Is the time of labour reforms upon us?

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New rules: is an increase in salary, conforming to a new minimum amount, the best response to the rising threat of worker unrest?

A major strike last week by Arabtec workers on the Burj Dubai has prompted the UAE Ministry of Labour to launch an urgent review of workers' salaries.

The review will involve collaboration with all construction companies and will be carried out within the next two months.

The move could mean the introduction of a minimum wage.

"This is the first time the ministry has decided that an increase in salary is a must for construction workers," BS Mubarak, labour consul, Indian consulate, told Construction Week.

"The workers were promised a rise in their salaries within two months, and no company would be able to pay less than the sum decided upon."

Mubarak added that a basic minimum salary of US $163 (AED 600) has been suggested, but that the final amount would be decided on only after consultation with construction companies.

But is a minimum wage the solution to the problem?

"There has never been a more pressing time than now to implement a minimum wage," said Ani Ray, country head of contracting company, Simplex Infrastructure.

"If the UAE wants to retain workers, it will need to implement this with the utmost urgency. Firstly, the cost of living in Dubai has gone up. Secondly, because of the recent drop in currencies pegged to the US dollar, workers' salaries have been reduced by around 15%, with more reductions expected in the future.

"And lastly, the Indian economy is attracting workers back home. Without the lure of a good minimum wage, it's going to be very difficult to find workers for projects here."

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