Cutting Expatriate Staff

Old Jun 29th 2011, 5:37 am
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Default Cutting Expatriate Staff

http://www.zawya.com/story.cfm/sid20...patriate_Staff

Government bodies and state-linked enterprises in Abu Dhabi are cutting expatriate staff on orders from the "highest levels" of government, employees have been told.

Expatriates have lost jobs at departments such as local government, urban planning and the executive council secretariat, people aware of the matter say. The redundancies aim to consolidate public finances and boost the number of working nationals.

...more...
In a nut shell, I've been warning of this for months. They simply are not as cash rich as they hope.
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Old Jun 29th 2011, 9:48 am
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Default Re: Cutting Expatriate Staff

I was just about to post this article from the FT but you beat me to it. I am not surprised about this at all. I know lots of people who have been made redundant in the last few months but are still here marking time here until the end of the school year which is today. I think the final paragraph sums it up for those in Construction:-

"One engineering consultant said it was an “awful time” as there had been big cutbacks and reallocations over the past months, adding that a number of projects had moved from “must-haves” to “nice to haves”."
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Old Jun 29th 2011, 10:38 am
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Default Re: Cutting Expatriate Staff

You would have to argue with the article title though. Cutting fat is one thing, this is more like cutting muscle (in most instances, admittedly not all) and grafting on fat.

It's driven by the 2 Sheikh Mo's tour of the Norther Emirates in February this year where they were frankly terrified by the possibility of protesting Emiratis - http://www.uaeinteract.com/docs/Moha...als_/44477.htm

A direct consequence of this was the Tawteen Council decision in March to create 6,000 Emirati jobs, this was just approved earlier this month: http://www.wam.ae/servlet/Satellite?...=1135099399852

A lot more to come unfortunately... In a year's time everything will be a mess and they'll be desperately trying to hire people who know what they're doing.
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Old Jun 29th 2011, 10:46 am
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Default Re: Cutting Expatriate Staff

Originally Posted by ctfc
A lot more to come unfortunately... In a year's time everything will be a mess and they'll be desperately trying to hire people who know what they're doing.
It'll take more than a year for them to realise... and the salaries will have to be higher to get people back. History repeats...

There are actually two issues going on here:

1) Lack of liquidity putting pressure on projects - hence the stalled developments and clear out of contracting and related staff. This is true even for Abu Dhabi.

2) The political pressure to create jobs for locals.

(1) will ultimately reduce employment in the private sector that supports these industries and (2) will ultimately create employment of expats in a year or two as the newly appointed local managers realise they can't be arsed with all the effort of picking up a pen.
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Old Jun 29th 2011, 10:48 am
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Default Re: Cutting Expatriate Staff

The life circle of the Gulf.... Hire expat-----expat does job-----remove expat and replace with person of lesser quality-----person does below standard job------and begin again...!

Nothing new , it's been happening for the past 30 years
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Old Jun 29th 2011, 10:53 am
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Default Re: Cutting Expatriate Staff

Originally Posted by co durham boy
The life circle of the Gulf.... Hire expat-----expat does job-----remove expat and replace with person of lesser quality-----person does below standard job------and begin again...!

Nothing new , it's been happening for the past 30 years
you say it like it's a bad thing.
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Old Jun 29th 2011, 11:07 am
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Default Re: Cutting Expatriate Staff

Originally Posted by Millhouse
you say it like it's a bad thing.
Keeps me employed , most projects you walk onto here have been wrecked before you set foot on site and in most cases purely out of incompetence and lack of basic engineering and construction management skills.
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Old Jul 5th 2011, 3:22 am
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Default Re: Cutting Expatriate Staff

Originally Posted by Millhouse
http://www.zawya.com/story.cfm/sid20...patriate_Staff



In a nut shell, I've been warning of this for months. They simply are not as cash rich as they hope.
Surely sacking expatriate staff to 'consolidate public finances' and 'boost the number of nationals working' is an oxymoron. As others have said, locals (more often than not) cost more for less productivity.
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Old Jul 5th 2011, 3:33 am
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Default Re: Cutting Expatriate Staff

They tried to do something similar in Saudi a while back.......

Then, all the big family firms (Olayan, Juffali, Bin Laden, etc) lobbied the Ministry of Labour, fearing they would lose all their best expats.

U-turn followed pretty quickly afterwards.................
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Old Jul 6th 2011, 4:54 pm
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Default Re: Cutting Expatriate Staff

Another article re cutting expats in UAE.

http://www.reuters.com/article/2011/...75R05020110706

Of course the other side to this is that locals will be worse off as their lifestyle won't be funded by the massive rents paid by expats
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Old Jul 6th 2011, 9:04 pm
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Default Re: Cutting Expatriate Staff

Originally Posted by soukie
Another article re cutting expats in UAE.

http://www.reuters.com/article/2011/...75R05020110706

Of course the other side to this is that locals will be worse off as their lifestyle won't be funded by the massive rents paid by expats
"It is not a new thing, just continued polishing of the apple."
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Old Jul 6th 2011, 10:57 pm
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Default Re: Cutting Expatriate Staff

Originally Posted by Millhouse
"It is not a new thing, just continued polishing of the apple."
More like continued polishing of a turd.
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