Manila, Philippines – Department of Migrant Workers (DMW) Secretary Hans Leo Cacdac is set to visit the Kingdom of Saudi Arabia (KSA) in May to discuss several critical issues, including the settlement of unpaid wages owed to approximately 10,000 displaced overseas Filipino workers (OFWs). The trip aims to address longstanding financial disputes and bolster bilateral ties between the Philippines and Saudi Arabia.
According to Philippines News Agency, Secretary Cacdac highlighted that his agenda includes negotiations on the continuing disbursement of claims to Filipino workers. Discussions will cover the enhancement of institutional mechanisms to ensure fair, ethical, and safe recruitment and employment practices for OFWs. Cacdac will also respond to Saudi Arabia's request for more Filipino workers to support its Vision 2030 development program, which seeks to diversify the Middle Eastern nation economically, socially, and culturally.
The plight of the OFWs began between 2015 and 2016 when over 10,000 Filipino and other foreign workers lost their jobs due to company bankruptcies in Saudi Arabia. The process to resolve unpaid wages gained momentum in November 2022 when Crown Prince Mohammad bin Salman assured President Ferdinand R. Marcos Jr. that the Saudi government would handle the financial settlements of these claims. During this discussion, the Crown Prince committed to allocating a SAR2-billion fund for the purpose.
In the third quarter of 2023, the DMW submitted a list of 10,554 displaced Saudi OFW claimants with verified residence permits to the Saudi authorities. By the end of 2023, approximately 1,500 of these claimants began receiving their claims checks from Saudi Alinma Bank, representing payments owed by their bankrupt employers.
Further aiding the resolution process, the DMW has entered into agreements with the Landbank of the Philippines and the Overseas Filipino Bank to hasten the processing and cashing of these claims checks for the affected workers and their heirs. Secretary Cacdac expressed optimism that the next distribution of claims checks would occur in the second quarter of 2024.
Cacdac, who was appointed ad interim DMW Secretary by President Marcos on April 24, after serving as officer-in-charge following the death of former Secretary Susan 'Toots' Ople last August, is committed to resolving these issues during his tenure.