The GRC Gulf Business Weekly Report - Gulf Research Center

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Gulf Research Center Meanwhile, Bapco was deeply involved in negotiations with 2000 striking workers who accepted a five percent pay rise and proposed improved living conditions but said that they did not get a requested 30 percent risk allowance as compensation for the potential risks of inhaling dangerous gases during their work. The workers are part of the Consolidated Contractors Company, a subcontractor for Bapco, and were hired out to work for the Japan Gas Company, which was awarded a contract for a Bapco project. The problems started when one of the workers refused to move to another site in Qatar. Workers apparently believe that the Qatar site is more dangerous, and say that workers there have met with fatal accidents. Another bone of contention is that supervisors and middle management at the site are paid a ‘gas allowance,’ which the workers are now demanding for themselves. UAE The UAE is seeing different proactive measures being undertaken to stem the labor problems at the root. It is considering a new policy to ensure that companies pay salaries on time. But while that sea change is coming, the UAE labor sector saw its own scenes of discontent last week. Four former labor officials withdrew their case against Dr Ali Abdullah Al Ka'abi, Minister of Labor, but are still suing the cabinet for unfair dismissal. June 21 has been set as the date for a court ruling said Busit, Al Rokn and Associates, the legal firm dealing with the case. The firm said that the move was against the UAE Civil Service Law, which dictates employment rules in government departments. However, the State's Lawsuits Department at the Ministry of Justice, which represents the cabinet, said that the cabinet had a constitutional right to appoint and dismiss employees of the federal government. Elsewhere, nearly 800 employees of Mina Zayed, including 270 UAE nationals, got the pink slip following a management takeover by Dubai Ports World. But DP World distanced itself from the job cuts, saying that it was only responsible for managing the port. Two other lawsuits took on a life of their own. On a positive note, Dubai Internet City's Smart City project in Kochi, Kerala got a green signal from the Kerala High Court, which cleared the signing of an agreement between Government of Kerala and Dubai Technology of Media Free Zone Authority (TECOM). The project faced a sudden setback last month when India's Chief Election Commissioner blocked the signing of the final agreement on the grounds that it was The GRC Weekly Business Report Page 2 of 5
Gulf Research Center against the code of conduct to be observed for the upcoming general elections in Kerala. But the Kerala High Court ruled that the code would not apply to the Smart City project, as the decision to start it had been taken in 2004. However, Dubai Internet City sources indicate that the group would prefer to hold on to its horses and wait until elections are over as recent opinion polls indicate that the Marxist-led Left Democratic Front, which opposes the project, is likely to come to power in the state. Two other cases involving L'Oreal, revealed different dimensions of the internationally renowned name. On the one hand, L'Oreal has been fighting it out with Dubai-based EPW, the latter having been accused of closely copying 12 L'Oreal fragrances. In a totally separate case, L'Oreal and another Dubai company, Chaloub Group, have been accused of 'plotting a dirty tricks' scheme to flood Russia with cut-price cosmetics. Swiss company Temtrade, L'Oreal's original Russian distributor, alleges that L'Oreal partnered with the Chalhoub Group's owner, Patrick Chalhoub, to undercut the market created by Temtrade in Russia. The acquisitions scene saw a new development. Mubadala Development Company, owned by the Abu Dhabi government, said it had acquired 35 percent of Italy's Piaggio Aero, a leading aerospace company, for an undisclosed amount. Mubadala will get three of the seven board seats, including that of vice-chairman. It will also pick up one of the three seats in the firm's executive management committee. The deal aims at consolidating Piaggio Aero’s business in both the European and North American business aviation markets and explore new markets such as the Middle East, Far East, and South America. Piaggio Aero Industries is the only company in the world to be active in all aspects of aircraft manufacturing and maintenance. Meanwhile, the UAE cabinet recently approved the statute governing the newly established National Media Council, which has the power to cancel or suspend media licenses if there are any violations of press laws. This followed the scrapping of the Information Ministry, which was reported in Arabic daily Al Khaleej. The Council will take responsibility regarding all media affairs and any other responsibilities stipulated in cabinet decisions and laws. According to its statute, the Council will be run by a six-member board, including a chairman, deputy chairman, and director-general. The board will serve for a term of four years, and will be formed by a decision to be issued by the chairman of the Abu Dhabi Executive Council. The council will be The GRC Weekly Business Report Page 3 of 5
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