An artist's rendering shows the forthcoming campus of the New York University in Abu Dhabi.
An artist's rendering shows the forthcoming campus of the New York University in Abu Dhabi.

NYU and Abu Dhabi write joint charter for workers' rights



ABU DHABI // New York University has demanded a sweeping set of rights for workers hired to build its Saadiyat Island campus. The university and its Abu Dhabi Government partner said workers must be allowed to keep their passports, receive 30 days annual leave and not be left indebted to recruiters.

Foreign employees must also receive medical insurance and an airline ticket home each year. Recruitment specialists said the demands were unrealistic, but the move was described by human rights activists as a "significant step" towards protecting workers. The university, which begins courses this autumn, said the rules would also apply to companies operating its temporary campus near the Corniche.

Construction of the permanent facility on Saadiyat starts this year. The opening is scheduled for 2014. Josh Taylor, a spokesman for the university, said the requirements were being imposed by the university and the Government, which is funding the campus. "We do not expect employees to [incur] any costs associated with the recruitment process", he said, adding that all recruitment costs must be reimbursed by the contractor.

Other conditions include: ? Employers must pay or reimburse fees for requirements such as visas and medical examinations; ? The maximum working hours will be eight hours, five days a week, or six days a week for construction jobs. Overtime is not compulsory and must be paid "at premium rates"; ? Wages will be paid on time by electronic transfer; ? In addition to 30 days leave, workers will receive 10 public holidays plus two additional days;

? Female staff will be entitled to maternity leave at full pay for up to 45 days; ? Employers will pay workers' travel expenses to the UAE and for their repatriation when they complete their employment, plus one trip home a year. While declining to say that companies could be dismissed, Mr Taylor said they would be under contractual obligation to comply. "From an enforcement perspective, we and our partners are highly committed to monitoring and requiring compliance," he said.

The Tourism Development and Investment Company, the overall developer of Saadiyat Island, said safeguards were already in place to ensure contractors complied with UAE law by, for example, paying workers on time. A unit within TDIC monitors compliance and has, according to the head of corporate communications, Bassem Terkawi, taken action when employers have held on to passports. However, he said the organisation complied with, rather than made, labour law so was focused on ensuring companies adhered to legal requirements.

However, David Burns, the director of human resources consulting at UHY Saxena, which provides recruitment consultancy services, described the conditions were described as "unrealistic". Mr Burns said workers were sometimes charged fees by several parties, and it would be difficult and expensive to reimburse them all. "It's not practical," he said. "You need to monitor and use ethical recruitment protocols to ensure these are kept to an acceptable level. While I welcome their statement, I think once they realise the costs involved, very little will happen."

Human Rights Watch, the New York-based lobby group, praised the "commitments" and called for fines against companies that broke them. The group has been critical of labour practices in the UAE, particularly the issue of workers arriving in the country heavily in debt to recruiters. Sarah Whitson, the Middle East director for Human Rights Watch, said: "NYU Abu Dhabi's commitments should go a long way towards fixing the major source of labour abuse."

HRW has previously said that expatriate workers on Saadiyat typically pay $2,000 (Dh7,300) in recruitment fees. The rights group said NYU's move was "a significant step toward protecting migrant workers" and called on others to impose similar conditions. @Email:dbardsley@thenational.ae

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Part three: an affection for classic cars lives on

Read part two: how climate change drove the race for an alternative 

Read part one: how cars came to the UAE

A MINECRAFT MOVIE

Director: Jared Hess

Starring: Jack Black, Jennifer Coolidge, Jason Momoa

Rating: 3/5

The specs
 
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Moon Music

Artist: Coldplay

Label: Parlophone/Atlantic

Number of tracks: 10

Rating: 3/5