Link midday break rule to temperature


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The weather, you will have noticed, is warming up.

For most people, the familiar seasonal increases in temperature and humidity are little more than an inconvenience or an annoyance - or perhaps a convincing reason to go on holiday to someplace with a more comfortable climate.

For thousands of outdoor labourers, however, summer weather brings only long days of discomfort, not to say misery, and even danger. Heavy work in protective clothing under these conditions, in construction or any other kind of labour, can lead successively to heat cramps, dehydration, heat exhaustion and even heat stroke.

That's why the Ministry of Labour requires employers to give workers a break between 12.30pm and 3pm, and to provide a shaded rest area and water. There can be no doubt that the rule, instituted in 2005, has value: where numbers are available, they show a year-by-year decline in the number of heat-related hospital admissions, as enforcement of the midday break law has become more rigorous.

Since 2010, the break, formerly imposed from mid-July to mid-September, was extended to three months; this year's took effect on Friday.

Unfortunately, some unscrupulous employers still ignore the rule when they can. The solution to that problem lies in better enforcement, and a growing number of inspectors gives promise of exactly that. And fines, increased for this year, now start at Dh15,000 for a first offence.

There is however still work to be done. Some exemptions from the law should be rethought. While emergency work by its nature often waits for no man, tasks such as pouring concrete and spreading asphalt do not have to be timed for the hottest parts of the day.

Another much-needed reform, as we noted last month, involves the calendar. For more than a year officials have been working on a sensible system by which the break rule would be imposed not depending on the date, as at present, but rather on the temperature and humidity and wind speed each day. These factors are to be calculated daily and combined to give a "thermal work limit" - and on any day the limit is exceeded, no matter what the date, the break would be required.

This will have some costs for employers, no doubt, but nonetheless it should be introduced without further delay. The health of so many workers is too important to be left to the arbitrary mercy of the calendar.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

The specs

Engine: 4.0-litre V8 twin-turbocharged and three electric motors

Power: Combined output 920hp

Torque: 730Nm at 4,000-7,000rpm

Transmission: 8-speed dual-clutch automatic

Fuel consumption: 11.2L/100km

On sale: Now, deliveries expected later in 2025

Price: expected to start at Dh1,432,000

GAC GS8 Specs

Engine: 2.0-litre 4cyl turbo

Power: 248hp at 5,200rpm

Torque: 400Nm at 1,750-4,000rpm

Transmission: 8-speed auto

Fuel consumption: 9.1L/100km

On sale: Now

Price: From Dh149,900