Cabbies ‘driven to long hours by targets’


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ABU DHABI // Taxi drivers who signed up for eight-hour shifts on a basic salary plus commission have discovered the reality is very different.

Some found themselves working extraordinarily long hours to meet employers' revenue targets.

The Abu Dhabi taxi regulator TransAD and taxi companies this month said long working hours were not being imposed on drivers, and they were entitled to a weekly day off.

Of the 12 drivers surveyed by The National last week, six said they normally worked 14 to 15 hours a day; one 14 to 16 hours, two 16 to 18 hours; and three for 12 hours.

The drivers, aged 26 to 48, are from Nepal, Bangladesh, Pakistan, India, Uganda and the Philippines and work for the six franchise companies in the city.

All said they work seven-day weeks.

“Of course, who doesn’t want to work for eight hours a day?” said a 42-year-old Filipino driver for Tawasul who works 14 to 15 hours a day. “But we’ll not be able to meet our target and send enough for our families back home.”

Taxi drivers have a low base salary but are paid a commission calculated as a percentage of their total collection.

At Tawasul, drivers receive a Dh1,000 basic salary plus commission. The driver is guaranteed a 20 per cent commission if he brings in Dh500 a day, or Dh13,500 a month.

Last month, he earned Dh13,500 in fares and was paid Dh3,700.

A 35-year-old Nepalese driver who works for Al Ghazal Taxi works 16 to 18 hours a day to hit a Dh440 daily target for a 24 per cent commission.

He was paid Dh3,100 last month based on the Dh13,200 he earned in fares.

A Ugandan who was paid Dh4,900 last month had the highest income among the 12 drivers surveyed. The 37-year-old Emirates Taxi driver said he worked 14 to 15 hours a day and brought in Dh16,000.

“I start work at 6am, take short breaks and make sure I’m out on the road during peak hours,” he said.

Frederick Kalungi, an Emirates Taxi driver who was not part of the survey, said he wished all taxi companies would follow a uniform commission structure, benefits and wages.

“We are also being fined when they notice a minor scratch on our taxis, even if it’s not our fault,” said the Ugandan, 29.

In contrast, a Cars Taxi driver from India received Dh920 after working 14 to 15 hours a day last month. He set a Dh500 daily target for himself so he could earn a 30 per cent commission, but failed to achieve it.

Drivers who bring in Dh450 a day get a 25 per cent commission; those with daily earnings of Dh390 are paid 10 per cent, he said. “The targets are too high,” he added.

Drivers are allowed to keep their vehicles for 24 hours, unless they work under a dual-shift system. In that case, they have the cars for 12 hours and share with another driver.

A 38-year-old Filipino driver who has been working for Tawasul for 15 months, works a 12-hour shift. “We need to work hard or else we risk a Dh50 penalty imposed on low-income earners,” he says.

But Abdul Razaq, general manager of Cars Taxi, said when taxi drivers signed up for the job they were aware of the nature of the industry.

“We are not imposing long hours on them,” he said.

“Each driver follows his own pattern and gets a basic salary and commission. They might work for four hours straight, take a break and get back on the road during peak hours to complete their target.”

rruiz@thenational.ae

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Taxi companies should reconsider drivers' rosters to improve road safety while still giving cabbies a chance to reach revenue targets, experts say. Many drivers, on a basic salary of about Dh1,000, say they are behind the wheel up to 15 hours a day to bring in the Dh500 needed for a 20 per cent commission. Taxi drivers say they rely on the commission and do not expect tips – which is just as well. "Occasionally we get about Dh10 to Dh15 a day but most days we don't get any," said Indian Sunil Thampy. "Tipping helps but it is not necessary."

Read more:

UAE taxi companies should consider the impact of driver fatigue

Rise in taxi fares meant decrease in tipping, UAE drivers say

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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.”