Dubai cancels 1,500 work permits daily |
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DUBAI: An average of 1,500 work permits and visas are being canceled in Dubai each day as companies lay off employees in the wake of the global financial crisis.
The number is expected to rise in coming months as thousands of labor complaints currently logged at the Ministry of Labor get processed. Adding to that figure will be the thousands of employees who have been made redundant but are searching for other jobs. Many companies have given redundant employees a grace period of two to three months to look for alternative work. Jobs are, however, rare to find with most companies freezing recruitment.
An official from the Ministry of Labor told Arab News that they started seeing a rise in the cancellation of visas in late October. "On some days, we cancel more than 2,000 permits," he said.
The official, who spoke on condition of anonymity, said the ministry is dealing with an unprecedented number of complaints from workers. "The ministry is swamped with complaints from workers who have not been paid, or forced to take unpaid leave or who were fired but not paid their dues. Only after settling their cases can their work permits be canceled," he said.
At the Ministry of Labor's Visa Cancellation Section, human resource representatives of companies complain of long queues. "It takes hours to get the cancellation paperwork processed," Naser Ahmad, an employee for a construction group.
Ahmad, who was carrying 10 passports, said his company started layoffs in September. "Up to now, we have cut down 25 percent of the work force," he added.
Another employee said his company has already fired 500 of its 5,000-strong work force. "At the moment, the bosses are waiting to see if the situation improves in a few months. If things do not change there will be more redundancies," he added.
By Shadiah Abdullah
© Arab News 2009
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When people will understand that this is a huge piracy ?
They took all our money by selling us glittering sand castles.
They let their stock prices go deep South so that they can buy it back for themselves at a ridiculous price.
They are strangling developpers and builders by cancelling projects...after cashing in the guarantee...
Don't foget that Pirats Coast was the name of this place before it was named the Trucial Coast. [Report Abuse | Email to a Friend | Reply to this Comment]
incoming traffic is definitely slow, I doubt it even if exceed 1 or 2 percent of cancellation. [Report Abuse | Email to a Friend | Reply to this Comment]
Of course, this article rather forgot that people are arriving in Dubai as well as leaving, and it is the net figure that counts! UBS is forecasting a net loss of around 2010, and it is debatable whether this is a reasonable forecast, see:
http://arabianmoney.net/2009/01/18/estimating-dubai-population-loss-in-2009-difficult/ [Report Abuse | Email to a Friend | Reply to this Comment]
This would equal a loss of around 500,000 jobs if it continues over the whole year - but would surely taper off as firms downsize to longer term viability. But the UAE is pretty unique in being able to adjust so quickly from boom to bust - and it should set the country up for a fast recovery, see:
http://arabianmoney.net/2009/01/14/uae-keeps-intervention-down-trusts-market-forces/ [Report Abuse | Email to a Friend | Reply to this Comment]