US embassy cable - 05ABUDHABI296

C O N F I D E N T I A L SECTION 01 OF 02 ABU DHABI 000296 
 
SIPDIS 
 
STATE PASS USTR 
 
E.O. 12958: DECL: 01/18/2015 
TAGS: ELAB, ETRD, PHUM, TC 
SUBJECT: USG EMPHASIZES NEED FOR LABOR LAW REVISIONS IN 
CONTEXT OF FREE TRADE DISCUSSIONS 
 
REF: 04 ABU DHABI 3955 
 
(U) Classified by Ambassador Michele J. Sison, reason 1.4 (b) 
and (d). 
 
1. (U) Summary:  The UAEG told A/USTR Clatanoff a revised 
labor law and trade union law should be issued by summer 
2005.  The original 1980 labor law will be revised to bring 
it into compliance with ILO standards and address needed 
labor market reform.  The trade union law will allow 
expatriate membership in unions organized by sector, but will 
only allow UAE nationals voting rights.  End summary. 
 
2.  (U) Assistant United States Trade Representative for 
Labor William Clatanoff met with Minister of Labor Dr. Ali 
bin Abdullah Al Ka,abi, Labor U/S Khalid Al Khazraji, MFA 
U/S Abdullah Rashid Al Noaimi, and officials at the Ministry 
of Interior on January 17 to discuss labor issues related to 
free trade discussions.  Clatanoff emphasized the 
requirements of the Trade Provision Authority, and focused 
specifically on the UAE,s need to address freedom of 
association, the right to bargain collectively, and the 
problem of child and forced labor in the form of camel 
jockeys. 
 
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DRAFT LABOR LAWS 
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3.  (C)  The UAEG has been working on a revision to the 1980 
Labor Law for several years to improve compliance with ILO 
standards and market reform. Labor Minister Al Ka,abi said 
he pulled the draft revision back from the Ministry of 
Justice technical review committee, after taking office in 
November 1, 2004 (see reftel).  Al Ka,abi has been modifying 
the law, and the new draft is almost complete, but it has to 
wait to go through technical review at the Ministry of 
Justice until the computer crimes and IT law sponsored by the 
Ministry of Economy and Planning is done.  MFA U/S MFA 
Abdullah Rashid told Clatanoff that the law would be finished 
before the UAEG breaks for the summer (i.e. June). 
 
4.  (C)  Labor and legal advisors at the Ministry of Labor 
briefed on some of the proposed changes to the labor law, 
which were designed primarily to bring the law more clearly 
in compliance with ILO standards and accomplished some needed 
labor market reforms.  Specific proposed changes and 
amendments will follow septel, but some actions include 
increasing the authority of work inspectors, raising the 
minimum age of employment to 18 for dangerous jobs, amending 
and improving maternity benefits, payment of wages, and 
streamlining social insurance and severance benefits. 
 
5.  (C)  The Ministry of Labor is also drafting a separate 
law on trade unions, although a provision permitting unions 
should also be included in the revision of the labor law. 
This law is currently with the Ministry of Justice.  Minister 
of Labor Al Ka,abi said this proposed law would allow 
foreign nationals to have membership rights in unions, but 
not voting rights.  Only Emiratis would be able to vote or be 
elected as a representative.  Unions would be organized by 
sector, but only sectors that include UAE nationals working 
in the area.  For example, a construction sector union would 
include Emiratis who work in construction companies but also 
serve as the umbrella union for those workers employed in 
crafts such as plumbing and carpentry in which there are no 
UAE nationals employed.  This law is still under discussion, 
and there is still a debate about where the law belongs (i.e. 
separate or within the labor law). 
 
6.  (C)  Clatanoff strongly encouraged the UAE to share the 
drafts with the ILO in order to ensure compliance with ILO 
standards and receive technical assistance.  U/S of Labor 
Khalid Al Khazraji noted that three experts from the ILO had 
been consulted two years ago about freedom of association and 
collective bargaining, but that the ILO has not seen the 
drafts of either law.  Al Ka,abi explained that the UAE 
could not share the law with the ILO until the Cabinet has 
seen it.  Clatanoff observed that ILO assistance and 
compliance with labor regulations would be a key component in 
ensuring a labor law that meets U.S. Trade Promotion 
Authority standards and would be key for an FTA. 
 
7.  (C)  The UAE discussed the professional employees 
organizations that currently operate under UAE laws 
regulating NGOs.  Clatanoff noted that these organizations 
could be used as a basis for the formation of unions or 
collective bargaining units.  The current professional 
employees associations include foreign and national employees 
but have a solely Emirati board of directors, and they are 
limited in scope and authority by the NGO rules governing 
their existence. 
 
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COMPLEXITY OF LOCAL LABOR FORCE 
-------------------------------- 
 
8.  (U)  UAE officials repeatedly emphasized the complexity 
of the local labor force highlighting the fact that 85 
percent of the local population and 91 percent of the work 
force are foreign nationals, and the difficulties this 
presents for labor regulations.  They expressed national 
security concerns and a need to preserve economic interests, 
while ensuring human rights for the workers.  MFA U/S 
Abdullah Rashid also noted that there are frequently 
contradictory UAE policies, especially between labor and 
immigration laws, when it comes to foreign nationals employed 
in the UAE, causing some confusion about foreign workers, 
rights. 
 
9.  (SBU)  In response to Clatanoff,s questions about 
foreign workers, freedom of movement, Ministry of Labor 
officials noted that it is illegal for employers to hold 
employees, passports in order to prevent their movement, and 
shared a circular issued by the Ministry of Interior.  They 
stated that foreigners can quit a job, but that they have to 
leave the country since the UAE is not a &job shop.8  This 
is particularly a concern with unskilled laborers, who are 
forbidden from reentering the country for six months 
following such an action (unless prior approval is received 
from the Ministry of Labor) by immigration laws. 
 
10.  (SBU)  Officials also discussed enforcement concerns, 
particularly regarding cases where workers incur a arge debt 
in their home country to come to the UAE.  They stated that 
these workers are often reluctant to approach the Ministry of 
Labor, and enforcement remains a difficult issue but 
something officials are working on with source countries for 
unskilled laborers. 
 
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CHILD CAMEL JOCKEYS 
------------------- 
 
11.  (SBU)  Clatanoff emphasized the problem of child camel 
jockeys in the UAE in the context of the labor portfolio of 
the FTA to the Ministry of Labor, Ministry of Interior, and 
Ministry of Foreign Affairs.  He noted that camel jockeys 
violate three of the five core precepts of the TPA:  child 
labor, forced/bonded labor, and work conditions.  He strongly 
urged the UAE to work not only on the sources of supply of 
children, but also to enforce regulations on the local 
demand.  Officials noted that they expect a law in April to 
assist efforts to stop child camel jockeys.  Clatanoff 
reminded UAE officials that a lack of action would have a 
negative impact on our ability to conclude an FTA, and that a 
lack of enforcement of local laws is as damaging as a lack of 
laws. 
 
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COMMENT 
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12. (C)  Clatanoff,s arrival was timely, coming soon after 
harsh criticism of UAE labor practices by the AFL-CIO at the 
Jan 12 public hearing on the FTA (the AFL-CIO points and 
A/USTR Novelli,s comment that &The UAE and Oman must 
improve their worker rights, laws to qualify for proposed 
free-trade pacts with the United States8 were widely covered 
in the UAE press.).  He was able to capitalize on the timing 
to stress the need for revisions to the labor law to meet ILO 
standards.  UAE officials shared thoughts on their proposed 
laws, and indicated a strong interest in learning exactly 
where the United States sees weaknesses in local labor 
regulations and practices.  The UAEG acknowledged that reform 
of labor practices will be important in the context of an 
FTA, and assured Clatanoff that these laws should be issued 
by the summer.  The UAEG reiterated their commitment to 
pursuing a Free Trade Agreement, and ensuring that such an 
agreement fulfills local concerns about national security and 
the complex labor situation but also sufficiently addresses 
international labor standards. 
SISON