Nivriti Butalia is assistant comment editor at The National
June 26, 2024
More than a few people would have been stunned when they heard about four members of Britain's wealthiest family, the Hindujas, being convicted in a Swiss criminal court last Friday of exploiting domestic staff brought over from India to work at their Geneva villa.
During the trial, the four were accused of paying workers about a tenth of their entitlement under Swiss law, confiscating their passports and making them work 18-hour shifts with no days off. Lead prosecutor Yves Bertossa accused the Hindujas of spending “more on their dog than on their domestic employees”.
India-born Prakash Hinduja and his wife Kamal, both in their 70s, were each sentenced to four-and-a-half years in prison. Their son Ajay and his wife Namrata received four-year terms. The family’s business manager Najib Ziazi received an 18-month suspended sentence. The Swiss court has told the Hindujas to pay their erstwhile staff the equivalent of $950,000 in compensation.
Whether any of the above see jail time is another matter but the case highlights the long-running issue of how some employers mistreat their domestic workers. It is not just wealthy tycoons who can behave in this way, nor is the issue confined to a single nationality or country.
There are about 75 million domestic workers worldwide. How most are treated is anyone’s guess
The three Indian workers at the heart of the case alleged that the four Hindujas paid them as little as £7 ($8) a month. Allegations made in court included claims that staff were paid only once every few months in Indian rupees instead of Swiss francs, which were sent to their Indian bank accounts, out of the workers’ reach. There were also claims that the workers were forced to sleep in windowless basements. The Hindujas have filed an appeal against the verdict in a higher court.
Such a judgement in favour of domestic workers is not commonly heard of in India – although this does not imply that mistreatment of staff occurs only in India or South Asia. The case of a Filipina worker’s body found last year in Kuwait, as reported in The National, is another example of the exploitation and, in a number of cases, even brutality, that occur in far too many societies. It is, however, rare for us to read about such cases for a variety of reasons, including victims’ inability to report abuse.
Kuwait and the Philippines have reached an agreement to lift a ban imposed by the Gulf state on receiving workers from the East Asian country. AFP
Given the sheer numbers of domestic workers across the world, such cases should be worrying. According to the India’s National Sample Survey Organisation, the country has about four million domestic workers and nearly two thirds of them are women. The International Labour Organisation says there are about 75 million domestic workers worldwide. How most are treated is anyone’s guess.
This very public verdict has resonated on social media, with some people welcoming it or at least suggesting that the result serves the family right. It should go without saying that people ought to know how to treat employees, pay them fairly and accord basic dignity to those cooking in their kitchens, sweeping their floors and keeping their homes clean.
When confronted by the unpleasant details of this case, it is reassuring to bear in mind that even in millions of Indian households, plenty of people make sure their domestic staff are treated, if not like family, then at least fairly and addressed by children with a “didi” (sister) or “aunty” suffixed to their name, so that youngsters grow up learning how to show respect to their elders, regardless of their occupation or social status.
Unfortunately, there are too many residential community WhatsApp groups in which members unashamedly end up "othering" their domestic help, perpetuating caste prejudices and their own notions of class superiority. Repeated reports of white-collar employers flying into a rage at a domestic worker's request for a raise or a day off are only the less-ugly stories in circulation.
Broadly speaking, Indians are not used to hearing about the law catching up with the ultra-wealthy for something as common as mistreating the domestic staff. Many don't flinch at the term "servants" – casual references to "these people" or nastier insults like "they sit on your head" are heard too often in many middle-class circles. To them, the very public stories of exploitation of maids and cooks often elicit no more than a shrug.
Exploitation is a big deal though – it is just often not made a big deal of by those who are responsible for it. In 2014, Devyani Khobragade, an Indian diplomat in Washington was, compared to the Hindujas’ verdict, let off relatively lightly. She was able to leave the US despite facing charges of fraud and of underpaying her maid.
It is the Hindujas’ domestic employees, the workers who called on the Swiss law for help, for whom we could spare a thought. They displayed great resourcefulness and wherewithal to fight a fight in which they were at a disadvantage. Despite the obstacles – of a language barrier, of being powerless and being stuck in a foreign country – they managed to file a case and successfully protest against injustice.
Some reports, however, got the wrong end of the stick, focusing on the fact that the four members of this illustrious family were cleared of human trafficking. Indeed, they have been. But the jail sentences for exploitation might be enough to highlight the need for action against such behaviour, particularly if the verdict is upheld in the higher court.
Either way, looked at from any angle there are lessons to be learnt. Perhaps it is too much to hope that those the world over who employ the services of domestic staff will realise basic operating rules: that it is not acceptable to mistreat and underpay people. As well as being illegal, the consequences are many – perhaps the most damning of which is to turn perpetrators’ reputations to dust. But if that is what it takes to inspire deeper introspection from the great global middle class, then this case has set a vital – if uneasy – precedent.
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.”
Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.
They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.
“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.
He adds that if a person is interested in owning a business or growing a property portfolio to increase their retirement income, this can be encouraged provided they keep in mind the overall risk profile of these assets.
Dirham Stretcher tips for having a baby in the UAE
Selma Abdelhamid, the group's moderator, offers her guide to guide the cost of having a young family:
• Buy second hand stuff
They grow so fast. Don't get a second hand car seat though, unless you 100 per cent know it's not expired and hasn't been in an accident.
• Get a health card and vaccinate your child for free at government health centres
Ms Ma says she discovered this after spending thousands on vaccinations at private clinics.
• Join mum and baby coffee mornings provided by clinics, babysitting companies or nurseries.
Before joining baby classes ask for a free trial session. This way you will know if it's for you or not. You'll be surprised how great some classes are and how bad others are.
• Once baby is ready for solids, cook at home
Take the food with you in reusable pouches or jars. You'll save a fortune and you'll know exactly what you're feeding your child.
Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
COMPANY PROFILE
Name: Mamo
Year it started: 2019 Founders: Imad Gharazeddine, Asim Janjua
Based: Dubai, UAE
Number of employees: 28
Sector: Financial services
Investment: $9.5m
Funding stage: Pre-Series A Investors: Global Ventures, GFC, 4DX Ventures, AlRajhi Partners, Olive Tree Capital, and prominent Silicon Valley investors.
Your rights as an employee
The government has taken an increasingly tough line against companies that fail to pay employees on time. Three years ago, the Cabinet passed a decree allowing the government to halt the granting of work permits to companies with wage backlogs.
If wages are 10 days late, the new measures kick in and the company is alerted it is in breach of labour rules. If wages remain unpaid for a total of 16 days, the authorities can cancel work permits, effectively shutting off operations. Fines of up to Dh5,000 per unpaid employee follow after 60 days.
Despite those measures, late payments remain an issue, particularly in the construction sector. Smaller contractors, such as electrical, plumbing and fit-out businesses, often blame the bigger companies that hire them for wages being late.
The authorities have urged employees to report their companies at the labour ministry or Tawafuq service centres — there are 15 in Abu Dhabi.
North Pole stats
Distance covered: 160km
Temperature: -40°C
Weight of equipment: 45kg
Altitude (metres above sea level): 0
Terrain: Ice rock
South Pole stats
Distance covered: 130km
Temperature: -50°C
Weight of equipment: 50kg
Altitude (metres above sea level): 3,300
Terrain: Flat ice
UAE currency: the story behind the money in your pockets
Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.
You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”
However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.
This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”
This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.
Though mostly conservative, Florida is usually always “close” in presidential elections. In most elections, the candidate that wins the Sunshine State almost always wins the election, as evidenced in 2016 when Trump took Florida, a state which has not had a democratic governor since 1991.
Joe Biden’s campaign has spent $100 million there to turn things around, understandable given the state’s crucial 29 electoral votes.
In 2016, Mr Trump’s democratic rival Hillary Clinton paid frequent visits to Florida though analysts concluded that she failed to appeal towards middle-class voters, whom Barack Obama won over in the previous election.
Profile
Company: Justmop.com
Date started: December 2015
Founders: Kerem Kuyucu and Cagatay Ozcan
Sector: Technology and home services
Based: Jumeirah Lake Towers, Dubai
Size: 55 employees and 100,000 cleaning requests a month
Funding: The company’s investors include Collective Spark, Faith Capital Holding, Oak Capital, VentureFriends, and 500 Startups.