By MANDEEP SINGH,  Posted on » Monday, April 13, 2009

OPPONENTS to a tax on foreign workers have called off their weekly protests, but now hope to recruit thousands of Bahraini bosses into their campaign.

Private businesses were expected to resume their protest outside the Labour Market Regulatory Authority (LMRA) for the fourth Sunday running yesterday.

However, they have now come up with a new strategy that involves lobbying and collecting signatures for a petition.

They want the government to scrap a BD10 monthly fee imposed on employers for every expatriate they employ.

Tax

Critics of the tax, imposed last July, have largely come from small and medium sized companies.

However, they are now trying to get large firms involved in their campaign.

“The government now knows we mean business,” said Wahid Ali Yousuf Saleh Al Demestani, who was speaking on behalf of contractors opposed to the move.

“Our protest will now grow stronger.”

He said opponents to the tax were now lobbying MPs, Shura Council members, ministers, government officials and others.

“We will write to all officials everywhere,” he said.

“We have to get our message across. This will continue for next three weeks, after which we shall decide on the next course of action.”

During the next three weeks, the movement also plans to drum up support for scrapping the tax among firms who employ two, three or four people in shops, cold stores, salons and restaurants.

“In fact, anyone who is running any establishment is expected to join our ranks,” said Mr Al Demestani.

He claimed a petition against the tax had already collected 4,000 signatures and said he expected the figure to rise above 6,000.

Mr Al Demestani, who runs a contracting and cargo company, said he employed 100 people before the fees were introduced.

“Now, over the last few months, I have cut down to 60 employees and have to learn to manage with even fewer because I am sure I will not be able to hold onto them,” he said.

He claimed to have hired cheaper labour because he was unable to make ends meet, but added that only made matters worse.

“That resulted in my business going downhill,” he said.

He added that he only had enough money to eat, feed his family, pay his staff and pay the labour fees.

“I have no savings, nothing to look forward to and the future looks bleak,” he said.

“How long will I be able to feed my two wives and eight children?”

Ebrahim Yousef, who runs a construction company, said he had 60 employees before the fee was introduced.

“Now I have 40 and in two months I shall have only around 25 left,” he said.

He claimed he could no longer take on bigger jobs that paid more money.

“Since I have not got enough money, I cannot accept bigger jobs because I need more people for that,” he said

“And I do not have more people so I have to manage with the smaller jobs. How long will this continue?

LMRA e-services and public relations manager Waheed Al Balushi said earlier that nobody had come forward with proof that businesses were being negatively affected or closed down as a result of the fees.

The money is collected by the LMRA on behalf of Tamkeen (formerly known as the Labour Fund), which uses it to train more than 4,000 Bahrainis for the labour market.

Tamkeen also says it has supported more than 800 small and medium businesses with money generated from the fees.