Taxi drivers from Tawasul gather at an ICAD residential apartment, some with signed contracts in hand from Tawasul. Many are suing the company for unpaid wages and breach of contract.
Taxi drivers from Tawasul gather at an ICAD residential apartment, some with signed contracts in hand from Tawasul. Many are suing the company for unpaid wages and breach of contract.

Abu Dhabi taxi firm's drivers in eight-month legal row



ABU DHABI // Israr Abbasi says he has not worked since March.

In the midst of a drawn-out dispute with the taxi operator Tawasul, he claims he has been unable to work elsewhere because he has been denied a temporary permit to do so as allowed under labour law.

His employers, however, say he and about 100 drivers who filed a court case in February claiming the company was withholding their wages were attempting to exploit the labour law to work elsewhere.

In the arcane and complex world of labour law, their case offers just a glimpse into the often intractable divide both employers and employees face in resolving their disputes through the courts.

Mr Abassi said Tawasul took his vehicle away in March. And so far only about a third of the cases have worked their way through the courts. In the meantime, he and his fellow litigants said they have not worked a single day.

"It's very difficult," he said. "We are surviving by taking loans from friends and family."

Abdullah Aj Kassab, the general manager of Tawasul, argues that the taxi drivers only took their case to the courts because they wanted to change their jobs. The law states that while a worker has a case before the courts, he is able to file for a temporary work permit, allowing him to work elsewhere while litigation with a previous employer continues.

He said their case had no merit, and Tawasul was not obliged to support them.

"If they stop working, why should we pay them? They all stopped work on their own, we don't stop them from working if they go to [the] courts."

Mr Abbasi admitted the drivers had sought temporary permits, but said most were denied. Offering a permit is discretionary.

"Two people have received a work permit. The rest of us are just sitting in our rooms," he said. "Now it is too much of a problem because we cannot send money home to families in the flood."

Shakeel Ahmed has also filed a case. His family lost their home in Pakistan's floods in August, and he wants to return to help them, but cannot. "I have no money," he said.

The row centres around the interpretation of their contracts. All the drivers signed deals that they said guaranteed a minimum salary, plus commission.

The drivers believed their contract implied that commission should be paid on top of their basic salaries. Tawasul said the salary was just a minimum guaranteed payment.

In the contracts presented by the drivers, there was no mention of a commission scheme, nor did the documents clarify whether salaries should be made separately from other payments. The salary slips showed that the drivers were paid only commission.

The situation boiled over when the drivers discovered a clause in a new salary structure sent by Tawasul to all its drivers.

The new pay scheme granted the drivers their request that base salaries would be paid in addition to commission.

However, some of the papers read: "I verify and understand that I have received all my previous salaries."

Mr Aj Kassab denied knowledge of the documents.

Mr Abbasi and the other drivers who have filed court cases refused to sign the new salary agreement.

Another document includes an agreement to reimburse Tawasul for licensing, training and registration fees. This would violate the UAE's labour law.

The drivers claimed it was among the stack of documents that accompanied the new agreement.

However, Mr Aj Kassab said it was fraudulent and was not issued by his company. It was not included in the evidence submitted to the courts, which he found suspicious, he said. "The document would be a cornerstone in their argument," he said. "If they gave this to the expert they would get everything they asked for."

The drivers also claimed they have been forced to work 14 to 16 hours a day to make sufficient money. Under the terms of their contracts, they were supposed to work only eight-hour shifts and a maximum of 48 hours a week.

However, Mr Abbasi said the company required him and his fellow drivers to work twice the mandated work day, seven days a week, including holidays, or they would fall short of the targets set by Tawasul.

Mr Aj Kassab said no one was forcing the drivers to work long hours.

"There is no such thing as working hours for taxi drivers," he said.

"You work your own hours, some drivers are happy working four hours per day and make their target, some work eight hours per day and make their target. We also have a two-shift system, which is six days a week for 12 hours."

About 30 cases have worked their way through the courts, and Mr Aj Kassab claimed 90 expert reports have been completed.

Meanwhile, he has been preparing to replace Mr Abbasi and his fellow litigants with new drivers.

"I've hired about another 200 drivers who are in the pipeline to take their spots. This [case] is hurting us a great deal, but we've got other drivers."

Nadeem Yunis was another driver waiting for his next day in court, next Wednesday. "These days it is very hard to survive. It feels like we're still in Ramadan," he said. "We are waiting for a miracle."

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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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UK's plans to cut net migration

Under the UK government’s proposals, migrants will have to spend 10 years in the UK before being able to apply for citizenship.

Skilled worker visas will require a university degree, and there will be tighter restrictions on recruitment for jobs with skills shortages.

But what are described as "high-contributing" individuals such as doctors and nurses could be fast-tracked through the system.

Language requirements will be increased for all immigration routes to ensure a higher level of English.

Rules will also be laid out for adult dependants, meaning they will have to demonstrate a basic understanding of the language.

The plans also call for stricter tests for colleges and universities offering places to foreign students and a reduction in the time graduates can remain in the UK after their studies from two years to 18 months.

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How has net migration to UK changed?

The figure was broadly flat immediately before the Covid-19 pandemic, standing at 216,000 in the year to June 2018 and 224,000 in the year to June 2019.

It then dropped to an estimated 111,000 in the year to June 2020 when restrictions introduced during the pandemic limited travel and movement.

The total rose to 254,000 in the year to June 2021, followed by steep jumps to 634,000 in the year to June 2022 and 906,000 in the year to June 2023.

The latest available figure of 728,000 for the 12 months to June 2024 suggests levels are starting to decrease.

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May 9, v Malaysia
May 10, v Qatar
May 13, v Malaysia
May 15, v Qatar
May 18 and 19, semi-finals
May 20, final

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