VZCZCXRO9249
RR RUEHDE
DE RUEHAD #2774/01 1861157
ZNR UUUUU ZZH
R 051157Z JUL 06
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC 6008
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE
RUEHC/DEPT OF LABOR WASHDC

UNCLAS SECTION 01 OF 03 ABU DHABI 002774 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE PASS TO USTR FOR LKARESH, AROSENBERG, AND DBELL 
 
E.O. 12958: N/A 
TAGS: ELAB ECON PREL ETRD AE
SUBJECT: UAE LABOR UPDATES 
 
 
¶1. (SBU) Summary:  On June 30, Econoff met with Mohammed 
Al-Zaabi, Director of International Relations, at the 
Ministry of Labor (MOL) to discuss recent changes to the UAE 
labor system.  Al-Zaabi explained that foreign workers are 
"temporary" workers, not "immigrant" workers and stressed to 
Econoff that the USG must understand the UAEG's position that 
labor is an issue of "national security."  Al-Zaabi 
highlighted the new regulations regarding Emiratization and a 
minimum wage for UAE nationals. He also discussed the recent 
Ministerial Decree mandating a mid-day break for laborers and 
said that the MOL is hiring more labor inspectors to address 
the growing labor problems in the UAE.  Al-Zaabi said he 
hopes a revised labor law will be passed soon, but gave no 
further details.  In addition, The Ministry of Interior 
recently announced that domestic servants no longer have to 
leave the UAE for six months before beginning a new contract. 
The new decree follows the decision of the MOL which also 
ended the six month ban on laborers.  End Summary. 
 
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Workers--Temporary, Not Immigrants 
---------------------------------- 
 
¶2. (SBU) In his recent speech before the 95th International 
Labor Organization (ILO), Minister of Labor, Dr. Ali Al 
Ka'abi, called on the ILO to recognize expatriate workers in 
Gulf countries as temporary workers, not immigrant workers 
since foreigners are not permitted to immigrate to the UAE, 
regardless of how many years an expatriate has been working 
in the UAE.  Once a foreign worker retires, he is not allowed 
to remain in the UAE and must return to his home country. 
Al-Zaabi told Econoff that the UAEG views expatriate workers 
as temporary workers, not immigrants.  He also said that the 
International Organization of Migration had agreed to this 
classification.  Al-Zaabi stressed that foreign workers are a 
matter of "national security" since Emiratis only make up a 
small percentage of their own country (estimated at around 
15%).  Econoff told Al-Zaabi that the USG understands the 
UAEG's view that expatriate workers are an issue of national 
security, but stressed that workers are entitled to 
fundamental rights and freedoms, such as the right to form 
unions and collective bargaining.  Econoff and Al-Zaabi also 
discussed the current debate in Congress, regarding an FTA 
with Oman due to Oman's weak labor laws.  Econoff told 
Al-Zaabi that Congress has provided clear guidance that our 
FTA trading partners must respect core labor standards. 
(Note.  Oman allows expatriates to belong to 
associations--similar to unions--as long as the person can 
read, write and speak Arabic, while the UAE does not allow 
foreign participation in its associations. End note.) 
 
-------------- 
Emiratization 
-------------- 
 
¶3. (U) Al-Zaabi told Econoff that The Ministry of Labor is 
blacklisting firms and not renewing their employee's visas if 
they do not meet their Emiratization quotas.  Only 33 
companies out of 911 that are required to meet Emiratization 
quotas met their goals for 2006.  Banks, insurance companies 
and trading companies with more than 50 employees are 
required to meet Emiratization quotas, by hiring a certain 
percentage of UAE nationals.  In addition, companies with at 
least 100 employees are also required to have a UAE Public 
Relations Officer. 
 
¶4. (U) The UAEG is increasing its Emiratization push.  The 
MOL announced on June 24 that all newly hired secretaries and 
human resources officers in the private sector must be UAE 
nationals.  One article in the Gulf News, quoted Ahmad 
Kajoor, Assistant Undersecretary in the Ministry of Labor as 
saying, all applications for secretarial posts will be 
studied carefully, "but we (MOL) will not target jobs in 
small businesses."  Expatriates currently working in those 
positions will be able to retain their positions for another 
18 months or until their visas expire, whichever is first. 
Al-Zaabi said that he believed foreign secretaries or human 
resources officers will be given another job in their present 
company once their contract expires.  The Ministry estimates 
that 671 human resource jobs and 20,865 secretarial jobs will 
be made available to UAE nationals through the new 
Emiratization Decree.  The English language daily, Gulf News, 
quoted the Al-Ka'abi as saying "The Labor Ministry's new 
Emiratization plan is meant to strengthen the recruitment of 
UAE nationals in certain jobs rather than in certain sectors 
after we (MOL) found a lack of commitment to the 
Emiratization quota imposed by the Cabinet in the banking and 
insurance sectors and in trading companies." 
 
 
ABU DHABI 00002774  002 OF 003 
 
 
¶5. (U) The MOL estimates there is currently only one UAE 
employee for every ten expatriate employees in the private 
sector and the UAEG's aggressive Emiratization policy is one 
way to try and reverse those numbers.  The National Human 
Resource Development and Employment Authority (Tanmia) 
recently announced that at least 33,000 Emiratis are 
currently unemployed and expects that number to increase by 
13,000 each year.  In addition, 15,000 new university 
graduates enter the job market each year.  The Emiratization 
policy does not apply to government offices because federal 
labor law does not apply to the government sector.  Al-Zaabi 
believes Emiratization in the government sector is only about 
30-35%, although it is 99% in the MOL. 
 
¶6. (U) The MOL has also issued a decree stipulating a minimum 
wage for UAE nationals in the private sector.  A UAE national 
must receive a minimum of 5000 Dhs (1362 USD) a month if he 
possesses a post-secondary degree, 4000 Dhs (1090 USD) a 
month if he holds a secondary diploma and 3000 Dhs (817 USD) 
a month for all others. 
 
---------------------------- 
Mid-day Break for Laborers 
---------------------------- 
 
¶7. (U) The MOL has issued a Ministerial Decree mandating that 
outdoor workers have a mid-day break from 12:30-3:00 PM 
during July and August.  Inspectors from the MOL are checking 
to ensure that companies are complying with the required 
break time.  If companies are caught violating the break, 
they will be fined 10,000 Dhs (2725 USD) for the first 
offense, 20,000 Dhs (5450 USD) for the second offense and 
30,000 Dhs (8174 USD) for the third offense.  The English 
language daily, Gulf News, reported seeing laborers working 
at construction sites between 12:30-3:00 PM, in violation of 
the new rule.  According to the newspaper, 15 companies have 
violated the law since July 1.  (Note.  This is the second 
year the UAE has mandated a mid-day break.  However, this 
year's break is half an hour shorter than last year's rest 
period.  Since most workers live in remote labor camps it is 
not feasible for many laborers to return to their 
accommodations during their break, so most end up resting at 
their worksite or on the grass in nearby areas.  End note.) 
 
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MOL Increase Number of Inspectors 
---------------------------------- 
 
¶8. (SBU) Al-Zaabi said that the MOL will use 95% of its 2007 
budget of 120 million Dhs (3.27 million USD) to increase its 
number of labor inspectors.  The Ministry expects to hire 400 
inspectors.  (Comment.  Although this is a vast improvement 
over the past year's number of labor inspector (about 80), 
400 is still too low to properly inspect over 250,000 firms 
in the UAE. End Comment.) 
 
--------------------------- 
Revised Labor Laws 
--------------------------- 
 
¶9. (U) Throughout the past two months, the Arabic press has 
reported that Labor Minister Al Ka'abi would be submitting a 
revised labor law to the Cabinet this summer.  Al Khaleej 
newspaper quoted the Minister as saying, "there would be 
substantial changes in the law, which will rebalance the 
labor market and catch economic and social development."  The 
law would also remedy delays in payment of wages, absconding 
workers and labor strikes.  When Econoff asked Al-Zaabi about 
the Minister's revised labor law, he responded, "inshallah 
(God willing) it will be passed soon," but did not comment 
further.  (Note.  Ambassador and Econoffs have repeatedly 
asked MOL officials about the passage of the revised labor 
law and are always told that the law will be passed soon. 
Since the Cabinet adjourns for the summer on July 15, it is 
unlikely that the law will be passed until after September 15 
when the Cabinet resumes. End note.) 
 
--------------------------------------------- - 
Requirement to Leave for Six Months Abolished 
--------------------------------------------- - 
 
¶10. (U) Lt. General Sheikh Saif bin Zayed Al Nahyan, Minister 
of Interior, recently issued a Ministerial Decree abolishing 
the requirement that domestic servants leave the UAE for six 
months once their contract expires.  Under the new decree, 
once an individual's visa expires, they no longer have to 
wait outside the UAE for six months before beginning a new 
position.  This is in line with a similar decree issued by 
the Labor Minister several months ago abolishing the sixth 
 
ABU DHABI 00002774  003 OF 003 
 
 
month ban on laborers. (Note.  The Ministry of Interior 
regulates domestic servants, not the MOL, because domestic 
workers are sponsored by individuals rather than companies. 
End note.) 
SISON