My Story – Elsa Belarmino
By Elsa Belarmino
Elsa Belarmino is a returned Filipina migrant worker. This is her personal account. UNIFEM supports Unlad-Kabayan's pilot savings scheme in the Philippines, which helped Ms Belarmino establish her business.
I am third of six children of a farmer's family. When I was six years old my father died; he fell from a coconut tree. All of us then worked on the farm and helped my mother sell cooked food in the village. Working through school, my sister managed to become a teacher. She then helped put through school the sibling next to her and so on down the line. That was how we got our education. When I graduated, I worked briefly as a casual worker in the municipal government for P14 a day. But this did not last long, as government had a "no hiring" policy. I tried my luck in Manila and got a job as counter-girl in a restaurant. I never got promoted because I joined the union.
After ten years, and two daughters, I had no savings to show, and my dream to have a house and my own business in the province became more unattainable. My daughters were growing up. Between my husband and me, we could hardly pay for the rent of a small room. That was when we decided to apply for jobs overseas. Jobs for men were more scarce and expensive. There were more job offers for domestic workers. And I got one.
My mother mortgaged our small farm for P30,000 (US$1,300) and took a loan for the rest of the placement fee, which was P50,000 (US$2,200). It was 1982 when I started to work abroad as a domestic worker. While the pay was good, the work was all around (cleaning, cooking, laundry), and I took care of an elderly person and two young children. The first year, almost all my salary went to pay the loans. It was in the latter part of my second and third year that I managed to send more money home and put my daughters and younger sister to school. I also had my mother's house renovated.
When I went home, it was my sister's turn to send our next sibling to school, so she went abroad. When she got there, her contract was not honoured; instead she was given another job and paid only half of what the contract said. Moreover, she was scared of her employer because he would touch her every time he asked her to do something. She decided to return home, but the recruitment agency threatened to sue us if we didn't reimburse them P25,000 (US$1,100). We did not have that kind of money. We reached a compromise, and I went abroad in her stead.
I worked as caretaker of my employer's mother-in-law, who had just had a heart operation. I was also made to work in the rice mill business in the afternoon, cooking for the workers and cleaning up afterwards. In the evenings, I would stay late to serve my employer and friends who played mah-jong. The only consolation was that the pay was good and I would get tips from the mah-jong winner. But I hardly had time to rest during the week.
I had two Sundays off a month and attended mass at the Chungli Catholic Church. There I learned about the savings and reintegration program of Hope Workers Center in partnership with Unlad-Kabayan. Along with friends, we attended lectures by Fr Peter O'Neil and Esme, a Chinese-Filipino staff member. Because I had no plans to stay in the host country, I avoided going to "gimmicks" (parties, shopping, picnics, etc.). After several MSAI (migrant savings for alternative investments) sessions, we decided to organize a savings group and meet once a month. We started to make plans on what business to go into in the Philippines: restaurant, grocery store, transport business, etc. In the meanwhile, Hope Workers Center alerted Unlad about the savings group and would seek its support once a business was identified in the Philippines.
One time while on holiday back in my village, I saw a "For Sale" sign on a rice mill. It was the property of a farmers' cooperative that went bankrupt due to mismanagement. It was foreclosed by Land Bank of the Philippines (LBP) and was up for bidding. I did not give it much attention because we all believe that such a sign is only for the rich people. But I mentioned this anyway to the savings group when I got back to the host country. The group urged me to make inquiries because rice milling is a good business. I thought so too, because in my employer's rice mill, 16 six-wheelers would deliver rice everyday. It must be making good money.
With a lot of trepidation, I asked my sister to make inquiries. In fact, it embarrassed her when the personnel of LBP asked who we were. With good thinking I have gone earlier to the LBP branch in the host country to seek their advice and endorsement. I discussed with them what I learned about MSAI — that we, migrant workers, can become productive members of our communities, if given the chance. LBP recommended an NGO to us, but I insisted that it be Unlad-Kabayan and its services and programs that we rely on, and that I have trust in their work. LBP gave us their endorsement to the LBP in the Philippines.
The savings group promised full support and we put in our bid of P950,000 (US$19,000) in 2000, with a down payment of 50 per cent (P450,000) and complete payment in six months of instalments. We were up against a seasoned businessman in the town who thought we could not make good on our promise.
We won the bid!
The following month, January 2002, two staff of Unlad, an engineer and an enterprise development officer came to Mainit, our village, to appraise the property and to recommend initial rehabilitation. They also studied the community and proposed to work on a business plan. When I came home in March, Unlad was ready to discuss the business plan. A technical study-plan was laid out by the engineer, while the enterprise development officer presented the requirements for the business to be financially viable. Finally, an agreement was forged. Based on the socio-economic study of Unlad, farmers in the community needed support in securing farm inputs through credit and to provide farm machineries services. This will bring the rice mill operation to maximum capacity.
The business plan was submitted to the savings group in the host country, which they approved and used as basis for their savings-capital build-up plan. Memoranda of Agreements were signed between Unlad and Hope Workers Center and between Unlad and Matin-ao Rice Center.
I was prepared to take on the responsibility of managing the business on behalf of the group in the host country. But, it was not without hard work and hard thinking. When the rice mill started in May, it operated at 30-per-cent capacity and incurred some losses. It was urgent to rehabilitate the machineries and repair the building. But the speed in capital build-up could not cope with the needed time. So I took the initiative to borrow from various sources what amounted to P200,000 (US$4,000). When Unlad learned of this and computed the interest payments, it presented an alternative loan package so we could save on interest payments and avoid other credit hazards.
Hope Workers Center and the Filipino Savings Group in the host country guaranteed the loan. Together with Unlad, we explored cheaper sources of loan. OWWA's business loan window offered lower interest rates but the process was cumbersome. Moreover, there was a moratorium on loans in the region where the business was located. The Matin-ao Rice Center, the registered business name, defaulted on its final amortization with LBP. With Unlad's assistance in the negotiations, LBP finally agreed for condonation of penalties.
Matin-ao Rice Center employed four full-time workers and one part-time bookkeeper, who received training from Unlad. During harvest season, we employ four more workers for hauling. Because of the distance and urgency of the work, I could not attend the regular training programs of Unlad in Davao. We resorted to coaching and mentoring.
Through these experiences, I learned many things. I am more confident in going to various government offices to negotiate, to negotiate with potential customers, to meet with officials in the government and banks. It was with this confidence that I was able to secure a loan from Quedancor, the loan facility of the Department of Trade and Industry (DTI), which I am now using for the palay trading and farm credit. A small Agrivet supply store was started in November 2003. I opened a chequing account and would no longer take hesitant steps to enter the manager's office like I used to.
The first time Unlad staff came for appraisal, my mother burst into tears saying: "Thank God you are here to help. We are only poor farmers and I have never borrowed more than P30,000. Even that gave me sleepless nights until it was paid. Now here is almost a million or is it more! I can only promise to make endless 'budbod' (suman — a delicacy from rice flour wrapped in banana leaves), but that will not pay the loan. Perhaps now I can get some sleep."
In December 2003, I was able to complete the official transfer of ownership of the mill from LBP to us. I can read and understand official documents better. I can read and understand financial statements and send regular reports to FSGT. I can make a business plan and a marketing plan.
The workers are paid P1,200 (US$22) a month and free meals. We all work from 7 a.m. to 7 p.m. During the busy season, my mother would come and help in the cooking. She is getting older and I decided to pay the workers a P30 daily meal allowance. As agreed by the group, I am paid P2,000 (US$37) a month. In January, I sent a request to the group to increase my pay to P4,000 (US$74). This is nothing compared to my salary in the host country; and the work there was nothing (I continue to discover) compared to what I do here. But I am with my family. Although we seldom see each other for long in the day, they often come to help in the rice mill. They are filled with pride every time they tell their friends, "My mother is a manager, no longer a domestic worker." I support four families in the village. Just thinking of this is enough inspiration for me to work harder.
There is so much more to learn and I am happy to learn them. How much does lumber cost for a "tarima"? In what we way can we become more competitive and realize profits? When do we realize ROI (return on investment)? Is the increase in the price of petrol justifiable? In my small way, I can understand what it takes to be at the helm of government — and until now I have not decided whom to vote for in the coming elections.
Last week, I was in a discussion with the mayor for improvement of the irrigation system. He asked if I was interested in running for the municipal council in the next elections (2007). I told him frankly: "I cannot tell you. Only two years ago, if someone had asked me if I would become a manager, I would have told the person, No. Not even in my dreams."
(Story Date: 25 April 2004)
