Feasibility Study on the Establishment of
Migrant Welfare Fund Programmes in Laos
LAO PDR CONTEXT
SanyaVathanakoune, National Consultant
May 2015
The Aim is to build consensus and understanding among the government agencies and key stakeholders of the future needs and commitment required to implement the welfare fund project.
Feasibility Study in Laos
• Lao Government/ MOLSW
and LTU
• ILO / Regional and in Lao PDR
• Lead Consultant
• National Consultant
Background
� Describe the profile of migrant workers in
Laos
� Analyze the current welfare program and
support services for migrant workers
� Analyze opportunity and challenge in current
labour migration governance system.
� Identify the recommendation and action to
be taken in order to develop migrant welfare
fund in the future.
Objectives of studyObjectives of studyObjectives of studyObjectives of study
The Concept mission was conducted between the end of December 2014 and January 2015.
Methodology
• Develop feasibility design
• Desk research, literature review
• Key stakeholder interviews,
• Informant interviews,
• Data analysis and report writing
Conception mission � 14 Key informant interviews/
Ministries & mass organization (1 pro)
� 6 INGOs/UN agency and NGO
� 22 Distressed worker interviews
(returned home)
� NA/ for worker who are going to leave
for working aboard and FGD
ResultsResultsResultsResults
FINDINGS
Current national policies and frameworks on
government protection and welfare services to migrant
workers
Current national trends and challenges in the provision
of welfare services to migrant workers
Needs assessment for a national migrant welfare fund
programme
Views of the national government and other stakeholders
for establishing a national MWF programme
Lao migrant Situation and Trend
� Laos faces an increase in the number of migrants leaving the country
to seek employment in foreign countries, mostly in Thailand through
unofficial channels.
� An open door policy to the region and the economic development of
Thailand—Information, transportation & communication networks linking the
two countries were built to facilitate the movement of goods, capital and labour
� Crossing the border to visit family, trade, or work is common activity without
legal channels. Lao & Thai speak a similar language, same religion, culture &
have family members or relatives living on the Thai side.
� A large amount of labour migration to Thailand began in the 1990s. Adoption
reform programme of the New Economic Mechanism in 1986/ CDRI , 2009
� However, these are populations who are irregular labour migration through
irregular channels and constitute major part of labour movement
Lao migrant Situation and Trend(Cont’)
� There is no official figure for the number of Lao migrant workers in
Thailand.
� An estimated 588,561 Lao migrant workers were employed worldwide in 2010
and this number increased even more by 2013/ SDC, 2014
� There is no reliable statistics of Lao migrant workers in Thailand but recent
estimates vary from 150,000 to 300,000/ CDRI, 2009
� Labour migration between the two countries of Laos and Thailand is not new.
There is a long history of good relationships between villagers on both sides of
the Mekong River
� Champasak pro is highest number of migrant workers as 84.1% of all Lao
migrant workers in Thailand and 83.7% is from urban area, 73.7% migrated
during year of 2000 to 2003, and less than 5% migrated before year of 1989/
ILO 2003
Lao migrant Situation and Trend(Cont’)
Descriptions 2010-2011 2011-2012 2012-2013 2013-2014
PCD SKDR PCD SKDR PCD SKDR PCD SKDR
Internal employment 23,072 50,066 50,066 21,133 16,790 47,882
Labour export 33,588 7,414 7,414 22,537 20,495 8,304
Nationality Verification 25,066 0 11,798 9,756 0
New Application 7,464 15,944 15,944 19,350 18,847 6,249
Remarks/Source: 1. PCD: Planning and Cooperation Department, MOLSW.
2. SKDR: Skills Development and Recruitment Department, MOLSW
Table 1 compared the data information from two sources within MOLSW
Lao migrant Situation and Trend(Cont’)
274,904 280,974 287,178 293,519
300,000 306,624
33,588 7,414
20,495 8,304
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2008 2009 2010 2011 2012 2013
KKE
MOLSW
Estimates of Lao Migrant Workers in Thailand, 2008 - 2013
Sources: Estimated based on KKE (Khon Kaen Expert) consensus, at a September
2013 meeting at Khon Kaen University, that there were approximately 300,000 Lao
migrant workers in Thailand, legal and illegal combined.
Other, MOLSW/ Laos (Dec, 2014) (registration).
Remark: the information based on citation in the report of Labour Migration and Remittance/SDC
Gender and Occupational Distribution
� According to Huguetetal (2011), cited in report by SDC, 2014. The top
five occupations the 110,854 registered Lao migrant workers in
Thailand:
� Household work (19.2%),
� Agriculture(16.3%),
� Other (11.8%each)
� and food sales (11.8%) and
� Construction (11.4%). Others were trade, garment, agricultural
processing, etc.
� Most females (31%) engaged in household work and food sales (14%),
while most males engaged in agriculture (21%) and construction
(16%).
Remittance
� For this study. Most of all informants sent remittance to their families
left behind. There were 20 out of 22 informants
� Sending with different amount from 1000-10.000 Thai baht (US$30-
300) per month—on average 3,212 Thai baht (US$107)
� The remittances’ sending by
� 11 through bank in Thailand into Brokers’ account in community,
� 6 by money transfer operators,
� 2 by informal channel, and
� 1 by other workers.
� 2 / did not send because one receive very low wage and one was
violated and exploited by their employer with no pay wage
CHALLENGES
Opportunity
• The Labour law state in the Section X: Labour fund with 3
articles (Aims, Source, and Administration and use of fund)
• In the section XIV: Tripartite Organization: Labour
Administration Agency, Agencies Representing Employers,
and Agencies Representing Employees. The article 155
(Labour Administration Agency): The Government is the
central body that manages labour uniformly across the
nation by appointing the MOLSW as the body directly
responsible for coordination such management with
relevant local sectors and authorities. The Labour
Administration Agency—MOLSW, LSW Division of province,
LSW Office of district, and LSW Units at the village.
• Under the Labour law. The MOLSW and Division of LSW of
province responsible for the administration and use of
funds as article 156/10 with statement “Administer, use of
labour funds in Accordance with the law”.
Challenge
• It is not clear statement outline
that which organization the
labour fund belongs to (central
or provincial level).
• There is no direction for when,
who, or how to collect money
contribution into labour fund.
• What kind of service the fund
will provide,
• There is no the condition and
criteria of member and
beneficiary.
• It requires creating the
regulations and direction how
to conduct the labour fund in
practice.
Legal Policy Framework
CHALLENGES (Cont )
Opportunity
• The MOLSW: The Dept of Skills development&Recruitment
• Under the Labour law (Article 161). National Labour
Committee, is comprised of representatives from major
tripartite organizations.
• the Lao National Chamber of Commerce and Industry (Est
2009) Decree No 316/PMO, The employers’ Organization is
one central level organization, is the representing of the
enterprises and private company, consulting and
negotiating with Lao Gov to address the business problem
in order to facilitate the business activity in line with legal
documents and framework.
• The LTFU, LTFU is responsible for protection the rights and
benefits of Lao workers, so it is its rights and duties to
support this fund establishment in accordance with the
laws.
• INGOs is to play important roles in supporting welfare fund
for Lao migrant workers.
Challenge
• The organization is not
functioning well because it is
lack of staff, limited knowledge
and skills, lack of financial
support, lack of cooperation
mechanism
• No respect the roles and
duties. There is no any
recruitment agency to register
for membership, so it is not
functioning well. The
recruitment agencies do not
contribute for payment and
responsible for any task with
no profits for them
Structure
CHALLENGES (Cont )
Opportunity
• The recruitment agencies serve Lao migrant
workers in the whole migration cycle: Pre
departure, During their time aboard, and
Post complete contract.
• The enterprise is first person to contact with
labours and will be the person who they will
trust to make decision for registration
• It requires having a professional staff that
have knowledge, skills, and understanding
about safe migration and welfare fund to
ensure that migrant workers register to be
welfare fund members.
Challenge
• The enterprises do not want to
pay contribution into labour
fund whether ignore to provide
the information to migrant
workers and refuse to assign
new staff to be social
worker/counsellor
• Because of limited resources
Services
CHALLENGES(Cont )
Article 136:
Labour Fund Aims
Article 137:
Sources of Labour Fund
Article 138:
Administration and Use of
Funds
A labour fund is a fund
created to serve the
creation and
development of labour
skills, assist Lao
employees working
aboard, and assist
foreign employees
working in the Laos.
1. One percent (1%) of employees from tax amount of income or
wage of employees which is transferred by the Ministry of Finance
to the fund
2. One percent (1%) of salary or wages of employees without
deducting from the salary or wages from the employees but
deducting from the fund of the labour unit directly
3. employees working aboard equal to five percent (5%) of one
month’s salary or wages in accordance with the employment
contract
4. Those who import foreign labour work in the Laos equal to
fifteen percent (15%) of registration fees for issuing work permits
for one person per month
5. Contributions by individuals, legal entities, international
organizations, both domestic and foreign, mass organizations, and
social organizations
6. Benefits derived from the fund and from other activities
Administration and use of
the labour fund must be
carried out transparently and
can be audited according to
its objectives in accordance
with Article 136 of this law,
the law on state budget and
other relevant laws, details
are determined by specific
legislation
Source: the labour law (amended version)
The Section X: Labour fund (Labour law)
FINDINGS
Current national policies and frameworks on
government protection and welfare services to migrant
workers
Current national trends and challenges in the provision
of welfare services to migrant workers
Needs assessment for a national migrant welfare fund
programme
Views of the national government and other stakeholders
for establishing a national MWF programme
Policies and frameworks on migrant protection
� The MOLSW laid out the number of policy, regulation, and measures on
migrant protection such as the Decree No.68/PMO, No. 2417/MLSW,
No.3824/MLSW, No.043/MLSW, and labour law
� Decrees No.68/PMO (article No.8) and No.2417/MOLSW permit agencies to
undertake:
� To manage the Lao workers
� To provide information to the MOLSW
� To be responsible of the benefits of Lao workers that sent to work aboard
�To protect the interests of the company in accordance with the law
� The responsibilities of MOLSW regarding on Sending Lao worker aboard are:
� To issue permits for recruitment and employment agencies;
� To establish clear regulations to manage these agencies
� To monitor the deployment of Lao national employed aboard
� To contact and cooperate with concerned organizations, and
� To formulate action plan in sending Lao workers aboard in accordance with a
five years and annual plans
Policies and frameworks on migrant protection(Cont’)
� According to No.043/MOLSW (Article 21) the agencies have following duties:
(Some duties)
� To search, collaborate and explore on Labour market demand in domestic
and aboard
� To sign a contract with other recruitment agencies to supply Lao workers
in accordance with Labour market demand in domestic and aboard.
� To create the labour contract supply, contract of cooperation and Labour
between the company with contract party and with workers, as well as
between employers and each worker.
� To monitor, protect the rights and benefits of Lao workers that have been
sent to work aboard with safety and send them back home if contract
completely. In the case of dispute or anything happen with Lao workers that
have to solve the problem urgently and immediately report to State
Recruitment Authority (Department of Skills development and
Recruitment/MOLSW)
�To apply to be member of Social security system automatically after the
establishment approval. (No mention about migrant sending aboard)
Policies and frameworks on migrant protection(Cont’)
� Migrant protection is included in Labour Law (amended version): Section IV:
Labour Protection/Article 66 Administration of Lao Labour working aboard. Section
XI: Information on Labour, Article 141: Information on Labour protection.
� Under Labour law, in Section XIV: Tripartite Organization. The chapter 3, the
agencies representing employees is Trade Union, and the roles, rights, and duties of
agencies representing employees, which aims to participate in the protection of the
rights and benefits of employees that work within a labour unit.
� It seems to be clear that Lao workers’ rights and benefit will be protected, but there is no paragraph mention and cover to Lao migrant workers working in aboard.
� In other words, it is still not clear for Lao migrant workers working aboard that
have the representative or not for protection their rights and benefits, or If labour
law will cover Lao migrant workers working aboard, different practices in reality
Policies and frameworks on migrant protection(Cont’)
�The 2011-2020 National Labour Development Strategy stated two key points in
general target section:
� 1. Manage and use the Lao labour force by focusing to the safety, health, and
environment based on the international labour standard, develop the industrial
relation and welfare system in order to worker have protected the rights and
job stability, well-being and better quality of life
� 2. Strengthen to the tripartite industrial relation and multi consultation and
settlement the labour disputes including promote the collective agreement in
labour units
� However, it is not clear for any strategy to respond and support to the targets
whether will achieve its goal or not. As a result, Lao migrant workers in Thailand is
not cover by Laws and unprotected.
� Additionally, there is no independent organization responsible for protection the
rights of labour migration.
Policies and frameworks on migrant protection(Cont’)
Figure of Monitoring and Reporting for administration of labour
MOLSWMOLSWMOLSWMOLSWRecruitment AgencyRecruitment AgencyRecruitment AgencyRecruitment Agency
The Embassy of The Embassy of The Embassy of The Embassy of Lao PDRLao PDRLao PDRLao PDR
Representative of Representative of Representative of Representative of Recruitment AgencyRecruitment AgencyRecruitment AgencyRecruitment Agency
Dept of LSWDept of LSWDept of LSWDept of LSW
The office of LSWThe office of LSWThe office of LSWThe office of LSW
Village LSWVillage LSWVillage LSWVillage LSW
Recruitment Agency in Recruitment Agency in Recruitment Agency in Recruitment Agency in provincialprovincialprovincialprovincial
AboardAboardAboardAboard
NationalNationalNationalNational
ProvinceProvinceProvinceProvince
DistrictDistrictDistrictDistrict
VillageVillageVillageVillage
Individual crossing the
Individual crossing the
Individual crossing the
Individual crossing the
border to Thailand
border to Thailand
border to Thailand
border to Thailand
Prospective migrant Prospective migrant Prospective migrant Prospective migrant workersworkersworkersworkers
Lao migrant workersLao migrant workersLao migrant workersLao migrant workers
FINDINGS
Current national policies and frameworks on
government protection and welfare services to migrant
workers
Current national trends and challenges in the provision
of welfare services to migrant workers
Needs assessment for a national migrant welfare fund
programme
Views of the national government and other stakeholders
for establishing a national MWF programme
Pre-departure period
� It is slow process for proceeding the official documentation, take long
time, and also pay high cost for travelling fees because of living in rural
area and long distance
� It is high cost for fee charges. There are some prospective migrants had
to owe, loan, or sold family’s resources to pay for fees charge.
� Therefore, it is good to support the finance assistance from welfare
fund intervention into this process
� At the recruitment centre, there is no staff providing counselling for
migrant. While providing information to migrants, providing welfare fund
is occurred in the same time.
� It requires assigning a person to provide counselling on migration
and welfare fund information — Allocate the budget support for
training.
During working aboard
� Similar to pre-departure, the migrant workers face a difficult situations
(homesick, miss families, exploitation, violence, abuse, and lack of money
sending home). All these things influence not only migrant workers, but also their
family left behind into difficulty. Therefore, it is necessary for providing assistance
to migrant workers and family members.
� First, providing counselling in workplace, working dispute in the workplace,
financial assistance or loan for family left behind and themselves base on
conditions
� Second, integrate welfare fund information during monitoring activity of
the representative of recruitment agency in Thailand. According to the
Labour Law, the representative will monitor the Lao migrant workers in two
times per year.
� As a result, the comprehensive assistance of welfare fund is available for
providing in both destination and hometown such as finance assistance,
counselling, dispute solution, and health insurance.
Return Home period
� Migrant workers should receive assistance even they return home when
contract is expired. They might want to improve skills, continue their own
business, start new job
� Providing assistance during unemployment. Such as financial loan, training
for skills improvement.
� The government authority/recruitment centre should provide the counselling
for returnee group. Although mentioned in the recruitment process, but not
happened in practice for migration circumstance. The recruitment agency is key
implementing agency for providing the counselling (find new jobs, improve skills
or reintegrate to community. Because they are in the unemployment or looking for
new jobs, they need finance assistance, social support, and counselling.
� The assistance of welfare fund is needs and importance for migrant workers
in a whole migration cycle. The welfare fund is emotional and physical
support to migration workers in terms of labour skills development
recruitment, humanitarian, and social-economic development in both micro
and macro levels.
FINDINGS
Current national policies and frameworks on
government protection and welfare services to migrant
workers
Current national trends and challenges in the provision
of welfare services to migrant workers
Needs assessment for a national migrant welfare fund
programme
Views of the national government and other stakeholders
for establishing a national MWF programme
Interest and preparedness
� The Lao Government is committed to the protection of migrant’s rights and
well-being, but concerned how to transform for the practical application of
limited resource context. To demonstrate the commitment to migrant protection,
the Lao government has laid out a number of decrees, MOU, and Laws.
� The Government of Laos amended and added valuable statement in the Labour
law/ Labour fund is very meaningful for establishment labour fund for protection the
rights and benefits of migrants because there was not include in previous version.
� In 2007, the ASEAN countries signed the Declaration on the Protection and
Promotion of the Rights of Migrant Workers. Lao PDR is also support
� Lao PDR is part of project and the Lao Government strongly supports the aim
to protect and promote the rights and well-being of Lao migrant workers
within the country and abroad through numbers of program intervention.
Interest and preparedness
“The welfare fund will be very important for providing assistance to migrant workers
who were not include in social welfare program of government, ... Therefore, the
government included the labour fund in the labour law, and also it is possible for
establishment funds....However, what kind of service, where the financial resource,
which organization/who will take responsible, it is possible or not for contribution
from migrant, it is possible or not for limited resource for government to pay into the
fund, or assign new staff to take action for this task, and we still needs funding
support from outside and need to study more about the rules, policy, regulations,
management, and purpose as well. That is like doing this study right now.”
� Lao government and stakeholders really express the interest to establish
welfare program for migrant workers but the challenge is how it happens by limited
resources:
Lao government is ready for establishment welfare program with legal
framework support, but it is the challenge how to commencement although the
shortage funding support, limited numbers of staff, and lack of knowledge and skills
to take responsibility for comprehensive system for migrant workers protection, and
labour migration circumstance.