Measures to curb financial effects on national workforce in private sector
Supreme Committee mandated to address demographics imbalance
KUWAIT CITY, May 21: As expected since the beginning of the crisis associated with coronavirus, the Council of Ministers inaugurated in its last meeting, the first protective measures aimed at curbing the economic and financial effects and repercussions of the pandemic on the national workforce in private sector, reports Al-Seyassah daily.
The Cabinet mandated Public Authority for Manpower to do what is necessary toward reviewing the value of the national workforce support to double it for those registered under Chapter Five of Self Employment Act for a period of six months from the date of the decision.
“In the event that salaries of the workers registered under Chapter Three are reduced, the state shall bear the reduced sum by providing direct support to business owners not exceeding the value of the financial support scheduled for national workforce in non-governmental agencies for a period of six months, starting from the date the decision was issued, provided that the Kuwaiti personnel are not dismissed from their jobs and without compromising their salaries. Cabinet sets the necessary controls to ensure that support reaches those who are entitled to it, amid the required speed and efficiency.
Reservations
In the meantime, informed political circles have expressed reservations about what was stated in the government decision on workers’ support, explaining the decision was issued in violation of the directives of the Higher Committee for Economic Stimulation chaired by the Governor of Central Bank of Kuwait Dr Muhammad Al-Hashel.
They indicated “this reservation has more than one reason, the most important and most prominent of which is that the text in its current formulation shows government encouraging private sector to reduce the salaries of workers in violation of the provisions of Law No. 6/2010”. Regarding the drawbacks, they noted it does not include citizens among the banking employees and communication companies. Also, it does not provide a mechanism to ensure that support reaches its recipients.
The same sources revealed the maximum ceiling for financial support provided by government is only 750 dinars, that is, if the employer cuts the salary by a thousand dinars, indicating the government will pay the employee only 750 dinars in such instance.
While the Council of Ministers mandated the Supreme Committee to address the imbalance of the demographics and to complete procedures and necessary steps in the implementation of necessary recommendations with the competent authority in light of their respective competencies in addressing the status quo.
They affirmed the recommendations include a nationality card to link the age group permitted to work, then study the occupational distribution of jobs based on Kuwaiti market’s need for them. It also includes accelerating the completion of workers’ cities, increasing work and residence permit fees, codifying the rate of expatriate workers annually for their percentage to reach 50 percent until 2030.
At the same time, information on social networking sites that could not be authenticated indicates the recommendations include: Reducing the number of migrant workers by 40% of the total workers, ironing all jobs of legal nature before the end of the current year, and stopping overseas recruitment for a period of three years. Others are ending the services of expatriates who have completed 15 years of service, stopping the issuance of visit visas for two years, reducing the number of current and future government contract workers, and restricting family visas to the wife and children only, while raising the ceiling for the required minimum salary for family visa to 800 dinars.
In addition, sources said the council received an initial report from the Supreme Committee for Combating Coronavirus on the total lockdown and it’s likely to start a gradual opening and return to normal life next June.