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ACTION NEA-10
INFO OCT-01 ISO-00 CIAE-00 COME-00 EB-07 INR-07 LAB-04
NSAE-00 SIL-01 DODE-00 PM-04 H-02 L-03 NSC-05 PA-01
PRS-01 SP-02 SS-15 USIA-06 /069 W
--------------------- 044413
R 170855Z MAR 76
FM AMEMBASSY ABU DHABI
TO SECSTATE WASHDC 4084
INFO AMEMBASSY DOHA
AMEMBASSY KUWAIT
AMEMBASSY MANAMA
LIMITED OFFICIAL USE ABU DHABI 0701
E.O. 11652: N/A
TAGS: ELAB, TC
SUBJ: UAE LABOR LAW SHELVED A SECOND TIME
REF: 75 ABU DHABI A-63
1. BEGIN UNCLASSIFIED: AFTER SUFFERING A HUMILIATING DEFEAT
LAST FALL, THE UAE MINISTRY OF LABOR TRIED AGAIN TO PUSH
FEDERAL-WIDE LABOR LEGISLATION THROUGH THE INCREASINGLY
FRACTIOUS AND RECALCITRANT FEDERAL NATIONAL ASSEMBLY. TWO
MONTHS OF DEBATE FOLLOWED THE REINTRODUCTION OF THE DRAFT LAW,
WITH UAE BIG GUNS SUCH AS THE HIGHLY RESPECTED LABOR UNDER
SECRETARY SULTAN BIN KHALIFA (DUBAI) AND THE MINISTER OF STATE
FOR FOREIGN AFFAIRS, SAIF GHOBASH, TESTIFYING IN FAVOR OF THE
LAW AND PATIENTLY EXPLAINING ITS PROVISIONS TO ASSEMBLY MEMBERS.
2. THE DRAFT LAW WAS AN OMNIBUS LEGISLATIVE PIECE. THE 122
ARTICLES ORGANIZAED IN 13 CHAPTERS REPRESENTED CONSIDERABLE
RESEARCH INTO ILO AND ALO RECOMMENDATIONS ALONG WITH THE
PRACTICES OF OTHER ARAB STATES. IT WOULD HAVE ESTABLISHED
IN ONE STROKE A LEGAL FRAMEWORK FOR ALMOST EVERY FACET OF
EMPLOYER-LABOR RELATIONSHIPS. THE LAW WOULD HAVE SET
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MINIMUM WAGES, ESTABLISHED RIGHTS FOR WOMEN, SET
STANDARDS FOR EMPLOYMENT OF JUVENILES, WORK SAFETY REQUIREMENTS
AND COMPENSATION FOR ON-THE-JOB INJURIES. SIGNIFICANTLY LAW,
WHILE CONTINUING BANS ON LABOR UNIONS AND STRIKES, WOULD
HAVE AUTHORIZED "EMPLOYEE ORGANIZATIONS" AND ESTABLISHED
ARBITRATION PROCEDURES FOR WORK DISPUTES.
3. FEDERAL ASSEMBLY WAS APPROVING LAW ON ARTICLE-BY-ARTICLE
BASIS AND WAS TWO-THIRDS FINISHED WHEN DEPUTIES FROM RAS AL-
KHAIMAH (RAK) RAISED OBJECTION THAT LAW PROVIDED BETTER
TREATMENT FOR FOREIGNERS THAN LOCALS. FOREIGN-HIRED EMPLOYEES,
PARTICULARLY "WHITE COLLAR WORKERS" RECEIVE BETTER SALARIES
IN ADDITION TO HOUSING, FURNITURE, TRANSPORTATION AND LEAVE
BENEFITS. RAK DEPUTY SAEED DARWISH DEMANDED THAT NATIONALS
MOVING FROM ONE EMIRATE TO THE OTHER RECEIVE SAME BENEFITS
AS FOREIGN EMPLOYEES. BETTER YET, HE SAID LABOR MINISTRY
SHOULD FOLLOW RECOMMENDATION OF ASSEMBLY'S ECONOMIC AND
SOCIAL AFFAIRS COMMITTEE AND SUBMIT TWO LAWS - ONE FOR
FOREIGNERS, ANOTHER FOR LOCALS. AS RESULT OF DARWISH'S
HARANGUE, FURTHER DEBATE ON LAW HAS BEEN INDEFINITELY
POSTPONED. DEFEAT APPEARED TO COME AS SURPRISE AND WAS
WIDELY PUBLICIZED IN ABU DHABI ARABIC AND ENGLISH LANGUAGE
PRESS.
3. BEGIN LOU: COMMENT: WHILE ANTI-FOREIGN SENTIMENTS,
AS VOICED BY DARWISH, MAY BE CAUSE FOR LAW'S DEFEAT, OTHER
UNDERCURRENTS UNDOUBTEDLY PRESENT. LAW WOULD HAVE, AT
LEAST ON PAPER, SIGNIFICANTLY BROADENED UAE AUTHORITY IN
AREA WHICH TRADITIONALLY HAS BEEN LEFT TO EMIRATE REGULATION.
RAS AL-KHAIMAH, AT LEAST AS MUCH AS DUBAI, IS STRONGLY
RESISTING DIMINUATION OF INDIVIDUAL EMIRATE POWERS IN
FAVOR OF THE FEDERATION. JUST AS ZAYED HAS HAD TO ACCEPT
DEFEATS IN SUPREME COUNCIL OF RULERS IN ATTEMPTING TO
STRENGTHEN FEDERATION, ACTION BY DEPUTIES FROM RAK IN
SUCCESSFULLY HAMSTRINGING AN ESSENTIAL PIECE OF UAE
LEGISLATION, IS FURTHER REFLECTION OF DIFFICULTIES FACED
BY PRO-FEDERATION FORCES. END LOU.
PEALE
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