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Money matters
What kind of impact could this have on the FM recruitment process?
Fast, is the word that sums up the rate at which building construction takes place in the Emirates.
Cheap labour, is the word that allows it to happen at such a pace.
There's no where else in the world that experiences the sheer volume of construction workers like Dubai does, and no where else in the world that can see this amount of construction taking place 24 hours a day, seven days a week.
But these workers are paid peanuts, apparently a mere 25 dirhams ($6.81) a day to survive.
Minimum wage laws are applicable in over 90% of all countries. By international standards, if authorities in the UAE were to increase the daily rate to 30 dirhams, this would still be well below most countries daily rate.
The UAE Ministry of Labour is currently working on the possibility of introducing a minimum wage for construction workers in the Emirates. This will be submitted to the council of ministers for approval and if approved could be implemented this year. There is also a high possibility that it will be rolled out to others sectors.
So what does this mean for the FM recruitment process?
People employed in most soft service jobs, cleaning for example, will no doubt see an increase in their wage but the amount of this increase is yet to be announced.
If the new set wage is comparable or higher than in other parts of the world, Dubai could well attract more lower skilled people and experience an increase in job interest.
However, with the recruitment pools already starting to dry up and employment opportunities increasing in other countries, authorities run the risk of causing extra recruitment problems for soft service employment if the wage is not attractive enough.
If companies are using an employment agency, there is a strong possibility that recruitment fees will increase. This additional charge could well force companies to source their own staff, taking business away from FM recruitment agencies.
An increase in wages will inevitably have an effect on the value of the service contract if it is outsourced. FM companies will be required to pay certain employees more and will no doubt want this extra expense covered by the client.
On the positive side, with FM now starting to attract more coverage it is hoped that the introduction of a minimum wage would make all staff feel like they are equal. It could help alleviate some of the hierarchical tension and have an overall positive effect on staff moral.
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