1 of 3 JUNE 14, 2010 CIRCULAR NO. 16/10 TO MEMBERS OF THE ASSOCIATION Dear Member: THE MIGRANT WORKERS AND OVERSEAS FILIPINOS ACT OF 1995, AS AMENDED BY REPUBLIC ACT NO. 10022 Your Managers wish to draw Members’ attention to the above legislation which is due to take effect in the Philippines, and which has important implications for those employing Filipino crew. Background On March 8, 2010 amendments to the Filipino Migrant Workers Act of 1995 (Republic Act No. 8042) (MWA) lapsed (sic) into law. The amendments took effect fifteen days after publication in at least two newspapers of general circulation, which occurred in April. However, for the effective implementation of the amended MWA the relevant government departments and agencies are required, within sixty days after its publication, to formulate the necessary rules and regulations for the law’s implementation. The International Group (IG) understands that the administration intends to finalize the necessary implementing rules and regulations (IRR) before the term of the current administration ends on June 30, 2010. The IG has been closely monitoring the development of the amendments to the MWA in the Philippines and has highlighted areas of concern to key parties involved in the negotiations since the IG does not qualify as an interested stakeholder and has not therefore directly participated in the consultation process. The Joint Manning Group (JMG), composed of manning industry associations, represented the sea-based sector in the negotiations with the government of the Philippines on the amendments to the MWA, and was informed of the IG’s concerns throughout the process. The major areas of concern to the IG arising out of the amendments were in respect of provisions that it would be unlawful to impose a compulsory and exclusive arrangement whereby seafarers are required to undergo health examinations from specifically designated clinics; or undergo training, seminars, instruction or schooling of any kind, only from specifically designated institutions, entities or persons; and most importantly requirements for minimum compulsory insurance cover to be obtained for seafarers for benefits additional to those available under the provisions of the POEA standard employment contract (SEC) and collective bargaining agreements (CBAs). Implications for Members The final text of the amendments to the MWA does reflect the concerns highlighted by the IG in respect of the proposed provisions on health examinations and training institutions, and provides that seafarers whose employers pay for such services are exempted from the “compulsory and exclusive arrangement” provisions of the Act. 2 of 3 However, the IG’s concerns in relation to the insurance provisions have not been addressed in the final text of the amendments to the MWA, not least since there are inconsistencies with both the POEA SEC and general CBA terms and, in addition, the misconception that the IG Clubs provide P&I cover direct to seafarers. The obligation to procure insurance cover for each migrant worker, or to certify that cover is in place such as to meet the requirements of the amended MWA, rests solely with the manning and recruitment agencies. The amendments to the MWA mandate, among other things, that any claim arising from accidental death, natural death or disablement shall be paid to the seafarer or their heirs without dispute, and on an absolute liability basis i.e. without the necessity of the seafarer or their