Dubai crisis may bloat local informal sector – KMU

Creation of decent jobs a must amid global crisis

Thousands of Filipino migrant workers in Dubai facing retrenchment woes may end up in low-paying and temporary jobs, or suffer from having no jobs at all upon their return, labor center Kilusang Mayo Uno warned in view of the Arroyo government

’s poor record of domestic job generation.

Around 250,000 Overseas Filipino Workers (OFWs) in Dubai stand to be affected by the Middle East city’s credit crisis, which now takes its toll on the migrant sector in the form of salary reductions and job cuts. Some OFWs in Dubai are already suffering from delayed income.   

KMU said the government’s record of creating informal jobs in response to massive layoffs inside and outside the country hints retrenched OFWs in Dubai may receive a gloomy welcome from the growing informal sector, which stands at 14.7 million or half of the country’s labor force.

“What else does this government have in store for retrenched workers locally and abroad apart from sweeping streets and other informal jobs? Unfortunately, retrenched workers are left with no choice but to join the informal sector, which is not covered by social protection measures and minimum wage regulation,” said KMU chairperson Elmer “Bong” Labog.

Informals in the country include jeepney drivers, tricycle drivers, vendors, own-account employees, home-based workers, among others. 

“Quite tragically, the poor employment opportunities at home, which pushed Filipinos to seek decent livelihood in other countries, is still the final destination of our laid-off kababayans who now work in Dubai,” added Labog.

Labog said a surge in the informal sector will reflect greater poverty in the country, saying more low-wage informals would mean diminished purchasing power for Filipinos, thus higher hunger statistics and poverty figures. This would in turn result in lower consumption and productivity.

“The significant number of affected Filipino workers in Dubai should serve as an alarm signal to the Arroyo government to pursue the creation of decent jobs at home and push for higher wages, rather than dish out worn-out praises such as ‘Mga bagong bayani’ to our OFWs,” said Labog.

“The Dubai crisis also tells the government to abandon its labor export policy, which has peddled Filipinos into the lion’s mouth as more and more countries suffer from the global economic downturn,” he added.

KMU said providing decent and stable employment to Filipinos is the best way to defend livelihood in the face of a global economic situation that hints at no immediate recovery. #