The Labor Force in Dubai - Essay Example

The Labor Force in Dubai 1) One significant problem relating to Dubai work force in last 12 months A major problem in Dubai is the poor treatment of unskilled workers with low income that cannot meet the workers’ needs. Even though the Emirati government workers in Dubai have been given an increase in minimum wage scheduled to go into effect in May 2007, one worker employed by the Dubai municipality still expects to have serious trouble meeting expenses, according to a recent Gulf News article (Constantine & Al Lawati). He is grateful for the increase—his salary will rise from Dh3000 to Dh4250—but he is facing medical problems in his family, and the increase will not be enough to pay for treatment. The article goes on to say that Hani Obaid Al Halyan is a maintenance worker for the Public Parks and Horticulture Department and lives with his family, which includes his mother and grandmother, in a small, one-bedroom space with a rent of Dh1000 a month. He is the sole provider and is concerned about the failing health of his mother and grandmother, as well as his own health problems. The increase will help somewhat, but with rising prices in Dubai, it may not cover medical needs by May when it goes into effect. His mother has cataracts and also needs knee surgery. His grandmother has a large tumor in her stomach and needs immediate surgery. He is recuperating from a hernia operation. In the spring of last year, construction workers in Dubai protested low salaries and mistreatment by stopping work after publication of a US-based Human Rights Watch (HRW) report that called treatment of underpaid private workers from India, Pakistan, China, and other Asian countries as “less than human” (Jones, para. 7). The incident erupted with extensive damage done to the Emaar Properties’ Burj Dubai tower, expected to be the world’s tallest building when completed in 2008. Damages were estimated at more than Dh3 million. With lack of social support for expatriate workers, according to Jones, HRW has urged the government to help fund and create independent bodies to improve conditions. The labor minister said that a new labor law and other measures were already improving conditions for immigrant workers. According to Jones, the International Confederation of Free Trade Unions (ICFTU) recommends immediate application of the law to insure that any restrictions on the fundamental rights of workers in the Emirate are removed. 2) How has employer or government attempted to address problem? The increase in minimum wage applies only to government workers, and construction workers do not receive overtime pay. Although the problem under discussion in this essay is related to low income, the inability of such workers to meet basic needs leads to inadequate housing, health care expenses, and lack of education, keeping workers at a poverty level. The economy in the United Arab Emirate (UAE) shows rising inflation in the future (Ministry of Economy), according to a recent Economic Bulletin published by the Dubai Chamber of Commerce and Industry (DCCI). The cost of living for the expatriate labor force has risen significantly, which reduces the appeal of the UAE as a lucrative labor market. Close monitoring of economic performance by the UAE government as well as continuing upgrade of local laws and regulations are expected to offset serious damages in any of the sectors. However, to compete as a major manufacturing center, the DCCI report calls for “an adequate infrastructure, high human capital base with innovative attitudes, legal and physical access to markets, and a favorable exchange-rate regime” (Ministry of Labour, para. 7). At present, only the infrastructure appears to be in place with the other factors lacking. One important issue in the development of a stable work force is education. Although an effort is being made to build up the education system, results will not be immediate. The Ministry of Labour of the UAE declared the following minimum monthly salaries for nationals in 2006 in Article Three of a recent resolution: Dhs. 5000 for holders of certificates above general high school. Dhs. 4000 for holders of high school certificates. Dhs. 3000 for those under general high school. The increase in the minimum wage for government workers without a high school certificate will increase from Dhs. 3000 to Dhs. 4250 in May 2007, but as previously noted, it may not be enough to offset rising prices. In addition, Article Four requires the inspection department to inspect every three months the foundations that have registered nationals as workers. 3) Relevant theory from sources that offer explanation of problem and its solution MAQUET, based in Germany, very recently announced at a press conference in Dubai the launch of its Middle East Office in the Dubai Biotechnology and Research Park in an effort, they said, to understand the local health market in the UAE. The company is a global market leader for operating room systems and intensive care units (Press Release). The government in Dubai does offer health care for low-income families. Medical costs in the private sector are much higher than in the public sector, with more up-to-date treatments, but low-income families have no choice but to go to a government hospital. Even so, health care in government hospitals is considered satisfactory, and families with health cards usually find it affordable. With the discovery of oil in Dubai in 1066 and sound business decisions thereafter, Dubai, as noted in a recent Associated Press article (Krane), has become a fast growing area popular as a tourist destination. In addition, Dubai Ports World (known as “TCO”) has rushed headlong into global investing with the intention of creating a global hub of trade and luxury tourism in Dubai. The result has been a rising economy that could easily and probably will lead to inflation. The growth that has occurred has affected the low-income worker adversely. Even with an increase in wages, higher cost of living expenses cancel any benefit. Also, construction workers, most of whom are immigrant Asian workers, are not being paid enough to live in adequate housing with no overtime pay and very low wages, keeping them at a poverty level. In a global economy, the line between wealth and poverty keeps getting wider. Growth that occurs too rapidly in an economy leads to inflation, with the result that wages do not cover the higher expenses of day-to-day living, especially for workers who do not have the education or training to find more lucrative employment. Dubai is heading down this path, and because the city is dependent on low-income workers, when poor living conditions lead to health problems, and ultimately to a shortage of help, it will be necessary to improve living conditions and health insurance in order to maintain a balanced economy. Each time an effort is made to create a more reasonable work environment, the result will be helpful for the economy. For instance, in an effort to protect expatriate workers, a recent report showed that several abuses existed, including very low salaries, often unpaid for several months, poor housing conditions, and hazardous working conditions. Steps have been taken by the Ministry to protect the rights of the labor force, according to the Minister of Labor, and a new law for this purpose has recently been passed (Offending Construction). One area addressed is safety training for construction workers. Following a high-rise fire, it was found that fire safety measures were not available in the high rises under construction. Safety training has been suggested for all construction workers (Agarib). 4) What is the likelihood of solving this problem in the future? If the UAE government and Dubai construction companies follow through on promises to improve working conditions in terms of safety and incentives for extra pay, as well as more affordable housing, the country’s future global endeavors will be more successful, as other countries realize that Dubai cares about its people and is making an effort to create a balanced and satisfied work force. A report from the Human Rights Watch urges legislation to promote and protect workers’ rights (Offending Construction). In accordance with Sheikh Mohammed’s directives, the following steps are being taken: A special court to resolve labor disputes. An increase in the number of Ministry inspectors charged with inspecting construction sites and accommodation facilities. Health insurance from employers for their low-paid employees. Establishment of mechanisms to all workers to collect unpaid salaries without undue delay. As for government workers, those at the low end of the pay scale need assistance to become more educated, with incentives to encourage them to increase earnings in keeping with increased cost of living expenses, and development of more affordable housing is strongly recommended (Constantine and Al Lawati). Unfortunately, even as the government tries to improve working conditions for construction workers, there is a shortage of government workers in positions intended to improve the conditions under which immigrants work (Stratford). Unless better conditions exist for low-income government workers such as health and safety inspectors and maintenance workers, there will be little improvement in conditions for construction workers, and the efforts of both employers and government will fail. If the weaknesses noted are addressed, there is a high likelihood of resolving the problems of low-income workers in the future. Works Cited Agarib, Amira. “Labourers need training to deal with emergencies: Civil Defence.” 22 January 2007. 30 January 2007. http://www.khaleejtimes.com/DisplayArticleNew.asp?section=theuae&xfile=data/theuae/2007/january/theuae_january719.xml Constantine, Zoi, and Al Lawati, Abbas. “Worker Hails Minimum Wage.” Gulf News, 23 January 2007. 28 January 2007. http://archive.gulfnews.com/indepth/labour/main_story/10098730.html Jones, Rhys. “Labor Needs Laws. And Fast.” Gulf News. 28 April 2006. 29 January 2007 http://archive.gulfnews.com/indepth/labour/Pay_and_conditions/10036249.html Krane, Jim. “Dubai.” Associated Press. Sign-on San Diego. 26 February 2006. 30 January 2007. http://www.signonsandiego.com/news/world/20060226-1215-dubai-fiercegrowth.html Ministry of Economy News Update. Khaleej Times. 11 January 2007. http://english.economy.ae/NewsDetailPages/NewsDetail.aspx?nID=%20388 Ministry of Labour, United Arab Emirates. “Employment of Nationals: Ministerial Resolution No. (286) For The Year 2006, Concerning The Settling Quota At The Private Sector Foundations.” 29 January 2007. http://www.mol.gov.ae/Pages-en/documents-en/MinisterialResolutionNo286-2006.htm “Offending Construction Companies to Be Penalized, warns Al Ka’abi. UAE Interact. 13 November 2006. 29 January 2007. http://uaeinteract.com/news/default.asp?ID=303 Press Release. “MAQUET Launches Regional Sales Office at Dubai Biotechnology and Research Park.” 29 January 2007. http://www.ameinfo.com/109083.html Stratford, Charles. “Poor Salaries Leave Inspectors’ Posts Vacant.” 4 May 2006. 30 January 2007. http://archive.gulfnews.com/indepth/labour/Pay_and_conditions/10037354.html Read More