Myanmar proposes big hike in agent fees to help workers

Migrant workers protest in Thailand in June 2016. (Kaung Htet, The Myanmar Times)

YANGON: The Myanmar government is considering a tenfold increase in deposits paid by overseas employment agencies in order to improve protection of workers going abroad.

Officials told The Myanmar Times the extra cash would be used to expand an emergency fund that helps workers if they are abandoned by an agency or encounter other problems while abroad.

“Our main aim is to protect the workers. Overseas employment business is not a trade. It involves human beings. We want to restrain the agencies from committing labour violations,” said Myo Aung, the permanent secretary of the Ministry of Labour, Immigration and Population.

The government currently collects a deposit of 5 million kyats (130,000 baht) from overseas employment agencies before awarding them a business licence. They would have to pay 50 million kyats if the proposal is approved.

The umbrella body for overseas employment agencies, however, complained the proposed fee was unreasonably high.

About 150 agencies have submitted appeal letters to the government, the President’s Office and the Ministry of Labour protesting against the increase, said Kyaw Zaw, joint general secretary of the Myanmar Overseas Employment Agencies Federation (MOEAF).

“In restraining agencies with regard to labour problems, disciplining with the rule of law is better than disciplining with finances,” said Kyaw Zaw.

Myo Aung pointed out that neighbouring countries had already raised their fees. Agencies in Thailand, for example, are required to deposit 5 million baht with the government, he said.

Higher fees would deter agencies from committing labour violations, he stressed. “We just want to stop the agencies from making any mistakes or taking advantage of workers. The current fees are not enough of a deterrent,” he said.

Myo Aung also said that there had been too many cases in which agency owners swindled would-be migrant workers and then fled, leaving the government to sort out the mess at the taxpayers’ expense.

One agency director who asked not to be named said many agencies could not afford the 50-million-kyat deposit and would have to close.

“We have to follow the rules if we are to conduct this business. But most of the agencies can’t afford the proposed amount,” he said.

According to the MOEAF, there are 247 registered agencies in Myanmar.

 

By: Myanmar Times, Bangkok Post

Published on: 28 January 2017