Newly Appointed Migrant Workers Secretary to Address Wage and Benefit Claims of Overseas Filipino Workers in Saudi Arabia
Newly appointed Migrant Workers Secretary, Hans Leo Cacdac, is set to embark on a crucial visit to the Kingdom of Saudi Arabia (KSA) this month. His primary objective is to address the long-standing issue of unpaid wages and benefit claims of some overseas Filipino workers (OFWs) in the Middle Eastern country. This initiative comes as a response to the challenges faced by approximately 10,000 displaced OFWs whose employers declared bankruptcy between 2015 and 2016.
The Department of Migrant Workers (DMW) released a statement on Monday, highlighting the significance of Cacdac’s visit. The statement emphasized that the main topic of discussion with their Saudi counterparts will revolve around the disbursement of pending claims owed to Filipino workers.
Cacdac, in his first press briefing as DMW Secretary, expressed his anticipation for the upcoming visit, stating, “I am due to visit the Kingdom of Saudi Arabia in May. On our list of topics for discussion with our Saudi counterparts is the continuing disbursement of claims due to our workers.”
Resolving the Financial Fallout of Bankruptcies
It is important to note that the bankruptcy of various companies not only affected OFWs but also resulted in the displacement of thousands of foreign workers in Saudi Arabia. The DMW revealed that the legal disposition of the claims cases occurred in November 2022 when President Ferdinand Marcos Jr. and Saudi Crown Prince Mohammad bin Salman held a meeting. During the meeting, Prince Salman assured that Riyadh was prepared to address the financial settlements of the claims and set aside 2 billion Saudi riyals (approximately P30.7 billion) for this purpose.
Following the meeting, in November and December 2023, around 1,500 Saudi claimants began receiving their claims checks from the Saudi Alinma Bank. These checks represented the amounts owed to them by their bankrupt companies, according to the DMW.
To facilitate the process and expedite the encashment of their claims checks, the Migrant Workers Department entered into a memorandum of agreement with the Land Bank of the Philippines and the Overseas Filipino Bank. Secretary Cacdac expressed hope that the next tranche of claims checks will be issued in the second quarter of this year.
Strengthening Bilateral Relations and Ensuring Ethical Employment Practices
In addition to addressing the wage and benefit claims, Secretary Cacdac’s visit to the Kingdom of Saudi Arabia aims to strengthen bilateral relations between the two countries. The discussions will focus on enhancing institutional mechanisms to ensure fair, ethical, and safe recruitment and employment of OFWs. Saudi Arabia has also expressed its interest in recruiting more Filipino workers to support its ambitious Vision 2030 development program.
The Department of Foreign Affairs reports that there are currently 865,121 Filipinos residing in Saudi Arabia, including permanent residents, temporary residents, and even undocumented migrants. This figure underscores the significant presence of the Filipino community in the country.
Secretary Cacdac’s visit signifies the commitment of the Philippine government to safeguard the rights and welfare of OFWs in Saudi Arabia. By engaging in constructive dialogue and pursuing effective solutions, both countries can work together to address the challenges faced by migrant workers and foster a stronger bilateral relationship.
Source: The Manila Times
