Massive potential in migrant worker industry

The issues faced by unskilled migrant workers and the importance for Sri Lanka to have its own system of training and accreditation were highlighted by Minister of Foreign Employment, Keheliya Rambukwella recently.

“Unskilled workers are at a greater disadvantage with the minimum salary going down by 50%, and it is vital for Sri Lanka to have its own system of training,” he said.

Recognizing the importance of migrant workers and their influence on the economy, Rambukwella said a vast contribution was being made by the 1.3 million migrant workers who send close to US$3 billion in remittances a year, approximately 8% of the gross domestic product (GDP).

Rambukwella expressed these sentiments at the Key Person's Forum organised by the Federation of Chambers of Commerce of Sri Lanka.

While pointing out that changes were expected to transform the sector, he said, “there is 'no brain drain' because when one brain goes, another is developed.”

The minimum monthly wage for housemaids going overseas is to be set at US$250 from January 2008, a sharp increase from the current average salary of US$125. The ministry is gearing towards 'demand driven' migration and has plans to establish a diploma and accreditation awarding institution.

Rambukwella said the Ceylinco Group had come up with lucrative packages for 10,000 workers to be sent to Korea, earning approximately US$1,800 a month.

Similarly, Ministry officials including Rambukwella plan on meeting with hoteliers in the United Arab Emirates to assess their needs and level of skills from foreign workers. Rambukwella also spoke of plans to set up a workshop which migrant workers would be required to attend 48 hours prior to departure. He described this as a 'crash course' in airport and travel conditions as well as a way for workers to familiarise themselves with the countries of work..

Through public private partnerships (PPP's), Rambukwella said the Ministry hoped to transform and model Sri Lanka's migrant worker after the Philippines whose private sector is geared towards migration. The Philippines has 12 million workers who earn between US$8000 and US$12000, contributing US$15.6 billion annually in remittances. Filipino housemaids demand a monthly minimum salary of US$400.

President of the FCCISL Nawaz Rajabdeen said the chamber was supportive of the Ministry's training programmes and had already begun training people as electricians, carpenters and welders. Rajabdeen said there was a vast untapped potential in the Eastern Province and training had already commenced in Ampara.

According to the 2006 Annual Report of the Central Bank (CBSL), 1.5 million Sri Lankans were employed overseas at the end of 2006.

However, the report states that foreign employment placements during 2006 declined by 13% to 201,143 compared with 231,290 in 2005. The decline is attributed to 'tension in the Middle Eastern Region and poor supply of skilled labour and housemaids' despite the fact that the Middle East is responsible for more than 90% of total foreign employment opportunities. There was however, a noticeable increase in employment opportunities in South Korea and Malaysia in the recent years. The CBSL said the share of male foreign employment increased to 44% in 2006 from 41% the previous year due to high demand for skilled and unskilled males for jobs in Qatar in the last two years. Females in total foreign employment have declined to 56% in 2006 from 59% the previous year.

The CBSL also stated that despite government initiatives to encourage skills development in migrant labour, 70% of migrant workers were in the unskilled category although the share of housemaids, the most vulnerable and lowest income-earning group dropped to 50% in 2006 from 54% in 2005. High concentration of housemaids are sent to Middle Eastern countries such as Saudi Arabia, Kuwait and Qatar while a higher concentration of skilled migrant workers were sent to Malaysia and South Korea which the CBSL said is a result of new government policy to encourage skilled labour to those countries.