Majeed Al Alawi

In 2002, the Workers Trade Union Law was passed by the government allowing the formation of free trade unions for the first time in the private sector. Bahrain's large expatriate workforce is also eligible to unionise as part of the reforms.

The main trade union body is the General Federation of Workers Trade Unions in Bahrain, which is a member of the International Confederation of Free Trade Unions.

The International Confederation of Free Trade Unions' Annual Survey 2005 highlighted: "Bahrain, a bright spot in an otherwise dismal landscape of persistent labour rights violations in the Middle East".[8] According to the ICFTU:

Bahrain has set the standard for the [Persian] Gulf region in terms of positive developments. The right to form trade unions has existed since 2002, although only one national trade union centre is recognised, and other rights are still limited. The General Federation of Bahrain Trade Unions held its founding congress in January 2004 and in December became the first organisation in the [Persian] Gulf states to become a member of the ICFTU. It has been actively involved in tripartite discussions, including on labour legislation.[9]

All cases where employees are dismissed from their jobs are referred to the courts, Al Alawi told parliament in January 2008, and in the previous cases, Al Alawi said "Three unionists have won in court, six have been reinstated and nine are waiting for verdicts."[10] He has also criticised Bahraini telecommunications company, Batelco, for sacking two trade unionist involved in an industrial dispute. Al Alawi said "Batelco has broken the law when it sacked the unionists, who were not on strike but were protesting outside working hours. It should reinstate these unionists, instead of replacing them with the expatriates it brings."[10]

The Labour Ministry pushed legislation through parliament in 2007 to introduce unemployment benefit, set at 60% of previous earnings.[11] First-time jobseekers get 120 Bahraini Dinar (320 US dollars) a month in the case of undergraduates, or BD150 (400 dollars) for graduates. These figures were worked out in consultations during 2005 and 2006 between the General Federation of Workers Trade Unions in Bahrain, the Bahrain Chamber of Commerce and Industry and the Ministry of Labour, consultations which were brokered by the International Labour Organization. The scheme is financed by a 3% contribution on wages split equally between employers, workers and the government, the proceeds of which are reserved for UI purposes. This social insurance contribution comes on top of other similar contributions in Bahrain, for pensions and employment injury.

While the introduction of unemployment benefits was generally well received, its funding through what was (incorrectly) described by some as an income tax was controversial.[12] It led to a major political showdown between the government and some religious scholars,[13] who objected to the tax on wages on theological grounds. The legislation was nevertheless adopted, and many employers have agreed to pay the workers' 1% contribution.

A national minimum wage was a key pillar of Al Wefaq's election manifesto in 2006 parliamentary poll, and was supported by a number of other candidates. However, the Ministry of Labour announced during the election campaign that it had already drafted UI legislation which it would bring before parliament in the forthcoming session. Critics were quick to label the government's move as an attempt to ‘steal’ the opposition's policies, and thus gain the credit of the beneficiaries. But the government's legislation differed significantly from Al Wefaq's in that it proposed that the benefit be funded by contributions on wages, while Al Wefaq wanted it funded out of a tax on wealth.

Al Wefaq initially backed the government's redrafted legislation, but opposition from its followers and religious scholars forced a rethink. Shaikh Hussain Al Najati, a prominent Shiite scholar explained the ulema's objections: "The one per cent deduction is haram [forbidden] and even the unemployed who will benefit from the fund will be doing something haram. The fund has positive aspects, but after a careful political, social, economic and religious assessment, we clearly state that it has many shortcomings."[14] In an attempt to prevent the legislation going through parliament, Al Wefaq leader, Sheikh Ali Salman, met with Prime Minister, Sheikh Khalifa bin Salman Al Khalifa. While the government indicated its determination to introduce the new tax, it did agree to Al Wefaq's demand for a 15% increase in public sector wages.[15]

Expressing his frustration at the opposition, Al Alawi said "A country is not run through religious fatwas [edicts] and the government cannot of course consult every citizen. We have a parliament which has approved the scheme and anyone who objects to it should follow the regular constitutional procedures. The project aims to help thousands of people as they struggle against difficult situations, and people should rise to the Islamic duty of solidarity."[16]

In 2007, the first minimum wage was introduced; voluntary at first it is set at BD200. As of October 2007, Dr Al Alawi announced: "Today, we have 460 private sector establishments who have joined the BD200 minimum wage scheme and we hope that other establishments will come forward soon”.[17] Speaking at the symposium at the majlis of Al Wefaq opposition MP, Jalal Fairooz, the Ministry of Labour's undersecretary, Jameel Humaidan, announced that around 16,000 Bahraini private sector employees have reportedly benefited.[18]

However, foreign workers are not covered by the minimum wage, although moves have begun to cover non-indigenous labour. In July 2007, the Indian Embassy began consultations with the Bahraini government about the introduction of a US$265 (BHD100) per month for Indian expatriate construction workers.[19]

Under Al Alawi the unemployment level has fallen from between 13 and 16 per cent in 2002 (according to figures from the American consultancy McKinsey & Company[20] to 3.6% in 2007.[21] As well as hundreds of thousands of foreign workers living in Bahrain, Al Alawi has said that the government is facing a problem finding skilled workers to fill positions: “There are 6,700 vacancies in various ministries and more will be created in the future.”[22]

Speaking in October 2007 about the Ministry's efforts to tackle unemployment, Al Alawi said:

Since 2001, Bahrain started to discuss policies aimed at reducing unemployment among its citizens. Over the past five years, I managed along with my colleagues in the ministry to reduce the unemployment rate from 16 per cent to 3.6 per cent. The key project was the establishment of the Unemployment Insurance System (UIS), which is unique in the Arab world.

The system allows unemployed citizens, who are registered with the ministry, to receive a financial assistance for six months based on their qualification and experience. During the period, they will have to look for a job with the help of the ministry and in some cases they would join a training programme.

Unless they resigned or were fired for reasons of violating job ethics, Bahraini employees are entitled to financial assistance for losing their job because of reasons beyond their control. The unemployment assistance in this case would be equal to 60 per cent of their last received salary in the last job they worked. The fund of the UIS is financed through contributions from Bahraini employees and employers.

The result of the programme was quite significant. We managed to reduce unemployment among nearly 20,000 citizens to 7,200 job seekers.

The balance of 12,800 who found employment through the programme in addition to those who entered the job market during the past four years, have been offered jobs in the private sector. This indicates the success of the programme.

The main advantage of the programme is that it addresses the unemployment problem whilst saving the dignity of citizens. The system offers policy makers an indicator of the level of unemployment in the country.[23]

An analysis of the demographics of those unemployed indicates that women are greatly over represented among the Kingdom's registered unemployed.

The Ministry of Labour introduced a ban on working outdoors in the midday heat during summer time when temperatures can reach 50 C. In a press statement Dr Majeed Al Alawi attributed the move to a "genuine keenness to protect the rights of immigrant workers, particularly those in menial jobs."[24]

In 2007 prosecutors filed charges against 160 construction companies for flouting the summer ban on labourers working outdoors during the hottest part of the day. The cases were reported to the Public Prosecution by the Labour Ministry, following inspections carried out during the ban. Companies will be fined between BD50 and BD300 for each labourer working in the heat.[25]

In 2007, Al Alawi oversaw the introduction of an amnesty for illegal foreign workers in the Kingdom. As part of the initiative, Al Alawi took the campaign to Indian expatriate community groups in the Kingdom to urging their involvement in protecting workers from exploitative employers. In order to inform expatriate workers of their rights, the Ministry of Labour along with the Labour Market Regulatory Authority and foreign embassies organised a major festival for foreign workers in October 2007. The aim of the festivities held at the Bahrain Conference Centre was to inform workers of their rights and get them to participate in the amnesty so that they can legalise their status.[26] Around 100,000 people attended.

Another major labour reform was the announcement in 2007 that so-called “sponsorship” of foreign workers by their employers is officially outlawed. Employers who claim legal rights or hold the passports of foreign workers face prosecution with Interior Ministry Under-Secretary Shaikh Rashid bin Khalifa Al Khalifa stating that the government is determined to stamp out the practise. Sheikh Rashid accused rogue employers of “blackening Bahrain's name”.[27]