Unified Gulf labour strategy boon and bane, say experts

The new Unified GCC Domestic Labour Strategy announced in Kuwait could prove “advantageous as well as disadvantageous” to the Sultanate, according to experts.

“The labour strategy can be advantageous for some industries in terms of cheap labour and recognising the need to create jobs for the locals,” said Taufiq al Lawati, a member of Majlis Ash’shura.

A unified GCC strategy on streamlining recruitment of domestic labour besides standardising salaries and procedures was announced by Kuwaiti Deputy Prime Minister.

“The drawback (of labour strategy) is unless Oman has some retention schemes, companies will move out of the country for want of better facilities. Attractive perks are needed to retain companies,” he said.

“Some nations in the region are feeling the heat because governments are unable to provide employment to the locals. In such a scenario, Oman has proved to be highly supportive when it comes to employment creation for locals.”

The other factors pertaining to unified GCC labour recruitment is the minimum salary for the local workforce, which is strongly being implemented in Oman. “Businesses may have some concerns about handling labourers. But when it comes to wages, we are highly competitive and locals are assured of attractive perks.”

Al Lawati said hiring and firing is a major issue here. “By implementing this law, employees will be more responsible and accountable.”