ABU DHABI // Recruitment agencies must ensure employers pay the minimum wage set by the Philippines government for its nationals working abroad as domestics, a labour official has said.
Speaking ahead of a meeting with recruiters tomorrow, Nasser Munder, the labour attache in the capital, said: "We will discuss various issues affecting domestic workers. The recruiters need to compel the employers to pay at least US$400 [Dh1,469] a month."
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Filipino migrant workers are hired through licensed recruitment agencies in the Philippines that are accredited by the Philippine Overseas Employment Administration, an agency of the Department of Labour and Employment that promotes and monitors overseas employment.
The agency issued the $400 minimum wage directive in December 2006 - doubling it from the previous $200 minimum - as part of efforts to protect Filipinos working abroad.
Tomorrow, Mr Munder will meet recruiters from Abu Dhabi at the Philippine embassy. A separate meeting will be held for recruitment agencies in Al Ain.
There are about 60 agencies dealing with Filipino domestic workers in Abu Dhabi and Al Ain. Mr Munder wants to address contract substitution, in which workers are pressured or forced to sign a contract inferior to the one they were promised. Contract substitution is estimated to victimise most of the 25,000 household workers living and working in the Emirates - with many signing contracts for half the amount they agreed to work for.
In cases where contract substitution is reported, agencies in both countries will be held liable if the $400 minimum wage is not paid, Mr Munder said.
"But the problem lies when agencies in Manila settle the case with the worker before it reaches the court," he said.
To further complicate matters, recruitment agencies have lobbied for a minimum wage of $300 a month for domestic workers.
"But we need to follow the policy of Manila," he said. "If a worker is paid less than the minimum wage, we will suspend the processing of the agency's documents."
Danilo Cruz, the labour undersecretary in Manila, said last April that his government will not be reducing the minimum wage of Filipino domestic workers abroad.
Mr Cruz, who served as the labour attache in Abu Dhabi from 1990 to 1996, said $400 was a "reasonable" amount.
"Their jobs are really difficult," he said. "They do not have an eight-hour job, cater to a large household and do not get any overtime pay."
The incidence of housemaids fleeing would be reduced if they were better paid, Mr Munder said.
"If a worker is paid $400 or more, she is more likely to stay," he said.
rruiz@thenational.ae
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Classification of skills
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
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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.”
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