VZCZCXRO8919
RR RUEHDE
DE RUEHAD #1723/01 1191056
ZNY CCCCC ZZH
R 291056Z APR 06
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC 4792
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE
RUEHC/DEPT OF LABOR WASHDC

C O N F I D E N T I A L SECTION 01 OF 02 ABU DHABI 001723 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR DRL, NEA.ARP, EB 
STATE PLEASE PASS TO USTR DONNELLY, BELL, KARESH, AND 
ROSENBERG 
 
E.O. 12958: DECL: 04/28/2016 
TAGS: ELAB PHUM PREL ETRD AE
SUBJECT: MINISTER OF LABOR PROVIDES UPDATES ON THE LABOR LAW 
 
REF: A. ABU DHABI 00864 
 
     ¶B. ABU DHABI 01340 
 
Classified By: AMBASSADOR MICHELE J.SISON FOR REASONS 1.4 (b) & (d) 
 
¶1.  (C) Summary:  On April 23, Ambassador and Econoff met 
with UAE Labor Minister Dr. Ali bin Abdullah Al Ka,abi to 
discuss labor issues, including the strengthening of labor 
laws in the UAE. Al Ka,abi updated Ambassador on the 
proposed amendment to the labor law permitting a labor 
association, recently sent to the Ministry of Justice for 
review. The Minister also said that Ministry of Labor (MOL) 
officials consulted with Hassan Jemam, a representative of 
the International Labor Organization (ILO), regarding 
membership in the proposed labor association.  Additionally, 
Al Ka'abi discussed changing the law to authorize the 
Ministry to pay "bank guarantees" independently of the court, 
changing the current Thursday-Friday weekend to 
Friday-Saturday, the creation of new housing for foreign 
laborers, and the problems caused by labor recruiting 
agencies.  At the end of the meeting, Al Ka,abi expressed 
concern about the prospects of a U.S.-UAE free trade 
agreement in the wake of the Dubai Ports World controversy. 
End summary. 
 
Formation of Labor Association 
 
¶2. (C) The Minister updated Ambassador on the status of the 
pending amendment to the labor law, which will allow the 
Minister to issue a decree authorizing the formation of a 
labor association in the UAE.  Al Ka,abi said the proposed 
law would allow for one labor association and stated that the 
proposed group would be called an "association" rather than a 
"union." (Ref A)   The Cabinet,s technical committee on 
legislative affairs has sent the proposed amendment to the 
Ministry of Justice for review because it is unsure whether 
UAE law allows the Minister to create a labor association by 
Ministerial decree. 
 
¶3. (C) The Minister said the new law will permit one labor 
association, with representatives from different sectors. 
Permanent residents, non- UAE nationals, will be allowed to 
join the association, but will be voting members. (Note: 
Emiratis comprise a mere two percent of the private sector 
workforce.  End note.) Al Ka'abi told the Ambassador that MOL 
officials consulted with Hassan Jemam, an official of the 
Arabic Labor Union, affiliated with the ILO, regarding 
membership in the proposed labor association.  The Minister 
said that, Jemam agrees that only permanent residents can 
become members of the labor association.  (Comment:  Although 
the MOL's consultations with Jemam demonstrate the Ministry 
is being proactive in seeking ILO advice, restricting 
membership to permanent residents would effectively exclude 
more than 50% of the UAE private sector workforce who are 
contract workers, not permanent residents. End comment.) 
 
¶4. (C) Minister Al Ka,abi also discussed his plan to submit 
a proposal to the Cabinet that would give the Ministry 
authority to pay arrears from bank guarantees, which the 
Ministry holds.  The Ministry requires most companies to pay 
a separate guarantee for each of its employees to cover wages 
in case an employer defaults on payment.  Although the 
Ministry holds the money, it cannot pay out from the 
guarantee funds under the current system unless either the 
employer or the Court authorizes payment.  Al Ka'abi's plan 
for the MOL to directly authorize payment of the bank 
guarantee if it finds in favor of the employee would speed up 
the dispute resolution process in future cases involving 
non-payment of salaries. 
 
Proposed Change in Weekend/Work Week 
 
¶5. (C) The Minister also mentioned changing the weekend from 
the current Thursday-Friday schedule to a Friday-Saturday 
weekend to bring the UAE work week more in line with the 
international business community.  Al Ka,abi said that 
Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan, favors 
the change and would even prefer a Saturday-Sunday weekend. 
Minister Al Ka,abi said 54% of those polled are in favor of 
the change. 
 
Accommodations for Foreign Workers 
 
¶6. (C) The Minister admitted that the March 30 Human Rights 
Watch piece, which condemned labor conditions and practices 
in the UAE, was accurate in many respects (Ref B), but added 
that the number of striking laborers is very small when 
compared to the total number of foreign laborers in the UAE. 
 
ABU DHABI 00001723  002 OF 002 
 
 
Al Ka,abi said there were 35 labor protests in 2005 
involving 10,000 workers, but stressed that this number of 
protesting workers represents only .004% of the total labor 
force.  In addition to late payment or non-payment of 
salaries, many workers complain about sub-standard living 
accommodations.  Al Ka,abi discussed the recent opening of 
the Industrial City of Abu Dhabi (ICAD), a &model8 housing 
and recreational complex, which was built to alleviate some 
of these problems.  The Minister explained that in addition 
to housing, the complex includes a supermarket, cinema, 
prayer facilities, and recreational facilities. Twenty-seven 
more complexes are planned for Abu Dhabi to meet the growing 
demand for livable and affordable housing. 
 
Recruitment Agencies 
 
¶7. (C) Al Ka,abi also discussed the role of recruiting 
agencies.  He realizes that agencies from foreign workers' 
home countries are "playing dirty games."  If the Ministry 
finds out that a worker has paid a recruitment fee to an 
agent, the employer must reimburse the employee, said Al 
Ka,abi.  Al Ka,abi explained that workers are often lured 
to the UAE by unscrupulous agents who promise short working 
hours, high salaries and other benefits.  To combat this 
problem, the Minister said the UAE MOL is setting up an 
office in Pakistan to educate workers about their rights and 
what to expect once they arrive in the UAE. When asked by the 
Ambassador if the Ministry would do the same in India, Al 
Ka,abi said he would not set up a MOL office there because 
the Indian government "will not buy into it." The Minister 
also wants to change the system for hiring workers and 
proposed allowing a company, instead of an individual, to 
sponsor an employee. 
 
FTA 
 
¶8. (C) Ambassador stressed to Al Ka'abi that a revised labor 
law is important in view of the ongoing U.S.-UAE FTA 
negotiations and urged that changes in the labor law should 
occur sooner rather than later.  Ambassador told Al Ka,abi 
she hopes the new law will be passed before the Cabinet 
adjourns for the summer on July 15.  The Minister replied 
that he hoped it would be passed "soon." Al Ka,abi 
questioned an FTA's value for Emirati businessmen in the wake 
of the Dubai Ports World controversy and opined that even if 
an FTA is passed, the U.S. Congress might block investments 
by Emiratis because they are perceived as coming from a 
"terrorist country." 
SISON