Abu Dhabi hourly worker pay falls AED6 in 2 years

Surveyors and steel workers have seen the biggest dip in pay since 2008

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The average wage of construction workers in Abu Dhabi declined by almost AED6 per hour in two years as the financial crisis dealt a blow to take-home pay, according to latest figures.

Data from the Statistics Centre – Abu Dhabi show that the aggregate hourly wage across the range of building site workers fell from AED18.1 to AED12.6 from April 2008 to April 2010.

Surveyors and steel fixtures took the biggest hits to their pockets. Surveyors saw a fall of AED7 from an average AED25 per hour to AED18 per hour, and steel fixers lost AED6 per hour from an average of AED16 per hour to AED10. Hourly rates for electricians and helpers fell AED4 and AED3 over the period and semi-skilled labour saw a reduction of pay from AED13 to AED9.5 per hour.

Electricians’ pay has declined AED4 in years but has improved by AED2 since January to AED14 an hour.

Worker pay has been the subject of increasing scrutiny by the Ministry of Labour in recent weeks, including a drive to ensure companies pay labourers working on a Friday at least 50% above their usual hourly wage.

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Natalie Morrison, an associate at law firm Al Tamimi, explained to Construction Week that the ministry was increasingly looking to harmonise legislation on the subject across the emirates. She added that essentially, companies were given two options: either they pay 50% more per hour on a Friday or they give Friday workers a holiday on another day.

“We are seeing more and more that the ministries are working with organizations like the International Labour Organisation to make sure elements of the legislation are being implemented,” she said.

The statistics also highlight the volatility to the supply chain caused by the fluctuating price in materials since the beginning of the year.
 

The price for delivery for steel bars rose by almost AED1,000 as an aggregate for the emirate’s sources of the metal, rising from AED1,959 to AED2,926 in three months. Turkey now presents the expensive option, with delivery costs hitting AED2,983 per tonne.

However, power cables, cement and waterproofing products all declined in price, falling 1%, 1.7% and 7% respectively, as an aggregate of prices from all sources. Pipes declined in price from AED292.6 per tonne for delivery in April 2008 to AED263.3.