By Aroonim Bhuyan, IANS
Dubai : India is taking a comprehensive and consensual approach to fixing a minimum wage limit for its workers in the United Arab Emirates (UAE).
“We are taking a comprehensive and consensual approach to the minimum wage limit issue in consultation with the local and Indian authorities,” India’s Ambassador to UAE Talmiz Ahmad told IANS by phone from Abu Dhabi Tuesday.
India has called for a minimum wage limit for its skilled and unskilled workers in the Gulf nations.
“The rising costs of living combined with fall in the value of the dollar has severely eroded the real wages that an overseas worker receives,” Minister for Overseas Indian Affairs Vayalar Ravi said last month in Abu Dhabi.
Speaking at the fourth ministerial consultation on overseas employment and contractual labour for countries of origin and destination in Asia, the minister said: “This has placed considerable stress on workers of all nationalities. There is an urgent need to introduce a widely accepted international norm for linking the wages structure to the cost of living.”
Ambassador Ahmad said that the minimum wage limit could not be fixed without having a model contract in place first.
“A minimum wage limit cannot be fixed without first ensuring that this would be adhered to by the employers here. That is why I first want to ensure that a model contract is put in place, which will be signed by the workers in India and attested by the embassy here.”
The ambassador said that whatever the amount, it should be realistic.
“We can’t have an unrealistic figure as the minimum wage limit. This will draw a severe backlash from the employers here and Indian workers will be the ones who lose out. I can’t deny our workers the job opportunities here,” he said.
Ahmad added that he was working on having different wage limits for different categories of workers.
There are around 1.4 million Indians in the UAE, many of them working as contract labourers in the booming construction industry here.
With the issue of India going for minimum wage limit getting wide media attention here, construction companies have expressed concern at the proposed move.
“The construction companies have already calculated the budget for labour wages for the ongoing projects. If the fixed minimum wages are more than those estimated in our budgets, they will have an adverse effect on us,” N.M. Naushad, human resources manager of the Wade Adams Contracting Co, told the Khaleej Times newspaper.
“It will be difficult for construction companies, especially small companies, to handle the situation. However, we will wait and see what decision that comes up.”
Biju Ninan, chief executive officer of Grey Matter Construction Co, told the daily: “The decision to fix minimum wages will definitely affect the budget of many companies. It would be difficult for them if they are looking for cheap labour from other countries like China, Vietnam or African nations because of non-availability and linguistic barriers.”
According to Abdul Majeed, manager of Power Construct, the minimum wage system will have its ripples in the market and the cost of construction will shoot up.
“This will affect the real estate market also,” he was quoted as saying.
Meanwhile, the Indian embassy in Bahrain has issued a press release stating that the minimum wage limit for the unskilled Indian workers in that Gulf country has been fixed at 100 Bahraini dinars ($266) a month.
“… Government of India would take appropriate steps to ensure that fresh employment being signed with effect from March 1, 2008 by prospective Indian employees with foreign companies would lay down the basic minimum wage of 100 Bahraini dinars apart from free provision of accommodation, transport etc. as per the requirements of Bahraini laws and regulations in the unskilled category,” it stated.
“All the Offices of the Protectors of Emigrants in India will ensure that these employment contracts will match the criteria set by the government.”
As for existing contracts, it stated that it was for the employers in Bahrain to take appropriate decisions based on their best judgment and humane considerations.
India’s Ambassador to Bahrain Balkrishna Shetty earlier told IANS that this step was being taken on account of the rising cost of living.
“We are linking the wage structure with the cost of living and want the salaries to be paid through banks,” Shetty said.
This would protect workers from exploitation, inflation and the appreciation of the rupee, he added.