Identifier
Created
Classification
Origin
10ABUDHABI65
2010-02-08 09:03:00
CONFIDENTIAL
Embassy Abu Dhabi
Cable title:
UAE Labor Minister Ready to Scrap Sponsorship System
how-toVZCZCXYZ0001 OO RUEHWEB DE RUEHAD #0065 0390903 ZNY CCCCC ZZH O R 080903Z FEB 10 FM AMEMBASSY ABU DHABI TO RUEHC/SECSTATE WASHDC IMMEDIATE 0256 INFO GULF COOPERATION COUNCIL COLLECTIVE RUEHDE/AMCONSUL DUBAI
C O N F I D E N T I A L ABU DHABI 000065
SIPDIS
FOR NEA/ARP AND G/TIP
E.O. 12958: DECL: 2020/02/08
TAGS: PHUM PGOV PREL ELAB KTIP AE
SUBJECT: UAE Labor Minister Ready to Scrap Sponsorship System
REF: 09 ABU DHABI 1070; 09 ABU DHABI 1010
CLASSIFIED BY: Richard Olson, Ambassador; REASON: 1.4(B),(D)
C O N F I D E N T I A L ABU DHABI 000065
SIPDIS
FOR NEA/ARP AND G/TIP
E.O. 12958: DECL: 2020/02/08
TAGS: PHUM PGOV PREL ELAB KTIP AE
SUBJECT: UAE Labor Minister Ready to Scrap Sponsorship System
REF: 09 ABU DHABI 1070; 09 ABU DHABI 1010
CLASSIFIED BY: Richard Olson, Ambassador; REASON: 1.4(B),(D)
1. (C) The UAE cabinet is considering a Ministry of Labor proposal
to eliminate the current employment sponsorship system for
expatriates, according to February 5 local media reports. No
details have been released publicly, but it is believed Minister of
Labor Saqr bin Ghobash Saeed Ghobash pitched his Ministry's
alternative during a three-day UAE cabinet retreat in the western
region of Abu Dhabi that concluded February 6. An advisor to the
Labor Minister did not comment on the cabinet meeting but confirmed
to PolOff that the Ministry is preparing for a major sponsorship
change. On February 3, the President of the Emirates Human Rights
Association Abdul Gaffar Hussain told reporters Minister Ghobash
planned to have an alternative in place before the end of 2010.
Hussain called the proposal as described to him by Ghobash "much
more civilized" than the current sponsorship rules.
2. (C) In October 2009, Minister Ghobash told Ambassador privately
his plan would allow laborers to freely change employment after a
certain period of time in the country (reftels). Noting the
sensitivity of the issue for the UAE's private sector, Ghobash said
the government needed time to prepare major employers for the new
system. Ghobash publicly acknowledges the human trafficking
problem in the UAE and other Gulf states and decries "involuntary
labor" as an impediment to sustained economic growth.
3. (C) Comment: Ghobash is not the only UAE Minister to make strong
statements on human trafficking, but he has taken the lead in
describing it as a labor market challenge negatively impacting the
economy. Very little detail is available but the intent of the
proposed sponsorship change is clear. Allowing workers to choose
their own employers after living in the country for a period of
time will create a pool of free agent laborers who can be selective
in seeking better wages, employment conditions, and opportunities.
The Minister's advisor told PolOff the UAEG may downplay the change
as "sponsorship reform" in an attempt to minimize backlash from
business owners forced from their dominant position in the
employer-employee relationship.
OLSON
SIPDIS
FOR NEA/ARP AND G/TIP
E.O. 12958: DECL: 2020/02/08
TAGS: PHUM PGOV PREL ELAB KTIP AE
SUBJECT: UAE Labor Minister Ready to Scrap Sponsorship System
REF: 09 ABU DHABI 1070; 09 ABU DHABI 1010
CLASSIFIED BY: Richard Olson, Ambassador; REASON: 1.4(B),(D)
1. (C) The UAE cabinet is considering a Ministry of Labor proposal
to eliminate the current employment sponsorship system for
expatriates, according to February 5 local media reports. No
details have been released publicly, but it is believed Minister of
Labor Saqr bin Ghobash Saeed Ghobash pitched his Ministry's
alternative during a three-day UAE cabinet retreat in the western
region of Abu Dhabi that concluded February 6. An advisor to the
Labor Minister did not comment on the cabinet meeting but confirmed
to PolOff that the Ministry is preparing for a major sponsorship
change. On February 3, the President of the Emirates Human Rights
Association Abdul Gaffar Hussain told reporters Minister Ghobash
planned to have an alternative in place before the end of 2010.
Hussain called the proposal as described to him by Ghobash "much
more civilized" than the current sponsorship rules.
2. (C) In October 2009, Minister Ghobash told Ambassador privately
his plan would allow laborers to freely change employment after a
certain period of time in the country (reftels). Noting the
sensitivity of the issue for the UAE's private sector, Ghobash said
the government needed time to prepare major employers for the new
system. Ghobash publicly acknowledges the human trafficking
problem in the UAE and other Gulf states and decries "involuntary
labor" as an impediment to sustained economic growth.
3. (C) Comment: Ghobash is not the only UAE Minister to make strong
statements on human trafficking, but he has taken the lead in
describing it as a labor market challenge negatively impacting the
economy. Very little detail is available but the intent of the
proposed sponsorship change is clear. Allowing workers to choose
their own employers after living in the country for a period of
time will create a pool of free agent laborers who can be selective
in seeking better wages, employment conditions, and opportunities.
The Minister's advisor told PolOff the UAEG may downplay the change
as "sponsorship reform" in an attempt to minimize backlash from
business owners forced from their dominant position in the
employer-employee relationship.
OLSON