Contracting industry chief slams Bahrain sponsor move

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The axing of the sponsorship system for foreign workers in Bahrain will be detrimental for contracting companies, a leading official has said.

Bahrain Chamber of Commerce and Industry Contractors' Committee head Sameer Nass said the entire sector was infuriated and claimed the government had not consulted on the move.

"We were not consulted by the government before the decision was made," he said in comments published by Gulf Daily News on Sunday.

"We were told about the idea long time ago, but our objections were not considered."

Under the new regulations, foreign workers will be directly sponsored by the Labour Market Regulatory Authority and therefore able to move jobs without the consent of their previous employer.

The changes will be effective from August.

The previous system, which is common in the Gulf Arab states and under which employers do the sponsoring, has long been criticised by human rights groups for placing workers at the whim of their employers, who usually take their passports.

Nass said businesses were mainly worried about staff working in top positions in their companies being allowed to change jobs at will.

"A high-profile company spends from BD6,000 to BD10,000 to recruit a highly-qualified senior man from abroad to manage a project costing millions of dinars. A couple of months later, after he learns the market, he decides to join a competitor for a little more money and with him takes confidential information about the company and project," he told the paper.

"This company may also get staff from competitors. But is it fair?"

He claimed the scrapping of the sponsorship system would create "a dangerous situation" where companies would have "no stability".

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Posted by: Gloria

At last amove in the right direction. The only detrimental effect will be on those companies who currently abuse the rights of workers. Those companies which provide good conditions for their workers will retain them. In many countries there is no sponsorship system and they work efficiently with their staff. Staff loyalty is retained by offering good benefits, in-house training and chances of promotion or rewards for exceeding targets. There are many ways to retain staff other than by force. The sponsorship system ensures that staff have to stay regardless of conditions. If these are bad then staff are discontented and productivity falls. Harmonious atmospheres with contented staff increase productivity.In the long run the economy will benefit. People should have the right to improve their lives and move if it is beneficial to them.

Posted by: Sean McKenzie

In the 15 years that I've been following Mideast events, this bit of news is by far the most significant. It has taken countless years, blood, sweat, tears and international exposure to shed more light on a system so archaic, the dinosaurs would be proud. But it also took a whole lot of perseverence, guts and humility for the Bahraini rulers to pass a law that supports more 21st century rights to labourers. We all have different ethnic backgrounds, race, colour and religion. But basic dignity for the human race should remain a common fabric that binds us all together. Good on ya Bahrain. Eat this Dubai / UAE!

Posted by: Jimbo

I congratulate Bahrain on taking the initial steps to modify the employee sponsorship system. However the Gulf labour market is unique inasmuch as it depends on foreign labour at all levels, blue and white collar. Cost of recruitment and employment is high and mistakes are expensive and not always simple to remedy. In western countries there is freedom of movement of staff which puts the onus upon the employer to provide good working practices and environments with fair remuneration packages. This encourages loyalty amongst its staff and consequently many employees serve in the long term. Very often this is not the case in the Gulf and disgruntled employees find themselves trapped in either inappropriate roles or poor working conditions. The removal of the sponsorship system will inevitably result in job-hopping as staff endeavour to increase their remuneration and conditions. This already happens to a degree. However, as the labour market matures and employers take more care about staff satisfaction then western levels of loyalty may be achieved. It's a tough call, Bahrain, but I think with care and thought you are moving in the right direction. Good luck!

Posted by: Frequent Visitor

This new Bahrani sponsorship system makes much more sense, in terms of human rights, than the previous system of servitude. It may cost an employer up to 10K BHD to recruit a top ex-pat executive in Bahrain, but way less than that for construction workers. I suspect the biggest cost of bringing in plane loads of Bangledeshis, Indians or Nepalese, does not even fall on the employer. It is the fee paid to the 'gangmaster' back in their home country, who recruited them in return for a pecunious loan that takes them years to repay. Construction site labourers work and live under appalling conditions and are invariably separated from their families for years at a time. The key to employee retention, is enabling them to believe in a better future for them and their families. Employers - Give them a fair wage to enable them to send a reasonable part of it back home, make the monthly money transfer back home for them (with evidenced receipts!) and provide them with the opportunity to become literate and numerate, through part time education schemes. Reward good employees with paid leave and air fares back home, after two years continuous service, on condition they return to work on the agreed day. Do these things and you will slowly build a loyal, more contented and more highly skilled workforce.

Posted by: Dude

Mr. Samer, There is nothing wrong with the new system but it was all wrong with the old system. People have the right choice between jobs, have the right to plan for their future, they have the right to progress in their short life on Earth. Life is already difficult and needless to have someone named a sponsor making it even more difficult. Let it go, contracting companies have been making deep pocket profits on labor charged to projects at high rates while they are a fraction of the revenue the earn to their employers which typically doesn't exceed 1 day of work.

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