UAE ranks 5th in labour market efficiency

The United Arab Emirates has been rated high in the Global Competitive Report of 2010 issued by the World Economic Forum in factors determining labour market efficiency.
 
The report ranks the UAE 5th in the world for retaining national qualified manpower, the seventh in flexibility of wage determination, the tenth in professional code of ethics which stresses upon measurement of workforce productivity vis-a-vis working hours, and seventeenth on the flexibility mechanisms governing hiring and firing practices.
 
This year the report covers 139 countries and has attributed the UAE's progress to the efficiency and flexibility of its labour market, employment of qualified nationals, enhancement of professional code of ethics, in addition to other indicators specified in the report.
 
The report issued annually by WEF assesses the competitiveness of each country on the basis of certain indicators organised into 12 pillars, each of which represents an area considered as an important determinant of competitiveness.

These pillars include: reports issued by international organisations, the infrastructure, macroeconomic environment, health and primary education, higher education and training, financial markets development, technological readiness, market size, goods market efficiency, business sophistication, innovation, in addition to the labor market efficiency pillar.
 
Commenting on the report's findings, Saqr Gobash, Labour Minister, says: "the advanced positions attained by the UAE in the area of labour market efficiency reflects the political leadership's vision for providing a sustainable and stable labour market based on the realisation of a balanced relationship between the rights and responsibilities of the bilateral production process i.e. workers and employers. This whole process is governed by the labour law on which contractual relations are based."
 
He explains that,"the ministry of labour, in partnership with concerned parties, endeavour to provide an attractive labour environment which helps in recruitment and retaining of qualified manpower, realisation of long term sustainable development in conformity with the UAE Vision 2021, which aims to accomplish a flexible, diversified and knowledge-based economy, which attracts highly qualified Emiratis and the best expatriates available in the market place."
 
The minister confirmed that "the recent amendments of labour legislations concerning the labour market were inspired by the keen interest (of the UAE leadership) to provide more guarantees to both workers and employers, to help in job stability, and to increase productivity."
 
Gobash said he believed that the realisation of sustainable development is part and parcel of enhancement of national human capital, in addition to opening all avenues for this human capital to participate in various economic activities. These efforts would enhance the advanced positions attained by the UAE, according to the global competitive report.

The ministry had recently announced a series of new procedures concerning the labour market and the organisation of its contractual relationships, which were passed within a comprehensive policy aimed at providing more stability and flexibility of these relationships.
 
The Wage Protection System (WPS), implemented in September 2009, is considered as one of the major components of the aforementioned policies, as it protects workers rights of salary payment on time and without any undue deductions, and it also has positive implications on the employers.
 
The guidelines for labour housing, approved by the UAE cabinet last year, is also considered as an important initiative aiming at providing protection for workers, through offering a suitable lodging according to international standards that guarantees health and occupational safety, as in the case of prohibiting work in the afternoon of the summer months, which in turn helped in providing more protection to workers and enhancement of productivity.

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