The economic boom in India is a much discussed topic these days. However, all is not well for expats from India who are working in the Middle East. Today, Indian companies offer huge pay packages to employees and thus changed the scenario of migration to UAE and the Gulf. An Indian worker would prefer to stay in his own country and earn almost the same amount earned by the expatriate workers in the UAE. The decline in value of the dollar and dirham have further aggravated the woes of expats who are having a tough time in sending money back home and making their ends meet.
The very concept of migration to the UAE has changed these days and UAE is no more a dream destination for workers from countries like India and Sri Lanka. With the cost of living rising to an all time high, UAE and the Middle East at large has lost its earlier charm when jobseekers would try their best to get there and work. The problem is much more than just inflation and at present expats finds it really hard to save and have to survive in their pay cheques. Few years ago, an Indian expat coming to UAE would expect about four times more earning than in India, but that’s not the case anymore. As the U.S. currency and dirham declines against the euro and some of the major currencies, the pay differential has been reduced to 40 percent and this eroded the advantage of working in the UAE.
Today, Indian companies and employers are providing workers with all the facilities to live life comfortably. Thus, it’s increasingly becoming tough for employers in the Middle East to hire workers from India. “Indian workers who have been working in the gulf for many years become isolated and separated from their families and this affects them mentally too. The work situation is not in line with human nature. DSS is planning to undertake a study to examine the long term effects of working in the Middle East. As a company that has sent 120,000 people to better opportunities overseas, DSS feels responsible for ensuring successful reintegration”, said Mr. Samir Khosla, Vice-Chairman of Dynamic Staffing Services.
Thursday, May 22, 2008
Friday, May 16, 2008
Why Should Firms Leave Sharjah?
Today, Dubai has evolved as a freewheeling commercial centre where innumerable glass towers rise above bustling spice markets. This is a city known for being glitzy, glamorous and remarkably liberal compared to other regions of the Middle East. Numerous restaurants in this place offer world-class cuisines and the nightlife here is simply sizzling. Hidden from all the glitz and glamour lies the sorrowful lives of the expats who toil hard to fend for their family and make their ends meet.
Life is not as easy as it looks for workers coming from other countries. Recently there was a proposal to force companies that have labour camps in Sharjah to register and this can result in the firms leaving the emirate. It is seen that to innumerable companies camp scores of workers in Sharjah to take advantage o the lower cost of living in Sharjah. This cost-saving attractiveness of Sharjah may evaporate if it imposed restrictions, especially because of the long commutes on congested roads linking Sharjah to Dubai.
“Those who have to commute a total of four hours, versus those who commute two hours per day, are not as productive because the long commute would definitely affect their productivity; it would affect their satisfaction and at the end of the day it would impact the work on the job site. At the end of the day, the cost savings of Sharjah wouldn’t be there if there are restrictions,” said Samir Khosla, the Vice-Chairman of Dynamic Staffing Services.
Mr. Khosla also said that housing workers in Sharjah has benefited only the companies with a large number of employees and such companies could actually save up to 30 per cent by following this method. He said his company contracted 400 employees and had chosen to keep them closer to job sites and save the costs of commuting, both in transportation expenses and lost hours on the job.
Not long ago, Sharjah witnessed many incidents of labour unrest and that’s the reason it plans to enact a law that would require companies housing labourers in the emirate to become registered Sharjah companies. UAE has stepped up the process of improving workers’ rights, which would certainly increase the efficiency and satisfaction of the employees. This is vital as the country’s rising inflation is making it tough to attract and retain workers.
Life is not as easy as it looks for workers coming from other countries. Recently there was a proposal to force companies that have labour camps in Sharjah to register and this can result in the firms leaving the emirate. It is seen that to innumerable companies camp scores of workers in Sharjah to take advantage o the lower cost of living in Sharjah. This cost-saving attractiveness of Sharjah may evaporate if it imposed restrictions, especially because of the long commutes on congested roads linking Sharjah to Dubai.
“Those who have to commute a total of four hours, versus those who commute two hours per day, are not as productive because the long commute would definitely affect their productivity; it would affect their satisfaction and at the end of the day it would impact the work on the job site. At the end of the day, the cost savings of Sharjah wouldn’t be there if there are restrictions,” said Samir Khosla, the Vice-Chairman of Dynamic Staffing Services.
Mr. Khosla also said that housing workers in Sharjah has benefited only the companies with a large number of employees and such companies could actually save up to 30 per cent by following this method. He said his company contracted 400 employees and had chosen to keep them closer to job sites and save the costs of commuting, both in transportation expenses and lost hours on the job.
Not long ago, Sharjah witnessed many incidents of labour unrest and that’s the reason it plans to enact a law that would require companies housing labourers in the emirate to become registered Sharjah companies. UAE has stepped up the process of improving workers’ rights, which would certainly increase the efficiency and satisfaction of the employees. This is vital as the country’s rising inflation is making it tough to attract and retain workers.
Indians Avoiding Dubai as Dollar Plunge
Dubai's incessant economic growth is a much talked about subject. However, its impressive growth has out-stripped its ability to provide sufficient core infrastructure for its countless workers traveling from places like Sharjah. The plunge of the dollar and the dirham is a cause of concern for local residents as well as for expatriate workers from foreign countries. It is seen that many Indian construction workers are unwilling to work in Dubai because their earnings would be eroded by the high cost of living.
The backbone of the construction industry in Dubai is the South Asian workforce, mainly from India. Indian construction workers would expect to earn four times as much as they would in India if they moved to Dubai five years ago, MEED cited Samir Khosla, Vice-Chairman of Dynamic Staffing Services, as saying. “As the US currency hits all time low compared to Euro and other currencies, the pay differential has been reduced to 40%,” said Mr. Khosla.
The situation has become such that most of the expats working in Dubai are unable to send home the amount of money they used to do earlier. The competitive advantage of working in the emirate has eroded now.
"Most of the workers coming to here work in construction don't have any savings and just live from pay cheque to pay cheque. Even a small fall in the value of the dirham against the rupee is a problem for them," Mr. Khosla said.
The backbone of the construction industry in Dubai is the South Asian workforce, mainly from India. Indian construction workers would expect to earn four times as much as they would in India if they moved to Dubai five years ago, MEED cited Samir Khosla, Vice-Chairman of Dynamic Staffing Services, as saying. “As the US currency hits all time low compared to Euro and other currencies, the pay differential has been reduced to 40%,” said Mr. Khosla.
The situation has become such that most of the expats working in Dubai are unable to send home the amount of money they used to do earlier. The competitive advantage of working in the emirate has eroded now.
"Most of the workers coming to here work in construction don't have any savings and just live from pay cheque to pay cheque. Even a small fall in the value of the dirham against the rupee is a problem for them," Mr. Khosla said.
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