Sunday, May 6, 2012

SSS Eyes More OFW Deals

MANILA, Philippines — The Social Security System (SSS) is set to enter into bilateral agreements within the year with three countries in an effort to protect the welfare of overseas Filipino workers (OFWs) even after the expiration of their contracts.

SSS Senior Vice President Judy Frances A. See said in an interview they are set to start negotiation with Japan, while it is already about to sign an agreement with Portugal. SSS has also ongoing negotiation with Denmark.

“We’re going to negotiate with Japan by the second semester, so we’re expecting a visit from them in the second half,” See said.

The deal with Japan should benefit more OFWs as the increase in the entry of nurses in Japan is part of the Philippines Japan Economic Partnership Agreement entered by both countries in 2006.

“There is also a clamor from our Filipino community in Denmark because without the agreement, the benefits will not be exportable to that country. If we have an agreement, and if they decide to come home, they will have a fallback,” See said.

Foreign countries are traditionally hesitant about entering into this agreement since bilaterals benefit OFWs more than their foreign nationals considering they usually have fewer nationals in the Philippines. But the government is expecting positive responses for this move since OFWs legitimately contribute to the social security system of these countries along with the payments of their employers.

Among countries, SSS has difficulty seeking negotiations with Middle East countries where there are more than one million OFWs.

To date, SSS has existing bilateral agreements with the United Kingdom, Spain, France, Netherlands, Belgium, Canada, the independent province of Quebec, and Switzerland.

The bilateral agreements should have four provisions. These are equality of treatment — whatever treatment to other foreign workers in a country should be accorded to OFWs; export of benefits — a benefit of a Filipino OFW should be remitted to the Philippines once his contract expires; totalization of benefit or a benefit should be granted to an OFW pro rata for the period of time for which he has rendered service even if he has not completed a pre-agreed period of entitlement; and mutual administrative assistance.

Susie Bugante, SSS vice president, said the pension fund has a plan to introduce a new program for returning OFWs particularly to finance livelihood or entrepreneurial program.

“DOLE (Department of Labor and Employment) has brought up a proposal to finance a program for OFWs like the Sulong program that we have had even before,” said Bugante. “We will have more returning OFWs who are bringing home a set of skills that they have used abroad, and we have to support them.”

Sulong or the SME (Small and Medium Enterprise) Unified Lending Opportunities for National Growth is a financing program of SSS and other government financial institutions for SMEs.

SSS has started promoting membership to OFWs specially those that are just under contract as it considers them the most vulnerable to financial difficulties compared to immigrants.

Recently, SSS awarded raffle prizes to nine OFWs as part of its promotion to get more members. Three prizes were allocated for those working in the Asia Pacific, three for the Middle East, and three for the rest of the world.

SSS is targeting a total OFW membership to 500,000 by end this year from the 200,000 at the start of the year.

source: mb.com.ph