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Speaker: M.Sc. Óscar Fco. Vargas Madrigal Economist Department of Labor Migration

Workshop on Migrant Workers OTTAWA, CANADA MINISTRY OF LABOR AND SOCIAL SECURITY. LABOR MIGRATION IN COSTA RICA. Speaker: M.Sc. Óscar Fco. Vargas Madrigal Economist Department of Labor Migration . COSTA RICA: GENERAL INFORMATION. Area: 51,100 Km.2 Population: 4,325,000 Capital: San José

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Speaker: M.Sc. Óscar Fco. Vargas Madrigal Economist Department of Labor Migration

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  1. Workshop on Migrant WorkersOTTAWA, CANADAMINISTRY OF LABOR AND SOCIAL SECURITY LABOR MIGRATION IN COSTA RICA Speaker:M.Sc. Óscar Fco. Vargas MadrigalEconomistDepartment of Labor Migration

  2. COSTA RICA: GENERAL INFORMATION Area: 51,100 Km.2 Population: 4,325,000 Capital: San José GDP: 4.1% GDP per capita: $4,526 (2%) Exports: $7,038 millions Inflation rate: 14% Literacy: 96% Life expectancy: 78

  3. Costa Rica has 25% of its territory protected with national parks, this makes it the country that has the largest proportion of natural reserves protected according to its size

  4. WHY IS COSTA RICA A RECEIVING COUNTRY? A dynamic economy Costa Rica’s economic growth from the recent years, has been an attractive factor for labor immigrants, particularly for Nicaraguans, Colombians and even citizens from countries located far away like the People’s Republic of China. Political and economic stability Costa Rica has overcome economic crisis and political stability that have affected many Latin American countries. Countries that have traditionally been receiving countries, such as Venezuela and Argentina, are sending countries today.

  5. Latin American Context: Political Stability, but not economic Democratization processes in Central American region, but in Latin America as a whole, has diminished migration flows of refugees and political asylum, except for Colombia and Cuba. Nonetheless, the impact from structural adjustment and economic globalization policies have increased unemployment rates and therefore economic migration, particularly from least advantaged social sectors. WHY IS COSTA RICA A RECEIVING COUNTRY?

  6. THE IMPORTANCE OF MIGRATION IN COSTA RICA In year 1984, the Population Census got that 88,945 people were registered as born abroad, this represented 3.7% of the total population. Sixteen years later, the 2000 Census, it increased more than 3 times, registering 296,461 people born abroad. Like this, in year 2000, the population born abroad represented 7.8% of the country’s total population, and Nicaraguans, who represent 76% of foreign citizens, represented 5.9% of the total population living in Costa Rica.

  7. DISTRIBUTION OF THE NICARAGUAN POPULATION LIVING IN COSTA RICA Greater concentration in six cantons. Within the Grand Metropolitan Area the highest concentration is in the four districts of the country’s capital, San Jose.

  8. COSTA RICA: THE IMPORTANCE OF MIGRATION According to the data gathered worldwide, Costa Rica holds the world’s ninth position of countries with great migrant population with respect to their national population. All countries in positions 1 to 8 are developed countries or countries that own nonrenewable resources.

  9. Historically, Central American countries have had similarities, coexisting with marked differences regarding economic and social conditions. For year 2000, 40% of the national product was concentrated in Costa Rica and Panama. In 2005, 60% of Central American exports to Europe were Costa Rican. There is a similar situation regarding income per capita. Costa Rica and Panama have incomes greater than the average in Central America, which are $9.1 and %8.8 per day, while Nicaragua’s is $1.25 and Honduras’ $1.80 per day. Costa Rica receives migrants workers mostly from Nicaragua. WHY IS COSTA RICA A RECEIVING COUNTRY FOR MIGRANTS IN CENTRAL AMERICA?

  10. FOREIGN WORKERS LABOR FORCE DEMAND IN THE PRINCIPAL AGRICULTURE ACTIVITIES IN COSTA RICA 2005-2006 HARVEST ______________________________________ PRODUCT TOTAL FOREIGN ______________________________________ ORANGES 1,500 1,000 BANANAS 36,000 15,000 MELON 5,000 1,500 SUGAR CANE 3,000 2,400 COFFEE 81,000 46,000 BEANS (frijoles) 1,000 800 PINEAPPLE 3,000 500 ______________________________________ TOTAL 130,500 67,200 (51%)

  11. AVERAGE PRODUCTIVITY AND ACRES OF THE MAIN AGRICULTURE PRODUCTS FROM COSTA RICA CULTIVATED ACRES AND PRODUCTIVIY PER ACRE HARVEST 2005-2006 ___________________________________________________________ PRODUCT ACRES AVERAGE PRODUCTIVITY ___________________________________________________________ COFFEE 113,000 26 FANEGAS (20 BOXES) CANE 52,600 70 TONS (1,000 KILOS) BANANA 42,200 2,110 BOXES (90 UNITS) PIÑEAPPLE 18,000 4,425 BOXES (26 POUNDS) ORANGE 16,700 625 CAJAS (225 ORANGES) BEANS (frijoles) 11,300 600 KILOS MELON 6,460 1,300 BOXES (18 POUNDS) ___________________________________________________________ TOTAL260,260

  12. EVOLUTION OF NICARAGUAN MIGRATION TO COSTA RICA The greater international migration flow in Costa Rica is a recent process: two thirds have arrived after 1990. There is a clear decreased in migration flows to Costa Rica and United States since 1997. Does this represent the end of Nicaraguan massive immigration?

  13. WHY IS COSTA RICA A RECEIVING COUNTRY FOR MIGRANTS IN CENTRAL AMERICA? Costa Rica is the Central American country that pays the highest minimum wage for all economic activities, according to a report from the Secretariat of the Economic Integration of Central America (SIECA), 2003. Data shows, for example, that a non-qualified worker from the Costa Rican agricultural sector earned $8.27 per day. Doing the same job in Guatemala will yield a minimum salary of $4.04 per day, in El Salvador, $2.47, in Honduras $2.79, in Nicaragua $1.34.

  14. GENERAL LABOR INFORMATION OF AGRICULTURE ACTIVITIES 2005-2006 MINIMUM WAGE ESTB. BY LAW: ¢4,719 (US$9.06) (II SEMESTER 2006) PRICE FOR THE BOX OF COFFEE: GRANEA: ¢800 ($1.54) MAXIMUM: ¢600 ($1.15) REPELA: ¢600 ($1.15) DAILY AVERAGE: 10 (¢5,000) ($9.60) PRICE PER TON OF CUT CANE: TO THE AL CONTRACTOR: ¢2,300 ($4.41) TO THE WORKER: ¢1,570 ($3.01) DAILY AVERAGE: 3.5 (¢5,495) ($10.55) PRICE PER BOX OF ORANGES: ¢130 ($0.25) DAILY AVERAGE: 36 (¢4,680) ($8.98)

  15. REQUIREMENTS OF PAID WORKERS PER ACRES IN PRODUCTION MAXIMUMS COFFEE: 1.62 MELON: 0.75 BANANA: 0.64 PINEAPPLE: 0.30 CANE: 0.20 ORANGE: 0.19 BEANS: 0.06

  16. Nicaraguan labor force has been an important element that contributed to Costa Rica’s entrance to the international economy, particularly in the exports sector of non-traditional products to third market and in the construction sector for tourist developments. Nonetheless, Costa Rica’s open unemployment rate changed from 4.6% in 1990 to 6.5% in 2005, which showed 7.5% for registered migrants that have a residency identification card. This has worsen the entry of migrant workers to Costa Rica’s labor market as well as their labor stability. Currently, there are approximately 430,000 migrants with a residency identification card in Costa Rica, plus 125,000 that are living in the country and that are not registered, adding up 555,000 foreign citizens, which represents 13% of the country’s total population. POSSITIVE ASPECTS FOR COSTA RICA

  17. POSITIVE ASPECTS FOR NICARAGUA In 2003, remittances flow from Costa Rica increased to $132 million, which represents one fifth of Nicaragua’s export income. The majority of Nicaraguans working in Costa Rica are not skilled workers and come from marginalized urban areas and underdeveloped agriculture zones. Coming to Costa Rica represents an economic relief for their families, which stay in their country.

  18. Tabla II - 5. Etnoencuesta s de migración: Población con experiencia migratoria y características de las remesas según país de destino. 2000 - 2002 Población mediana de la con experiencia que envía remesa mensual migratoria remesas Nicaragüenses con experiencia Absolutos porcentaje en U$ m igratoria en Costa Rica 450 17% 100 Estados Unidos 441 44% 200 Costarricenses con experiencia migratoria en EEUU 213 20% 500 Fuente: CCP. Etnoencuestas de migración. 2000 - 2002 Nota. Com unidades en la muestra: Nicaragua 9, Costa Rica 4. IMPORTANCE OF REMITTANCES IN COSTA RICA AND NICARAGUA • Nicaraguans send to their country from Costa Rica an average of US$100 and US$200 from United States • Costa Ricans send to their country from United States a monthly average of US$500

  19. IMPORTANCE OF REMITTANCES IN CENTRAL AMERICA Even though the amount of remittances is not large, they still have an important share in the national economy. It is important to clarify that remittances calculations are estimates, and each source has its own methodology; thus, results may vary.

  20. In Costa Rica: increasing demand for social services from the migrant population, which mostly does not contribute to the social security system, and the challenges regarding equity and integration with Costa Rican society. In Nicaragua: Lost of human capital economically active and increasing family disintegration. NEGATIVE ASPECTS FOR NICARAGUA AND COSTA RICA

  21. IMPACT OF MIGRATION IN COSTA RICA’S DEMOGRAFIC TRENDS International migration in the future might increase aprox. 24-45%, which represents the natural increase of Costa Rica’s population for year 2025.

  22. AGREEMENTS SIGNED : OBJECTIVES We have signed with Nicaragua 6 agreements, conventions and declarations from January 1993 to July 2006, and with Panama one declaration on labor migration issues in April 2005. It is remarkable that we have already made 5 bi-national meetings with Nicaragua, which have had labor migration as one of the main topics.

  23. SEASONAL WORKERS IN AGRICULTURAL AND AGRO-INDUSTRIAL ACTIVITIES Legal norms allow migrant workers to stay in the country legally with a certain firm and for a determined period of time within national territory. This process begins when the firm send a form to the Ministry of Labor of Costa Rica. The Ministry studies the case and approves or denies the request. In case of approval, it is informed simultaneously to the firm, the Department of Immigration and the Ministry of Labor of Nicaragua. Once approved, workers can be hired: - In Panama or Nicaragua, entering Costa Rica with a passport or safe-conduct, in this case, it is not necessary to pay an entering visa. - Or in Costa Rica, as long as they have a resident identification number, refugee identity card or valid passport with tourist visa.

  24. SEASONAL WORKERS IN AGRICULTURAL AND AGRO-INDUSTRIAL ACTIVITIES In case that Nicaraguan labor force is required, the company needs to present to the Ministry of Labor of Nicaragua an individual contract with every worker that will be working in Costa Rican territory. Once that this is approved, the Ministry of Labor of Nicaragua will inform the Department of Immigration, who will issue the pertinent travel document. Once that the Nicaraguan border is crossed the Department of Immigration of Costa Rica verifies the list of people that enters with the travel document. After this, the company will deposit $20 to the Department of Immigration of Costa Rica for every worker that enters Costa Rican territory. The process of border registration is a thorny issue these days mainly because is a period of intensive border transit that coincide with the traveling of Nicaraguans to Nicaragua to celebrate Christmas.

  25. SEASONAL WORKERS IN AGRICULTURAL AND AGRO-INDUSTRIAL ACTIVITIES Base on this problem, the Department of Immigration has a project in the framework of the cooperation with Spain. The project consists in preparing three 18 wheel semi trucks to work as mobile units of the Department of Immigration. This project aims to process the registration and stamps of the working permits in the workplaces; thus the workers do not have to stop in the border, but will continue to the assign camps where all the require process will take place. Once in Costa Rica, the National Labor Inspection carry out periodic inspections in the working places. This inspections aim to observe the fulfillment of the minimal conditions stipulated in the labor law and to verify the inhabitable conditions of the camps where the seasonal workers live.

  26. SEASONAL WORKERS IN AGRICULTURAL AND AGRO-INDUSTRIAL ACTIVITIES Once that the legal stay in Costa Rica concludes, the Labor Inspection checks and carry out if is necessary, estimations of the year-end bonus and vacations of each worker. Subsequently, gives the approval and inspects the payment at the border and the payment of the last salary which is also paid at the border. This way the company will have a certification of departure of each worker and will recover the $20 deposit that was made for each worker. Additionally, through the contract, the labor inspectors, legally advise the alien workers about their labor rights and duties. Even though, at present this function is carry out, it needs more technical and financial resources to be optimize. It is expected that the resources, especially the human and logistic resources will come from the cooperation project with Spain. TOTAL NUMBER OF PERMITS GRANTED 2005 - 2006: 9,000

  27. OTHER MIGRATIONS IN COSTA RICA There is an important quantity of indigenous people from Panama, estimated in 2500, that work area of Limon, a province that borders with Panama. They work harvesting bananas, and the government has issued for them a “banana worker” ID for the region Bribri- Sixaola. Another quantity of 9000 indigenous peoples from Panama, travel to three cantons in the South of Costa Rica to gathered the coffee harvest. This, usually is an migratory irregular stay. The movements previously mentioned, usually occur for a approximately period of eight months in part of the winter (September-November) and during the whole Costa Rican summer (December-April)

  28. OTHER MIGRATIONS IN COSTA RICA As a result of the political conflicts, approximately 40 000 Colombian migrants have mobilized to Costa Rica. About 15 000 are recognized as refugees, and due to their importance, the Ministry created a Labor insertion service in the Costa Rican the private sector. Finally, there is a significant extra-territorial movement of Costa Ricans, especially to United States and in less amount to Canada. According to official data from the United States around 72 000 of Costa Ricans live in the states of California, Florida, New York, New Jersey and Texas, where 50% of them are concentrated.

  29. ZONES OF EMIGRATION OF COSTA RICANS TO THE UNITED STATES AND CANADA High concentration of the emigration in the center and south of the country

  30. Costa Rica Total population and emigrants in the United States of America 1970-2000 Costa Ricans in the United States Year National Population 1/ Volume2/ Percentage of the total Population of Costa Rica 1970 1758042 16691 0.9 1980 2301984 29639 1.3 1990 3050556 43530 1.4 2000 3925331 71870 1.8 Sources: 1/ INEC/CCP,Proyection of the Population 1970-2100. 2/ U.S. Bureau. Population Census 1970-2000. EVOLUTION OF COSTA RICAN MIGRATION TO UNITED STATES • The Costa Ricans in the United States represent a 2% of the total population of Costa Rica. In the last decade, they have increased 65%. • Likewise, Nicaraguan migrants in the United States and Costa Rica represent 13% of the total population of Nicaragua.

  31. COOPERATION PROJECT WITH SPAIN The first contacts with the Spanish cooperation agency is currently taking place, which has considered for both countries a total amount of US$2.5 millions. From that amount, US$0.7 millions, equivalent to 30% will be for Costa Rica

  32. COOPERATION PROJECT WITH SPAIN • One of the main goals is to strengthened technically and logistically the Ministries of Labor or Costa Rica and Nicaragua, particularly, their national employment services and their national labor and inspection offices,in order to guarantee the protection of labor rights of all the workers, especially foreign workers.

  33. COOPERATION PROJECT WITH SPAIN Additionally, it includes among its objectives: • To develop a methodology to estimate migrant population periodically • To evaluate periodically the labor market, and to do general and specific technical research on supply and demand of national and foreign labor force in different sectors of the Costa Rican labor market.

  34. COOPERATION PROJECT WITH SPAIN To facilitate the dialogue on migration matters among social interlocutors of both countries To establish strategic programs of labor information and orientation for employers and employees. The goal is to prevent people from migrating without labor authorization and without knowing their labor rights and duties. To implement policies and programs to assist migrants that are returning to their origin countries, once their labor contract has concluded.

  35. ”IN CHURCH NOBODY IS FOREIG” • The message from Pope John Paul II in the Migration Day in 2001 said: “Exercising the right to enter another country must be regulated since this can harm the common good of the communities that receive emigrants (…) We must have international norms capable of regulating individual rights to prevent unilateral decision that might harm the weak”. Nonetheless, controlling immigration does not mean to forget the fundamental principle that says “immigrants must always be treated as human beings, with dignity” (2003, page 84) unofficial translation.

  36. To contact us: Department of Labor Migrations National Employment Direction Ministry of Labor and Social Security Telefax: (506) 221-1068 e-mail: ovargas@ministrabajo.go.cr Apartado Postal 10133–1000 San José, Costa Rica, CA

  37. Thank you!

  38. Costa Rica–Nicaragua Agreements CONVENTION ON LABOR FORCE BETWEEN COSTA RICA AND NICARAGUA, January 7, 1993, San José, Costa Rica. AGREEMENTS THAT ALLOW MANAGEMENT OF LABOR MIGRATION FLOWS AMONG OTHER COUNTRIES October 25, 2002 Managua, Nicaragua JOINT DECLARATION OF THE MINISTERS OF LABOR OF COSTA RICA AND NICARAGUA April 16, 2004 Liberia, Guanacaste, AGREEMENT REGARDING A BI-NATIONAL LABOR MIGRATION POLICY BETWEEN COSTA RICA AND NICARAGUA January 21, 2005, Granada, Nicaragua. INTENTION LETTER FROM THE MINISTERS OF LABOR September 28, 2006, Managua, Nicaragua JOINT DECLARATION FROM PRESIDENTS PACHECHO AND BOLAÑOS July 23, 2003, San José, Costa Rica el V BI-NATIONAL COMMISSION MEETING COSTA RICA-NICARAGUA October 19-20, 2006, San José, Costa Rica

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