BRUSSELS // Private employers may ban staff from wearing the hijab and other visible religious symbols under certain conditions, the European Union’s top court ruled on Tuesday.
In its first ruling on what has become a major political issue across Europe, the Court of Justice (ECJ) found that a Belgian firm which had a rule barring employees who dealt with customers from wearing visible religious and political symbols in order to project a public image of neutrality may not be guilty of discrimination, if it met certain other conditions.
But the court found a French company which dismissed a software engineer for refusing to remove her hijab may have breached EU laws barring discrimination on religious grounds if it did so not because of a general internal rule but just because a particular client objected.
The judgment in the two joined cases came on the eve of an election in The Netherlands in which Muslim immigration has been a key issue and become a bellwether for attitudes to migration and refugees across Europe. France is due to elect a president next month and there too an anti-immigration party is riding high in opinion polls.
The Open Society Justice Initiative, a group backed by the philanthropist George Soros which had supported the women, said it was disappointed by Tuesday’s ruling. It said the decision “weakens the guarantee of equality that is at the heart of the EU’s anti-discrimination directive.”
“In many member states, national laws will still recognise that banning religious headscarves at work is discrimination. But in places where national law is weak, this ruling will exclude many Muslim women from the workplace,” said Maryam Hmadoun, policy officer at the organisation.
Referring to the case of Samira Achbita, who was dismissed as a receptionist in Belgium by services firm G4S, the European court said: “An internal rule of an undertaking which prohibits the visible wearing of any political, philosophical or religious sign does not constitute direct discrimination.”
But, it added, in the case of Asma Bougnaoui, who was dismissed by French software company Micropole: “In the absence of such a rule, the willingness of an employer to take account of the wishes of a customer no longer to have the employer’s services provided by a worker wearing an Islamic headscarf cannot be considered an occupational requirement that could rule out discrimination.”
In Ms Achbita’s case, the court said it was for Belgian judges to determine whether she may have been a victim of indirect discrimination if the rule put people of a particular faith at a disadvantage.
But the rule could still be justified if it was “genuinely pursued in a consistent and systematic manner” with a “legitimate aim”, such as projecting an “image of neutrality” as part of the company’s freedom to conduct business.
In Ms Bougnaoui’s case, the EU judges said it was up to French courts to determine whether she was fired for failing to comply with a similar internal rule.
If her dismissal was based only on meeting a particular customer’s preference, it saw “only very limited circumstances” in which a religious symbol could be objectively taken as reason for her not to work.
Inevitably, the reactions to the court rulings were mixed.
Amel Yacef, chair of the European Network Against Racism, said, “It effectively bars all Muslim women wearing the headscarf from the workplace. This is nothing short of a Muslim ban applied only to women in private employment. Muslim women already experience significant obstacles in finding and keeping a job and this decision will only make matters worse, giving employers a licence to discriminate.”
Carla Amina Baghajati, of the Austrian Islamic body IGGO said, “Participation in the workplace is a key to social cohesion, for women’s right to work and their inclusion in society. If this ruling is taken by employers as an invitation to take restrictive action, that would be a serious consequence for Muslim women who want to wear a headscarf because they would be shut out.”
John Dalhuisen of Amnesty International called the ruling disappointing and said it gave employers “greater leeway” to discriminate against women on grounds of religious belief. “At a time when identity and appearance have become a political battleground, people need more protection against prejudice, not less,” he said.
But Francois Fillon, the conservative candidate for the French presidency said the judgment “defends the secular nature of society and puts a stop to the pushing of religious interests ... It is a huge relief, not only to thousands of companies but also their employees. This judgment will surely contribute to social cohesion and peace throughout Europe, and notably France.”
And G4S, the company involved in the Belgian case said the ban did not apply throughout all its European operations, saying, “In many countries such as the UK where there is no strong tradition of religious and political neutrality, G4S permits the wearing of religious dress such as Islamic headscarves.”
* Reuters
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.”
How to keep control of your emotions
If your investment decisions are being dictated by emotions such as fear, greed, hope, frustration and boredom, it is time for a rethink, Chris Beauchamp, chief market analyst at online trading platform IG, says.
Greed
Greedy investors trade beyond their means, open more positions than usual or hold on to positions too long to chase an even greater gain. “All too often, they incur a heavy loss and may even wipe out the profit already made.
Tip: Ignore the short-term hype, noise and froth and invest for the long-term plan, based on sound fundamentals.
Fear
The risk of making a loss can cloud decision-making. “This can cause you to close out a position too early, or miss out on a profit by being too afraid to open a trade,” he says.
Tip: Start with a plan, and stick to it. For added security, consider placing stops to reduce any losses and limits to lock in profits.
Hope
While all traders need hope to start trading, excessive optimism can backfire. Too many traders hold on to a losing trade because they believe that it will reverse its trend and become profitable.
Tip: Set realistic goals. Be happy with what you have earned, rather than frustrated by what you could have earned.
Frustration
Traders can get annoyed when the markets have behaved in unexpected ways and generates losses or fails to deliver anticipated gains.
Tip: Accept in advance that asset price movements are completely unpredictable and you will suffer losses at some point. These can be managed, say, by attaching stops and limits to your trades.
Boredom
Too many investors buy and sell because they want something to do. They are trading as entertainment, rather than in the hope of making money. As well as making bad decisions, the extra dealing charges eat into returns.
Tip: Open an online demo account and get your thrills without risking real money.
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
