Bigger role for workers under study

Direct representation by workers and employers in the decision-making process and inclusion of their opinions in national committees and councils to better organise the UAE labour market are some of the far-reaching proposals under consideration by the Ministry of Labour and Social Affairs.

"The formation of a national council is one of the initiatives currently under consideration by the ministry, aimed at solving the problems of the labour market and managing it better," announced Dr Khalid Al Khazraji, Ministry Undersecretary, at a meeting held by the Sociological Association at Al Qasba Canal on Tuesday.

The official analysed current conditions in the labour market and talked about the ministry's vision, policy and plans for the future.

Among the issues he discussed was the Dh3,000 bank guarantee, and a proposal to impose a "contribution" on each work permit of between Dh100 and Dh200, to be used by the ministry to train nationals and help them find jobs.

He, however, appeared to rule out the mass replacement of expatriate labour: "We cannot replace the 80 per cent which forms the expat workforce by the 20 per cent which forms the national manpower."

He did stress the need to adequately balance the country's demographic profile to pave the way for a truly cosmopolitan society.

The ministry undersecretary said illegal workers continue to be a cause for concern, even though, he said, some 100,000 expatriate labourers have left the country during past 10 months. Around 150,000 Illegals are still in the country.

Al Khazraji said other parties, such as the economic departments and employers, are involved in the labour market issue and are supposed to cooperate with the ministry and participate positively in planning the sector.

"We are working to provide a comprehensive system of committees, councils and specialised authorities such as research and study centres to work effectively and plan better for the administration of the labour market," he said.

Dr Al Khazraji said the rehabilitation, training and employment of nationals requires a special authority.

The ministry is also considering employee representation from different economic sectors to be allowed to participate in the decision-making process on issues of their concern.

"We are part of the global system, and if we want to meet the international requirements, the representation of workers is needed," he stressed.

"The ministry is looking for a convenient form of representation that would be harmonious to the country's system of institutions."

He pointed out workers have their problems and concerns, especially with regard to their wages. "Taking their opinion regarding, for example, the wages issue, is necessary," he said.

Dr Al Khazraji stated that the challenges facing the ministry include reforming the labour market, the demographic problem, and unemployment among nationals. He said the ministry alone cannot limit the flow of workers into the country or deprive employers of visas, since this would impact the country's economic development.

"How can the ministry not issue work permits to an employer who is issued a company licence?" he argued.

He said the ministry's role is to regulate the labour market, while the economic departments are responsible for classifying and studying the country's needs regarding the types of businesses, and only such licences should be issued.

He said 12,000 new companies had been set up in the country during the past 10 months. The ministry has issued 250,000 work permits for new and old companies during the same period and turned down 42 per cent of work permit applications.

Dr Al Khazraji said the UAE is in a phase in which it has a cosmopolitan, multi-cultural society, reliant on an expat workforce, and this situation will continue as long as the country's economy is developing and new projects are set up every day.

"We still need expatriates to meet the goals of open labour market policy and to facilitate a fast developing economy," he added.

"However, a will is needed to provide work opportunities to all nationals, whether academically qualified or not. We need to rehabilitate nationals by offering them the training needed to enable them meet private sector work requirements."

The ministry is working hard to push employers to use modern technology to reshape the labour market from a market that depends on intensive and unskilled labour to one that has a highly qualified and skilled workforce.

Labour officials are, meanwhile, discussing with the Ministry of Finance and Industry, the proper utilisation and management of the Dh3,000 bank guarantee employers pay for each worker they recruit, for the training and rehabilitation of nationals.

"To create a truly cosmopolitan society, the ministry is also urging companies to have on their work permits expats from different nationalities and cultures," he added.

The ministry is pushing in particular the recruitment of Arab expats, who with their different nationalities, still form a minority, whereas Asians form 70 per cent of the labour market, he noted.

"But we cannot impose any percentage as we do not want to affect the welfare of employers who say some skills are not available among Arab workers," he agreed.