UAE LABOR UPDATES

UNCLAS SECTION 01 OF 02 ABU DHABI 000286 SIPDIS SENSITIVE STATE PASS TO USTR E.O. 12958: N/A TAGS: ECON ELAB PREL ETRD AE SUBJECT: UAE LABOR UPDATES ¶1. (U) Summary: On January 22, Econoffs met with Dr. Khalid Al Khazraji, Undersecretary for Labor Affairs, at the Ministry of Labor to discuss recent changes to the UAE labor system. Dr. Al Khazraji explained the procedures for filing a labor complaint and for changing sponsorship and also discussed the MOL,s position on strikes. The U/S noted that the 2005 labor statistics are not currently available but, tentatively offered to give Econoffs some of those statistics when they become available. The U/S did verify that 2.7 million workers are currently registered with the MOL. This does not include government workers, workers in the free trade zones or domestic servants since these groups are not covered by the labor laws. Al Khazraji estimated that there are more than 100,000 workers at the free zones with possibly around 45,000 government workers. (Note: the government figure seems low. According to IMF reports, 264,000 people worked in government services and 200,000 worked as domestics in 2004.) The Ministry of Interior recently announced new changes in the law regarding domestic workers. Emboffs have raised the issue of protecting the rights of domestic workers with UAEG officials as part of our discussions of actions the UAE needs to take to be removed from the Tier 2 Special Watch List and to receive a more favorable rating in the 2006 Trafficking in Persons Report. We expect labor laws and practices to continue changing in the foreseeable future, as the UAEG attempts to meet the minimum labor standards required for a free trade agreement. End Summary. -------------- Dispute Resolution -------------- ¶2. (SBU) Econoffs asked Al Khazraji about workers, rights to strike in the UAE. The U/S said the labor law does not mention the right to strike, and that the government does not retaliate against protesting workers. Al Khazraji said that the MOL encourages workers to file a complaint before striking, while adding that striking was often the only way workers could get their complaints resolved. He specifically mentioned a recent strike in Sharjah by workers of the Perfect Group. Local press reported that on January 14 more than 1,500 Indian and Bangladeshi workers of the Perfect Group, and 2 other companies, protested unpaid wages and inhuman living conditions. The striking workers told the press that they lack health insurance and said that if they get sick they were fined AED 100 ($54 USD) a day. Some workers from the Perfect Group also claimed that they were beaten and were locked out of their accommodations for one day after the protest. Dr. Al Khazraji noted that, &the Perfect Group is not so perfect,8 but asserted that the problems had been resolved to the benefit of the workers. (Note: In order for the USG to sign an FTA with the UAEG, the UAE,s labor laws and regulations must afford adequate and appropriate protections for workers to form organizations and federations of their choosing to represent them in defending their employment interests. End note.) ¶3. (SBU) Al Khazraji explained the complaint process, which must be filed in Arabic, and described it as &easy.8 The complaint form must list the employee and employer,s names and a brief description of the grievance. After the paperwork is filed, MOL inspectors and legal advisors visit the work site to investigate the allegations. After the investigation, the MOL holds a mediation session with the worker and the employer. According to Al Khazraji, approximately 85% of collective dispute cases are settled at the MOL. The rest are referred to the courts. After a decision is reached, both parties sign an agreement which is binding. The MOL then follows up with the employee to see if the terms of the agreement have been upheld. Al Khazraji said that requiring the complaint be filed in Arabic helps reduce the administrative burden on MOL,s labor relations officials, which would otherwise have to take the depositions directly in several languages. If the worker is not able to type up the complaint in Arabic himself, he can pay 10 AED ($2.50 USD) to a typing service to have the form prepared, noting that the typists understood the forms and speak both Arabic and the languages of the workers. -------------- MOL Sponsorship Transfer Regulations -------------- ¶4. (SBU) Al Khazraji also clarified changes to the UAE labor regulations pertaining to changing employers. All workers who enter the country on a labor permit are limited to the number of times that they may change employers under that permit. Under the rules, highly skilled foreign workers (those holding graduate or professional degrees) are allowed to transfer jobs after one year, with no limit on the number of changes possible. Workers holding bachelor,s degrees are allowed to change employment after two years, with a maximum of two transfers. Unskilled workers are permitted to change employment after three years, but can only change once. In each case, leaving the UAE for 6 months and filing for a new labor permit restarts the process, i.e., allowing the worker more transfers. The fees to change sponsorship range from AED 400($1,500 USD) for professionals to AED 5,000 ($1,350 USD) for unskilled workers. Al Khazraji said that the purpose of the higher fee for unskilled workers is to make it harder for them to switch employers. Unskilled laborers make up a large percentage of the workforce and the employers of unskilled workers are the most likely to engage in visa trading. ¶5. (U) Al Khazraji explained that any worker who wishes to change jobs must have a letter of "no-objection" from the sponsoring employer, unless they have a valid reason to dispute their existing labor contract (such as non-payment of wages for at least 3 months) or if they complete their contract. Only those workers who do not meet either of the exceptions listed above, and do not have a letter of "no-objection" must leave the country for six months before changing employment. The U/S stated that this is not written in the law, but it is the normal practice of the MOL. Al Khazraji also said that if an employee had not also finished the legal minimum time in country (see para. 4)*i.e., 3 years for an unskilled worker, he would have to leave the country for 6 months before beginning a new job. The MOL also has the ability to administratively transfer workers in response to problems that have not been resolved for 3 months (such as unpaid wages.) The new sponsor is responsible for paying the change-over fee. -------------- -------------- MOI Sponsorship Transfer Regs for Domestic Servants -------------- -------------- ¶6. (U) Econoffs also asked Al Khazraji about the recent changes in the sponsorship transfer rules for maids. The U/S said that although domestics do not fall under the purview of the MOL, he is aware that the Ministry of Interior has been working on updating the regulations. Press reports say that effective February 1, the one-year entry ban has been lifted for all domestic servants who complete their two)year contracts. Rashid Al Khedar, legal consultant of the General Directorate of Naturalization and Residence at the Ministry of Interior, was quoted in Gulf News as saying, &these workers will be allowed to obtain an employment visa immediately following canceling of their visas without ban. They will also be allowed to transfer sponsorship once for up to 90 days. This privilege will be granted only if the domestic help complete their job contract and give a notice of at least 30 days before the end of the contract. These two conditions can be scrapped if the original sponsor agrees to the transfer.8 UAE officials have promised to develop and implement an effective legal mechanism for protecting the rights of foreign domestic workers and laborers, possibly by extending them formal legal protection under the UAE,s labor law. The Tier 2 Watch List Action Plan we shared with the UAEG last fall also calls for a public awareness campaign highlighting the rights and obligations of domestic workers and laborers, and the consequences of abusing such workers. -------------- Revised Labor Laws -------------- ¶7. (SBU) Econchief ended the meeting by asking about the status of the updated labor laws. Al Khazraji said that he hopes that the law will be passed soon. Press reports confirm that the UAEG has passed a copy of the draft labor law to the ILO for comment. SISON