Taxi drivers protest at alleged fuel allowance cut



RAS AL KHAIMAH // A group of taxi drivers have held a protest meeting in a dispute with their employer about fuel costs.

The drivers, all employees of Al Hamra Taxi, say that to reach their monthly fare target of Dh8,250, which entitles them to a 30 per cent commission, they are forced to exceed their monthly fuel allowance. They also say that, rather than increasing their allowance to reflect recent rises in the price of petrol, the company has reduced it to Dh2,000 from Dh2,450.

Al Hamra Taxi officials deny both claims. It says the monthly fuel allowance remains at Dh2,450, and that drivers who need additional money are driving inefficiently, driving taxis for personal use or operating discount-rate taxi services using company fuel. The issue came to a head on Monday when 25 drivers who were near the end of their fuel allowance but had not reached their fare targets were told to buy their own fuel. If they refused, the company said it would confiscate their car keys and fuel-allowance cards.

Drivers were reluctant to give up their keys because they had only a few remaining days to meet the monthly target. Others say they had no extra money for fuel. Sixteen of the 25 suspended drivers had their keys returned after being trained to drive more efficiently. Al Hamra said the remaining nine required further training. About 100 drivers met at the Al Hamra office on Monday night to discuss the problem.

"Today they told us to hand over our card and key," a 36-year-old driver from Bangladesh said. "They said if we want to refuel we must use our own money. What is this? Dh2,500 for fuel is enough, but Dh2,000 is not." A 32-year-old driver from Pakistan said: "Ninety per cent of my card is finished and now the manager told us to use our own money, but we have no pocket money. "The salary is better than before but when petrol prices were raised it became a problem."

Another driver said, "Today I had over Dh7,400. In four days it is not difficult to make it up to the Dh8,000 target, but my Dh2,000 petrol is finished and they took my car." Some drivers said they were prepared to pay for fuel themselves to reach their target, even if they faced a fine for not reporting to the cab station at the end of the day. "Yesterday my petrol is finished, but today I did not give the company money," one said. "I am afraid they will take my car if they see my petrol is finished."

One driver from Sri Lanka then said, "If I pay for my petrol, how will I manage? How it is possible? How will my children study?" The drivers say they use between Dh80 and Dh105 of fuel a day, and work upwards of 14 hours a day to reach their goals. "RAK is small and not a big city, so we allow them Dh80.50 for a day," said Abdi Ahmed, the senior manager of Al Hamra Taxi. "We are going to give them training on how to use the petrol and how to do the job. So the company will not lose, the driver will not lose, and he will do it the proper way."

The Ras Al Khaimah Transport Authority (Rakta) estimates that one in five drivers use company fuel to commute to their homes outside of the emirate. Rakta has plans to build low-cost accommodation for drivers in RAK city. Rakta officials also say drivers had taken advantage of a four-month delay in the introduction of a rural-area bus service to operate taxis at discount fares using company fuel. Although the number of illegal taxis has dropped by almost 30 per cent this year, 10 of the 25 suspended drivers were transporting passengers illegally, Rakta officials said. To discourage this, a third of the emirate's 1,200 taxis will be fitted with sensors that activate meters automatically.

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  • Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work 
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  • Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
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  • Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
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RedCrow Intelligence Company Profile

Started: 2016

Founders: Hussein Nasser Eddin, Laila Akel, Tayeb Akel 

Based: Ramallah, Palestine

Sector: Technology, Security

# of staff: 13

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Investors: Palestine’s Ibtikar Fund, Abu Dhabi’s Gothams and angel investors

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Source: Federal Office for the Protection of the Constitution

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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Analysis

Members of Syria's Alawite minority community face threat in their heartland after one of the deadliest days in country’s recent history. Read more

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