Observation (CEACR) - adopted 1990, published 77th ILC session (1990)

Protection of Wages Convention, 1949 (No. 95) - Philippines (Ratification: 1953)

In its previous comments, the Committee referred to the discussions between the Governments of Iraq and the Philippines concerning the payment of Filipino workers employed in Iraq. The Committee learned of a proposal that these workers be paid 40 per cent of their wages in Iraqi dinars, with the balance to be paid in dollar-denominated promissory notes payable in two years, and accordingly pointed out to the governments concerned that such a proposal, if accepted, would be contrary to Article 3, paragraph 1, of the Convention (ratified by the two countries in question) which prohibits the payment of wages in the form of promissory notes, vouchers or coupons, or in any other form alleged to represent legal tender.

In reply to these comments, the Government had stated in the past that the proposal in question had not been accepted by the Philippines, and that as the Government of Iraq also wished to review the former arrangements concerning the general conditions of employment of Filipino workers, further discussions had been initiated and, as regards the payments of wages, arrangements were being negotiated by the Central Bank of the Philippines and the Iraqi Government for full payment of the Filipino workers in legal tender. The Committee took note of these statements and asked the Government to provide information on the former arrangements still in force, pending the conclusion of the above discussions and negotiations.

In its statements to the Conference Committee in June 1989, the Government indicated that the two governments involved in this case were still pursuing discussions on the review of existing arrangements, and that the ILO would be informed of the arrangements adopted following the discussions. However, it has still not provided information on the substance of the arrangements presently in force, in answer to the request that the Committee has been making for some years.

In a communication addressed to the Director-General of the Office, in August 1989, and in its last report, received in October 1989, the Government indicates for the first time that under the existing arrangements, the payment of Filipino workers and remittances are regulated by the employment contracts of the persons concerned, the terms of which are verified by the Labour Attaché of the Embassy of the Philippines in Iraq to ensure that these workers are paid in legal tender and that their contracts are consistent with the laws of the receiving country. The Government adds that workers who agree to be paid in a particular form, do so voluntarily. The Government also refers to a memorandum of agreement between the Philippines and Iraq, which provides that Filipino workers have the same rights, obligations and privileges as national workers of the receiving country and adds that, since Iraq has ratified the Convention, it is assumed that Filipino workers in Iraq are paid in legal tender.

The Committee takes due note of these statements and requests the Government to keep it informed of the results of the current discussions and negotiations to review existing arrangements, and hopes that the agreement to be concluded on this subject will take into account the provisions of Article 3 of the Convention, as regards the payment of wages. (Please furnish a copy of the relevant text as soon as it is adopted.)