By SOMAN BABY
CONTRACTORS who took to the streets in protest over “crippling” labour fees have been asked to prove that their businesses have declined.
The call came from Labour Market Regulatory Authority (LMRA) chief executive Ali Radhi, who said the majority of companies had applied for more work visas in recent months.
“This does not justify their claim that the BD10 per month fee per expatriate worker would force them out of business,” he told the GDN.A group of contractors have started a series of weekly protests outside the LMRA headquarters in Sanabis to demand the abolition of the monthly labour fees.
The protests are spearheaded by the Bahrain Contractors’ Association (BCA) and the last demonstration, last Sunday attracted more than 500 Bahrainis.
Mr Radhi said he met representatives of the protest group and asked them to provide details of businessmen who have been affected.
“They claim that 1,000 contractors have signed a petition,” he said.
“I asked them to provide details of each of them with their Commercial Registration (CR) numbers, so that we can contact them individually.
“We want to know whether they have lost contracts and repatriated some workers.”
Mr Radhi said the LMRA figures contradict the contractors’ claims.
“Already, there is a 14 per cent increase in the number of work visas issued compared to the same period last year,” he said.
“We issue an average 3,000 to 4,000 work visas every week and the majority of them are for construction companies and small businesses.
“Still, most of the contractors are applying for more work visas.
If the fees have affected their business this should not be the case.”
Mr Radhi said the LMRA was about to have its status legalised after being approved by the Cabinet following several months of consultations with all parties involved.
“We want the protest group to support us with statistics which will also help us in our future studies and decision-making,” he said.
Meanwhile, there has been a mixed reaction from the business community to the weekly protests by the contractors.
Bahrain Chamber of Commerce and Industry (BCCI) board member and business community representative on the LMRA board Adel Al Maskati said the regulatory authority and the Economic Development Board (EDB) should make a detailed study on the implications of the new fees.
“BCCI had detailed discussions with the government before the monthly fee was brought down to BD10 from the original proposed fee of BD70 or so,” he said.
“The concept of charging special fees for employing expatriate workers was approved by all. It was also agreed that the same fee should be applied for all sectors.
“If we do not take such a step in the interest of Bahraini wor-kers now, we will suffer a lot later.”
Mr Al Maskati said it was not practical to differentiate between different categories of employers.
“It was the fishermen who protested first and now it is the construction group and tomorrow it may be another sector,” he said.
Mr Al Maskati admitted that the new labour fee was approved when the economy was booming.
“Now with a major slowdown in the economy, it may be difficult for many businesses to meet increased labour costs,” he admitted.
“The affected people should provide facts and figures for the authorities to study their problem.
“If at all some consideration is given, it should not affect the overall concept of labour fees for expatriates as part of the labour reforms process.”
Mr Al Maskati said employers should make it a point to pay their workers regularly without fail, as they also have a lot of commitments to meet.
BCCI chief executive and board member Othman Sharif said the new labour fees were implemented after being endorsed by the legislative bodies and the Cabinet, following which a decree was issued by His Majesty King Hamad.
“The law has been in force for more than eight months, and if any change has to be made, the matter should go back to the same legislative bodies,” he said.
“The BCCI had detailed meeting with Prime Minister Shaikh Khalifa bin Salman Al Khalifa before the fees were approved.
We had then expressed our concern on the new fees’ possible impacts on businesses.
“The LMRA is just an implementing body, and people who have been affected should now approach the Parliament and the government.”
BCCI contractors’ committee chairman Samir Nass said he was against the contractors taking such matters to the streets.
“The BCCI as an institution cannot support such a move. We believe in dialogue,” he said.
“It is therefore advisable for the contractors who have been affected to sit with officials and discuss their problems.”