US embassy cable - 04ABUDHABI498

UNCLAS SECTION 01 OF 03 ABU DHABI 000498 
 
SIPDIS 
 
STATE FOR NEA/ARP, NEA/RA, DRL AND EB/CBA 
STATE PASS OPIC/OPIC INTERNATIONAL POLICY DEPARTMENT FOR 
VIRGINIA GREEN AND CONSTANCE SHINN 
USDOC FOR ITA/MAC/DGUGLIELMI 
ITA/MAC/CLOUSTENAU 
CS/OIO/ANESA 
 
E.O. 12958: DECL: N/A 
TAGS: ELAB, PREL, PHUM, PGOV, SOCI, CVIS, GTIP, TC 
SUBJECT: LABOR CONDITIONS IN THE UAE 
 
1. SUMMARY: THE UAE GOVERNMENT HAS COMMITTED ITSELF TO STRICTLY 
REGULATING AND ENFORCING LABOR LAWS. THIS CAN BE WITNESSED BY ITS 
ONGOING EFFORTS TO BRING LOCAL LABOR STANDARDS INTO COMPLIANCE 
WITH INTERNATIONAL NORMS. THE MINISTRY OF LABOR IS CURRENTLY 
WORKING ON REVISING THE LABOR LAW, WHICH IS EXPECTED TO COME OUT 
MID-2004.  THE MAIN COMPONENT OF THE DRAFT LAW IS THE CREATION OF 
A LABOR UNION TO ENSURE LABORERS' RIGHTS TO ORGANIZE AND BARGAIN 
COLLECTIVELY. OTHER ISSUES SUCH AS PAYMENT OF WAGES AND WORKING 
CONDITIONS AT WORK ARE ALSO REPORTEDLY ADDRESSED IN THE DRAFT 
LAW.  END SUMMARY. 
 
2. IN THE UNITED ARAB EMIRATES (UAE), APPROXIMATELY 85% OF THE 
POPULATION OF AROUND 4 MILLION IS EXPATRIATE, AND 98% OF THE 
PRIVATE WORKFORCE IS NON-EMIRATI.  THE UAE ATTRACTS A LARGE 
NUMBER OF FOREIGN WORKERS.  THE UAE IS A RICH COUNTRY THAT HAS 
ENCOURAGED THE PRESENCE OF A LARGE EXPATRIATE WORKFORCE.  DESPITE 
SOME CONCERNS RAISED ABOUT POOR WORKING CONDITIONS, NON-PAYMENT 
OF WAGES, AND NOT BEING ABLE TO CHANGE EMPLOYERS EASILY, THESE 
WORKERS CONTINUE TO FLOW INTO THE COUNTRY BECAUSE IN THE UAE, 
THEY CAN EARN A SUBSTANTIALLY HIGHER INCOME THAN IN THEIR OWN 
COUNTRIES. 
 
POSITIVE STEPS TO IMPROVE WORKING CONDITIONS 
-------------------------------------------- 
 
3. THE UAEG HAS TAKEN A NUMBER OF STEPS IN RECENT YEARS TO 
SIGNIFICANTLY IMPROVE THE SITUATION FOR FOREIGN WORKERS AND TO 
BETTER PROTECT THEIR INTERESTS.  THE UAE HAS JOINED NINE ILO 
CONVENTIONS, INCLUDING 8 CORE CONVENTIONS. THE UAE HAS TO DATE 
NOT RATIFIED EITHER OF THE ILO'S "CORE" CONVENTIONS ON FREEDOM OF 
ASSOCIATION, NOS. 87 AND 98.  SINCE OPIC COVERAGE WAS SUSPENDED 
IN THE UAE IN 1995, THE UAE GOVERNMENT (UAEG) HAS IMPROVED 
APPRECIABLY THE RIGHTS OF EXPATRIATE LABORERS. THE UAEG HAS 
COMMITTED TO ENACTING AND IMPLEMENTING DOMESTIC LAWS THAT CONFORM 
TO INTERNATIONAL STANDARDS. 
 
- DISCUSSIONS ARE TAKING PLACE BETWEEN THE GOVERNMENT AND THE ILO 
REGARDING IMPLEMENTATION OF A NATIONAL LABOR UNION AND LABOR 
RIGHTS, AS PART OF A DRAFT LAW EXPECTED TO COME OUT MID-2004. 
 
- IN APRIL 2003, THE GOVERNMENT IMPLEMENTED ILO BIOHAZARD RULES 
ON OCCUPATIONAL HEALTH AND SAFETY, AND RATIFIED ILO CONVENTION 81 
ON LABOR INSPECTIONS.  IN JULY, THE UAE APPROVED THE 
RECOMMENDATIONS OF THE ILO ON OCCUPATIONAL HEALTH AND SAFETY. 
 
- THE GOVERNMENT PROHIBITS FORCED AND BONDED CHILD LABOR AND 
GENERALLY ENFORCES THIS PROHIBITION EFFECTIVELY.  FOLLOWING A 
SEPTEMBER 2002 PRESIDENTIAL DECREE BANNING THE PRACTICE OF USING 
UNDERAGE FOREIGN BOYS AS CAMEL JOCKEYS, THE UAEG STRENGTHENED 
PROCEDURES AT RACETRACKS TO PROTECT THE JOCKEYS AND TO ENSURE 
THAT THE BAN IS APPLIED STRICTLY.  THE UAEG IS ALSO IN THE 
PROCESS OF TURNING THE DECREE INTO FEDERAL LEGISLATION, LEGALLY 
BINDING IN ALL SEVEN EMIRATES. 
 
- THE UAE MINISTRY OF LABOR IMPLEMENTED NEW REGULATIONS IN 2003 
REQUIRING ALL CONSTRUCTION AND MAINTENANCE COMPANIES AND OTHER 
BUSINESSES WITH MORE THAN 200 EMPLOYEES (THE NUMBER MAY BE 
REDUCED), TO SUBMIT AUDITED REPORTS CONFIRMING THE PAYMENT OF 
SALARIES TO EMPLOYEES.  THE MINISTRY BLACKLISTS COMPANIES 
(SUSPENDS THE COMPANY'S COMMERCIAL LICENSE) THAT FAIL TO SUBMIT 
THESE REPORTS ON A QUARTERLY BASIS. 
 
- IN JULY 2003, THE FEDERAL SUPREME COURT OUTLAWED A COMMON 
PRACTICE IN THE UAE OF LOCAL SPONSORS HOLDING THE PASSPORTS OF 
THEIR EMPLOYEES.  THIS WILL BENEFIT ALL FOREIGN EMPLOYEES, AND 
ESPECIALLY ASSIST UNSKILLED LABORERS WHO GENERALLY LACK THE 
POLITICAL LEVERAGE ENJOYED BY SKILLED AND HIGHER-INCOME WORKERS. 
WHEN REPORTED, POLICE COLLECT AND RETURN THE PASSPORTS TO THOSE 
WHO REQUEST THEM. 
 
- THE MINISTRY OF LABOR HAS DEVELOPED A NEW INSPECTION AND 
TRAINING PLAN CENTERED ON IMPROVING THE QUALITY OF LABOR 
INSPECTION.  THE OBJECTIVE IS TO CREATE SAFER AND MORE SECURE 
WORKING CONDITIONS BY ENCOURAGING COMPANIES TO COMPLY MORE 
STRICTLY WITH CURRENT LABOR REGULATIONS.  THE NEW INSPECTION PLAN 
ALSO BETTER CONFORMS TO THE ILO'S LABOR INSPECTION CONVENTION NO. 
81. 
 
- THE MINISTRY BLACKLISTED OVER 2,000 UAE COMPANIES LAST YEAR FOR 
VIOLATING LABOR LAWS.  THE MINISTRY REINSTATED MANY OF THOSE 
COMPANIES AFTER REDRESSING THEIR ERRORS. 
 
- DUBAI FOLLOWED BY ABU DHABI AND OTHER EMIRATES ISSUED AN ORDER 
ON FEBRUARY 10 OF THIS YEAR INSTRUCTING IMMIGRATION OFFICIALS TO 
CEASE REQUIRING FOREIGNERS TO TRAVEL ABROAD IN ORDER TO CHANGE 
THEIR WORK PERMIT STATUS.  THIS MOVE FOLLOWED AN AIRPLANE CRASH 
IN THE EMIRATE OF SHARJAH THAT KILLED 43 LABORERS AND WORKERS WHO 
CHOSE THE LOWEST COST MEANS OF GETTING OUT AND COMING BACK TO THE 
COUNTRY TO CHANGE VISIT VISAS TO A WORK PERMITS. 
 
- THE MINISTRY OF LABOR PLANS TO STIFFEN ITS REGULATIONS AGAINST 
"ILLUSIONARY FIRMS".  THE INVESTIGATION BY THE MINISTRY, WHICH 
WAS MADE IN 2003, REVEALS THAT  "REAL" OR ACTIVE FIRMS IN THE UAE 
MARKET CONSIST OF ONLY 49% OF THE TOTAL FIRMS IN THE UAE, WHILE 
THE REST OF THE FIRMS ARE NOT PRACTICING ANY REAL ECONOMIC 
ACTIVITY.  THESE FIRMS CONCENTRATE ON "VISA SALES" ONLY. 
MINISTRY OFFICIALS CONFIRMED THAT THE NUMBER OF LABORERS WHO 
ENTERED THE COUNTRY SPONSORED BY THESE "ILLUSIONARY" FIRMS OVER 
THE LAST FEW YEARS REACHED UP TO 600,000, REPRESENTING 27% OF THE 
TOTAL LABOR FORCE IN THE COUNTRY ACCORDING TO PRESS REPORTS. 
 
FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING 
--------------------------------------------- --- 
 
4. THE CURRENT LABOR LAW DOES NOT ENTITLE WORKERS TO FORM OR JOIN 
UNIONS, AND NO UNIONS EXIST.  HOWEVER, THE GOVERNMENT ALLOWS 
WORKERS TO ASSOCIATE FREELY FOR THE ADVANCEMENT OF COMMON GOALS 
AND INTERESTS.  IN PRACTICE, WORKERS ADDRESS GRIEVANCES AND 
NEGOTIATE DISPUTES OR MATTERS OF INTEREST WITH EMPLOYERS THROUGH 
FORMAL AND INFORMAL MECHANISMS.  ALTHOUGH THE LAW DOES NOT GRANT 
WORKERS THE RIGHT TO ENGAGE IN COLLECTIVE BARGAINING, IT 
EXPRESSLY AUTHORIZES COLLECTIVE DISPUTE RESOLUTION.  THE 
GOVERNMENT GRANTS SOME PROFESSIONAL ASSOCIATIONS GREATER FREEDOM 
TO RAISE WORK RELATED CONCERNS, TO LOBBY THE GOVERNMENT FOR 
REDRESS, OR TO FILE GRIEVANCES WITH THE GOVERNMENT. 
 
5. THE LABOR LAW DOES NOT ADDRESS THE RIGHT TO STRIKE.  HOWEVER 
THE MEDIA HAS QUOTED A HIGH-LEVEL MINISTRY OF LABOR OFFICIAL AS 
SAYING THAT THE LAW DOES NOT FORBID STRIKES, AND IF LABORERS ARE 
DENIED THEIR RIGHTS, THEY CAN STOP WORKING.  IN PRACTICE, THERE 
WERE NUMEROUS STRIKES BY PRIVATE SECTOR EMPLOYEES IN ADDITION TO 
ORGANIZED GATHERINGS OF WORKERS WHO COMPLAINED OF UNPAID WAGES TO 
THE MINISTRY OF LABOR.  THERE WERE NO REPORTS THAT WORKERS WHO 
WENT ON STRIKE WERE DEPORTED.  IN GENERAL, MINISTRY OFFICIALS ARE 
SYMPATHETIC TO THE WORKERS' PLIGHT ESPECIALLY WITH REGARD TO NON- 
PAYMENT OF WAGES.  THE MINISTRY USUALLY SIDES WITH THE WORKERS 
AND NEGOTIATES A SETTLEMENT THAT PROVIDES IMMEDIATE OR INSTALLED 
PAYMENTS OF THE WAGES. 
 
PROPOSED DRAFT LABOR LAW 
------------------------ 
 
6. THE UAE IS IN THE PROCESS OF UPDATING ITS LABOR LAW.  ON 
FEBRUARY 24, 2003, THE MINISTRY OF LABOR COMPLETED THE FINAL 
DRAFT OF A PROPOSAL PERMITTING THE CREATION OF LABOR UNIONS.  THE 
PLAN WILL BE REVIEWED BY THE MINISTRY OF INTERIOR AND MINISTRY OF 
JUSTICE, ISLAMIC AFFAIRS AND AWQAF BEFORE A FINAL PROPOSAL IS 
SUBMITTED TO THE CABINET.  AFTER FINAL APPROVAL, THE MINISTRY OF 
LABOR WILL ENACT A BYLAW TO INSTITUTE THE NEW POLICY.  THE 
MINISTRY WILL ALSO ESTABLISH A NEW DEPARTMENT RESPONSIBLE FOR 
HANDLING MATTERS RELATED TO LABOR UNIONS. 
 
7. UNDER THE DRAFT PROPOSAL, THE LABOR MINISTRY WILL ESTABLISH 
MEMBERSHIP CONDITIONS FOR NEW UNIONS.  AS CURRENTLY PROPOSED, THE 
DRAFT LAW DOES NOT PROHIBIT EXPATRIATES FROM JOINING UNIONS. 
RATHER THE MINISTRY OF LABOR IS CURRENTLY CONSIDERING A VARIETY 
OF WAYS TO DEAL WITH THE ISSUE OF EXPATRIATES' MEMBERSHIP.  IT IS 
LIKELY THAT THEIR MEMBERSHIP IN UNIONS WILL BE CONSTRAINED IN 
SOME WAY DUE TO NATIONAL SECURITY CONCERNS. 
 
8. THE DRAFT LAW ALSO STATES THAT PRIVATE COMPANIES MUST EMPLOY 
AN INDUSTRIAL SAFETY OFFICER TO ENSURE THAT ALL SAFETY MEASURES 
ARE MET.  THE PACKAGE OF BENEFITS ALSO SAYS THAT PEOPLE UNDER THE 
AGE OF 18 SHOULD BE FORBIDDEN FROM DANGEROUS OR DIFFICULT WORK. 
 
UNDER THE DRAFT LAW, WAGES MUST BE PAID NO LATER THAN FIVE DAYS 
FROM THE END OF THE MONTH OR THE DATE ON WHICH THEY BECOME DUE. 
 
THE MINISTRY OF LABOR SENDS A NOTICE TO ANY COMPANY THAT DOES NOT 
COMPLY WITH ANY OF THE DRAFT LAW CLAUSES.  FAILURE OF THESE 
COMPANIES TO ACT AFTER THE NOTICE IS RECEIVED RESULTS IN THEIR 
BEING FINED AND FINALLY SUSPENDING THEIR COMMERCIAL LICENSE. 
 
9. THE DRAFT PROPOSAL BY THE LABOR MINISTRY, WHICH IS EXPECTED TO 
BE RELEASED BY MID 2004 ACCORDING TO MINISTRY OFFICIALS, IS 
ANOTHER STEP IN THE RIGHT DIRECTION BY THE UAEG TO BRING DOMESTIC 
LABOR LAW INTO CONFORMITY WITH INTERNATIONAL STANDARDS.  WHILE 
WORKERS HERE CONTINUE TO HAVE CONSIDERABLE PRACTICAL FREEDOM OF 
ASSOCIATION (STRIKES ARE NOT UNCOMMON HERE), THESE NEW PROPOSALS 
WILL OFFICIALLY ENSURE WORKERS' RIGHTS TO ORGANIZE AND BARGAIN 
COLLECTIVELY. 
 
AREAS FOR IMPROVEMENT 
-------------------- 
 
10. DESPITE THE IMPROVEMENTS SEEN OVER THE LAST FEW YEARS, THERE 
ARE STILL AREAS OF CONCERN FOR THE EMBASSY ON THE LABOR SITUATION 
IN THE UAE.  THESE INCLUDE: 
 
- THE LABOR LAW DOES NOT COVER AND THEREFORE DOES NOT PROTECT 
FOREIGN DOMESTIC SERVANTS, CURRENTLY ESTIMATED AT ABOUT 300,000. 
THE MINISTRY OF INTERIOR'S NATURALIZATION AND RESIDENCY 
ADMINISTRATION REVIEWS THE CONTRACTS OF THESE EMPLOYEES AS PART 
OF THE RESIDENCY PERMIT PROCESSING TO ENSURE THAT THE NEGOTIATED 
SALARIES AND TERMS ARE ADEQUATE.  ALTHOUGH NOT PROTECTED BY THE 
NATIONAL LABOR LAW, DOMESTIC WORKERS CAN BRING WORK-RELATED 
DISPUTES TO CONCILIATION COMMITTEES ORGANIZED BY THE MINISTRY OF 
LABOR OR TO SPECIAL LABOR COURTS.  IT IS UNLIKELY THAT DOMESTIC 
WORKERS WILL BE PLACED UNDER THE NEW DRAFT LAW.  THERE ARE SOME 
REPORTS OF ABUSE OF DOMESTIC WORKERS BY THEIR EMPLOYERS. 
ALLEGATIONS INCLUDE EXCESSIVE WORK HOURS, NONPAYMENT OF WAGES, 
AND VERBAL, PHYSICAL, SEXUAL ABUSE. 
 
- MOST FOREIGN NATIONAL EMPLOYEES ARE NOT PERMITTED TO CHANGE 
EMPLOYERS FREELY UNDER THE LAWS REGULATING SPONSORSHIP AND 
RESIDENCIES.  SOME CATEGORIES OF PROFESSIONAL OR SKILLED WORKERS 
ARE ALLOWED TO CHANGE EMPLOYERS AFTER TWO YEARS; HOWEVER MOST 
WORKERS ARE NOT ALLOWED TO CHANGE SPONSORS.  IF THEY DO THEN THEY 
WILL HAVE TO LEAVE THE COUNTRY AND COME BACK AND SOME OF THEM 
MIGHT BE BANNED TO ENTER THE COUNTRY FOR SIX MONTHS. 
 
- THE UAE CALLS FOR EQUALITY WITHOUT REGARD TO GENDER.  HOWEVER, 
IN MOST CASES, MEN GET THE PRIORITY FOR EMPLOYMENT.  IN THE 
RECENT YEARS, DUBAI HAS WITNESSED A DRAMATIC INCREASE IN THE 
NUMBER OF WOMEN IN THE WORKPLACE AND IN BUSINESS, AMOUNTING TO 
3,223 BUSINESSWOMEN ENGAGED IN COMMERCIAL ACTIVITY IN 2002, 
ACCORDING AN ARTICLE IN A LOCAL NEWSPAPER IN LATE 2002. 
 
WAHBA