a
consequence, the Post referred to POEA a total of 432 companies from 109 companies
recorded last year (Table 1).

Table 1: Confirmation of Procedures Related to Employment Contracts and Issuance of OECs and ECCs,
Third Quarter 2009

3Q 2009 3Q 2008 Increment

Number of Contracts Recommended

For Registration to POEA 432 109 +323

Number of OECs Issued 449 397 +52

Total Amount Collected from OEC Fee

(In Local Currency: Yen) 112,250 297,750 -185,500

Number of ECCs Issued 14 32 -18

Source: POLO Tokyo, 3rd Quarter 2009

On-site Issuance of Overseas Employment Certificates (OEC). From July to September

2009, the number of OECs issued on-site totaled 449 (up by 13.10 percent) OECs issued
benefiting the same number of OFWs compared to 397 OECs issued on the same period last
year. This figure translated to about ¥112,250 collected for the payment of the OEC fee
which is 62.30 percent lower than the amount collected last year. This is due mainly to a
decrease in the collection fee amount from ¥750 per OEC last year to just ¥200 per OEC in
February and ¥250 starting May this year.

On-site Issuance of Escrow Clearance Certificates (ECC). Escrow clearance certificates

(ECCs) were also issued at Post to assist principals who were withdrawing escrow bond
deposits because of cessation of their business operations. From July to September this
year, 14 ECCs were issued which is 56.25 percent lower compared to the 32 ECCs issued
last year.

On-site Verification/Review of Documents. The verification/review of documents

related to the hiring of Filipino workers basically ensures that the contract (between the
Filipino worker and his employer in Japan) is in compliance with POEA rules and
regulations and its terms and conditions are at par with what is prescribed under Japanese

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laws and standards. For the third quarter of 2009, about 44 documents were verified by
POLO-Tokyo, benefiting 1,197 workers. Verified documents during the first half of 2009
involved contracts of mostly overseas performing artists (1,061) and engineers and other
skilled workers/professionals (124). Looking more closely at these figures, the number of
skilled workers involved decreased by 37 percent from 196 to 124 workers, due mainly to
cost-cutting measures implemented by many small and mid-sized employers. In contrast,
the number of overseas performing artists involved was not as greatly affected but instead
grew by 31 percent from 810 last year to 1,061 requests for overseas performing artists in
the third quarter of 2009.

Table 2: On-site Verification of Documents, Third Quarter 2009

3Q 2009 3Q 2008 Increment

Total Number of Documents Verified On-site 44 48 -4

Job Orders 11 12 -1
Recruitment Agreements 11 11 0
Manning Agreements 0 1 -1
Special Power of Attorney 11 12 -1
Trade License (Company Registration) 11 12 -1

Total Number of Workers Involved (as per Job Order) 1197 1038 +159

HSWs 12 14 +2
Overseas Performing Artists 1061 810 +251
Seafarers/Manning Personnel 0 18 -18
Skilled Workers (i.e., engineers, IT workers) 124 196 -72

Source: POLO Tokyo, 3rd Quarter 2009

Labor Market Information. As of end of September 2009, Post prepared a total of 26

reports which included policy recommendations forwarded to DOLE Head office.

Social Protection and Welfare Services for OFWs

OWWA Membership Promotion Program. OWWA Membership Promotion Program

during the third quarter of 2009 resulted in the enrolment or renewal of membership of
257 OFWs in OWWA – an increase of about 74 percent (+109) from the year ago OWWA
membership. Total revenue collection reached USD 6,455.36 which increased by 79
percent compared to the amount collected during the same period last year (Table 3).

Workers Assistance Program. Post handled a total of 37 welfare cases during the third
quarter of the year, which is 31 percent lower than the 54 cases recorded last year. Of these
cases, some 37 workers were involved complaining about illegal recruitment, unpaid
salaries, maltreatment, confiscation of passports, sexual assault, and contract violations.
Some cases also involved request for repatriation, temporary shelter, legal advice, report of

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status of detention and whereabouts, and assistance in filing insurance claim and in
securing travel documents. Out of the 37 cases managed by the Post, 20 were resolved or
closed while the rest remained pending for resolution at the end of the September 2009.

Table 3: Number of OFWs Enrolled to the OWWA Membership Program, Third Quarter 2009

3Q 2009 3Q 2008 Increment

Number of OWWA Membership 289 148 +141

Total Amount Collected from

Membership Fee 6,455.36 3,603.31 +2,852.05
(Currency: USD)

Source: POLO Tokyo, 3rd Quarter 2009

Repatriation. Post recorded three (3) cases of on-site repatriation assistance during the
period in review. Repatriation assistance included provision of transfer assistance to
airport and temporary shelter; facilitation of issuance of travel documents; and
coordination with concerned employers, agencies and government authorities. These cases
were also coordinated with OWWA RAD for airport transfer, ambulance and legal
assistance. Employers shouldered the repatriation expenses in most cases.

Policy Advocacy

Post updated its Report to Congress on the working conditions of and problems
encountered by OFWs in Japan, recommending policy interventions designed to minimize if
not eliminate unfavorable working conditions for skilled Filipino professionals about to
work in Japan.

On 24 September 2009, Post participated in the Tokyo Conference on Japanese-Filipino

Children organized by the International Organization for Migration (IOM). The Tokyo
conference is a follow-up activity to the first National Conference in Manila in June this year.
The Tokyo conference will build upon the objectives and results of the Manila Conference.

On-site Networking, Linkages and Other Key Activities

Creation of networks and linkages are an essential component of the development program
at the Post. The aim is to explore and sustain cooperation with both local and international
institutions for purposes of resources sharing by way of conferences and seminars,
professional or worksite and welfare-related visits, publication exchanges and donations.

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On 19 July 2009, Post participated in the Filipino-Japanese Friendship Ceremony and
Induction of the 2009 United Filipinos for Peace and Advancement (UFPA) Officers
Ceremony in Kawasaki City. Labor Attaché Danilo P. Cruz was the guest of honor and
induction officer during the event.

The labor office spearheaded an outdoor get-together held last 09 August 2009 for the
Filipino community representatives in Tokyo. The gathering was in appreciation for the
participation and efforts made by them in relation to the recent visit of President Gloria
Macapagal Arroyo to Japan.

On 06 September 2009, Labor Attaché Danilo P. Cruz was the guest of honor and induction
officer at the Japan Association of Novo Ecijanos (JANE) Induction of Officers Ceremony in
Tokyo.

On 29 September 2009, Japan International Training Cooperation Organization (JITCO)

commenced the opening ceremony of its Support Program for Japanese Language
Education Prior to Dispatch (JLEPD). Labor Attaché Danilo P. Cruz delivered a speech

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during the ceremony. In the afternoon, Filipino participants to the JLEPD program visited
the Philippine Embassy. Consul General Sulpicio M. Confiado and Labor Attaché Danilo P.
Cruz welcomed the participants and shared afternoon snacks with them.

JPEPA Nurses and Caregivers

Observation Mission. On 14-15 August
2009, Labor Attaché Danilo P. Cruz and
Welfare Officer Ma. Luz L. Talento visited
two (2) facilities in Okayama Prefecture,
namely Momotaro Rehabilitation Center and
the Kibikogen Synthetic Welfare Center. On
the second day, they visited the candidate
caregivers studying Japanese language at
the Hiroshima International Center.

On 9-10 September 2009, Welfare Officer

Ma. Luz L. Talento and Mr. Dennis M. Cabato
of the Philippine Overseas Labor Office
(POLO-Tokyo) were on location to carry out
an observation mission this time in Nagoya
City, Aichi Prefecture (IC NAGOYA training
facility) and in Osaka City, Osaka Prefecture
(AOTS KANSAI KENSHU CENTER).

The observation mission carried out its

objectives well and was an opportunity to
note down some of the concerns and issues
brought up by the nurses and caregivers
under the JPEPA. In each of these locations,
an open forum was held to entertain
questions from the nurses and caregivers.
The questions ranged from provisions of
employment contract, leave of absence from
work, the board exam, and other concerns
related to their working conditions. Overall,
the nurses and caregivers were in high
spirits and renewed their commitment to
finish the program.