The need to look at increasing labor mobility in apec

Discussions on the rights of migrant foreign workers have in the past been framed from the perspective of the originating or sending economy with the receiving country expressing its cooperation but reserving its right to unilaterally set its foreign migrant labor policy on the grounds of sovereignty. Thus, despite the entry into force of various international labor protection agreements under the auspices of the ILO, receiving economies remain under no obligation to adhere to global standards on how they treat foreign guest workers. This also explains why negotiations under the WTO’s Agreement on Services Mode 4 delivery (i.e. workers crossing borders temporarily to provide service) remains bogged down.

Abac-pecc joint study

In an effort to break this impasse, the APEC Business Advisory Council on the representation of the Philippine delegation and the Pacific Economic Cooperation Council (PECC) undertook a joint study that frames the issue in the context of a crisis that many businesses worldwide face in shortage of workers. A survey conducted early this year by Manpower Inc. of nearly 33,000 employers across 23 countries and territories revealed that an average of 40 percent of employers worldwide are having difficulty filling positions due to the lack of suitable workers available. In Canada for example where 60 percent of employers surveyed say they lacked workers, the top 10 jobs that employers are having difficulty filling in are (ranked in order): sales representatives, customer service representatives/customer support, engineers, drivers, mechanics, laborers, chefs/cooks, electricians, skilled trades, and nurses. Experts in this field predict that in 10 years, many businesses will fail because they have not planned ahead for the talent shortage and are unable to find the people they need to run their businesses. And that this is not “a cyclical trend, as we have seen in the past, this time the talent crunch is for real, and it’s going to last for decades.”

The PECC-ABAC study confirmed that for several reasons, including lower birthrates and aging population, widening differences in levels of economic and educational development and continued globalization of industry, the Asia Pacific economies will continue to require even greater international movements of labor in the future. However, despite the increase in labor mobility, there remain many constraints, so that labor is less internationally mobile than other factors of production. The study found that failure to recognize that migration is a long-term structural feature of APEC economies can lead to the adoption of unrealistic policies and programs to replace migrant workers with local workers, overly restrictive entry policies that encourage underground migration, and the marginalization of migrant workers. It became apparent in the various background studies that there are limited policies currently for effective management of migration at national levels. Additionally, limited or no cooperative efforts exist at the region-wide level in the Asia Pacific.

The study concluded that regional cooperation can play a significant role in supplementing national initiatives in this area by considering and development policies to promote greater efficiency in the deployment of talent across the region. APEC would be in an excellent position to examine how to enhance the benefits of labor mobility to the region’s economies and the operations of the business community, ease adjustment problems associated with migration, strengthen the transfer of human skills, overcome increasing demographic and labor imbalances, and provide protection and enhanced well-being for those who migrate. This is after all a business issue – indeed an economic phenomenon that is increasingly becoming common.

Non-responsiveness of apec senior officials

This new perspective in which the receiving economy now has a stake in how it manages its migrant labor presents the best opportunity to bring all stakeholders - sending and receiving economies and the worker – together to develop a win-win-win situation. Unfortunately, despite what to me is a compelling argument, it is still proving difficult to overcome the traditional mindsets. When PECC and ABAC presented their findings at the APEC Senior Officials Meeting in Lima. Peru last August and recommended that it would be useful for APEC to look at this issue and include it its agenda – without preconditions as to the outcome - the proposal was met with responses ranging from stone-cold silence or apathy to outright opposition.

Apec agenda for 2009

All is not lost however. PECC and ABAC are mounting an attempt to have this issue included in the preparatory meeting (APEC FORUM) to discuss next year’s themes and priorities when APEC’s chairmanship is passed on to Singapore. The Singaporeans – who are themselves hosts to a large number of foreign workers – have said that they will include the issue in next year’s work program but only if there is consensus. Based on our experience as host of APEC in 1996, I know that the host has a lot of latitude as to what issues it intends to push during their year of chairmanship. We have asked President Arroyo to raise the issue at the APEC Leaders Summit in November by framing the recommendation in the context of demographic change and business needs – and as the final piece in reaching regional economic integration.

I strongly believe that this approach presents the best opportunity to overcome the traditional resistance by receiving economies to discussing labor mobility issues by arguing that they have as much stake as sending economies in its management given that this is going to be a permanent structural feature of their economies. Korea is one economy that has recognized this. Government-to-government labor agreements have proven to be beneficial to both sending and receiving economies. The receiving economy is assured of properly trained workers (in Korea that includes speaking the Korean language), the sending economy is able to more effectively protects its citizens and shares the training cost with the receiving economy, and the workers are assured that they are not charged exorbitant recruitment fees and work under fair and equitable terms and conditions as local workers. Japan is one country that has traditionally been against migration – remember that until Commodore Perry steamed into Edo in 1853, Japan was basically isolated for two centuries – but is being faced with no choice but to bring in foreign workers. The provision in JPEPA granting quotas for Filipino nurses is a belated recognition of the need for this kind of government-to-government arrangements.

Philippine global forum

I am also very encouraged that the Philippines is hosting the Second Global Forum on Migration and Development, which will be held in Manila at the end of October. The Forum will certainly address many of our concerns. Though the Forum goes beyond an Asia-Pacific context, its discussions should be important overall for bilateral, regional and international discussions. The major consideration is to maintain the momentum of consultations and hopefully cooperation at all levels.

Personal representations with Singapore

I hope that this topic will be placed in the agenda of the APEC Forum in Singapore. My colleagues in ABAC and PECC are making representations to that effect. I have personally discussed this with the Singapore deputy chief of mission. The new ambassador was too busy to discuss this with me.