UAE Law # 8 & 12 govern Labor Law: "Trade unions do not exist [and]...Strikes are forbidden." The law is simple & direct. Deviations result in fines, jail and deportation

On April 26th 2006, 2,000 workers struck at Dubai Marina demanding a pay rise. On May 16th an additional 8,000 Besix laborers stopped working. Incidents continued for the next 1.5 years culminating with the walkout of 4,000 workers on October 23rd and 3,600 on October 28th 2007. The astonishing growth in the UAE (especially Dubai) has had a dark side – immigrant manual labor. The need for this labor and Arabic culture are now at crossroads.

Growth

As of March 2007, Dubai had 34,000 of the world’s 125,000 tower cranes; or 27% of the cranes in world. In an October 14th 2007 60 Minutes report, Dubai Inc., reporter Steve Kroft asked Sheikh Mohammed bin Rashid al Maktoum, Ruler of Dubai, about construction in the Emirate. One project alone is called the "largest construction site on earth," worth $300 billion. By most estimates the UAE currently has over $1 trillion worth of projects underway. That is more than the GDP of all but 9 of a list of 183 countries.

Labor

In the 60 minutes report, Georges Makoul, VP of Morgan Stanley Middle East Region says: "People can smell the opportunity. And they go for it.” Foreigners are entering the country at the rate of “25,000 per month” and as of 2005 that is 2,738,000 migrant workers. They make up 95% of the country’s total workforce.

As stated by Dr. Rochdi Younsi, lead analyst for the Eurasia Group, which does risk analyses for European Companies, "Dubai, in many ways, is a Western country. A Western-style country!” However, according to Human Rights Watch, 700,000 of these construction workers are from India and the Asian Subcontinent.

The Problem

While Dubai is a Western style country it is also steep with Arabic tradition. "We are not talking about a democracy here," says Dr.Younsi. Foreigners have few rights and all the power is contained by those steeped in tradition. A social pyramid exists with the Emiratee on top and the non-skilled or semi-skilled workers at the bottom. This level of worker is viewed as an expendable indentured servant.

According to HRW, 880 construction workers were killed on the job in 2005 and while the national average wage is $2,500 per month the construction workers earn between $106 and $250 per month.

The Solution

The cultural answer is simple for Dubai: "The laborers do not want to work and we will not force them to…The appropriate bodies have been contacted to carry out the necessary measures [for their deportation]," Humaid bin Deemas, a senior official from the labor ministry said to the Gulf News.

Seemingly harsh, this attitude is consistent among leaders. UAE Labor Minister Ali Bin Abdullah Al Kaabi said “worker protests have taken a dangerous turn and the UAE will deport any worker who violates the law.”

But the stakes are high and officials have started arresting strikers for "law violations:" It is illegal to strike. “Top police official, Brigadier Al Mansouri, confirmed at least three workers were arrested after they refused police orders to get on company buses [to go to the worksite.]”

But the hidden danger for the UAE is the possible worker sentiment expressed in the George Clooney movie, Syriana. When asked by Steve Kroft; Dr. Younsi said: "…if you're concerned about the risk that al Qaeda may pose to Dubai in the future, I would look at the labor issue in Dubai. Many of these people have been disgruntled for years now because of the horrible working and living conditions. And it is pretty easy for an organization like al Qaeda to exploit that kind of anger."

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