Gulf migration study: employment, wages and working conditions of Kerala emigrants in the United Arab Emirates

Abstract

This is the fourth in a series of Working Papers published by the CDS on Kerala migration. Unlike the other three, this one is financed by the Kerala Government and the data were collected in UAE. The objectives of this Working Paper are to: - document changes in the labour demand for different categories of emigrant workers - enumerate the emigration policies - examine employment and working conditions, wage levels and related problems of the Kerala emigrants - understand the education and training requirements of future emigrants to UAE. On the basis of official data, the total stock of Indian emigrants in the Arab region in 2000 was estimated to be about 30.7 lakhs. Of them, about 10 lakhs are reported to be in UAE. The total stock of Kerala emigrants in UAE was about 5 lakhs in 2001. This paper is noteworthy in a number of ways for its contributions to our understanding of Kerala migration to the Gulf countries. It gives the most authentic estimate of the annual remittances to Kerala from the Gulf countries and from other parts of the world. The average annual estimate of the total remittances from all countries of the world is Rs 13,815 crores for the period 1998-2000. Remittances from the Gulf countries alone would be about Rs 12,640 crores. The paper concludes that changes in the immigration policy of the UAE government, completion of major infrastructure projects and economic recession in the region have reduced substantially the demand for unskilled and semi-skilled labourers in the UAE. The new policies are related to demographic balancing, emiratization, banning visa for unskilled Asian workers, large-scale mechanisation to make unskilled labour very expensive, etc. The UAE government has also stopped accepting applications for visas for unskilled workers from India, Pakistan and Bangladesh with effect from 18th July 1999. Future demand will be for categories of skilled workers, technicians, computer workers, heavy equipment operators, electrical workers and professional categories such as doctors, nurses, engineers, teachers and accountants. The future emigrants from Kerala should be equipped to meet the changing demand for migrant labour in UAE. Our survey in UAE among the Kerala emigrants revealed that the largest proportion (36 percent) of workers was engaged in unskilled, semi-skilled and skilled categories in construction, production and transport activities. Nearly one-fifth were in professional and technical work. The other major categories in which Kerala emigrants were employed were clerical, sales and service activities; more than threefourths of them were employed in regular employment drawing monthly salaries. The majority of the Kerala emigrants work for more than 8 hours per day; and more than one tenth work for about 10 to 14 hours per day. The major problems faced by several Kerala emigrants in the UAE are non-payment of salaries, denial of wages and non-wage benefits stipulated in their work contracts, refusal to release passport and nonpayment of air-ticket fare for return to Kerala. Nearly one-third of the Kerala emigrants live in worker camps and in the majority of cases, the number of persons per room range from four to six. The survey found that 36 percent of the emigrants had a monthly savings of less than 500 Dirhams (Rs 6,000) and another 37 percent a monthly savings of 500 to 1000 Dirhams (Rs 6000 to Rs 12000). Taking into consideration the changes taking place and envisaged to take place in the labour market conditions and also the changes in the 3) There is need to review the airfares in routes connecting Indian airports with the major airports of the Gulf countries. The Ministry of Civil Aviation, Government of India may appoint an expert committee to review the pricing policy and fare structure of the air lines in the interests of the emigration of Indians to the Gulf countries. 4) There is a strong case for reducing the airport user fees levied in Kerala. We recommend that the user fee levied in international airports at Cochin and Calicut should be reduced to Rs.100 per adult passenger. The fee should be levied from domestic as well as international travellers, excluding only infants from the levy. 5) We recommend that the name of emigrants and their dependants who live abroad should be included in the ration cards of the households and in the voters’ list of the panchayats or municipalities/Corporations, concerned. In the ration cards and the voters lists, it may be noted against their names that they are currently working abroad. 6) We recommend that the state government should direct the universities in Kerala, State Boards of Technical Education, and Public Examinations and other bodies which issue certificates and degrees, to send certificates of verification to the Indian Embassies in the Gulf countries on a priority basis. For each application for verification the above institutions may charge a fee of 100 U A E Dirhams or its equivalent. 7) The State Government may formulate a savings scheme and a pension scheme for emigrants with the help of banks, insurance agencies, or mutual funds, based on contributions from emigrants.