7/23/2020 Migration News Wage Theft amid Pandemic Adds to Remittance Dip role,” Dr. Dilip Ratha, Lead Economist, Migration and Remittances and Head of KNOMAD, World Bank, said. According to the World Bank, the projected fall, which would be the sharpest decline in recent history, is largely due to a fall in the wages and employment of migrant workers, who tend to be more vulnerable to loss of employment and wages during an economic crisis in a host country. Remittance flows are expected to fall across all World Bank Group regions, most notably in Europe and Central Asia (27.5 percent), followed by Sub-Saharan Africa (23.1 percent), South Asia (22.1 percent), the Middle East and North Africa (19.6 percent), Latin America and the Caribbean (19.3 percent), and East Asia and the Pacific (13 percent). The large decline in remittances flows in 2020 comes after remittances to LMICs reached a record $554 billion in 2019. Even with the decline, remittance flows are expected to become even more important as a source of external financing for LMICs as the fall in foreign direct investment is expected to be larger (more than 35 percent). In 2019, remittance flows to LMICs became larger than FDI, an important milestone for monitoring resource flows to developing countries. “Those workers who remain to continue in the countries of destination will be forced to work for slashed wages. This is again a form of wage theft and it is also going to impact the remittances,” Dilip said. Dilip was responding to a query raised by William Gois, Regional Coordinator of Migrant Forum in Asia at an online panel discussion on "Transitional Justice: Towards “Building Back Better” jointly organized by Manila-based Migrant Forum in Asia (MFA), Delhi based Global Research Forum on Diaspora and Transnationalism (GRFDT) and Beirut-based Regional Center for Refugees and Migrants (CCRM). Wage Theft Wage theft, the practice of employers failing to pay workers the full wages to which they are legally entitled, is a widespread and deep-rooted problem that directly harms millions of Asian migrant workers each year. Employers refusing to pay promised wages, paying less than legally mandated minimums, failing to pay for all hours worked, or not paying overtime premiums deprives working people of billions of dollars annually. It leaves hundreds of thousands of affected workers and their families in poverty. Unfortunately, countries of destination and origin have begun repatriation procedures of these workers, without any proper redress mechanism, since courts and other labour dispute mechanisms have also been closed during the period of the lockdown. https://www.migrationnewsbd.com/news/view/32331/49/Wage Theft amid Pandemic Adds to Remittance Dip?fbclid=IwAR1ghyNugeer-PkIwX37L5mJX… 2/7

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