UAE LABOR: RESPONSE TO REQUEST FOR INFORMATION

C O N F I D E N T I A L SECTION 01 OF 04 ABU DHABI 004175 SIPDIS STATE PASS USTR FOR KARESH, ROSENBERG STATE FOR NEA/ARPI, DRL/IL (J.DEMARIA),G/TIP, G, INL, DRL, NEA/RA LABOR FOR ILAB, A.ZOLLNER E.O. 12958: DECL: 10/02/2015 TAGS: ELAB PREL ETRD KDEM PINR PHUM TC SUBJECT: UAE LABOR: RESPONSE TO REQUEST FOR INFORMATION REF: A. STATE 117361 ¶B. DUBAI 334 ¶C. ABU DHABI 1333 ¶D. DUBAI 4816 ¶E. ABU DHABI 3144 ¶F. ABU DHABI 3877 ¶G. ABU DHABI 3437 ¶H. ABU DHABI 3297 ¶I. ABU DHABI 3194 ¶J. ABU DHABI 3074 ¶K. ABU DHABI 3002 ¶L. ABU DHABI 2833 ¶M. ABU DHABI 2495 ¶N. ABU DHABI 2365 ¶O. ABU DHABI 1873 ¶P. ABU DHABI 1740 ¶Q. ABU DHABI 1551 ¶R. DUBAI 3469 ¶S. DUBAI 3187 ¶T. DUBAI 2287 ¶U. DUBAI 1870 ¶V. DUBAI 1709 Classified By: AMBASSADOR MICHELE J. SISON FOR REASONS 1.4 B ¶1. (C) Summary and Comment: Labor laws and practices in the United Arab Emirates are in a state of flux; the young Minister of Labor, Dr. Ali Al Ka'abi, is a technocrat appointed in the November 2004 Cabinet reshuffle for his energetic plans for reform rather than for family connections. In the past year, the newspapers have announced changes in regulations and practices on an almost daily basis, leading to some confusion on the current state of the laws. Despite Al Ka'abi's ambitious announcements, however, there remain significant obstacles to change within the UAE government and public. Many companies, some led by high-ranking individuals, have balked at changes seen as threatening the cheap labor supply they depend upon. Regardless, the Ministry of Labor has publicly taken on some of these companies, imposing heavy fines and blacklisting them from bringing new employees into the country. Whether these reforms and changes will remain law, and whether future changes that will require significant political will, manage to take hold and change the labor situation in the UAE remains unclear. ¶2. (C) Summary and Comment Continued: Labor laws and practices will likely continue changing for the foreseeable future, as the UAEG attempts to meet the minimum labor standards required for a free trade agreement. Post expects that some of the laws and practices detailed (per ref A) below may be subject to change as the reforms continue, the expected revised labor law is passed by the Cabinet, and the Ministry of Labor shake-up settles down. (Many personnel have resigned in response to new internal regulations limiting the number of companies MoL officials are allowed to sponsor-- attempting to cut down on potential corruption.) Additionally, the UAEG has not yet responded to Embassy requests for statistics on labor practices; the Embassy will continue to follow up with interlocutors. End summary and comment. Administration of Labor Law -------------- ¶3. (U) The Ministry of Labor and Social Affairs is headed by Minister of Labor Dr. Al Ka'abi, and by Under Secretary for Labor Dr. Khalid Al Khazraji and Under Secretary for Social Affairs Mariam Al Roumi. The Ministry has offices in each emirate and additional offices in cities in Abu Dhabi and Dubai emirates. Departments in the labor half of the Ministry include: Labor Relations, Companies Affairs, Labor Licensing, Inspection, Quality and Follow-up, Financial Affairs, Services and Equipment, Legal Affairs, Public Relations, and Administrative Affairs. In April 2005, Al Ka'abi reassigned the directors of many of these offices in a bid to reduce corruption. ¶4. (U) The number of inspectors in the labor division is currently changing; many of the inspectors have resigned in the past year. In response, the Ministry of Labor has requested additional government funds to raise salaries for inspectors. Historically, this division has been significantly under funded. For example, U/S Al Khazraji told Ambassador in September 2005 that cars have not been funded for the division, requiring inspectors to either use personal vehicles with no reimbursement or remain in their offices. The Ministry of Labor has publicly and privately requested a significant raise in funding, most to be used for the inspectorate, but thus far, the money has not been forthcoming. Statistics on number of inspections and fines are not currently available, although the Embassy is following up on the item. ¶5. (SBU) The labor dispute resolution process begins with a complaint filed (in Arabic) to the Ministry of Labor, which can then refer it to the court system if mediation does not work. The Ministry encourages mediation since it is often faster than the court system. For a thorough description of the disputes process, see ref B. The cases sent to the court system are sent to the court in whichever emirate the alleged violation occurred. Court cases are quickly adjudicated, labor cases are not subject to the fees that most court cases are, and labor cases are expedited within the court systems. When a case is delayed, the Ministry of Labor grants the worker temporary permits to legally continue employment in the UAE. Rulings are fully implementable, even against sheikhs; there is not culture of impunity. Lawyers have told Consulate officials that the courts generally rule in favor of the workers. Freedom of Association -------------- ¶6. (SBU) Current UAE labor law does not permit labor unions, although professional organizations do exist (ref C) and collective work dispute resolution is explicitly permitted. The UAEG has not specifically indicated any intentions regarding ILO Conventions 87 and 98. The right to strike is not addressed in the law, but in practice the UAEG does not retaliate against work stoppages by protesting laborers. For example, in September more than 800 workers blocked the highway in Dubai to protest unpaid wages (ref D). The vast majority of strikes are in response to unpaid wages, and most involve construction companies. To address this problem, in the UAE's recent change in sponsorship practices (ref E) workers who have not received salaries for six months or more are allowed to change sponsors without receiving permission from their first employer. Although the UAE could deport workers for striking, it very rarely does. In one case, the newspaper did report that a worker was deported for inciting fellow workers to strike (not for the initial strike, but for continuing the strike once the Ministry of Labor had begun taking action on the case). Other employees at this company who took part in the strike were not deported. ¶7. (SBU) No current law addresses unions, but the UAEG is moving forward on this requirement in response to Free Trade Agreement negotiations. The Minister of Labor told Ambassador in September that they have decided against a separate law permitting unions, instead including a clause in the revised labor law expected within the next year that will specifically allow the Minister of Labor the right to issue a decree permitting labor unions. See ref F for a full description of these intended changes. Right to Organize and Bargain Collectively -------------- ¶8. (SBU) Statistics on collective dispute settlement are currently unavailable, although informal estimates are that the vast majority of cases involve unpaid wages in the construction sector. Money is frequently recouped through this process, although sometimes the government grants the employer a grace period. The reason the majority of unpaid salary cases are in the construction sector is that construction contractors or subcontractors, facing cash flow problems due to late payments by primary contractors and/or the fact that they have underbid the project, find themselves with insufficient cash to pay workers on time. The government has begun cracking down on this practice in a number of recent cases, but fully changing the situation will take a major change in the booming construction industry where competitors attempt to sharply underbid each other, sometimes at the expense of their lowest-paid employees. ¶9. (U) Although there have been no reports of anti-worker rights discrimination, these practices would generally not be reported in the local press. There have been no extreme cases of anti-worker discrimination. Thus, there is no special prosecutor assigned; such acts as beatings and murder are rare in the UAE. ¶10. (C) Some members of professional associations have alleged that the UAE State Security Directorate (SSD) has subjected associations to harassment and close supervision. Members have noted that the government and SSD have forced out some association board members. (Note: Some teachers, who were part of the unions, were removed from their positions in 2002 for Islamist tendencies. Professional associations have strongly protested this act.) Recently, current Jurist Association chairman Dr. Mohamed Al Mansouri reported that the SSD wants to limit the speech of members of the association and has stopped him from giving speeches on human rights. There is no proof, either for or against these alleged SSD acts. In any event that the SSD is almost certainly monitoring the groups for potential ties to Islamic groups rather than for worker rights activities. Prohibition of Forced or Compulsory Labor and Worst Forms of Child Labor -------------- -------------- ¶11. (U) Embassy has reported on trafficking of persons throughout the last six months, see Refs G through V. Minimum Wage -------------- ¶12. (U) The UAE does not impose a minimum wage or have minimum wage guidelines, but in practice Ministry of Labor officials inspect all contracts to ensure compliance with legally required benefits, allowances, and time of payments. In the UAE, the majority of contracts provide for housing allowances, transportation to home country annually, and educational stipends for children in addition to the base salary. UAE citizens can receive social insurance benefits from the government if they do not earn a sufficient salary. Foreign workers usually remit the majority of their salaries to their home countries, and their daily living needs (housing and food allowances) are often provided separately from the base salary. If workers have not been paid due wages, they have the right to file a complaint with the Ministry of Labor, and eventually escalate the case to either arbitration or the court system. New regulations on sponsorship transfer also allow workers to change employers without a letter of no-objection if they have not been paid their salaries for six months or more -- without sacrificing entitlement to those monies from their first employer. Hours of Work -------------- ¶13. (U) There is little reporting on hours of work or overtime regulations, although it is believed they are generally enforced. In the summer of 2005, the government imposed a four-hour work break for outdoor laborers during the hottest hours of the day during July and August in an attempt to reduce the number of heat exhaustion cases. A number of companies refused to obey this decree, and the Ministry of Labor imposed heavy fines and blacklisted many from receiving permits for new workers until they agreed to give their workers the required break. Workers may file complaints with the Ministry of Labor if these laws are not obeyed. Occupational Safety and Health -------------- ¶14. (U) In addition to the occupational safety and health regulations contained in the labor law, each emirate and locality has its own occupational health and safety codes. The Under Secretary of Labor told Econoff in July that the Ministry of Labor is unsure of all the codes that exist, and is hoping to enter into a consultative relationship with the International Labor Organization (ILO) to review and coordinate all existing health and safety regulations in the UAE. He did not expect action to be taken during the summer, but hoped for an agreement to be reached with the ILO this fall. Although inspectors do attempt to enforce health and safety regulations, there are insufficient inspectors and resources to adequately enforce these regulations. There are frequently reports in the press of cases of workers who were killed on the job site as a result of inadequate safety measures. The Ministry of Labor is aware of the problems, both in terms of regulations and adequacy of inspections, but lacks sufficient resources to address the problem in the short-term. Foreign Workers -------------- ¶15. (U) No new law is being formulated to expressly address this situation of foreign workers in the UAE; any new regulations will be included in the revision of the labor law. However, the UAE has issued a number of new decrees in the past months to open up the labor market to freer movement by workers (refs E and F). These laws are so new, however, that their implementation has not yet been fully decided by the Ministries of Labor and Interior. For example, although the Ministry of Interior has abandoned the six-month immigration ban on workers who leave their original jobs, the Ministry of Labor recently announced a delay of six months before offering a worker a new labor permit if an attempt is made to change employers without a letter of no-objection. Withholding of passports by employers remains illegal in the UAE, though it is still widely practiced. There have been no recent or consistent attempts by the Ministries of Labor or Interior to enforce the regulation prohibiting holding of passports. SISON