Friday, July 07, 2006

International Conformity: Money Worship

I remember having a conversation once where I was told, “The world has a new common religion and it is the worship of money”. At the time, I pondered the generalization for a few moments and agreed with the sentiment without really thinking it through in depth.

Today, after coming across this article in 7Days, I’m forced to rethink that statement. The article itself highlights a UK based company located in the UAE, where 120 white-collar employees have taken to striking, claiming their employer withholds their passports (which is against the UAE law), forces them to work longer than the legal 8-hour-work-day shifts, and deducts multiple days worth in cash from their salaries for failing to meet daily sales targets or taking a single day sick leave. I am not all too familiar with labor law in the UK, but I’m pretty sure should this company be located in its own country, it would not consider the possibilities of such ‘motivational’ standards, as it’d be considered illegal.

A few years back, I was offered a job as an administrative assistant, in a Canadian based government company that is tied tightly to the Canadian consulate in Bur Dubai where it’s located in the very next office of the same building. I turned down the job because the package they offered me, if I recall it correctly, was 1500Dhs ($543.387 CAD at that time) per month, for a 5 ½ day working week.

On Canada’s Ministry of Labor site, you’ll find that minimum wages as of February 2004 in Ontario (as wages vary slightly from province to province), started from $6.60 CAD an hour, reaching up to $71.50 CAD an hour, depending on the industry.

Applying a little math to the salary I was offered by dividing the monthly amount by an estimated four weeks and then the weekly amount by the 44 hour work week expected of me, shows that I was being offered exactly 8.52Dhs an hour, which worked out to approximately $3.086 CAD. Exchange rate calculations are thanks to ONADA.com.

This is less than half of what the minimum wage amount was in the lowest paid industry in Canada at that time. In the off chance that my memory is playing tricks on me about the exact package they offered, I can assure you that there was no way the package was double the amount I have specified here and no less than a 5 ½ day work week. I clearly remember how horrified my entire family was at the hypocrisy the Canadian government showed us, once again.

Examples of Western or European based companies operating in the UAE that abandon the labor laws of their own countries for the more profitable labor laws in the UAE are widespread; McDonalds, Pepsi, Starbucks are just a few major examples where average employees are paid far less than they would be should they be working in the same company but out of the company’s homeland instead of here.

The logic behind this is understandable; the aim of any company is to minimize its costs while increasing profit. But logic or the fact that no local laws are being broken does not mean these policies are in any way moralistic, humanitarian based, nor do the managers of such companies show any sort of integrity or ethics. McDonalds for example, still uses Styrofoam boxes for their sandwiches in the UAE, though the overwhelming evidence of the detrimental effects Styrofoam has on the environment meant a ban on the same in Canada, years ago. Any company, from any country will go as far as it possibly legally (and often times illegally) can, to increase their profits. Knowing that these attributes have little to do with any company’s sole mission, it’s very hard to criticize.

But what happens when these companies are owned by foreign governments? 7Days recently ran this article, highlighting the plight of an Indian Embassy employee who feels he’s been short changed by approximately 70,000Dhs ($18,995 USD), in receiving his end-of-service dues because the Embassy has chosen to function under the Indian Ministry of External Affairs guidelines instead of local labor law.

A quotation from the same article teaches us that most Embassies follow UAE’s labor law, which explains my job offer with the Canadian government’s office.

“But following the laws of the home nation is not the practice of many other nations’ embassies, which follow UAE labour law. An official from the Pakistani embassy told 7DAYS that UAE labour laws are applicable to those employees who are locally recruited, as Pillai was.”

The point? Corporations based in ‘civilized’ countries, and even the very governments of such countries will gladly point a sticky finger at the UAE, while simultaneously are more than happy to take advantage of the very laws (or lack there of) they ridicule, so long as they can save or make a few extra bucks.

Looks to me like we all have a lot more in common than most of you would like to admit; hypocrisy and money worship are at the first two things that come to mind.

~*~


On a related note, I once wrote about the Asian workforce in the UAE and their comparison to ‘slavery’ that is so often uttered by narrow-minded critics near and far. There I asked what remittances amounts were like, being sent back to these countries from the UAE. No one dared respond; today, I found my answer while researching post, and I can guess why.

Figures in the UAE state that expatriate remittances toped 51.5 billion dirhams (approximately $13.98 billion USD) last year, of which remittances to Asia accounts for 64% of the total. Asian expatriate workers in the UAE, last year alone strengthened their own economies by $8.94 billion US dollars. That’s a hell of a lot of money being sent from a country that so ’horrendously abuses it’s laborers who come here by force as the economic conditions in their own country are so impoverish they’ve no other choice. Perhaps the UAE is actually doing far more good for the future of Asians and their countries than we care to admit or see?

12 Comments:

Blogger Parv said...

With regards to the Asian remittances, I have a couple of issues with this post and with the nonse reported in GN.

"...80 per cent of total remittances are made in US dollars"
I believe this would have more to do with trading companies and suppliers in Asia (read: Made in China), than with Asian workers sending money home. This is therefore misleading, as I'm sure the average Boiler-suit Babu has little interst in converting to dollars.

"...Asia accounts for 64 per cent of the remittances":
Urm duh. Asians form the largest expat population in this country. So obviously, survey results should be directly proportional.

Second, this 64% does not comprise of those making Dhs.10K+ a month, it's the rest who make barely enough to survive. Visit any Western Union on a Friday evening and you'll see what I mean.

"and while leaving on vacation, Arab expats buy commodities or electronic items from the UAE":
Is he having a laugh?! Has he ever been to an Emirates check-in desk during an India-bound flight?!

Conclusion:
Yes, the UAE has allowed them to make money. Yes, this has helped (albeit marginally) their economies. But economic well-being is a two-way street: this country needs them as much as they need this country.

Besides, what would they they do with their money here? Property?Business venture? Shopping spree at Bur Juman? Blow two month's pay on a night out at Trilogy? I'm sure if they could afford to, they would. Or would they?

Heck, even Mr. Riad Khaleel Mattar admits that they need to create more locally attractive investment opportunities that could help in retaining the money here itself. Common sense tells us this comment isn't directed at IT guy Ravi. So who are these lecherous, selfish expats he speaks of??

Help the GDP? Isn't that what them rich folks are for? :)

7:19 PM, July 07, 2006  
Blogger Tainted Female said...

Lady, Just out of curiosity did you read the other post that the Asian bit was related to? Because you said something that pretty much summed up my initial post (US bashing aside), “ this country needs them as much as they need this country.”

We’re pretty much even then, no? Maybe we should stop kicking the shit out of each other and everyone else for that matter?

You asked me to read, “Made in China”. Is it a book, a blog entry or a newspaper article? And where can I find it?

I kind of get the feeling that you’re debating the news article itself and not my blog entry, which is logical considering the lack of factual information found in all publications in the UAE.

Regardless, I don’t know why it seems you’ve taken the 64% as an insult towards Asians, as I don’t look at it this way. You are right, Asians make up the largest part of the population here and they also tend to send a larger percentage of their salaries back home than any other nationality; and I can state both of these things with confidence basing none of it on Gulf News. Most of the Asians I’ve ever met here (and despite general belief about Westerners, I know a lot of them and talk with them too as many are now considered friends, even family to us), send almost the whole of their salaries home; including all the house-keepers we’ve had, the current Gardener and the dozens of men who work at falcon breeding with my father and live, right here in my yard. I know expatriate Arab’s here send money back home too, but I’ve never met one who has done so, as such a large percentage of their salaries; should this be false, why do the Lebanese have the reputation here that they do? Why are so many Palestinians or Egyptians (who only get paid just a smither above Asians as the norm) driving cars that they own; how can they afford it?

My Indonesian housemaid (at my X husband’s house) transfers money back home in US dollars from my bank account to her family member’s; while the Sri Lankan maid in my mom’s house sends money by draft in her local currency.

I called Emirates bank (and I know their information is about as reliable as Gulf News but it’s the information that’s available, right?); they also confirmed that the majority of international transfers are made in US dollars, followed second by the Euro. I tried to find out why but found I was left on hold for about 10 minutes before I got so annoyed I hung up. I also know that when the owner of my former company (who is based in Egypt) sends money here for whatever reason, it gets transferred in US dollars and not the UAE dirhams. I don’t really know or understand currencies in the least, or why it’s so that transfers are done predominatly in dollars, but I do know it isn’t as uncommon as you’d think, even among the common man.


"and while leaving on vacation, Arab expats buy commodities or electronic items from the UAE":
Is he having a laugh?! Has he ever been to an Emirates check-in desk during an India-bound flight?!


I’m not sure I follow what you’re trying to say? I have been, but don’t understand the connection you’re trying to make.

And finally, no where was an opinion stated about where Asians should spend their money. In fact I look at the remittances amounts sent to Asia as a positive thing, which I thought I made clear in this post itself? If anything the implication in the article was that the UAE will need this money for its own sake eventually, and should look into making that an option.

’ So who are these lecherous, selfish expats he speaks of??’

And WOW! I don’t know where you read any implication in this article that this is what Riad Khaleel Mattar is expressing. Are you sure we read the same one? The one I read was in the business section, pretty unbiased and rather factual, and read more like an informative piece of writing than an opinionated one.

9:54 PM, July 07, 2006  
Blogger Tainted Female said...

Talk about fucking blonde moment! I KNOW taunted is gonna have a laugh at this...

This whole paragraph went right over my head the first time I read it and responded... as I'm sure you've already noted!

'I believe this would have more to do with trading companies and suppliers in Asia (read: Made in China), than with Asian workers sending money home. This is therefore misleading, as I'm sure the average Boiler-suit Babu has little interst in converting to dollars.'

Pssst... Lizza, I told you I'm fucking stupid at times! Here's your proof!

12:03 AM, July 08, 2006  
Blogger Lizza said...

LOL Tainted,

Everyone is fucking stupid at times, blonde or otherwise. Highly interesting post and linked articles. OFW's (overseas Filipino workers) are regarded highly here; many of them work in the UAE and other countries in the Middle East.

But there's something ironic about this. The unfair wages you say are being paid by foreign companies to workers there are much higher than the wages that our OFW's would earn if they decided to stay here. So I think that a lot of them go to work in a foreign land, putting up with not seeing their families and homeland for months to years (and that's a big sacrifice since Filipino families are very close-knit) not because they want to, but because they feel they have to, in order to feed their families.

1:37 AM, July 08, 2006  
Blogger Tainted Female said...

Yes, lizza... I agree with you 100%. But it's not the UAE's economy that forces them to make that choice. It's their own.

They need to concentrate on fixing that (for the sake of bettering thier childrens future's if not thier own), rather than complaining about how unfair the UAE has been to them... You see what I mean? Worker remittiances are a start... (and just now, I'm trying to research exact amounts, but it's a mess out there!)

1:52 AM, July 08, 2006  
Blogger Taunted said...

hee, hee, hee....

I love the feel of a heavy wallet, I love my bling, I love the fact that I could be in Trilogy every night (I think my liver would give up tho), I love the fact that I can (and do) eat AED2000 meals for 2 in Verre/Pisces etc.

I also love the fact that I eat AED10 lunches in "Eat and Drink" restaurants - you should see the look on the boiler-suit brigade faces when I walk in.

I love the fact that my housekeeper and her husband live with me and I am helping to support her family back in Sri Lanka.

I love the fact I dont work particularly hard, yet still get paid decent money and have no issues about being sacked(I believe).

So what am I doing wrong?

I enjoy what I do, I tip well, but not excessively, for example the guy in the petrol station the other day got AED10 as he gave exceptional (he washed ALL my windows) service, and to see the smile and gratitude on his face made my day.

(Jeez that's a boring comment I've just written!!)

8:29 AM, July 08, 2006  
Blogger Tainted Female said...

I can not BELIEVE… that this post itself was meant to be about Money Worship and the things WE ALL seem to have in common… And yet, ALL the comments are regarding a note I added at the end, concerning a topic I believed was over.

None-the-less… It’s fucking HARD to find reliable facts about which foreign nationals in any country remit to their home countries and at what ratio… but I did find a little semi-relevant information:

Bangladesh alone… from Financial Express

“ The country received US$408.67 million from NRBs living in the UAE in 2005-06 fiscal while the amount was $442.24 million in 2004-05 fiscal.

Or, how about this from the The Hindu

Though it doesn’t break the sources down country by country (and believe me, I looked for something dated recently that would), it does mention:

“Worker remittances to India exceeded $23 billion in 2005. This constitutes almost 3 per cent of India's GDP, Mr.Hikmet said.”

, India workers remittances total 21.7 billion in 2004, alone.

DataDubai shows that Asians take up 65% of the UAE population.

If and when I find more relevant information either for or against the Gulf News report, I’ll be happy to post it.

And Taunted… Sometimes, it’s OK to be boring.

10:42 AM, July 08, 2006  
Blogger Parv said...

Tainted, apologies if my comment appeared as an attack on you. It most definitely was not implied that way! Actually, I agree with everything you've said in the entire post. But, I will admit, it was the almost-patronising tone emanating from the last two sentences that hit a lil' nerve.

And yes, I had more of an issue with the GN article, which I felt was misleading and somewhat misinformed.

It appeared to be targeting one group's actions (i.e. Asians are naughty because a large portion of their savings are remitted back home), whilst validating others (i.e. Arabs are OK because they spend on education and day-to-day expenses and electronics to take home). Urm, wtf?!?

As for the numbers cited in the article, I would love to know what the ratio of personal versus business remittances are. I just feel that ONE of the reasons India and China have the largest percentage of remittances is because they are trading nations that sell heavily to the local market, i.e. foods, clothing, electronics and so much more. International trade is usually done in dollars, which would explain why 80 per cent of total remittances are made in US dollars. Just a thought.

But then, what do I know? I'm just a layydee! Peace yo.

1:52 PM, July 08, 2006  
Blogger Tainted Female said...

lady, for all the items I just linked... these are stats on personal (worker) remittances and not trade or service.

I spent all night researching these things, and believe me, it's a mess... but to be honest it doesn't look that unrealistic to me... I also didn't feel the article was picking on anyone, but I guess that’s all about perspective, huh?

I have little to no faith in the UAE publications and haven't found anything solid, so there's really no way to prove without a doubt either side, unless something more reliable turns up... (And I'm not going to waste more time searching for the answers... I actually got fucking dizzy after sitting so long surfing sites...)

And finally, you shouldn’t apologize. I didn’t feel attacked. Possibly a little annoyed because the main topic of the blog was ignored by everyone who commented, but I can handle a reasonable debate and not take it to heart… And even if I don’t like it that you don’t agree with me, I can handle it without taking offense as I’m sure you can in return... yea?

2:08 PM, July 08, 2006  
Blogger Parv said...

Absobloodylutely!

It's always hard to gauge one's true intentions in written text, unless the writer explicitly states his/her feelings. My many arguments/debates on MSN Messenger lies testament to this.

Commenting on something when you've gone through half a bottle of Pinot Grigio doesn't help either.

2:26 PM, July 08, 2006  
Blogger Tainted Female said...

lol...

'Commenting on something when you've gone through half a bottle of Pinot Grigio doesn't help either.'

Though I don't know what Pinot Grigio is, I'm assuming it's alcohol... and with such an assumption I must say... Been there myself hun...

Anyway... there wasn't anything wrong with your initial post, imho... Maybe I just tend to come off very offensive in writing?

2:38 PM, July 08, 2006  
Blogger Taunted said...

is this a private argument or can anybody join in?

8:07 PM, July 08, 2006  

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