USG EMPHASIZES NEED FOR LABOR LAW REVISIONS IN

C O N F I D E N T I A L SECTION 01 OF 02 ABU DHABI 000296

SIPDIS

STATE PASS USTR

E.O. 12958: DECL: 01/18/2015
TAGS: ELAB ETRD PHUM TC
SUBJECT: USG EMPHASIZES NEED FOR LABOR LAW REVISIONS IN
CONTEXT OF FREE TRADE DISCUSSIONS

REF: 04 ABU DHABI 3955

(U) Classified by Ambassador Michele J. Sison, reason 1.4 (b)
and (d).


1. (U) Summary: The UAEG told A/USTR Clatanoff a revised
labor law and trade union law should be issued by summer

2005. The original 1980 labor law will be revised to bring
it into compliance with ILO standards and address needed
labor market reform. The trade union law will allow
expatriate membership in unions organized by sector, but will
only allow UAE nationals voting rights. End summary.


2. (U) Assistant United States Trade Representative for
Labor William Clatanoff met with Minister of Labor Dr. Ali
bin Abdullah Al Ka,abi, Labor U/S Khalid Al Khazraji, MFA
U/S Abdullah Rashid Al Noaimi, and officials at the Ministry
of Interior on January 17 to discuss labor issues related to
free trade discussions. Clatanoff emphasized the
requirements of the Trade Provision Authority, and focused
specifically on the UAE,s need to address freedom of
association, the right to bargain collectively, and the
problem of child and forced labor in the form of camel
jockeys.

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DRAFT LABOR LAWS
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3. (C) The UAEG has been working on a revision to the 1980
Labor Law for several years to improve compliance with ILO
standards and market reform. Labor Minister Al Ka,abi said
he pulled the draft revision back from the Ministry of
Justice technical review committee, after taking office in
November 1, 2004 (see reftel). Al Ka,abi has been modifying
the law, and the new draft is almost complete, but it has to
wait to go through technical review at the Ministry of
Justice until the computer crimes and IT law sponsored by the
Ministry of Economy and Planning is done. MFA U/S MFA
Abdullah Rashid told Clatanoff that the law would be finished
before the UAEG breaks for the summer (i.e. June).


4. (C) Labor and legal advisors at the Ministry of Labor
briefed on some of the proposed changes to the labor law,
which were designed primarily to bring the law more clearly
in compliance with ILO standards and accomplished some needed
labor market reforms. Specific proposed changes and
amendments will follow septel, but some actions include
increasing the authority of work inspectors, raising the
minimum age of employment to 18 for dangerous jobs, amending
and improving maternity benefits, payment of wages, and
streamlining social insurance and severance benefits.


5. (C) The Ministry of Labor is also drafting a separate
law on trade unions, although a provision permitting unions
should also be included in the revision of the labor law.
This law is currently with the Ministry of Justice. Minister
of Labor Al Ka,abi said this proposed law would allow
foreign nationals to have membership rights in unions, but
not voting rights. Only Emiratis would be able to vote or be
elected as a representative. Unions would be organized by
sector, but only sectors that include UAE nationals working
in the area. For example, a construction sector union would
include Emiratis who work in construction companies but also
serve as the umbrella union for those workers employed in
crafts such as plumbing and carpentry in which there are no
UAE nationals employed. This law is still under discussion,
and there is still a debate about where the law belongs (i.e.
separate or within the labor law).


6. (C) Clatanoff strongly encouraged the UAE to share the
drafts with the ILO in order to ensure compliance with ILO
standards and receive technical assistance. U/S of Labor
Khalid Al Khazraji noted that three experts from the ILO had
been consulted two years ago about freedom of association and
collective bargaining, but that the ILO has not seen the
drafts of either law. Al Ka,abi explained that the UAE
could not share the law with the ILO until the Cabinet has
seen it. Clatanoff observed that ILO assistance and
compliance with labor regulations would be a key component in
ensuring a labor law that meets U.S. Trade Promotion
Authority standards and would be key for an FTA.


7. (C) The UAE discussed the professional employees
organizations that currently operate under UAE laws
regulating NGOs. Clatanoff noted that these organizations
could be used as a basis for the formation of unions or
collective bargaining units. The current professional
employees associations include foreign and national employees
but have a solely Emirati board of directors, and they are
limited in scope and authority by the NGO rules governing
their existence.

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COMPLEXITY OF LOCAL LABOR FORCE
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8. (U) UAE officials repeatedly emphasized the complexity
of the local labor force highlighting the fact that 85
percent of the local population and 91 percent of the work
force are foreign nationals, and the difficulties this
presents for labor regulations. They expressed national
security concerns and a need to preserve economic interests,
while ensuring human rights for the workers. MFA U/S
Abdullah Rashid also noted that there are frequently
contradictory UAE policies, especially between labor and
immigration laws, when it comes to foreign nationals employed
in the UAE, causing some confusion about foreign workers,
rights.


9. (SBU) In response to Clatanoff,s questions about
foreign workers, freedom of movement, Ministry of Labor
officials noted that it is illegal for employers to hold
employees, passports in order to prevent their movement, and
shared a circular issued by the Ministry of Interior. They
stated that foreigners can quit a job, but that they have to
leave the country since the UAE is not a &job shop.8 This
is particularly a concern with unskilled laborers, who are
forbidden from reentering the country for six months
following such an action (unless prior approval is received
from the Ministry of Labor) by immigration laws.


10. (SBU) Officials also discussed enforcement concerns,
particularly regarding cases where workers incur a arge debt
in their home country to come to the UAE. They stated that
these workers are often reluctant to approach the Ministry of
Labor, and enforcement remains a difficult issue but
something officials are working on with source countries for
unskilled laborers.

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CHILD CAMEL JOCKEYS
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11. (SBU) Clatanoff emphasized the problem of child camel
jockeys in the UAE in the context of the labor portfolio of
the FTA to the Ministry of Labor, Ministry of Interior, and
Ministry of Foreign Affairs. He noted that camel jockeys
violate three of the five core precepts of the TPA: child
labor, forced/bonded labor, and work conditions. He strongly
urged the UAE to work not only on the sources of supply of
children, but also to enforce regulations on the local
demand. Officials noted that they expect a law in April to
assist efforts to stop child camel jockeys. Clatanoff
reminded UAE officials that a lack of action would have a
negative impact on our ability to conclude an FTA, and that a
lack of enforcement of local laws is as damaging as a lack of
laws.

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COMMENT
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12. (C) Clatanoff,s arrival was timely, coming soon after
harsh criticism of UAE labor practices by the AFL-CIO at the
Jan 12 public hearing on the FTA (the AFL-CIO points and
A/USTR Novelli,s comment that &The UAE and Oman must
improve their worker rights, laws to qualify for proposed
free-trade pacts with the United States8 were widely covered
in the UAE press.). He was able to capitalize on the timing
to stress the need for revisions to the labor law to meet ILO
standards. UAE officials shared thoughts on their proposed
laws, and indicated a strong interest in learning exactly
where the United States sees weaknesses in local labor
regulations and practices. The UAEG acknowledged that reform
of labor practices will be important in the context of an
FTA, and assured Clatanoff that these laws should be issued
by the summer. The UAEG reiterated their commitment to
pursuing a Free Trade Agreement, and ensuring that such an
agreement fulfills local concerns about national security and
the complex labor situation but also sufficiently addresses
international labor standards.
SISON