Abu Dhabi: The UAE has laid the legal foundation to set up trade unions, a senior official said yesterday.

"In a ground-breaking move residents will be able to establish trade unions after an article is added to the Labour Law authorising the Labour Minister to issue regulations for these unions," Dr Khalid Al Khazraji, Undersecretary of the Labour Ministry, told Gulf News.

Sources said trade unions would be responsible for improving the working conditions of UAE citizens and expatriates. They will also work to improve labour relations, ensure regular payment of wages and resolve disputes between workers and employers.

"Previously, the country had no legislation allowing for the setting up of trade unions. The option was to issue a law on unions, but it was found that authorising the Labour Minister to issue rules organising them was more dynamic and flexible.

"So the ministry got an amendment to the labour law approved by the legislative committee. It will soon be submitted to the Cabinet for approval before it gets Presidential endorsement," Al Khazraji said.

Al Khazraji added the ministry will start working on guidelines to establish trade unions.

Sources said rules organising trade unions were under two International Labour Organisation (ILO) conventions, the Freedom of Association and Protection of the Right to Organise; and the Right to Organise and Collective Bargaining.

The UAE has not ratified these two conventions but is still expected to follow them.

"The ILO declares that all members, even if they have not ratified the conventions on freedom of association and collective bargaining, have an obligation arising from membership of the ILO to respect the principles concerning these fundamental rights," a source said.

"They will regularise the framework for freedom of association and collective bargaining for workers and employers. However, other detailed rights and obligations of trade unions will be regularised by the labour ministry, such as those governing establishment and registration, the formation of boards of directors, membership, objectives and powers."

A memorandum submitted to the Cabinet earlier suggested that membership of trade unions should be open to UAE nationals and expatriates, "but there should be full membership for citizens and associate membership for expatriates."

"A full member has the right to elect, be elected and vote, while associate members have the right to attend meetings and have a say, but are not eligible to hold a post on the boards of directors," the memorandum said.

It also proposed a trade union should be made up of committees at the base of a pyramid structure, with trade union associations in the middle of the pyramid and the federation of UAE trade unions at the top.

Dr Al Khazraji said the ministry had received the ILO's comments on the draft rules on trade unions and these will be taken into account when a decision is issued on the setting up of these organisations.