Thursday, May 12, 2005

Abuse in the labor market - Khaleej Times
ABU DHABI - The Labour and Social Affairs Ministry has amicably settled the issue pertaining to over 100 employees seeking release from the West Coast Cleaning and Environment Services Estalishment following non-payment of salaries since February, Khaleej Times has learnt.
Notice that the employees are essentially indentured workers who could not leave the firm and seek employment elsewhere. Even when the firm failed to pay them.

As long as the labor law prevents foreign workers from changing jobs there will be cases of firms with nothing left to lose who abuse this feature of the law. And there will be some firms whose business model is in essence to commit fraud against workers. Legitimate businesses will suffer the consequences; as word of these abuses reach workers overseas considering working in the Gulf they will demand a premium to work in the UAE.

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