The Main Challenges in Social Security of Migrant Workers: the State of the Art and Actions to be Taken

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The Main Challenges in Social Security of Migrant
Workers the State of the Art and Actions to be
Taken
Mr. Idris Isayev State Social Protection Fund
of the Republic of Azerbaijan

• Geneva, 2011

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Labor Migrants the Impact of Globalization

• One of the important outcomes of the
  globalization is significant growth of migrant
  workers worldwide. This happened due to a number
  of reasons such as different pace in demographic
  and economic development, impact of liberal
  economy, existence of young and cheap labor
  resources, fast development of communication and
  transportation facilities, etc.
• Currently millions of people migrate from their
  countries of origin to other countries by
  different reasons (low standard of living
  unemployment national, racial, religious
  conflicts disasters, etc.). On the other side,
  countries having demographic problems, ageing of
  population, decrease in number of employed
  people, growth trends in security of local
  employees and in the educational level tendencies
  are in need of low-cost labour.
• Migration being a global phenomenon that exists
  not within two separate countries or one region
  but almost in all countries of the world. This is
  precisely why it requires a collective approach.

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Labor Migrants the Impact of Globalization

• Of course, all countries can independently
  regulate and maintain the principles and
  mechanisms of migration (both incoming and
  outgoing). However, considering the specifics of
  these processes and their impacts in light of
  globalization, it would be more rational if we
  develop and apply rules and procedures that
  comply with international conventions and
  charters in the area of social security of
  migrant workers.
• Increase of the level of globalization determines
  the geography, forms, directions and speed of
  migration. Nowadays, the migrants do not stay
  long in one place and frequently change the
  destination. Some of them return back home. Some
  countries from labor donors transform into labor
  migrant hosts. This phenomena could be observed
  in Azerbaijan and some other countries of the
  region.
• The labor migrants sometimes play a significant
  role in economic development of the donor
  countries. Through money transfers they fuel
  national economies in their home countries.

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Labor Migrants in Eurasia

• In Eurasia (former soviet republics excluding
  Baltic countries) the number of migrant workers
  reaches 15-16 millions or 5,8 of the total
  population.
• The main reasons behind the migration processes
  in Eurasia have global nature
• Difference in income of population
• Excess of labor force (demographic reasons)
• Unemployment
• All kind of conflicts, including armed

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Labor Migrants in Eurasia

• However, the migration processes in Eurasia have
  some specific features too
• Maintenance of old business or partner relations
  between former soviet countries
• Common labour market
• Knowledge of commonly used Russian language
• Absence of visa regime for CIS countries, etc.
• These and other specific features as well as the
  scale of the Russian economy attracts the
  migrants from Eurasia to Russia.
• It should be stated that along with Russia, some
  other Eurasian countries also receive migrants.
  For example, Azerbaijani migrants migrate along
  with Russia to Turkey, Ukraine, Kazakhstan,
  Belorus and Europe.

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Labor Migrants in Eurasia

• Absence of agreed policy and mechanisms for
  regulation of labor migration as well as
  existence of informal economic relations fuel
  uncontrolled hidden migration processes in
  Eurasia. At present, over 50 of labor migrants
  are involved into various informal sectors of
  economy.
• Over time, the directions of migration are also
  changing. Former donor countries start hosting
  the labor migrants.
• This phenomena is mainly based on economic
  development of the countries. For example,
  development of the oil and gas industry in
  Azerbaijan and Kazakhstan significantly increased
  the number of migrants to these countries.

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Labor migration trends (Azerbaijan)
In 1000s of people
Years GDP (mln. USD) GDP Growth rate (times) Number of emigrants to Azerbaijan Number of emigrants from Azerbaijan Difference
           
1990-1994 466,8 211,2 342,3 -131,1
1995-1999 18540,6 39,7 29,7 64,5 -34,8
2000-2004 33622,1 1,8 13,1 28,1 -15,0
2005-2010 217081,6 6,5 14,3 13,3 1,0

Total 269711,1   268,3 448,2 -179,9
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Labor Migrants the Need for Collaboration

• Absence or inefficiency of legislation on Labor
  Migrants absence or inefficiency of governing
  and managing mechanisms contribute to further
  development of hidden economy, informal labor
  relations among employers and migrants, tax
  evasion, absence of social security for labor
  migrants, etc.
• Thus, migration issues, along with economic, have
  significant impact on social, political and
  cultural life of both host and donor countries.
  Nowadays, this issue should be considered as a
  global challenge for all countries.
• Another important issue is integration of the
  labor migrants into the society of host
  countries. Our observations show that in case the
  migrants receive social security services, they
  become more interested in following the legal
  procedures and as a result the integration into
  the host society goes rather smoothly.

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Labor Migrants protection of social security
rights

• From other side, inefficiency of social security
  mechanisms lead to a situation when
• Migrants and members of their families are left
  behind the social security and health insurance
  services
• Employment periods during migration could not be
  included into total employment records while
  calculating the pension rights
• Social protection agencies cannot transfer
  pensions and other social benefits.

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Labor Migrants protection of social security
rights

• In general, the problems of social security with
  regard to labor migrants could be identified as
  follows
• Inequity of social security rights
• Ignorance of social security rights
• Conflicting legislative systems in different
  countries (this fact creates obstacles while
  calculating the pension rights)
• Problems in transferring of social benefits to
  the addresses of permanent residence
• Absence of health insurance and health care for
  migrant workers

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Our vision on social security of migrant workers

• We think that at present we should mainly focus
  on adoption by the regional countries of the
  international conventions, charters and
  declarations in the area of social security of
  migrant workers.
• These documents call for
• Equity of social security
• Improvement of governing and management
  mechanisms
• Application of gained rights
• Security of gained rights
• Possibility to transfer social benefits
• Close collaboration of social security agencies
• Data exchange and coordination of efforts

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Our vision on social security of migrant workers

• At present many countries have not adopted and
  ratified the mentioned documents yet.
• The ILO Convention on Labor Migrants 97 (1949)
  became effective in 1952. However, only 45
  countries (23) adopted it.
• The ILO Convention 143 of 1978 has been adopted
  by 19 countries (10).
• The Convention on Protection of Rights of Labor
  Migrants and Members of their Families became
  effective in 2003. However, only 34 countries
  (17) adopted it.
• The Convention of ILO 157 of 1982 on
  Maintenance of Social Security Rights - one of
  the most important documents in this area, have
  been adopted by Spain, Philippine and
  Switzerland.

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Our vision on social security of migrant workers

• As we see, the most important Conventions,
  Charters and declarations in the area of social
  security of migrant workers have not been adopted
  by the majority of countries including Eurasian.
• So, our believe is that we should intensify our
  work with regional countries explaining the
  benefits they can gain via adoption and
  application of the mentioned documents.

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Our vision on social security of migrant workers

• SSPF applauds and supports the initiatives of
  ISSA and IAPSF aimed at finding solutions and
  bringing the positions of the regional countries
  closer to each other in the issues of social
  security of migrant workers.
• There are a number of documents adopted in the
  framework of conferences and technical seminars
  organized by these organizations

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Our vision on social security of migrant workers

• Convention On Legal Status of Labor Migrants
  from CIS countries, November 14, 2008, Kishinev,
  Moldova.
• Agreement On Establishment of Advisory Council
  of Migration Agencies of CIS countries, October
  5, 2007, Dushanbe, Tajikistan. The agreement is
  devoted to regulation and ease of registration
  mechanisms for labor migrants.
• Declarations and recommendations adopted during
  the Technical Meeting of ISSA and IAPSF Social
  security of migrants in globalization, September
  7-9, 2005 Technical Seminar ISSA Social
  security of migrants in globalization 5 years
  later, June 28-29, 2011, Baku Azerbaijan.

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Our vision on social security of migrant workers
(Baku Declaration)

• The Declaration adopted in Baku, in 2005 stated
• Increasing efficiency of governance and
  management in the area of social security of
  labor migrants through strengthening cooperation
  between social security agencies
• Amendment of national legislation to ensure
  protection of social security rights of labor
  migrants
• Ensuring effective data exchange between social
  security agencies on migrant workers

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Our vision on social security of migrant workers
(Baku Declaration)

• Signing of bilateral and multilateral agreements
  in the area of social security of migrant workers
• Application of principles of summarization of
  social insurance periods to ensure proportional
  financing of social benefits, development of
  mechanisms for effective delivery of benefits
• Provision of social security protection to
  self-employers
• Cooperation with international, regional and
  national migration agencies and organizations
• Data exchange and close cooperation with the
  national frontier services agencies

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Our vision on social security of migrant workers

• After adoption of Baku Declaration in 2005,
  Azerbaijan emended its Law On Social Insurance
  and since 2006 labor migrants are cavered by
  Social Insurance. Besides, the national
  legislation gives the International Agreements
  higher status than national laws.
• The Law of the Republic Azerbaijan On Labor
  Pensions states that the pension rights are
  determined on the base of data recorded in the
  individual social insurance accounts of the
  registered population only.

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Our vision on social security of migrant workers

• In 2006 Azerbaijan introduced a new social
  insurance-pension system maintaining the
  individual accounts. The system foresees
  implementation of the Social Insurance Rights
  declared in the (Rivesed) European Social
  Charter through signing bilateral agreements. It
  provides social security to people
• a) regardless of citizenship and current
  residence of individuals who have been registered
  in SSPF
• b) accepts the employment records certified by
  partner agencies from other countries and
  prepared in accordance with the legislation of
  the host countries.

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Our vision on social security of migrant workers

• At present we are updating the national
  legislation to introduce a new social security
  policy with regard to the migrant workers. The
  main objective of the new policy is provision of
  equal and fair social security to migrant workers
  through maintenance of their individual accounts.
  
• At present 50 of social contributions are used
  for financing of the basic part of pensions and
  social allowances. Data on the remaining 50 are
  recorded in the individual accounts of insured
  people.

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Our vision on social security of migrant workers

• The contributions notionally collected in the
  individual accounts constitute the insurance
  capital of the registered population and are
  annually indexed for the rate of inflation in the
  country. The current national legislation states
  that a person can apply for a labor pension if
  he/she reaches the retirement age, and his/her
  employment period exceeds 12 years. In case the
  number of employment years is less than 12 years,
  a person should apply for social allowances,
  which in turn are given Azerbaijani citizens.
  This, in fact, limits the pension rights of labor
  migrants.
• To eliminate this injustice, the Government of
  Azerbaijan is planning to amend the existing
  legislation and allow, with regard to migrant
  workers, to record 100 of the contributions made
  for individuals. The paid contributions could be
  used for financing of pensions and other social
  insurance cases.

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Our vision on social security of migrant workers

• The second direction of reforms in that area is
  improvement of governing and management
  mechanisms in the area of social protection of
  migrant workers.
• We believe that one of the best solutions of the
  migrant workers problems might be proportional
  financing of pension rights by collaborating
  agencies and countries. From organizational
  perspective, it is necessary that the social
  insurance systems of collaborating agencies might
  communicate with each others and ensure effective
  data exchange.
• The automated management system of SSPF allow us
  to register the migrant workers and provide them
  with social insurance numbers and cards. So far,
  the citizens of 92 countries have been registered
  in our system and get social insurance-pension
  services from SSPF. The majority of migrant
  workers represent Russia, Turkey, Iran and
  Georgia.

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Increasing the number of bilateral and
multilateral agreements signed between national
agencies

• Recognition of certificates specifying the
  employment periods of migrant workers is one of
  the important steps toward protection of social
  security rights of labor migrants
• According to ILO report 595, bilateral agreements
  have been signed by 66 countries. The majority of
  these agreements have been signed between 10
  countries. The number of signed agreements is
  constantly growing.
• Distribution of agreements with respect to goals
  is as follows
• 57 social security
• 18 regulation of migration matters
• 12 exchange of young specialists
• 5 regulation of seasonal migration processes.
• There are about 100 bilateral agreements signed
  by Latin Amerikan and Caribbean countries.

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Our vision on social security of migrant workers

• The number of agreements on deportation of
  illegal migrants is also growing. Such agreements
  are effectively used, for example, for protection
  of the EU labor market from illegal migrants.
• Some countries sign bilateral agreements on
  regulation of money transfer issues as, for
  example, Canada and Caribbean countries did.
• The agreements signed in EU can be considered as
  a best practice in the area of social security of
  migrant workers.
• To make the agreements effective they should
  reflect the specifics of the national
  legislations. Besides, they should be in line
  with the requirements of the international
  conventions and charters. Thus, our vision is
  that the framework agreement to be prepared by
  ISSA should foresee all sensitive issues relating
  to migrant workers. It would be useful if the
  working group of ISSA prepares explanation of
  articles to be put into the framework agreement.

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Our vision on social security of migrant workers

• The State Program for Development of Social
  Insurance-Pension System in Azerbaijan for
  2009-2015 reflects the issues concerning social
  security of migrant workers from Azerbaijan.
• Trying to fulfill the objectives of the State
  Program, SSPF is always expanding its partnership
  relations with social security organizations
  worldwide, review and study the social security
  legislations of other countries. Membership in
  ISSA creates perfect opportunities for
  fulfillment of the set objectives.

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Our vision on social security of migrant workers

• Over the last few years SSPF has established
  strong collaboration with social security
  agencies of Russia, Belarus, Turkey, Germany,
  Poland, Czech, Moldova, Lithuania, Latvia, Saudi
  Arabia, Israel and some other countries. Now SSPF
  is working on agreements that would deepen these
  relations and increase efficiency of joint
  efforts.
• So far SSPF signed and efficiently applies 10
  bilateral agreements on regulation of pension
  provision issues.

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Our vision on social security of migrant workers

• Our analysis show that in fact there are quite a
  number of bilateral or multilateral agreements
  signed globally. However, when it come to
  implementation, some countries limit their
  application trying to use only those articles
  that give them certain benefits or privileges.
  Some countries try to limit application of
  agreements or conventions by immigrants ignoring
  labor migrants. Sometimes, they do not share data
  on migrant workers and as a result they loose the
  pension rights gained in other countries.
• So, we are looking forward to achieving real
  progress in this very difficult area - social
  security of migrant workers.

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• THANK YOU !!!