GCC nations agree to find alternative to sponsorship system

The six GCC nations have endorsed the Bahraini proposal of arriving at a consensus among Gulf States about possible alternatives to the controversial sponsorship system and to impose a residence cap.

Responding to the Bahraini proposal, GCC labour ministers during a recent meeting said that a Committee of GCC Labour Undersecretaries will be formed to carry out studies that will help the member states in adopting similar policies.

The Committee will take into account the suggestions made earlier to impose a five-year residence cap on the unskilled labourers in the Gulf countries.

Bahrain’s Labour Minister, Majeed Al Alawi, had earlier warned that the presence of such large numbers of expatriates in Gulf for long periods could pose a real threat to the cultural and national identity of the region.

Among other issues to be taken into account by the new committee are, adoption of standardized policies for importing labour, narrowing differences in costs, and tackling obstacles faced in the free movement of Gulf labourers and employees in the six-nation alliance.

However, the toughest task for the committee is to find a suitable alternative for sponsorship system, used as a legal basis for residency and employment. Under the system, foreign workers are granted an entry permit visa and a residence permit, only if they have a GCC sponsor. They will have to work for the sponsor and will be entirely dependent on him to remain in the country.

Although the sponsorship system was initially introduced by the government to regulate the labour traffic in GCC, critics claim that it leads to exploitation of foreign workers, particularly, the unskilled labourers and women employed as domestic maids.

Therefore, Bahrain announced its move to scrap the system from August 1st 2009, a decision, which brought in vociferous protests by business community.

Last month, Lt. Gen. Dhahi Khalfan Tamim, the Dubai Police Chief, also called for abolition of sponsorship system, as it saddled Emiratis with unnecessary responsibilities, as they become responsible for every detail of their employees’ lives. However, the UAE business leaders are of the opinion that the decision would affect the interest of private sector and alter the demographic structure. The Chairman of UAE Contractors’ Association, Ahmad Saif Belhasa, recently questioned that if five to six million people entered the country without sponsorship, what security procedures would be taken to protect the country. He added that UAE’s national interest is above those of international organizations.

Posted on 22/7/2009

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