U.S. Companies Race to Catch Up in Africa
Wall Street Journal (06/06/11) Hagerty, James R.; Connors, Will

The Wall Street Journal (June 6, Hagerty, Connors) is reporting that a growing number of U.S. companies are vying for a stronger foothold in Africa. Among them are Caterpillar Inc., which has stepped up its truck sales to Mozambique and Zambia; Harley-Davidson Inc., which is opening dealerships in Botswana and Mauritius; and General Electric Co., which has opened its first aircraft-leasing office in Ghana for Central and West African airlines. "Google Inc., Archer Daniels Midland Co. and Wal-Mart Stores Inc. are among the dozens of other U.S. companies moving in or expanding," the Journal notes. The McKinsey Global Institute projects that the continent's economy will expand from $1.6 trillion in 2008 to $2.6 trillion in 2020, fueled by booms in mining, agriculture, and development of ports, roads, and other infrastructure.

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Australia's Big Dig for Foreign Workers
Reuters (06/14/11)

The debate over foreign workers in Australia is about not just labor shortages but also about exploding population growth and its effect on national infrastructure such as transportation, hospitals, and schools. Foreign workers are allowed to bring their families with them and stay on as permanent residents, and about one-third do so each year, bringing about 100,000 new people per year. But guest workers may not bring any dependents with them and are not allowed to resettle, meaning they add no pressure to population growth. Even those who oppose the idea of guest workers admit that there is some merit to the idea in terms of population management. While it is a large country, most of Australia is arid and 90 percent of people are packed into about 3 percent of the land, so overcrowding is a concern. Mining companies such as Rio Tinto have taken to flying in workers for a few weeks at a time rather than build new communities in the desert, but even they will generate more demand for healthcare, entertainment, and other low-skilled jobs like cooks, cleaners, and garbage collectors. But many companies support the idea of guest workers, saying they are actually a bit more expensive than local workers due to government regulations but are so much more hard-working that they are worth it.

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Every Third Company in Bulgaria Wants Foreign Workers
Standart News (05/31/11) Kisyova, Mila

Every third company in Bulgaria is willing to hire foreign workers to overcome the lack of local highly-qualified specialists, according to research by the European Institute. The survey was made in regard with the introducing of the so-called blue card for non-EU citizens. The identification document should be introduced in the European Union by June 19 and it is aimed at luring specialists similar to the green card in the USA and Canada. The survey was made among 160 active companies in Bulgaria. Currently, there are vacant positions for highly qualified personnel in every second company due to the lack of right candidates.

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More Canadian Workers Heading Abroad
CTV British Columbia (06/07/11) Grant, Tavia

The number of Canadian companies sending employees abroad plummeted during the recession but is now increasing again, according to a poll from the Canadian Employee Relocation Council. About one-fourth of 100 companies surveyed said relocation within Canada will increase in the next year, one-fifth said movement between the U.S. and Canada will increase, and 40 percent said international relocations will increase. “As the global race for talent heats up again, the strategic importance of talent mobility will increase,” said council CEO Stephen Cryne. “Companies will need to have competitive benefits in place in order to attract and retain their key people.” The top five destinations, according to respondents, are the United States, Europe, China, Australia, and South America. About 87 percent of respondents say they track their relocation costs, with the average cost of relocating an employee within Canada being $57,000, though just 19 percent said they have a system in place to track the success or failure of relocations. The biggest factor in the success of a move is spousal and family issues, followed by housing and tax issues, according to the poll.

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Tax Blow for HK Staff on Mainland
South China Morning Post (06/04/11) P. 1; Lau, Mimi; Tsang, Denise

A policy requiring overseas employees on the mainland to pay up to 22 percent of their wages to China's social security fund could force thousands of companies and professionals to go out of business. Federation of Hong Kong Industries Deputy Chairman Stanley Lau Chin-ho says the policy is the last straw for manufacturers already burdened with rising prices, increasing wage costs, a strong yuan, and chronic labor and power shortages. The policy goes into effect on July 1st, and will impact all foreign workers who have worked on the mainland for more than six months. Details of the regulations are still being finalized, but officials have made it clear that only foreign nationals whose countries have signed bilateral social insurance agreements with the mainland will be exempt. Currently, only Germany and South Korea have these treaties. Hong Kong does not have a treaty, and would have to change its Mandatory Provident Fund policy to exclude mainland workers to have any such treaty. Hong Kong General Chamber of Commerce CEO Alex Fong Chi-wai says the chamber has submitted its concerns to mainland authorities, but has received no reply. The new policy was created six years ago as Beijing worked to establish a social security network, and was first tested in Guangdong on a voluntary basis. There are an estimated 600,000 foreign workers on the mainland, and an additional 200,000 workers from Hong Kong. Not paying the fine risks hefty fines up to three times the due contributions. Overseas workers would be able to receive payments after contributing to the plan for 15 years, and they could also arrange for their children to inherit their pension accounts.

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Aon: Threat of Political Unrest Equal to Terrorism
Postonline (06/07/2011) MacDonald, Mairi

The 2011 Aon Terrorism and Political Violence Map shows that businesses around the world face a number of different threats to their growth, continuity, and profitability. In the Middle East and North Africa, for example, companies face an increased risk of political violence. Elsewhere in Africa, political violence such as coups and rebellions pose a significant threat as well, Aon found. In Western Europe, companies face a threat from civil unrest and labor disputes stemming from the austerity measures put in place in countries like Greece, France, Spain, and the UK. Finally, Aon found that international terrorism is still a significant threat in most Western nations and major powers, and that terrorist attacks are a risk in places like Iraq, Afghanistan, Pakistan, and Somalia. According to Neil Henderson, the head of terrorism in Aon Risk Solutions' crisis management team, businesses can protect themselves by identifying the threats they face and by implementing comprehensive risk management programs that aim to protect their employees, physical assets, and their profitability.

Four Steps to Designing a Total Benefits and Comp Package for Foreign Workers
Employee Benefit News (06/01/11) Vol. 25, No. 7, P. 10; Chardac, Emily

Creating a complete benefits and compensation package for foreign employees can be difficult, but following a few simple steps can help create a well-rounded package. First, do thorough research to determine how local companies view the job process. Specifically, learn how candidates apply for jobs, their preferred method for applications, and what they expect from employers. For example, in France, salaries can be quoted either before or after taxes. Second, consider compensation expectations and know what candidates are worth in their home country. Candidates will have expectations regarding a job offer, so determine a reasonable method for communicating the compensation being offered. Consider factors such as base salary, retirement contributions, profit sharing or annual bonus, merit increases, relocation costs, and logistics like cost-of-living adjustments. Third, think about benefits. Health insurance is probably the largest, but there are others, including dental, vision, life, disability, employee assistance, cultural transition assistance, language training, and legal assistance. Also consider additional vacation time to allow for trips to the home country, as well as family benefits for a spouse or children, like schooling, language classes, financial assistance, or career counseling. Lastly, plan out career development to provide candidates with an outlook on their professional development, but be careful not to offer concrete timetables for career milestones like promotions or raises.

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Currency Law to Prevent Expats From Dealing in Foreign Coin
Jakarta Globe (06/05/11) Bisara, Dion

Indonesia's top legislators say expatriates working in Indonesia and foreign firms will be the most impacted by the currency law that was approved by the House of Representatives in late May. According to the legislation, which will take effect May 2012, all transactions in the country must be carried out in rupiah. That includes payments to expatriates who work in Indonesia, Achsanul Qosasi, a Democratic Party lawmaker and vice chairman of House Commission XI, which regulates financial affairs, said on June 5. "The foreigners are making money here, so it's only natural that they use our money," he said. The law states that if transactions are carried out in currencies other than rupiah, the penalty would be up to one year in jail and a fine as high as Rp 200 million, or US$23,000. The payee faces the same penalty if they refuse payment in rupiah, unless there is sufficient evidence the notes are fake.

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Working in East Asia: Japan's Shaken Employers Call on Headhunters
Financial Times (06/15/11) Robinson, Gwen

Unsettled by the earthquake and tsunami in March, some expatriates are more anxious about working in Japan, especially those with young families. "Japan was seen as a very favorable place to work in Asia, [but] now it's not so high—people are favoring Singapore and Hong Kong over Japan," says John McCrohon with recruitment company Robert Walters. "Before, they wanted to come to experience Japan; now they are coming if they have a connection, a partner or some other reason to be here." Recruiters are already witnessing movement by some companies toward replacing expatriates with Japanese workers, but finding employees with the right skill sets is difficult, particularly in specialist areas such as IT or in positions that necessitate English fluency. "Japanese companies realize they need to globalize—some through joint ventures and acquisitions —and this realization stems from the sense of crisis that followed the March 11 tragedies," notes G&S Global Advisors CEO Sakie Fukushima. The increasing need for specialist talent, foreign experience, and especially the languages frequently required by globalization is spurring Japanese companies to use international headhunters. "Many [firms] are now trying to localize their foreign operations, and that's another reason they have to use international headhunters," says Egon Zehnder International's Hideaki Tsukuda. Fukushima calculates that in just 10 years, the percentage of Japanese companies seeking recruitment services from international search firms has risen from about 0.1 percent to roughly 20 percent, while Tsukuda says his company is seeing a 70/30 split between foreign and Japanese businesses.

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Malaysia Mulls Freezing Intake of Foreign Workers
mySinchew.com (06/09/2011)

As the Malaysian government considers granting amnesty to the estimated 2 million illegal immigrants in the country, the government is also considering a freeze on new foreign workers coming to the country legally. Under the new proposed rules, workers without documents would have to get sponsorship from employers to stay in the country, and those who are not working would have to leave, according to Home Ministry Deputy Secretary General Raja Azahar Raja Abdul Manap. "If the government decides for the amnesty program, then we will freeze the intake (of other foreign workers)," he said. "We give (those who are illegal) a chance. If they want to work, they can apply but they have to look for sponsors.” The amnesty proposal arose from the cabinet committee’s workshop on immigration last year, and the committee will make a decision later this month. If adopted, the freeze on foreign workers would start July 1, and it is not clear how long the program would last nor how many industries or jobs would be affected.

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Foreign Workers in Singapore 'Bear the Brunt'
Agence France-Presse (06/12/11) Lim, Philip

There has been a rise in the number of foreign workers in Singapore who approach aid organizations such as Humanitarian Organization for Migration Economics (HOME) for help dealing with wage disputes, assault by a supervisor, and other problems. There are about 870,000 foreign workers in Singapore, which has a population of 5.1 million, and they often work difficult and low-paying jobs that Singaporeans would not take. Chinese worker Ah Ping, for example, worked in a mosquito-ridden warehouse and after he shattered his heel bone falling off a ladder, his supervisor refused to file an injury compensation claim. When Ah Ping later filed the claim himself, his supervisor came to see him in the hospital and began slapping and punching him. He is one of the 150 or so workers per month that have approached HOME for help with labor exploitation issues. The manpower ministry reported a decline in foreign worker complaints in 2010, but HOME executive director Jolovan Wham says those figures are based only on salary issues and therefore are not reliable. Indeed, advocacy group Transient Workers Count Too also reported an increase in the number of foreign workers approaching them for help, and executive director Vincent Wijeysingha fears the heated immigration debate in recent elections may have exacerbated a “xenophobic approach to foreigners.”

Singapore Leaps Hong Kong for Expat Costs: Survey
mySinchew.com (06/08/2011)

Singapore is now the third-most expensive city in Asia for expatriates due to the strength of its currency, according to ECA International. The Singapore dollar has risen by more than 10 percent against the U.S. dollar, and the city-state is now more expensive for expatriates than Hong Kong and topped only by Japan and South Korea. The biannual survey considers common items bought by expatriates, such as dairy, vegetables, and clothing, but does not factor in housing, utilities, cars, and school tuition because these are often paid for by their employer as part of their expatriate package. In Singapore, companies are now paying higher allowances to protect expatriates’ purchasing power than are paid to international executives in other financial centers, according to Lee Quane, ECA’s regional director.

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Slovakia May Implement EU Blue Card Immigration Scheme in July
Workpermit.com (06/07/11)

Slovakia may start implementing the European Union's blue card immigration scheme in July, if approved by parliament. The blue card would be valid for three years and can be renewed for an additional three years. An applicant for a blue card must have a valid job offer and must also have the required qualifications and experience for the job. If approved, Slovakia would begin issuing the visas from July 1, 2011.

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Court Rules 'Migrant Couples Should Have UAE Residence Visa to Marry'
DailyIndia.com (06/04/11)

Federal courts in the United Arab Emirates (UAE) have implemented strict regulations wherein expatriates without a UAE residence visa would not be permitted to wed there. Sharia courts are now reportedly turning away applicants if one partner lacks a UAE residence visa. According to lawyer Abdul Munaim Bin Swaidan, the regulations are in place to control expatriates' entry into the nation, and so the marriage contract will not be used to acquire a residence visa there. "This is federal rules and regulations in order to control abuses of the residency law in the UAE," he added.

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UK Proposes Reducing the Number of Immigrants Who Can Apply for Permanent Residence
Workpermit.com (06/14/11)

Foreign workers in the UK will have fewer options for settlement in the country under a series of new government proposals. Those working on temporary visas will not be able to apply for settlement, and the government will classify immigration various routes as either temporary or permanent. It will also be more difficult to extend a visa. "The proposals I am making today are aimed at breaking the link between temporary and permanent migration," said Immigration Minister Damien Green. "We want the brightest and best workers to come to the UK, make a strong contribution to our economy while they are here, and then return home," he added. Under the proposals, Tier 2 will be classified as temporary, though certain categories of value to the country will be allowed an automatic settlement route. There will also be an English language requirement for adult dependents of Tier 2 workers who are on a route to settlement, and Tier 5 temporary workers may stay only twelve months.

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Tax Compliance Bill Drives Expats to Despair of U.S.
Financial Times (06/12/11) Houlder, Vanessa

American expatriates who are employed overseas are expected to file tax returns with the Internal Revenue Service (IRS), even if they do not owe any taxes in the United States, or face penalties. Starting in January 2013, the Foreign Account Tax Compliance Act (FATCA) will require banks across the globe to disclose details of accounts containing at least $50,000 belonging to U.S. clients, or be subject to a withholding tax. The legislation seeks to prevent the evasion of more than $8 billion in taxes over the next 10 years. Some individuals involved with the initiative believe it will generate much more, but will catch unawares many U.S. citizens. It may also put at-risk individuals who knew they were bypassing the filing rules yet could not afford professional help for filling out these forms, which generally costs about $2,000 per form, says American Citizens Abroad. Meanwhile, a voluntary disclosure initiative launched in February will charge citizens penalties of a fourth of the money in their bank account. In early June, however, the IRS reduced the penalty rate for failing to file to 5 percent of assets for some U.S. citizens living overseas, although the provision may not be applicable to Americans living in the United Kingdom and Hong Kong with offshore income. Many Americans are worried that banks will abandon U.S. clients to reduce their FATCA compliance costs.

Report Documents Dramatic Shift in Immigrant Workforce’s Skill Level
Washington Post (06/09/11) Bahrampour, Tara

The Brookings Institution has released a report revealing that the number of highly-skilled foreign workers in the United States now outnumbers lower-skilled workers, a shift that has been building for the past 30 years. According to the report, based on Census data, 30 percent of the working-age immigrants in the country have a bachelor’s degree, compared to 28 percent who do not have a high school diploma. The number of immigrants in both groups has surged in the past 15 years, but the rate of highly-skilled workers rose faster, particularly since 2000. The skills of foreign workers in different locations varies, with most of the highly-skilled located in coastal cities or metropolitan areas while the lower-skilled tend to cluster near the U.S.-Mexico border. The shift is in part due to the transformation of the U.S. economy from one based on manufacturing to one based on information and technology, and will likely change the shape of the immigration debate for the future. “Too often the immigration debate is driven by images on television of people jumping over fences,” said Benjamin Johnson, executive director of the American Immigration Council. “The debate has been stuck in the idea that it’s all about illegal and low-skilled workers.” Organizations that want tighter immigration restrictions, however, say the report indicates there is an excess of highly skilled foreign workers at a time when U.S.-born college graduates are having trouble finding jobs.

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