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GLOBILITY
October 21, 2011

Global News Briefs

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Recently, there has been a lot of interest in the local plus (also known as host plus) approach as a possible low-cost alternative to the traditional balance sheet. When used in the proper context, it can be an effective and successful scheme for compensating expatriates. Knowing when and how best to use this method is the key to its successful implementation.

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Australia

Australian Immigration Study: 80 percent of Firms Planning to Hire Overseas Workers
Workpermit.com (10/12/11)

Eighty percent of companies in Western Australia (WA) plan to hire foreign workers to help fill skills gaps, according to a study by global consultancy services firm KPMG, which found there were increasing skills shortages in every Australian state except Queensland, and 61 percent of surveyed employers were affected by the shortfall in skilled labor. The number of temporary 457 visa holders in WA rose by 85 percent in July compared with the same period in the previous year.

 

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Commonwealth of Northern Mariana Islands

I-129 Beneficiaries May Apply to Remain in NMI
Saipan Tribune (10/12/11)

Foreign workers in the Commonwealth of the Northern Mariana Islands (CNMI) who are waiting for a decision on their H-1B or other nonimmigrant employment-based petitions many now apply for parole and employment authorization while they wait, according to a new policy from U.S. Citizenship and Immigration Services. The agency held outreach sessions in September and heard many concerns that companies would have to shut down if their workers had to leave while waiting for the petition decision. Petitions must be filed before Nov. 28, 2011, and eligible workers are those who are legally present in the CNMI and whose employers are filing an I-129 Petition for a Nonimmigrant Worker for a grant of nonimmigrant status. The parole period, if granted, would be 120 days. The worker may work only for the employer filing the Form I-129 during the parole period, and may not travel to other parts of the United States. Parole may also be requested for spouse and dependent children of the foreign worker.

 

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Denmark

Dual Nationality Proposal Seen as a Godsend by Many
Copenhagen Post (10/14/11) Stanners, Peter

A new proposed law would allow Danish citizens to have dual nationality, which would allow Danish expatriates to keep their right to vote. Currently, Danes must relinquish their Danish passports in order to obtain a second nationality, and foreigners seeking Danish passports must also give up their citizenship. This causes many problems for Danish expatriates, who may not receive the same job opportunities due to their inability to take citizenship in the countries where they work. “These are daily problems and are about wanting to be fully involved in the society in which you are living,” said Anne Marie Dalgaard, the government’s general secretary. Danish expat Tina Thuesen, who has lived in Switzerland with her family for 20 years, applauded the news. “I almost started crying when I found out because I know I’ll be much more secure,” she said. “If I get a Swiss passport they can’t throw me out of Switzerland. And for most people living abroad, this is very important because it means you are now a part of society under law.” She says one can be as loyal to two countries as one can be to two children, so the previous government’s concerns about dual citizenship are unfounded. “I’m a big enough person to be able to have positive feelings towards more than one place or person,” she says. Still, it will be some time before the law becomes reality, even if it does pass. One immigration lawyer says it could take up to five years for it to be fully approved and implemented.

 

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France

France to Allow Work Visas for More Graduates
New York Times (10/17/11) Karasz, Palko

France plans to soften its stance on limiting working permits to foreign college graduates and to reconsider recently rejected work-visa applications after criticism from students and heads of universities, according to the country's Education Ministry. “Local prefects will be advised to examine students’ applications in a positive way,” a spokesman with the Ministry of Higher Education said. “Cases where the application has been rejected will be examined to try and find a solution.” This fall, non-European Union students were subjected to stricter work-visa procedures, making it increasingly hard for them to pursue job opportunities after graduation in France. A memo dated May 31 and issued by the Ministries of Interior and Labor called on the local authorities and immigration offices to apply existing regulations “rigorously” to limit legal immigration. “Priority should be given to the professional insertion of job seekers already present on our territory, both of French and foreign nationalities, residing legally in France,” the memo read.

 

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Hungary

Hungary Introduces European Union Blue Card Scheme
Workpermit.com (10/11/11)

Hungary has become the latest European Union member state to adopt the E.U.'s blue card scheme, which allows certain non-E.U. nationals who possess high levels of job skills to enter the participating countries. Under the scheme, blue cards are issued to workers who have been offered a job and meet other requirements. In Hungary, the cards will be issued to qualified applicants for as long as four years. Workers who hold blue cards will have the option of moving to another E.U. member state after being legally employed for a year and a half. Meanwhile, Hungary is planning to adopt rules that would place limits on the number of non-E.U. nationals who can take jobs in the country. Those who hold blue cards will be subject to those limits.


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Libya

Foreign Firms Quietly Return to Libya's Oil Rich East
Reuters (10/08/11) Donati, Jessica

Oil companies are beginning to send workers back to the Libyan oil fields east of the city of Sirte, despite the fact that fighting is continuing in the area. The Germany-based oil company Wintershall, for example, is among the firms that have sent a small number of Libyan employees to several different oil fields in the area. Oil fields jointly run by U.S.-based Occidental Petroleum and Canada-based Suncor Energy are also beginning to restart operations. However, a number of obstacles remain before oil production in the Sirte area is brought back to pre-war levels. For example, both Libyan and foreign workers are hesitant to return to the area because fighting between Libyan rebels and forces that support ousted leader Moammar Gaddafi is continuing. In addition, a number of pilots are afraid to bring in workers on cargo flights because of the on-going NATO enforcement of a no-fly zone over Libya. As a result, output will likely only reach 50 percent of capacity until more workers can be brought in. Meanwhile, offshore oil fields operated by French and Italian firms have already restarted.


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Malaysia

British Expats and Investors Drawn to Malaysian Metropolis
Telegraph.co.uk (10/11/11) Harper, Justin

Iskandar Malaysia is a major new development in Malaysia that is expected to bring as many as 1.4 million people by 2025, including 800,000 new jobs, thousands of new homes, and several international schools. There will be five different zones, including a waterfront financial district and a large industrial park, as well as the flagship Nusajaya zone that will include Pinewood Studios, Legoland, and the first Asian branch of Marlborough College. Foreign investors, expat families, and students are being wooed for the new development, and so far the Royal Bank of Scotland, Citi, and Standard Chartered will have offices in the region, in addition to campuses of the Raffles American School, Newcastle University, and the University of Southampton. Iskandar Malaysia strengthens the already-strong ties between the UK and Malaysia, said a spokesman for the project. With thousands of homes planned for construction, many expect expatriates from nearby Singapore to come to Malaysia for cheaper properties.

 

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Mozambique

Government Approves New Regulation on Employing Foreign Citizens
Bernama.com (Malaysia) (10/08/11)

A new regulation governing the employment of skilled foreign workers in the mining and petroleum sectors was approved by the Mozambican Council of Ministers on October 6. A government spokesman indicated that the approval was in response to the rapid growth of these sectors and the shortage of skilled Mozambicans. Four governing methods will be created, each determining the maximum percentage of foreign workers that can be hired based on company type and number of workers, length of contract, type of contract, and governmental authorization. The high demand for skilled workers has been driven by the growth of hydrocarbon prospecting and the large mining projects being developed throughout the country.


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The Netherlands

Tax Breaks for Expats at Risk in Holland
Radio Netherlands (10/13/11)

The Amsterdam, Netherlands, council has sent an urgent letter to Deputy Finance Minister Frans Weekers about his intention to limit the tax breaks currently enjoyed by expats. At present, expats working in the Netherlands pay no taxes over 30 percent of their income. In the future, this tax break will only apply to workers earning more than 70,000 euros a year. International companies fear the measure will lead to a substantial increase in their salary costs.


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Paraguay

Paraguay Referendum Backs Voting Rights for Expatriates
BBC News (10/10/11)

A proposed amendment to the 1992 constitution that would give Paraguayan citizens living abroad the ability to vote in the country's general elections has been supported by 80 percent of the voter turnout. President Fernando Lugo encouraged the voters to support the amendment, which he felt would strength the democracy. More than one-twelfth of the population lives abroad for economic reasons, primarily in Argentina, Spain and the United States; and more than a million citizens had been sent into exile during the rule of Gen. Alfredo Stroessner. The Paraguayan Congress still needs to approve the amendment, which could allow expatriates to vote as early as 2013.


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Qatar

Foreign Workers to Be Vaccinated on Arrival: Official
Peninsula (Qatar) (10/06/11) Huda, N.V.

A new strategy from the Supreme Council of Health (SCH) in Qatar will be vaccinating workers when they enter the state as part of efforts to eliminate transferable diseases such as measles and rubella. The strategy is part of a larger program that the SCH has based on advice and mandates established by national immunization experts as well as WHO experts and consultants. The program is largely targeted at children, and recommendations have been made that it expand its focus to include travelers who are also at high risk from communicable diseases.

 

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South Korea

E-7 Visas Available for Qualified Migrant Workers
Chosun Ilbo (South Korea) (10/13/11)

Foreign workers with certain qualifications can now change their visa status from one of Non-Professional Employment or Working Visit to an upgraded General Work visa, also known as the E-7. According to the new guidelines, low-skilled immigrant workers who meet specific qualifications can apply for an E-7 visa, which is generally issued to professionals or highly paid foreign employees in Korea. The E-7 makes it easier for foreign workers to obtain permanent resident status. Only those who are under 35 years old, and who have a college diploma and at least four years of work experience in the country within the last decade, can apply.

 

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Seoul Restricts Foreign Workers, Hurting Some Small Businesses
MonstersandCritics.com (10/10/11)

Small employers in South Korea are struggling to find workers to fill vacancies now that the government has increased the limitations on foreign workers. Ministry official Jang Jung Suh said, "When our economy remains uncertain like this year, our priority is to protect domestic jobs." Small employers are having to accept lower production because they are unable to fill positions that citizens will not or cannot fill. Ministry data shows that the number of foreign workers has shrunk dramatically from 2008, and ministry estimates suggest that nearly 9,000 of the 60,000 workers are currently illegal, as the growing disparity between supply and demand is prompting more foreign workers to overstay their contracts.

 

Taiwan

Foreign Workers to Be Targeted
Taipei Times (10/08/11) Mo Yan-chih

The Department of Labor Affairs in Taipei City has expressed its intentions to inspect the work permits of foreign white-collar workers suspected of having illegal positions. The issue was brought into focus when a UK teacher, who had registered on his work permit that he taught English in Hsinchu County, was discovered illegally working as a male stripper in Taipei City nightclubs. Taipei City Councilor Hung Chien-yi urged the city government and police to put more effort into preventing foreigners from having illegal jobs, saying that, “the Department of Labor Affairs needs to strengthen its inspection of foreign workers.” By law, foreigners are only allowed to perform job activities that coincide with the title and job description they provide to the government on their work permits, and breaking this law results in revocation of the permit and deportation. A shortage of manpower looks to make this increased scrutiny difficult for the police department, but the division chief has said they will put in more effort.

 

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United Kingdom

Want UK Passport? Pass History Test
IOL (10/11/11) Slack, James

Applicants for British passports will have to meet new requirements that were outlined by Prime Minister David Cameron on October 10. Under the proposal, migrants will have to pass a quiz about British history and culture before they will be granted a passport. The quiz will cover a number of major events and important people in British history. Foreign nationals who want to permanently move to the UK are already required to take a test on life in the UK, but have not been asked to take a quiz on history because of concerns that doing so would be unfair. The addition of the history quiz is part of an effort that Cameron said will make the UK's immigration system fairer. In addition to the history test, Cameron has also called for forcing migrants to pay a bond as high as thousands of pounds before they will be allowed to enter the country. Forcing migrants to pay such bonds could help prevent them from disappearing into the underground economy. Cameron also called for requiring companies to report how many foreign employees they have, though that proposal has since been dropped.

 

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United States

High-Skill Visa Reform Needs Action by Congress, Obama Says
Computerworld (10/11/11) Thibodeau, Patrick

Congressional action is needed to overhaul high-skill immigration policy, U.S. President Obama said during a meeting of the President's Council on Jobs and Competitiveness. In the absence of reforms by Congress, the White House is exploring what changes it can make to immigration processes. "We can expedite some of the visas that are already in place and try to streamline that process to make it move faster [but] we may need some legislative help on that area," Obama said. Rep. Zoe Lofgren (D-Calif.) has sponsored a bill that would give a green card to any foreign student who graduates with an advanced degree in science, technology, engineering, or math, but Republicans have not shown much support for the measure. Meanwhile, Sen. Charles Schumer (D-N.Y.) has yet to produce a promised immigration reform bill. The White House Office of Science and Technology Policy's Tom Kalil says that increasing the number of green cards for highly skilled workers is a goal of the Obama administration for skills-based immigration. He says Obama also supports a specific visa for immigrants who create startups.

 

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GLOBILITY®
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