In the past couple of decades, millions of skilled and unskilled workers have viewed UAE as an Aladdin’s Cave of treasures. This wonderful country has expanded at a rapid pace, creating exceptional demand for foreign workers. Foreign workers who had been lured by attractive packages and perks earlier; but today they expect more than that. Thanks to the economic boom in India and some of the Asian countries.
Construction experts opines that expatriate workers must be provided better living and working conditions in the Middle East or UAE given the rising job opportunities in their own countries. The situation at present in UAE is such that it is quite difficult to recruit construction workers from other countries and make them work in places like Dubai.
Nakheel's Omran development based in the Dubai Waterfront can accommodate 60,000 beds for various service and construction workers. It is expected that the first 5,000 beds would be ready by the second quarter of this year. Each resident would be offered at least 40 square feet of living space. There would be a bathroom for eight residents and only four people would occupy a room.
Life has changed for labourers as countries which have been major sources of workers for the UAE and the Middle East are going through swift economic development. According to Samir Khosla, Vice-Chairman of Dynamic Staffing Services, this is certainly good news for expats who normally have to sacrifice a lot to fend for their family back home. Australian company Leighton, working on many projects in India, provides its staff a four-day holiday every month so that they can be with their family residing in remote areas.
Wednesday, May 14, 2008
Shortage of Expatriate Workers Affects UAE Projects
Gone are the days when recruiters could take a flight to countries like India, Bangladesh, etc. to recruit workers with specialised skills. Today, things are quite different and with the economic boom in India and other Asian countries, an average skilled worker would prefer to stay in his/her own country and earn almost the same amount to money as they would have earned in the Gulf or the UAE.
The shortage of skilled labour in UAE has heavily affected the construction companies and more than 160 construction projects in the UAE are being delayed. It is estimated that at present there are $160 billion worth of projects in Dubai alone and almost a million workers in the construction industry. Notably, around 95 per cent of the total workforce in the industry is from foreign land.
“Across all industries in the UAE, 42.5 per cent of expatriate workers are Indians and 60 to 70 per cent of them are in the construction industry. Lots of the main contractors are now looking at technology as a way to reduce the labour component," said Samir Khosla, Vice-Chairman of Dynamic Staffing Services.
The shortage of skilled labour in UAE has heavily affected the construction companies and more than 160 construction projects in the UAE are being delayed. It is estimated that at present there are $160 billion worth of projects in Dubai alone and almost a million workers in the construction industry. Notably, around 95 per cent of the total workforce in the industry is from foreign land.
“Across all industries in the UAE, 42.5 per cent of expatriate workers are Indians and 60 to 70 per cent of them are in the construction industry. Lots of the main contractors are now looking at technology as a way to reduce the labour component," said Samir Khosla, Vice-Chairman of Dynamic Staffing Services.
Decline of Dirham Deters Indian Expats From Working in UAE
The economic boom in India and the magnificent pay packages offered to employees by the local Indian companies have changed the scenario of migration to the Middle East completely. Today, there are numerous Indian companies paying hefty packages and much more money to skilled workers than some of the companies of the Middle-East.
Today, UAE is no more a dream destination for expats as they have enough job opportunities back home in India. The incessant rise in the cost of living and a declining dirham has certainly resulted in UAE losing its earlier charm amongst jobseekers in India and Asia in general.
“The problem was more important than inflation in deterring workers coming to Dubai. Construction workers coming here don’t have any savings and just have to survive on their pay cheque,” said Samir Khosla, Vice-Chairman of Dynamic Staffing Services, speaking at MEED’s, Dubai Mega Projects conference. Mr. Khosla also commented that five years ago, an Indian construction worker coming to Dubai would expect four times more earning than in India and save up to 250% more.
Importantly, there has been a change in the hiring policies in various Indian construction companies, which means that the workers are appointed to company payrolls, which again makes them eligible to many allowances like sick pay.
“Indian employers are now providing them with Dubai-style accommodation and competitive holiday. As a result, it is increasingly becoming difficult for Middle East companies to hire. Workers are sending their families back because they can no longer afford to keep them in the country,” Mr. Khosla said.
Today, UAE is no more a dream destination for expats as they have enough job opportunities back home in India. The incessant rise in the cost of living and a declining dirham has certainly resulted in UAE losing its earlier charm amongst jobseekers in India and Asia in general.
“The problem was more important than inflation in deterring workers coming to Dubai. Construction workers coming here don’t have any savings and just have to survive on their pay cheque,” said Samir Khosla, Vice-Chairman of Dynamic Staffing Services, speaking at MEED’s, Dubai Mega Projects conference. Mr. Khosla also commented that five years ago, an Indian construction worker coming to Dubai would expect four times more earning than in India and save up to 250% more.
Importantly, there has been a change in the hiring policies in various Indian construction companies, which means that the workers are appointed to company payrolls, which again makes them eligible to many allowances like sick pay.
“Indian employers are now providing them with Dubai-style accommodation and competitive holiday. As a result, it is increasingly becoming difficult for Middle East companies to hire. Workers are sending their families back because they can no longer afford to keep them in the country,” Mr. Khosla said.
Tuesday, May 13, 2008
Aldar is Going to Recruit Its Own Foreign Labour
Hidden behind the glitz of the shopping malls and fancy resorts of the UAE are innumerable unskilled South Asian workers who toil their heart out with a hope that all their labour and sacrifices would benefit their family and home.
Aldar Properties, an Abu Dhabi-based developer, is planning to streamline the recruitment of foreign construction workers and thereby cut out the greedy overseas agencies that often cheat or exploit these expats.
Carrying Aldar’s name a new company will recruit manpower directly from various countries that supply its workers and then subcontract them to various companies or employers for building projects throughout the capital. This company would establish offices across subcontinent and in Southeast Asia to hire and train the manpower and also finance their trip to the beautiful region of Abu Dhabi. According to Ronald Barrott, the Chief Executive of Aldar, this project would smoothen the recruitment process and make it easier for the labourers to travel to the UAE and obtain their visas. Ronald Barrott also confirmed Aldar that the company would pay for various expenses like workers’ visas, travel expenses, medical examinations and training.
Samir Khosla, the Vice-Chairman of Dynamic Staffing Services, which recruits workers in India, Nepal, Bangladesh, and Sri Lanka for employment in 24 countries, was cautious about the venture’s prospects. He said firms had tried to recruit directly from such countries in the past, but with limited success. “It’s an approach that has a good intent; its achievability is what I wonder about. Clients have the resources to get into the business, and some have tried in the past, but without much success. It’s a different area of business for them and it’s tougher than what meets the eye. India is a big country and the ‘build it and they will come’ mentality doesn’t work. If you set up your recruitment centre in Mumbai, people will not be streaming through the doors because Mumbai is largely composed of transient workers who come from elsewhere in the country.” Mr. Khosla said. According to him most of the workers entering Abu Dhabi did not come from big towns or cities in India, where wages would have been only 20 to 30 per cent less than they could expect to earn in the UAE. Instead, they tend to come from remote areas from which developers would find it difficult to recruit directly.
The Recruitment analysts on the other hand comments that most of the UAE’s construction labourers are hired on third party agency agreements, where a local company gets in touch with an agency in a labour supply country and asks for a certain number of workers. This process leaves workers burdened with huge debts of up to $4,000 to meet the general cost of migration to UAE.
“These guys are paying two to three per cent a month in terms of financing the interest on the money they raise to come to the UAE. The interest is a killer consideration for the folks who are coming here. Layer upon layer of partnerships and relationships had been created in efforts to reach workers in their home countries and bring them to Abu Dhabi. Even though the recruiting agent dealing with the client may have good intentions, that company does not have full control over the supply chain”, said Mr. Khosla.
Although local construction companies may at first contact a reputed recruitment agent, the very nature of the worker supply chain leaves the door open to enormous abuse.
Aldar Properties, an Abu Dhabi-based developer, is planning to streamline the recruitment of foreign construction workers and thereby cut out the greedy overseas agencies that often cheat or exploit these expats.
Carrying Aldar’s name a new company will recruit manpower directly from various countries that supply its workers and then subcontract them to various companies or employers for building projects throughout the capital. This company would establish offices across subcontinent and in Southeast Asia to hire and train the manpower and also finance their trip to the beautiful region of Abu Dhabi. According to Ronald Barrott, the Chief Executive of Aldar, this project would smoothen the recruitment process and make it easier for the labourers to travel to the UAE and obtain their visas. Ronald Barrott also confirmed Aldar that the company would pay for various expenses like workers’ visas, travel expenses, medical examinations and training.
Samir Khosla, the Vice-Chairman of Dynamic Staffing Services, which recruits workers in India, Nepal, Bangladesh, and Sri Lanka for employment in 24 countries, was cautious about the venture’s prospects. He said firms had tried to recruit directly from such countries in the past, but with limited success. “It’s an approach that has a good intent; its achievability is what I wonder about. Clients have the resources to get into the business, and some have tried in the past, but without much success. It’s a different area of business for them and it’s tougher than what meets the eye. India is a big country and the ‘build it and they will come’ mentality doesn’t work. If you set up your recruitment centre in Mumbai, people will not be streaming through the doors because Mumbai is largely composed of transient workers who come from elsewhere in the country.” Mr. Khosla said. According to him most of the workers entering Abu Dhabi did not come from big towns or cities in India, where wages would have been only 20 to 30 per cent less than they could expect to earn in the UAE. Instead, they tend to come from remote areas from which developers would find it difficult to recruit directly.
The Recruitment analysts on the other hand comments that most of the UAE’s construction labourers are hired on third party agency agreements, where a local company gets in touch with an agency in a labour supply country and asks for a certain number of workers. This process leaves workers burdened with huge debts of up to $4,000 to meet the general cost of migration to UAE.
“These guys are paying two to three per cent a month in terms of financing the interest on the money they raise to come to the UAE. The interest is a killer consideration for the folks who are coming here. Layer upon layer of partnerships and relationships had been created in efforts to reach workers in their home countries and bring them to Abu Dhabi. Even though the recruiting agent dealing with the client may have good intentions, that company does not have full control over the supply chain”, said Mr. Khosla.
Although local construction companies may at first contact a reputed recruitment agent, the very nature of the worker supply chain leaves the door open to enormous abuse.
Life in the Middle East for Expats
Life is not a “bundle of roses” for expatriate workers in the Middle East as most of us think. Once the ultimate job destination for numerous Indians, Chinese, and Pakistanis, today, Gulf countries face a severe crunch of skilled workers these days. Thanks to the economic progress of most of the Asian countries.
Still the number of expats in the Middle East is quite large and the challenge of protecting their rights in this region has been highlighted in the media as well as many government reports. It is estimated that more than 90 per cent of the private sector workforce, belong to places outside the Emirates and they collectively sent money home worth US$16 billion (Dh58.79bn) as payments in 2006.
A report of the Ministry of Labour of UAE said that it is facing immense challenges in enforcing the rights of this huge foreign populace in this period of rapid inflation. The Government on its part forced various companies to pay out lump-sum amount as unpaid wages to their workers last year and suspended numerous labour permits of companies that were not successful in paying adequately to their workers. In fact, the rising cost of living in the Middle East is putting expats under a lot of financial burden. According to the Ministry of Labour of UAE, non-payment or late payment of wages is the “most conspicuous” labour abuse by employers.“Overseeing the expatriate workforce in this country is a big challenge, but the Government has made good recent progress in putting policies in place to enforce its laws and improve standards,” said Nasser Munder, the labour attaché with the Philippines Overseas Labour Office in Abu Dhabi.Laws were introduced to make it mandatory for firms with 50 or more workers to submit statements proving that wages had been paid and received by their employees. Meanwhile, about 1,350 unpaid workers were allowed to find a new job and 48,000 workers changed jobs last year.
Improper accommodation and living standards for workers, an important issue highlighted often by various human rights groups, led to thirty companies in Dubai being ordered to improve worker’s living conditions last year. In this matter Dubai Civil Defence Department has played a significant role when it announced that it would suspend the licence applications or renewals of any company, which have failed to achieve safety compliance certificates for their workers.
The Government has certainly made efforts to enforce labour laws to see that the labour populace lives a life which is safe and healthy. It is also seen that the low or unpaid wages and low standards of accommodation have resulted in many riots and violence throughout the country. About 1,500 Sharjah workers were also involved in a riot in March during which they attacked the public, destroyed properties and clashed with the police. The recruitment companies have repeatedly warned about the threat of decrease in the supply of migrant workers or expats as cost of living has risen to a record high. “The availability of workers is not the problem. The problem is that the pool of those who are willing to come is shrinking,” said Samir Khosla, the Vice-Chairman of the labour recruiting firm Dynamic Staffing Services.
Still the number of expats in the Middle East is quite large and the challenge of protecting their rights in this region has been highlighted in the media as well as many government reports. It is estimated that more than 90 per cent of the private sector workforce, belong to places outside the Emirates and they collectively sent money home worth US$16 billion (Dh58.79bn) as payments in 2006.
A report of the Ministry of Labour of UAE said that it is facing immense challenges in enforcing the rights of this huge foreign populace in this period of rapid inflation. The Government on its part forced various companies to pay out lump-sum amount as unpaid wages to their workers last year and suspended numerous labour permits of companies that were not successful in paying adequately to their workers. In fact, the rising cost of living in the Middle East is putting expats under a lot of financial burden. According to the Ministry of Labour of UAE, non-payment or late payment of wages is the “most conspicuous” labour abuse by employers.“Overseeing the expatriate workforce in this country is a big challenge, but the Government has made good recent progress in putting policies in place to enforce its laws and improve standards,” said Nasser Munder, the labour attaché with the Philippines Overseas Labour Office in Abu Dhabi.Laws were introduced to make it mandatory for firms with 50 or more workers to submit statements proving that wages had been paid and received by their employees. Meanwhile, about 1,350 unpaid workers were allowed to find a new job and 48,000 workers changed jobs last year.
Improper accommodation and living standards for workers, an important issue highlighted often by various human rights groups, led to thirty companies in Dubai being ordered to improve worker’s living conditions last year. In this matter Dubai Civil Defence Department has played a significant role when it announced that it would suspend the licence applications or renewals of any company, which have failed to achieve safety compliance certificates for their workers.
The Government has certainly made efforts to enforce labour laws to see that the labour populace lives a life which is safe and healthy. It is also seen that the low or unpaid wages and low standards of accommodation have resulted in many riots and violence throughout the country. About 1,500 Sharjah workers were also involved in a riot in March during which they attacked the public, destroyed properties and clashed with the police. The recruitment companies have repeatedly warned about the threat of decrease in the supply of migrant workers or expats as cost of living has risen to a record high. “The availability of workers is not the problem. The problem is that the pool of those who are willing to come is shrinking,” said Samir Khosla, the Vice-Chairman of the labour recruiting firm Dynamic Staffing Services.
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