Bahrain wage council demand sparks standoff

Manama: A bitter standoff has flared up between the business community and the national workers' organisation over the formation of a wage council that would regulate salaries in Bahrain.

The proposal to set up the council, submitted by the General Federation of Workers Trade Unions in Bahrain (GFWTUB), was flatly rejected by the Bahrain Chamber of Commerce and Industry (BCCI) on the grounds that it would disrupt the market and eventually compound employment problems.

The BCCI, the powerful organisation of business owners, said that wage increases should instead be decided by the supply and demand laws and linked with levels of productivity and profitability. "The factors that affect salaries positively or negatively are the company's balance sheet, annual profits, the volume of financial facilities, expenses, competition, competence, expertise and the law of offer and demand," said Adel Al Maskati, BCCI second deputy chairman, said at a conference on salaries.

Pay rise: Strike suspended

Oil workers at state refiner Kuwait National Petroleum Co (KNPC) temporarily postponed a strike on Sunday after KNPC said it would meet their demands for better pay and staff promotions, a union official said.

"The strike was temporarily suspended for eight weeks based on an initial agreement with KNPC management until we make sure they will execute our demands," said KNPC Labour Syndicate deputy chairman, Mohammad Al Hamlan.

He added KNPC has met the workers' demands for better pay and promotions.

- Reuters