02 April, 2006

one big construction site just got a setback

Construction companies struggle to entice Indian workers to UAE

(Gulf News Via Thomson Dialog NewsEdge)Dubai: Contracting companies are increasingly finding Indian workers turning down construction job offers because salaries here are too low while wages in India are rising.

One of the companies' officials and many labour agents have said it is increasingly difficult to convince Indian professionals and labourers to work in the UAE, because salaries here are stagnant against rising inflation, while the Indian economy is booming.

read more here


Anonymous said...

So now all we need is an organized union and the construction industry comes to a halt...

Krishna said...

One of the major reasons for the lack of interest to come as labour is the growing amount of inflexibility to change jobs at will. Also you have to consider the living conditions here are much worst than India. I have heard that the average cost of labour is 8% of the project in UAE compared to 40% plus in other parts of the world.

BD said...

One wonders why there is so much greed in the industry. The impression one gets is that a construction company would prefer to hire a completely unskilled villager rather than a trained or experienced worker who could certainly do a better job. It's all about money with these guys. What about the "quality" and "high-standards" they always harp about? It seems it's all about money and greed.

grapeshisha said...

Krishna, I have heard those similar figures of 10% to 40%.

This is on of the reasons why Dubai is low cost to do business. But even if the cost was raised to 20% say, which would be viable for cost of living, it wouldn't hurt Dubai in the long run.

trailingspouse said...

But IS it the construction companies who are greedy? From what I hear from expats working in the construction industry in Dubai, they face a highly competitive market. Usually the highest component in the value of any property is the land. I suspect it's the landowners who are making out like bandits . . . and we know who they are.

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