By IANS
Dubai : Close on the heels of labour strikes in the construction industry in the United Arab Emirates (UAE), 50 major contracting companies have decided to raise wages of labourers by up to 20 percent. The move will benefit at least 100,000 workers, many of them Indians.
This decision was taken at a meeting between the country’s labour ministry and representatives of various construction companies, the Gulf Today newspaper quoted a source as saying.
“Salaries of workers have been increased by at least 100 dirhams (about Rs.1,000) due to exchange rate fluctuations and rise in the cost of living in the country,” the newspaper quoted a source as saying on condition of anonymity.
A large number of the 1.4-million-strong expatriate Indian community in this Gulf nation work as contract labourers in the booming construction industry.
Following this decision, at least 100,000 workers are likely to be benefited.
Currently helpers are paid 550 dirhams per month, whereas skilled workers like painters, carpenters, masons and tradesmen are paid 700 dirhams per month. The salaries are likely to be revised following the decision.
“Cost of construction is going to rise by 10 percent. The contracting companies have to balance the cost of construction to the rise in the wages when they take up new projects. A large number of players who cannot bear the additional cost are likely to be eliminated from the market, leaving behind those who can sustain the pressure in the longer run,” the source said.
The UAE dirham, which is pegged to the US dollar, has hit record lows against the euro and a basket of major currencies following the US currency losing value.
As a result, foreign workers here have been remitting lesser amounts of money to their families in the respective countries.
Earlier this month, Arabtec Holding, one of the contractors involved in the construction of Burj Dubai, which will be the world’s tallest building, reached a settlement with workers regarding their wages. Around 35,000 workers of the company had gone on a 10-day strike demanding higher wages.
Though the company has not disclosed the amount by which it has increased the workers’ salaries, it said that the settlement would increase its costs by at least one percent.
In October, 159 workers, including 90 Indians, were found guilty of indulging in violence during a labour strike in the Jebel Ali port area here. The protestors were demanding better wages, accommodation and transport services.
Following these incidents, the UAE cabinet had urged the country’s labour ministry to urgently work on proposals on the issue of salaries of workers in the construction sector.
Labour ministry assistant under secretary Humaid bin Deemas had said that his ministry would meet the companies concerned to prepare a study that will seek to ensure that the rights and interest of workers and owners of the companies for which they work were equally protected.
Stating that the authorities were dealing with the issue in accordance with the due process of law, he said that his ministry remained committed to protecting the rights of workers and to the implementation of all related procedures, as well as carrying out inspections of facilities and workplaces for workers.