Eman Villanueva, vice-chairperson of the Filipino Migrant Workers' Union and a spokesman for the Asian Migrants' Coordinating Body, said the Hong Kong government has not taken proactive measures to tackle the malpractice of the employment agencies against the foreign domestic helpers. Provided to China Daily

A vast majority of foreign domestic helpers have to work seven months almost for free as a contract term with the employment agencies. Little progress has been made as the employment agencies continue to violate laws and regulations made by both the Indonesian and the SAR government. Provided to China Daily

The government of Indonesia, in attempting to protect nationals working as domestic helpers in Hong Kong, has left thousands of Indonesian workers helpless victims of unscrupulous employment agencies. Andrea Deng reports.

Indonesian domestic workers in Hong Kong, continue to live under the yoke of employment agencies, many of which charge exorbitant fees, retain personal papers and engage in other unscrupulous practices.

The restriction on direct hiring (by employers) of Indonesian workers was put in place by the Indonesian government, ostensibly with the intention of improving the lives of those coming to Hong Kong to take up positions as domestic helpers.

During an exclusive interview with China Daily, Hari Budiato, Indonesian consul general in the SAR, admitted that there are unscrupulous employment agencies. Some underpay domestic helpers, confiscate travel documents, and charge exorbitant fees for job place.

Usually the employment agencies in Hong Kong charge HK$21,000, including HK$18,000 for the agency fee and HK$3,000 financing charges. Indonesian domestic helpers usually have to pay back the money by installment over a period of seven months.

"These agencies are abusing their power. They have benefited from the business but they abuse it. It's not right, and I don't like it," said Hari.

But the consul general argued that it is necessary that domestic helpers seek employment through the agencies.

"Domestic helpers need protection, and it is important for the agencies to protect them. Agencies encounter situations daily. If something happens to the migrant workers, agencies know immediately," he said.

He gave no hint that the Indonesian government intends to scrap the ban on direct hiring of domestic helpers in Hong Kong.

Trade unionists have furiously protested the practice for years, citing hundreds of thousands of cases of agencies charging extortionate fees and committing other forms of malpractice.

Indonesian migrant workers have been on and off protesting against the Indonesian Consulate General in the SAR. They complained that the consulate fails to offer protection to the migrant workers, who often suffer from exorbitant agency fee. Provided to China Daily

In the past, direct hiring was permitted, when a domestic helper renewed her employment, upon completion of a two-year contract. But the Indonesian consulate general in Hong Kong decided to extend the ban on direct hiring to all situations in early 2010, according to Sringatin, an Exco member of the Indonesian Migrant Workers Union (IMWU) as well as the Hong Kong Federation of Asian Domestic Workers Unions.

"If migrant workers don't like the agency, they can change the agency," Budiato countered. "If the agencies are not good to them, they can report to us or to the Hong Kong government," He added that the consulate general would give warning to the unscrupulous employment agencies which operate under permit from the consulate.

The consul also said that the consulate would inform the Labor Department in Hong Kong, about agencies that may be operating in violation of the law. "But most of the agencies are good," he added.

The Labour Department of the SAR government, in response to China Daily's enquiry, said it has never received a single complaint from the Indonesian Consulate General, of any agency operating outside the law. The department spokesman continued, the department has been "staying in touch with the consulate", and have talked about labor issues concerning Indonesian migrant workers.

Indonesian domestic helpers are also under an additional restriction, that their right to change agencies was withdrawn in October 2011, when the consulate general issued a letter saying migrant workers cannot change agencies, until they have completed a two-year contract with the same employer, according to Sringatin.

"The Indonesian government has given all the responsibility to the employment agencies in Hong Kong and the recruitment agencies in Indonesia. They (the agencies) are like collecting protection money from us, they offer no protection to us, and neither does the consulate general. We protect ourselves," said Sringatin.

The part-time unionist still works as a domestic helper herself. When she first came to Hong Kong, she was told by the agencies to keep silent when she was underpaid and not allowed to have holidays. But then she was also told by people from the agencies that the high agency fee is necessary "in order to protect Indonesian migrant workers in Hong Kong".

Eman C Villanueva, vice-chairperson of the Filipino Migrant Workers' Union and a spokesman for the Asian Migrants' Coordinating Body, said that Indonesia has been copying Philippines in terms of the labor exporting model, with similar cases of labor rights abuses stemming from employment agencies, but Indonesia "makes it even better from the perspective of the agencies and the government."

Most of the employment agencies in Hong Kong, are affiliated with recruitment agencies in the migrants sending countries.

These agencies have adopted numerous measures which the Hong Kong Confederation of Trade Unions, and its subsidiary, IMWU said, are unconscionable.

The HKCTU, and the IMWU published results of a survey in June this year, showing that 73.8 percent of 930 interviewed Indonesian migrant workers have their identification documents retained by their agencies until their contracts end. Unionists reckoned that the agencies took up the practice to prevent migrant workers from "fleeing" the agency fees.

Agencies also have been accused of seeking opportunities to terminate contracts with the domestic helper during the first seven months of the contract. In that case, not only is the domestic helper required to complete payment of the agency fees, by installment, she also has to pay a second agency fee in order to go to work for her next employer, according to Sringatin.

The Indonesian government has attempted to reduce the burden on migrant workers. It promulgated Decree No 98/2012 in May this year, which stipulates that migrant workers should pay an agency not more than HK$13,436, while the employers must pay a fee of HK$11,179 if the domestic helper comes from Java, and a fee of HK$13,906 if the domestic helper comes from outside Java.

Earlier in September, The Jakarta Post quoted Reyna Usman, director general for overseas labor placement and protection at the Manpower and Transmigration Ministry of Indonesia, as saying that "the Indonesian government would consider a moratorium on allowing workers to come here, if the authority in Hong Kong, labor agencies and employers failed to honor" the new decree.

Yet four months on, unionists found no sign that the Indonesian government is enforcing this new legislation. Unions find that newcomers still are shouldering the exorbitant agency fees and when they do so, they're paying several thousand dollars more than previously. Unions reject the mandated cut in labor recruitment fees, as a sham, that actually has helped the agencies increase fees and do it legally.

The decree, in fact, is virtually groundless. In the first place, the Indonesian government has no authority to demand that the Hong Kong government "honor" or implement a foreign decree. Hong Kong retains jurisdiction to implement its own set of laws and regulations, which are completely different from those of Indonesia.

Under the Employment Ordinance and the Employment Agency Regulations of Hong Kong, employment agencies may charge job seekers, including foreign domestic helpers, a commission not higher than 10 percent of the first month's salary received upon successful placement. Hong Kong imposes no requirement on foreign domestic helpers, to seek work through agencies.

In response to China Daily's enquiry, the SAR Labour Department said it has "not received any request from the Indonesian government to apply any new Indonesian labour legislation to Indonesian domestic workers in Hong Kong".

The government source, however, offered no direct comment about the inconsistency of laws and regulations between Indonesia and Hong Kong, but minced his words in the response.

"There have been claims that some Indonesian domestic helpers incur huge debts because of the high level of fees and commissions charged by employment agencies and training schools in their home countries.We are concerned about this situation and have raised this issue to the Indonesian government's attention," said the government source, who further explained that Matthew Cheung Kin-chung, secretary for labor and welfare, met with Susilo Bambang Yudhoyono, President of Indonesia during his visit to Hong Kong in March, and raised the issue of Indonesian migrant workers' salaries at their meeting.

Eman Villanueva, however, disclosed previous conversations he has held with officials from the Hong Kong government concerning exorbitant fees facing Filipino domestic helpers.

"They (the Labour Department officials) said it is beyond them to do anything, because it is our government (the Philippines government) who requests that migrant workers go through agencies (for employment). They said if we think the local agencies are involved (in malpractice that has violated local law), we should provide evidence," said Villanueva.

Consul Budiato declined to comment on the story in the Jakarta Post or the inconsistency between the labor laws of the two jurisdictions. He described the position of the Indonesian Consulate General as limited, because it has no authority to punish unscrupulous agencies in of Hong Kong. He added that the consulate general has to depend on the rule of law of Hong Kong, and to fulfill its duty to ensure that the agencies operate "under good regulations of Hong Kong".

Meanwhile, unionists demand that the Hong Kong government should investigate the complaints against employment agencies and the rampant labor abuses that are used to victimize foreign domestic helpers.

"They (the Hong Kong government) think that the root of the problem stems from the migrants' countries of origin. There is some truth in it, but these employment agencies in Hong Kong are making money from the business, they are violating the local law, the Hong Kong government is not doing its job," said Villanueva.

The Labour Department received 78 complaints about employment agencies from foreign domestic helpers or their employers. Only two employment agencies have been convicted, of overcharging foreign domestic helpers and of unlicensed operations. The department emphasized that the Hong Kong government "does not tolerate abuses of foreign domestic helpers".

Collecting evidence to prove a case can be very difficult, as both Villaneuva and Sringatin pointed out. Employment agencies rarely take risks and provide receipts which would give evidence of the surcharge on the 10 percent agency fees. When complaints are lodged to the Labour Department, most often the complainant is requested to furnish sufficient evidence. But Villanueva does not perceive that as grounds to justify minimal prosecutions.

"Let's imagine that it is Hong Kong citizens. If hundreds of local people are complaining about the same agencies, do you think that the government can wash up its hands?" he asked.

Kahon Chan contributed to the story.

(HK Edition 09/27/2012 page4)