Identifier
Created
Classification
Origin
09DUBAI365
2009-09-02 14:06:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Consulate Dubai
Cable title:  

LABOR STRIKES RETURN TO DUBAI

Tags:  ECON ELAB PHUM PGOV PINS SOCI AE 
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VZCZCXRO6998
PP RUEHDH RUEHDIR
DE RUEHDE #0365 2451406
ZNR UUUUU ZZH
P R 021406Z SEP 09
FM AMCONSUL DUBAI
TO RUEHC/SECSTATE WASHDC PRIORITY 6618
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE
RUEHDE/AMCONSUL DUBAI 9908
UNCLAS DUBAI 000365 

SENSITIVE
SIPDIS

DEPARTMENT FOR NEA/FO; NEA/ARP/BMCGOVERN

E.O. 12958: N/A
TAGS: ECON ELAB PHUM PGOV PINS SOCI AE
SUBJECT: LABOR STRIKES RETURN TO DUBAI

REF: A. A) 07 DUBAI 179

B. B) 06 DUBAI 1842

UNCLAS DUBAI 000365

SENSITIVE
SIPDIS

DEPARTMENT FOR NEA/FO; NEA/ARP/BMCGOVERN

E.O. 12958: N/A
TAGS: ECON ELAB PHUM PGOV PINS SOCI AE
SUBJECT: LABOR STRIKES RETURN TO DUBAI

REF: A. A) 07 DUBAI 179

B. B) 06 DUBAI 1842


1. (SBU) Summary: An impromptu labor strike on August 31
surprised a city known for its disproportionately large, but
generally quiet expat unskilled labor force. Approximately 1200
laborers from Al Habtoor Engineering Enterprises took to the
streets in protest of low pay and restricted access to overtime
hours. The protest, which lasted only a few hours, took place
in several locations throughout Dubai. Dubai Police and
Ministry of Labor officials responded immediately to disperse
the demonstrations peacefully. This is the first reported
strike in Dubai since the financial crisis hit the city last
year. End Summary.




2. (SBU) On August 31, approximately 1200 laborers employed by
Al Habtoor Engineering, best known in Dubai for constructing the
iconic Burj al-Arab and Jumeirah Beach Hotel, gathered
simultaneously at three separate public locations in the city,
disrupting traffic and drawing a rapid response from Dubai
police and labor officials. Colonel Hamad Al Mansouri, head of
the Emergency Department at the Dubai Police, told emboff that
the "gatherings" were peaceful, although unexpected, with
neither injuries nor property damage. Al Mansouri was reluctant
to discuss the demands of the workers, but shared his
understanding that they were demanding restoration of overtime
work hours and improved wages. One worker quoted in local press
reporting stated that while "senior" workers typically receive
about USD 260 per month, junior laborers receive a monthly
salary of less than USD 200 per month, insufficient to cover the
increased cost of living in Dubai and therefore leaving nothing
to send home to families in the sending country.




3. (SBU) In the wake of the protests, Al Habtoor Engineering and
its laborers have entered into informal negotiations. According
to Al Habtoor's Managing Director David Savage, half of the
employees returned to work on September 2, while the rest are
expected to go back on September 3. The Acting Director General
of the UAE Ministry of Labor Humaid Bin Deemas was quoted in the
UAE press that Al Habtoor is meeting its labor obligations and
has been "paying the wages of workers without delay or
deductions, and remained committed to provision of labor housing
as per the accepted standards, as well as the healthcare and
other services specified by the labor law as mandatory."




4. (SBU) Labor strikes are illegal in the UAE and authorities
have in the past responded through arrests, jail time, and
deportations (Ref A). Since September 2005, there have been
only periodic labor strikes, usually ranging from 2000-7000
workers demanding higher pay and better living conditions. The
most well-known labor protest occurred in March 2006 (Ref B) at
the "Burj Dubai" construction site where workers damaged
vehicles and other equipment on site. More recently, in
February 2008, 45 Indian workers were sentenced to six months
in jail followed by deportation for violent protests. The
workers were found guilty of endangering public security,
damaging properties, and inciting other workers to strike.




5. (SBU) Comment: UAE officials consider labor protests a
national security issue capable of endangering the fine balance
that exists between a minority UAE citizen population (between 5
and 10 percent in Dubai) and a much larger expatriate
population, the great majority of whom are lower-wage workers
from South Asia. They therefore take the issue of strikes very
seriously. Likely in an effort to keep a low-profile and avoid
negative press, UAE officials prefer to stop all strikes in a
peaceful manner - and with minimal press coverage - rather than
assert authority forcefully. That said, the consequences for
workers who engage in protests (loss of job, deportation, jail
on rare occasion) are significant. That laborers are willing to
risk such consequences, especially during an economic downturn,
indicates the level of frustration over their compensation and
living conditions. End Comment.

SIBERELL