Worker sponsorship - other states set to follow Bahrain lead

LABOUR SCHEME: Bahrain first to dispense with sponsorship system for foreign workers. It may not be the last. (Getty Images)

Other GCC states are set to follow Bahrain’s lead by scrapping the sponsorship system under which expatriate workers are hired in the region, according to media reports.

Alaswaq.net, cited by Emirates Business, said sources connected with the GCC labour market indicated that after Bahrain's announcement, other GCC countries are now considering their own positions.

Bahrain said on Tuesday it would scrap its existing sponsorship system for foreign workers in the hope of reducing its need for foreign labour.

In a statement Bahrain's Labour Minister Majeed al-Alawi said: "We're working on identifying a ceiling on expatriate workers in Bahrain."

Al Alawi, was also quoted as saying that all GCC states had been kept informed about Bahrain's decision.

Ahmad Lokman, Director-General of the Arab Labour Organisation (ALO), is certainly convinced, claiming that all GCC states intend cancelling the sponsorship system, based on meetings he’s had with labour and social affairs ministers in the region.

"The sponsorship system deviated from its set goals. Therefore, Bahrain has taken a big step and other GCC countries will follow," Lokman told Alaswaq.net.

Meanwhile, the International Labour Organisation's (ILO) representative in Kuwait, Thabit Haroon, told Alaswaq.net: "Kuwait also intends to go ahead with the cancellation of the sponsorship system. The ILO has presented a study to help organise the import and employment of manpower."

Haroon said the complicated political landscape in Kuwait had delayed the decision so far.

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READERS' COMMENTS

Very clever
Posted by Doug on Thursday 7 May 2009 at 12:02 UAE time


This is a genius idea.

Think about it. If an expat worker is free to move between companies, then companies will be obliged to raise wages in order to keep their staff.

Companies will have to pay expat staff much more in order to keep them.

Then, suddenly, the situation where it is much cheaper to hire and expat than a local will disappear. There becomes no incentive to hire an expat over a local anymore, which means that companies will then hire more locals, and fewer expats. It solves the demographic imbalance and provides work for all the locals. It's genius.

Bahrain Worker Sponsorship
Posted by Omar Shamma, Dubai, UAE on Thursday 7 May 2009 at 10:49 UAE time


I response to an earlier comment that the initiative to scrap the existing sponsorship system in Bahrain, to be replaced by a central government sponsorship, is to limit the number of expat workers and increase pressure on hiring nationals I think this is positive. Governments need to focus on the well being of their own citizens first. However, I do think that the way to encourage nationals to enter the private sector is to reduce the incentives in working in the public sector. The social net that GCC governments offer their citizens has spoilt them and it is time the net is reeled in a little.

I knew there was an 'angle'
Posted by Toby, Dubai, United Arab Emirates on Thursday 7 May 2009 at 10:04 UAE time


Thanks Aamir for bringing us a real-world take on the situation. Yes it's the labour supply that will be controlled, it all makes sense now. I can see this being an attractive option for all the Govs in the region. Bahrain used to be the Airline, Banking and Advertising hub for the region, it was the 'Dubai' of the time, and now they attack expats and will ban alcohol soon. Change is the only constant!

GCC will follow Scraping Workers Sponsorship
Posted by Mohammad Osman, Riyadh, Saudi Arabia on Thursday 7 May 2009 at 09:34 UAE time


Regardless of the intention of the GCC countries authorities of scraping the Sponsorship, I strongly believe that this will create a healthy environment between GCC countries and Foreigner workers. Giving the freedom of work will give you as foreinger to stay and do what you wish or leave without any pressure from your sponsor.

GCC are planning to create jobs for their nationals and that is their own rights, but, we as foreigners we can enjoy more freedom to look a better jobs rather than restricting your life to specific person or organization. I am very optimistic and applaud any GCC country which follow the same steps as that of Bahrain and the environment will be much better than what some guys are visualizing.

Lets expect good for all.

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