Reforming the system: HE Dr Majeed Al Alawi

HE Dr Majeed Al Alawi

Bahrain’s Minister of Labour HE Dr Majeed Al Alawi sat down with CW to discuss recent protests over labour fees, the chances of introducing a minimum wage and a new law which will “virtually break” the sponsorship system

How has the Bahrain labour market changed over recent years?

We started working on a number of issues. First of all we wanted to provide protection for our own Bahraini human resources so we started a national employment project, because unemployment was around 16% in 2003. We carried out a massive campaign to recruit Bahrainis.

The problem was structural unemployment, we had jobs and we had the unemployed but they didn’t match each other. Bahrainis were not attractive, or attracted, to the private sector. So we changed a lot of people’s mindsets and instigated training programmes. Unemployment has since been between 3.5% to 3.8%.

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We also established our social benefits system through the parliament – there is no other country in the region with such a system. It is financed by employees, employers and the government – each pay 1% of their earnings. Having a social security system has actually proved crucial to solving the unemployment problem. The system is linked to training the unemployed; it’s not just about giving away money.

We also established the Labour Market Regulatory Authority (LMRA) to control the issuing of work permits and issues between employers and employees. The board, of which I am the chairman, is made up of people within the government, industry and trade unions.

What about protecting workers’ rights?

The Labour Ministry has instigated a number of initiatives to provide protection to expatriate workers. We banned working during the summer months from 12 noon to 4pm for construction workers and this has been implemented in the last two years with great success.

This month we are banning transporting workers in the back of open trucks. We also imposed that salaries should be paid through banks. Also by law, if an employer delays payment to a worker by more than six days then interest starts to accrue and this must be paid to the employee.

We have also carried out thousands of inspections of labour camps and construction sites, and we prosecuted many companies for violating health and safety. Our standards for safety are very high because we signed various ILO conventions and international articles. There are still further improvements in this regard on the way.

I think one of the biggest things we’re doing is allowing the freedom of movement for expatriate workers. They will be allowed to apply for another job in the country, so the sponsorship system will virtually be broken. This is a major labour policy shift for the region and will be effective in three months from now.

Will expatriates simply be able to move between employers?

Yes, so long as they adhere to the conditions of their contract. The contract might say, for instance, that the employee cannot work for a competitor for the next six months. The employee might also be liable for visa and travel costs if they break their contract. It all depends on the contract now.

What if their contract ends?

You must notify the LMRA one month before your contract ends and inform it that you are looking for another job. If you haven’t found another job by the end of the contract then we will give you four weeks to continue looking. During this period we will pay you unemployment benefits. If you haven’t found a job after four weeks, then you have to go.