There is “news” that Japan is set to open “an estimated more than 12 million job vacancies” according to an entity called Japan Human Resource Institute. The report did not clarify whether these vacancies will be open within a 50-year period or, as some unscrupulous operators would like us to believe, within the next few months. Certainly, only fools will fall for this kind of “news”, although a good friend of mine in the recruitment industry says “marami na namang magogoyo sa ganyang mga balita.”
The real news is that Japan is really in dire need of workers to make its domestic economy attain its optimum levels. There is the undeniable reality of its fast aging population to the extent that old people continue to work in jobs that younger people will not even dream of having. The next few years leading to the year 2020 will be frenzied times for Japan, especially for the Greater Tokyo area since the place will be playing host to the 2020 Olympics. Horizontal and vertical construction activities will gradually peak as the days roll by, including jobs in service-oriented establishments that will cater to the needs of foreign guests who will flock to Tokyo for the biggest sports event in the world.
There is also the sad reality that Sendai, Yamanashi and the adjacent areas in Tohoku, those parts of the vast region that were hit by the Great East Japan earthquake and tsunami in March 2011 still require a lot of construction hands to bring about full rehabilitation to those areas. However, this and the fast aging population plus the 2020 Olympics hosting will most likely not translate to as many as 12 million jobs anytime soon.
Be that as it may, the fact is that Japan is one country that does not make knee-jerk responses to its huge manpower requirements. As is customary in conservative Japan, countless debates have been going on in policy making circles whether or not an open acceptance of foreign workers is the appropriate response to a long felt need. It is of course not surprising that the country has opted to adopt strictly regulated policies and procedures in allowing the entry of foreign workers into its labor market.
Some Antecedents
For instance, in the early 90s, after a long period of deliberation, Japan opened its doors to the entry of foreign workers with a one-year trainee visa. The strategy was conveniently labelled “International Technology Transfer Program” (ITTP) involving the deployment of Filipino workers employed by an establishment that was considered as a “subsidiary” of the employer in Japan or the accepting company (AC), as they were so referred to. The trainees were deployed by skills foundations or Sending Organizations (SO) accredited by the Technical Education and Skills Development Authority or TESDA, the training agency of government.
Trainees were covered by a Training Agreement, and they received allowances instead of regular wages. They stayed and were “trained” in Japan for a period of one year after which they were expected to return to their mother company to make use of the new skills that they are supposed to have acquired in Japan.
Given those circumstances, the concept of the Letter of Recommendation (LOR) came into being. The LOR was a document issued by TESDA to an SO to attest to the fact that a concerned trainee is really and currently employed by a company in the Philippines which may be considered as a subsidiary of another company in Japan. The technology transfer principle had to be upheld at all cost, and the LOR became a requisite document for the issuance of a Certificate of Eligibility for the eventual grant of a visa by the Japanese Embassy in Manila.
The LOR was some kind of a guarantee that the Filipino worker will surely leave Japan and return to the Philippines after his one-year stint as a trainee. The LOR was a sort of insurance that the Filipino worker will eventually return to his/her original employer in the Philippines to make use of new skills acquired in Japan, consistent with the spirit and intent of the “technology transfer” principle.
Not a few Filipinos, including some Japanese workers, however, must have thought that the “technology transfer” principle, upon which the whole program was anchored, was simply an ingenious way for Japan to be able to employ cheap labor from the Philippines. It was also a way to ensure that foreign workers do not entertain any thought of a longer period of stay in Japan. Sending Organizations (SO) which were principally accredited by TESDA were prohibited from soliciting any fees from the trainees. Thus, they had to charge something called preparatory fee from the Accepting Organizations (AO), their Japanese counterpart. This fee principally answers for the expenses incurred by the Sending Organization (SO) in providing usually month-long lessons in Japanese language and culture. The large chunk of the revenues then generated by a sending organization principally came from the monthly monitoring fees paid by the Accepting Organization (AO).
Along the way, policy makers in Japan must have realized that the one year period of work for the trainees was somehow short. Japanese employers or accepting companies must have felt that their investments in taking in foreign workers did not give them fair returns in so short a time. So the concept of work internship was developed and adopted, giving an additional year of “internship” to Filipinos who went to Japan with a trainee visa. After a year of training, and another year of internship, the Filipino trainee is required to return to the Philippines and barred from entering Japan again with the same work and visa category.
Amendments to Japan’s Immigration Laws
Such was the condition of the program when amendments to Japan’s immigration laws were introduced and adopted in 2009. The adoption of amendments to Japan’s immigration laws resulted in the creation of a new visa category – the technical intern trainee visa – which extended the stay and work duration of foreign workers with this visa to a maximum period of three years. This amendment also resulted to foreign workers being covered by an employment contract with wages set according to minimum wage regulations in Japan. Moreover, technical intern trainees began to be covered by social security benefits and allowed access to Japan labor offices for redress of any work-related grievance.
The “Transfer” to POEA
This was the time when policy makers in the Department of Labor and Employment made the crucial decision to “transfer” the deployment of trainees from TESDA to the Philippine Overseas Employment Administration (POEA) in the middle of 2010. The move was considered by many as a “transfer” of the program, but closer scrutiny will reveal that the program managed by TESDA actually involved the deployment of trainees, far different from the deployment of technical intern trainees by recruitment agencies licensed by the POEA.
Technical intern trainees are not covered by training agreements, as the trainees under TESDA were. Rather they are covered by a standard employment contract principally designed by the Japan International Training Cooperation Organization (JITCO) with an accompanying addendum providing for minimum requisites prescribed by Philippine regulations. As mentioned, technical intern trainees receive regular wages, not training allowances. Moreover, technical intern trainees are expected to possess the skills and experiences required by Japanese employers which they can immediately use in their jobs upon entry to Japan.
While they are expected to return to the Philippines after a maximum of three years of work in Japan, their re-employment with their former employers is no longer a major concern. Many technical intern trainees who have substantial work experience in Japan, in fact, are able to qualify for the same or similar jobs in other parts of the world.
The Letter of Recommendation Loses Its Significance
Unfortunately, the POEA opted to simply follow and continue with practically the same requirements and procedures adopted by TESDA for the deployment of trainees under the “technology transfer” principle, in spite of the fundamental differences in the spirit and intent of the TESDA-managed and POEA-run programs. Given this, the POEA continues to require recruitment agencies to comply with the submission of requirements for the issuance of a Letter of Recommendation, a document that has lost its relevance given the current realities of the program.
Concerned sources from the recruitment sector say that the issuance of an LOR usually takes a minimum of one month, involving the submission of somewhat unusual requirements like the business registration of the employer of the applicant worker and even the company’s Mayor’s Permit. The usual document verification procedures are, inevitably, also part of the whole exercise with doubtful relevance, causing unnecessary delays in the deployment of technical intern trainees. It may be interesting to note that technical intern trainees from China, Vietnam, Myanmar or even Indonesia and Bangladesh are not required by Japanese Immigration authorities to present any Letter of Recommendation to secure a Certificate of Eligibility for the grant of a technical intern trainee visa.
It may be safe to assume that the POEA continues to practice the issuance of LORs simply on the basis of the erroneous assumption that it has simply taken over the work of TESDA. However, as pointed out earlier, the circumstances surrounding the deployment of trainees under TESDA are generally different from those involving the deployment of technical intern trainees under POEA.
Philippine Overseas Labor Office Tokyo Assumes Jurisdiction
At this juncture, it may also be relevant to mention that the deployment of trainees under TESDA did not involve the participation of the Philippine Overseas Labor Offices in Japan (POLO Tokyo and POLO-Osaka). On the other hand, Japanese principals hiring technical intern trainees have to be accredited by POLO Tokyo and registered with POEA. The continued requirement by POEA for the issuance of an LOR which has generally lost its meaning and relevance under current circumstances translates to additional and unnecessary burden on the part of recruitment agencies and causes unnecessary delay in the deployment of technical intern trainees.
Weak Competitiveness vs. Other Deploying Countries
Chinese technical intern trainees have long dominated the technical intern trainee market in Japan, registering some 80% share of the market. Vietnam has recorded a significant progress in the deployment of technical intern trainees, surpassing the Philippine figures by a slight margin, in spite of the fact that Vietnamese technical intern trainees are relatively new in the market. The Indonesians are also gradually eating up a considerable portion of the market, almost at par with the Philippine share.
Compared to their Chinese, Vietnamese and Indonesian competitors, Philippine recruitment agencies are in a very disadvantaged position. For one, Chinese, Vietnamese and Indonesian recruiters do not need to demand preparatory fees from their Japanese principals. Chinese technical intern trainees do not need to learn Nihongo since Kanji characters are actually derivatives of Chinese characters. The government of Vietnam and Indonesia, on the other hand, subsidize the language training of their applicants so that their recruiters need not demand any payment for Japanese language training as part of the preparatory fee from their principals. On top of these, there are no prohibitions for Chinese, Vietnamese and Indonesian recruiters from charging fees from their applicants. In fact, anecdotal reports indicate that Chinese technical intern trainees really have to shell out huge amounts, principally by way of agreeing to considerable salary deductions, to be able to work in Japan. Charging preparatory fees from their Japanese principals is therefore unnecessary for Chinese recruiters. The same can probably be said of the Vietnamese and Indonesian recruiters.
A Losing Battle?
From the looks of it, Philippine recruitment agencies are facing a losing battle and Filipino workers aspiring to land a job in Japan will have to suffer the consequences, unfortunately, unless some form of relief or some remedies can be applied. Perhaps, it is about time that POEA should re-assess its position about the continuing requirement for the issuance of Letters of Recommendation (LOR) to somehow ease the burden of recruitment agencies and shorten the time needed for the deployment of Filipino workers. If it is necessary to discuss this move with JITCO or the Ministry of Foreign Affairs in Japan, the same should be done with dispatch.
The Language Proficiency Issue
As previously mentioned, a large chunk of the preparatory fee demanded by Philippine recruitment agencies from their Japanese principals go to expenses for Japanese language training of selected Filipino trainees. If some flexibility can be permitted or adopted regarding Japanese language training, the amount to be compulsorily paid by the Japanese employer may be reduced to a minimum. Since there are a number of TESDA-registered Japanese language training programs around the country, Filipinos aspiring for work in Japan may be advised to make personal investments in the form of tuition for Japanese language training. Additionally, recruitment agencies that are on the search for prospective job applicants may indicate preference for those who have gone through Japanese language training at their own volition and expense. There is absolutely no prohibition for prospective applicants to invest in their own future.
Alternatively, the Philippine government, through TESDA, may consider a move similar to that taken by Vietnam and Indonesia in subsidizing the expenses for Japanese language training of pre-selected technical intern trainees. Through the training voucher system which TESDA has long implemented, a training subsidy maybe considered. TESDA has long recognized the value of language competency and communication in the world of work. Moreover, the fact that TESDA maintains its Language Skills Institute (LSI), which caters to Japanese language training for pre-selected nurses and caregivers bound for Japan as well as pre-selected workers bound for South Korea under the Employment Permit System (EPS), may be a viable premise for a training subsidy for pre-selected Japan-bound technical intern trainees.
It may be interesting to note that the POEA itself gives premium to applicant nurses and caregivers registering for jobs in Japan who have prior Japanese language training at their own initiative and expense. Moreover, it is a given fact that Japanese employers give due preference to applicants who demonstrate conversational Nihongo skills at the point of interview and pre-selection. In fact, although Japanese language proficiency is not among the basic requirements for registration of nurse and caregiver applicants, nurses and caregivers who meet all the basic requirements may even miss the chance of landing in the shortlist of prospective interviewees because applicants with prior Japanese language training are given extra points by the POEA.
This ironic situation has come about, in spite of the fact that for the longest time, the Philippines has always maintained the position that the language proficiency requirement is a barrier to entry to Japan. It has always been argued that Japanese language proficiency as a requirement for entry to Japan was not contemplated in the economic partnership agreement between Japan and the Philippines. In this regard, Vietnam has chosen to adopt a very aggressive stance with respect to its candidate nurses for the Japan market. In its own agreement with Japan, Vietnam has voluntarily committed to require all its applicant nurses not only to undergo one year of Japanese language training in Vietnam but also to pass the Japanese Language Proficiency Test (JLPT) at N3 level. This is possibly in full cognizance of the reality that only those who are able to obtain at least the higher level N2 certificate can expect to pass the national board examination administered fully in kanji.
The Emerging Horizon
Other indicators of Japan’s intention to require foreign workers to have the requisite language skills have become evident. For instance, there are ripe expectations that Japan will soon open its doors for the entry of foreign workers to do housekeeping services for Japanese families. Based on reliable information circulating in recruitment agency circles, foreign workers will be required to have Japanese language proficiency at N4 level to be entitled to a visa.
Similar Japanese language proficiency requirements are expected to be imposed on helper caregivers, another job category that is expected to be opened sometime next year. At the N4 level, “one is able to read and understand passages on familiar daily topics written in basic vocabulary and kanji”. Also, “one is able to listen and comprehend conversations encountered in daily life and generally follow their contents, provided that they are spoken slowly”. This means that aspiring housekeepers and helper caregivers who may soon be allowed entry to Japan will be expected not only to be able to speak but also to be able to read and understand basic katakana, hiragana and kanji.
Technical intern trainees have to undergo basic lessons in Japanese language and culture, enabling them to reach at least the lowest N5 level where “one is able to read and understand typical expressions and sentences written in hiragana, katakana, and basic kanji”. Also “one should be able to listen and comprehend conversations about topics regularly encountered in daily life and in classroom situations, and is able to pick up necessary information from short conversations spoken slowly”.
Perhaps it may be worth mentioning that one particular Japanese principal hiring technical intern trainees from the Philippines has been able to corner and command practically half of the total job orders for Filipino technical intern trainees. This Japanese principal requires its Philippine recruitment agency partner to select and deploy only those applicants with appropriate job skills and who are able to take and pass the Japanese Language Proficiency Test (JLPT) administered in the Philippines twice a year by the Japan Foundation.
A Real Advocacy
If other recruitment agencies can adopt the same strategy and employ the same screening mechanism used by that top-ranking agency referred to above, job applicants for the Japan market will be encouraged to voluntarily undergo Japanese language training, to take and pass the Japanese Language Proficiency Test and acquire the necessary national certificate of competency from TESDA. If some relief can also be applied in the case of the antiquated LOR requirement, including measures to lessen the amount of compulsory fees to be paid by Japanese employers, the Philippines may be able to further improve the competitiveness of its recruitment agencies and enhance the desirability of Filipino worker for the Japan market. Whether the “news” about the “12 million jobs in Japan” turns out to be true or not, Filipino workers will definitely emerge as winners if the right steps are taken from this point onwards.