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Headlines

The Ecosoc News Monitor

20 April 2008

No more guarantee for maids

The Star Online, Sunday April 20, 2008
By LOONG MENG YEE

PETALING JAYA: Some Indonesian agencies are no longer offering the three-month guarantee to replace runaway maids, a move that may result in Malaysian employers being forced to shell out a few thousand ringgit for another maid.

Malaysia Association of Foreign Housemaids Agencies (Papa) secretary Foo Yong Hooi said agencies here could give such a guarantee only when their Indonesian counterparts give such protection.

“It is a back-to-back agreement. With the replacement warranty, local agencies are assured of getting another maid from their Indonesian counterparts for free in the event the first maid runs away from her employer during the first three months of employment,” he told The Star.

Without the guarantee, local agencies had to pay a few thousand ringgit to get a new maid as replacement, and this was a cost the agencies here were not willing to bear.

Foo said the association’s statistics showed that out of every 10 maids, two will run away, disappear or be rejected by employers in the first three months.

He said Indonesian agencies were calling the shots because demand was far outstripping supply. Apart from the traditional reason of other countries luring away maids with higher pay, Indonesia’s improved economic situation was also an important factor.

“Indonesia is attracting foreign investments, and many factories are coming up there. Factory workers there could earn about RM250 per month, so unless they are getting much more abroad, many are enticed to take up local employment,” he said.

Foo added that some local agencies were also to blame for the withdrawal of the guarantee. Intense competition to get maids has resulted in agencies here offering to take maids without needing the Indonesian side to provide the guarantee.

He said Papa had sent out letters to its members not to resort to undercutting each other to get maids.

He added that it was also unhealthy for local agencies to start paying extra to their Indonesian counterparts on top of the agreed amount.

“Eventually, the higher cost is transferred to customers. It is already very difficult for employers to have to pay thousands of ringgit to hire a maid,” said Foo.

As for employers, he advised them to insist on having the three-month warranty when hiring a maid.

However, he realised that some employers were desperate for maids and with the short supply situation, might disregard caution and take whatever deal offered by local agencies.