The Recruitment Industry in the : Government-Business Relations in the Overseas Employment Program

Nathan R. Blank

A thesis submitted for the degree of Doctor of Philosophy of The Australian National University

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I certify that this thesis is my own original work.

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Acknowledgements

This thesis could not have been written without the help and support of many people, a few of which I have endeavored to specifically mention here. Above all, I would like to thank my wife Vanessa whose patience, love, and support continually amaze me. Not only did she help with the transcription of over 70 hours of interview recordings, but she happily accompanied me (along with our children) in moving from the U.S. to , then to

Manila for five months, back to Australia, and finally back to the U.S. At moments of self- doubt, she has always fortified me with supportive words and actions. My children Liam,

Jonas, and Adele also deserve gratitude for happily going along with the travels that have been necessary to accomplish this thesis, and for understanding why their dad is always working at his computer. My parents and in-laws also deserve a great deal of gratitude for their love and support throughout the years leading up to the completion of this thesis.

I would like to extend my sincerest gratitude to my Ph.D. supervisor Paul Hutchcroft whose support, ideas, and encouragement have caused me to grow tremendously as a scholar. His feedback and advice helped immensely through all stages of this thesis. I would particularly like to thank Paul for first introducing me to the government-business framework, which ultimately played such a prominent role in how this thesis was conceptualized. Paul pushed me to settle only for my best work, and helped me to achieve it. I would also like to thank

Katherine Gibson who first brought me to the ANU, without which I would not likely have been able to conduct field-work in the way that I did. It was Katherine who found a scholarship for me, acted as my first supervisor, encouraged me to stretch myself as a writer, and pushed me to achieve my goals. Finally, I must thank my fellow ANU Ph.D. candidate comrades-in-arms, Ann, Pyone, Tim, and Kelly for our lunchtime confabs where we offered encouragement and support to each other. iv

The research for this thesis was collected over a five-month period in 2009 and 2010, during which numerous individuals and organizations assisted me in accomplishing my objectives.

At the University of the Philippines, I would like to thank: Jorge Tigno for his advice and comments on an early chapter draft, Darlene Occeña-Gutierrez for facilitating my visitor status to the university as well as arranging accommodations for my family and I on campus,

Jean Franco for helping me navigate the Philippine Senate subcommittees and archives, and

Roanica Cabading who helped me crack the Philippine House of Representatives sub- committees. I would like to extend sincerest gratitude to those organizations and individuals in the Philippines who took time out of their schedules to speak with me. From the recruitment industry I would like to thank: Loreto Soriano, Victor Fernandez, Raul de

Vera Jr., and Rene Cristobal. At the POEA Hans Leo J. Cacdac and Liberty Casco provided tremendous insight on a variety of topics. Rhodora Abaño at the Center for Migrant

Advocacy went above and beyond in order to help me accurately capture NGO perspectives on the overseas employment program. Likewise, Ricardo Casco at the International

Organization for Migration helped me understand the perspective of migration-focused international groups on government migration-related programs and policies. Edward Yulo at the Department of Foreign Affairs took time between travelling to meet with me, to which I am grateful.

As mentioned above, major attribute of my experience in the pursuit of this Ph.D. thesis has been the need to move my family first from the USA to Australia, then to for five months, back to Australia, and ultimately back to the USA where I completed the writing-up phase. My family and I were blessed to encounter many people who made our separation from extended family for the three year period in which we were abroad a pleasant v

experience. We now consider these people life-long friends and our lives have been enriched by their acquaintance. In Australia the Fisher, Vellar, Shea, and Hill families, made us feel like a part of their extended families. We now consider their friendships our best souvenir from our stay in Australia. Likewise, in the Philippines, the Cacho family was wonderfully warm to my family and I, and we will cherish their friendship for years to come.

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Abstract

No major country in the world is as reliant on migrant remittance flows as is the Philippines, with some 8-11 million workers overseas sending $17 billion back home each year. As important as these flows are to the Philippine economy, the export of labor has never been part of a coherent development strategy. At least 13 major government agencies are involved in matters pertaining to overseas Filipino workers, but the result is more of a patchwork of overlapping roles than a systematic regulatory regime. My thesis examines relations between these agencies and the approximately 1,500 recruitment agencies that are the key private-sector actors in facilitating overseas migration from the Philippines.

Despite the importance of these agencies, no previous research has examined their role, their associational ties, or the nature of their relations with a range of government actors.

Theoretically, my research contributes to debates within political economy on what roles the private sector and government have in pursuing and achieving national economic development objectives. Beyond this primary contribution, my research also provides insights into debates on alternative development strategies in developing states, the politics of international labor migration, and bilateral labor relations between states. The research for my thesis was gathered primarily across five months of fieldwork in the Philippines.

While there, I was able to utilize multiple methods of investigation including interviews with politicians, bureaucrats, NGOs, business leaders, and international organizations as well as significant archival research. My thesis topic intersects with many research areas, including not only the politics of development and government-business relations but also state- society relations, structures of governance, foreign policy making, and international diplomacy.

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Table of Contents

Statement of Originality i

Acknowledgements iii

Abstract vii

Table of Contents ix

List of Abbreviations xi

Chapter One: Introduction 1

Chapter Two: Maximizing Migration: Theoretical Approaches to Government- 27 Business Relations in the Philippine Overseas Employment Program

Chapter Three: Government-Business Relations in the Migration Industry, 1974 61 to 1994

Chapter Four: The “Humanization” of Labor, 1994-2001 91

Chapter Five: Government-Business Relations in the Overseas Migration Policy 141 Process, 2004-2011

Chapter Six: Making Migration Policy: Reflections on the Philippines’ Bilateral 205 Labor Agreements

Chapter Seven: Comparative Approaches to Migrant Labor Programs 247

Chapter Eight: Bringing Government and Business together to maximize 277 developmental outcomes

Appendices 309

Bibliography 317 x

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List of Abbreviations

APEC Asia-Pacific Economic Cooperation

APMRN Asia Pacific Migration Research Network

ASEAN Association of Southeast Asian Nations

BES Bureau of Employment Services

BLA bilateral labor agreement

BLES Bureau of Labor and Employment Statistics

CEPD Council on Economic Planning and Development

CFO Commission on Filipinos Overseas

CMA Center for Migrant Advocacy

COA Commission on Audit

COMELEC Commission on Elections

COWA Committee on Overseas Workers Affairs

DBM Department of Budget and Management

DFA Department of Foreign Affairs

DOF Department of Finance

DOLE Department of Labor and Employment

DTI Department of Trade and Industry

ECB Economic Planning Board

EDSA Epifanio de los Santos Avenue

EOI export-oriented industrialization

EPB Economic Planning Board

EPS Employment Permit System

EPS-KLT Employment Permit System – Korean Language Test

FAME Filipino Association for Mariners’ Employment Inc.

GATT General Agreement on Tariffs and Trade xii

GDP gross domestic product

ILO International Labour Organization

IOM International Organization for Migration

IOs international organizations

ISI import substitution industrialization

JICWELS International Corporation of Welfare Services

JSL Joint and Solidary Liability

MITI Ministry of International Trade and Industry

MOA Memoranda of Agreement

MOU Memorandum of Understanding

NCPAG National College of Public Administration and Governance

NEDA National Economic Development Authority

NGO non-governmental organizations

NIC newly industrializing economy

NLRC National Labor Relations Commission

NSB National Seamen Board

NSO National Statistics Office

OCW overseas contract worker

OEDB Overseas Employment Development Board

OFW Overseas Filipino worker

OPAP Overseas Placement Association of the Philippines

OWWA Overseas Workers Welfare Administration

PASEI Philippine Association of Service Exporters Inc.

PDIC Philippine Deposit Insurance Corporation

PDOS Pre-departure Orientation Seminars

PHILHEALTH Philippine Health Insurance Corporation xiii

PMRW Philippine Migrant Rights Watch

POEA Philippines Overseas Employment Administration

RA recruitment agency

RTAs regional trade agreements

SWAK Spinners and Weavers Association of Korea

TESDA Technical Education and Skills Development Authority

UNIFIL United Filipinos in

WelFund Welfare Fund for Overseas Workers

WTO World Trade Organization

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1

Chapter One: Introduction

Importance of Migration in the Philippines

When arriving at the Ninoy Aquino International Airport in Manila it only takes a few minutes to figure out that the Philippines takes overseas labor migration very seriously.

There are exclusive processing areas in the customs departure and arrival areas dedicated for the sole use of Overseas Filipino Workers (OFWs). The international airport is also equipped with OFW-only waiting rooms and a special Labor Assistance Center where the

Philippines Overseas Employment Administration (POEA), the Overseas Workers Welfare

Administration (OWWA), and the Philippine Health Insurance Corporation (PHILHEALTH) all provide departure and arrival services for workers on their way to, or coming home from,

jobs overseas. Once beyond the airport there are constant reminders of the ‘migration

culture’ that exists in the Philippines today. From the billboards advertising international

calling plans and mobile phone remittance schemes to the thousands of taxi cabs

emblazoned with advertisements for OFW web portals, there are frequent reminders that

this is a country geared for the international labor market. While there may be other

countries that send more migrant workers overseas (specifically, , India and Mexico)

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