Saudi govt not issuing residential permits

July 20, 2008

Thousands of Bangladeshi workers in Saudi Arabia are fearing deportation as the Saudi authorities are not issuing residential permits to those willing to join new jobs on expiry of their present contracts.

Sources said residential permits have not been issued to expatriate Bangladeshi workers seeking new jobs for the last two to three months, which will result in a gradual decrease in their number in the Middle Eastern country. About 15 lakh Bangladeshi migrants are currently living in Saudi Arabia.

Bangladeshi workers living in Saudi Arabia usually return home on expiry of their job contracts. But, if any of them gets a new job, the worker can join it after getting another residential permit from the Saudi authorities, said officials at the Bureau of Manpower Employment and Training (BMET).

Talking to The Daily Star over telephone, Mohammad Fazle Rabbi, a Bangladeshi physician in Saudi Arabia, said he along with other Bangladeshi doctors, nurses and technicians has been working at the Rijal Almaa Hospital in Assir region for a long time.

On expiry of job contracts, many of them got the chance to work under the Saudi health ministry while a few managed to get jobs at private hospitals. But the Saudi authorities did not issue them residential permits.

Fazle Rabbi said his present job contract expires on June 14 and he will have to return home despite having an offer for a new job.

He said although they informed the Bangladesh Embassy in Riyadh of the matter, it is yet to take any step.

However, Expatriates’ Welfare and Overseas Employment Secretary Abdul Matin Chowdhury said Riyadh has not officially informed them of any decision on not issuing residential permits for Bangladeshi workers who want to join new jobs on expiry of their present contracts.

Saudi Arabia in March this year decided to introduce a nation-based quota system for foreign workers.

Later, Saudi Labour Minister Ghazi Al-Gosaibi declared a partial ban on recruitment of Bangladeshis as house help and agricultural labourers.

He also said recruitment of Bangladeshis would be limited to Saudi organisations that need qualified workers in the medical and engineering sectors.

Govt fixes minimum wage for unskilled workers at 550 SR

July 20, 2008

Minimum wage for each unskilled Bangladeshi worker who receives food and lodging in Saudi Arabia has been fixed at 550 Saudi Riyals (SR) per month.

According to a press release of the Ministry of Expatriates’ Welfare and Overseas Employment, The minimum wage will be effective from July 1 this year.

If the employer provides lodging only, the minimum wage for an unskilled worker has to be SR 750 (1SR=Tk 19). If the employer does not provide any food and lodging, the minimum wage will have to be SR 950, the release added.

A recent inter-ministerial meeting chaired by Abdul Matin Chowdhury, expatriates’ welfare secretary, fixed the minimum wage and decided that no employment demand letter or visas will be approved if the wages are less than that fixed by the government.

According to officials and manpower agencies handling recruitment of workers to the kingdom, Bangladeshi workers get the lowest wages due to fierce competition between recruiting agencies and middlemen who buy visas from Saudi employers.

Presently, each of the around 1.7 lakh Bangladeshi workers in Saudi Arabia gets only around SR 200 to SR 300 per month, prompting some of the workers to be engaged in criminal activities for additional income or be engaged in multiple jobs — a violation of laws of the Middle Eastern country.

The meeting also decided that all the Saudi Arabia-bound workers — either with individual or group visas — must undergo an orientation session before their departure.

A spokesperson at the expatriates’ welfare ministry said 616 Bangladeshis were found to be detained in a deportation facility in Riyadh for various reasons and 286 Bangladeshis were detained for criminal offences.

As of February 9, a total of 348 Bangladeshis were in the facility awaiting deportation, the spokesperson added.

Some of the Bangladeshis were detained as they violated rules by switching jobs or did not have valid work permits or their visas expired, he said.

“It may be mentioned that many Bangladeshis wishing to save the money for their trip back home destroy their valid documents and surrender to Saudi police. According to the Saudi rules, the Saudi authorities pay for the airfare of the deportees,” he added.

Even a number of middlemen are encouraging legal Bangladeshi workers that they could save money if they returned home through the deportation centres, he said.

“No legal Bangladeshi worker has been deported to Bangladesh as yet,” said the spokesperson.

Thoughts on increasing NRB Remittances

July 20, 2008

Remittances by non-resident Bangladeshis (NRB) through official channels hit $ 6.4 billion in 2007 as per the World Bank, and the caretaker government has shown keen interest in increasing that.

Right after the recent NRB conference in Dhaka interested NRBs held follow-up meetings to try to capitalise on the momentum generated. The march continues. The Bangladesh Enterprise Institute (BEI) organised a roundtable discussion on February 5 on increasing remittances from abroad.

A high-powered GOB team is expected to visit Saudi Arabia to explore the problems of Bangladeshi workers. The Daily Star published related back-to-back articles by two NRBs, Dewan Sadek Afzal (”Promoting NRB Investment” in the February 5 issue), and Halimur Rashid Khan (”Increasing Remittance from Non-Resident Bangladeshis” in the February 6 issue).

We hope that the policy prescriptions that follow from the BEI roundtable, the findings and recommendations that the GOB team brings back, and the prescriptions by others to increase NRB remittances will receive due consideration, careful evaluation, and coordinated, committed and resolute implementation by the GOB.

Visit to KSA
Dignitaries going abroad often end up meeting, and discussing with, those who can gain access to them — those in positions of influence, those connected to embassy officials, and those who are leaders of socio-cultural groups and political parties. It is important to get the views and opinions of such people. It is also important to get the viewpoints of a cross-section of expatriate Bangladeshis.

It will be naïve to think that the Bangladesh Embassy officials in KSA do not know about the plight of Bangladeshi white-collar workers in the Kingdom — about the stories of gross underpayment in brazen violation of contracts, mistreatment and abuse by employers, inability to get leave to visit Bangladesh when contractually due, and so on.

This has been going on for decades, and in other countries. But, as with many other problems of the country, no remedial actions have been taken. The voiceless, helpless, and hapless poor workers of Bangladesh toiling in various countries and earning foreign exchange for Bangladesh continue to suffer. Most of them manage to get a job abroad after paying a fortune to manpower agencies — often by selling their small plots of land, or by borrowing from relatives — only to find that they receive a salary much less than what their contract stipulated.

This story has been told again and again and again! But has anything been done to rectify this recurring state of affairs? I wonder if any manpower agency responsible for this has been taken to task. I wonder if the government has intervened to regulate the exorbitant amounts, which are way above the costs incurred, that helpless job-seekers have to pay to manpower agencies. We want the goose to lay golden eggs. But what have we done for the goose?

BEI roundtable
I hope that the BEI will submit concrete, feasible and practicable proposals to relevant government ministries on strategies for increasing remittances. That should not be the end of it. Government functionaries are busy people, and they can easily lose sight of the proposals if there is no follow-up.

The organisers of the NRB Conference took pains to put all presented papers in the form of a book. A further helpful step would have been to extract major findings and recommendations from the papers and the discussions, group them into related categories, and forward them to respective ministries as actionable items. This step would have needed follow-up. But who could do that?

To ensure something like that, the recommendation for an NRB Secretariat by Dewan Sadek Afzal merits consideration. In his timely, well-reasoned and articulate article he has also called for developing mechanism to establish planned neighbourhoods.

NRB Secretariat
As I envision, an NRB Secretariat can help the GOB and NRBs in a number of ways. It can carry out functions like the following:

* Identify problems, challenges, prospects and opportunities faced by NRBs.

* Help the government in designing appropriate policies and strategies to transform idle manpower into a veritable asset.

* Survey and monitor manpower needs (by type and quantity) of manpower-deficient countries, and report to government and private vocational training institutions geared towards producing skilled and semi-skilled manpower for foreign markets.

* Investigate unfair actions and practices of manpower exporting and importing agencies, and recommend to GOB appropriate actions against the perpetrators.

* Create databases of NRB experts in various fields for possible short-term use of their services by the GOB, universities, and local and international agencies operating in Bangladesh.

* Store and disseminate information on the technology, methods and processes that can be transferred to Bangladesh, with information on relevant experts who can act as transfer agents.

* Gather information on attractive investment sectors/projects in Bangladesh for sharing investment ideas with potential NRB investors.

* Identify and promote less expensive, faster and safer ways through which NRBs can remit money to Bangladesh.

* Advise the GOB on ways to clean the morass and web that investors from abroad have to go through for investing in Bangladesh.

* Advise potential NRB investors about GOB approval processes.

* Identify and promote investment vehicles that will motivate NRBs to invest in Bangladesh.

* Advise GOB on the modalities and approaches for establishing planned neighbourhoods around district towns to facilitate purchases of lands by NRBs in an orderly and efficient manner.

After analysing the needs of various categories of NRBs, the above list can be fine-tuned.

Establishing planned neighbourhoods
A significant part of NRB savings go towards meeting real estate needs. Dewan Sadek Afzal’s article puts forward a compelling plan of action whereby this need of NRBs can be met in a planned and orderly manner. It will create planned neighbourhoods as well as increase remittances.

But the government has to simplify the process through which it allots plots, so that it is fast, fair and transparent. Why should it take a few years to allot plots after the application and initial deposit have been accepted?

Parcels of land developed near various district towns should be earmarked for allotment only to NRBs, so that influential politicians and persons cannot be the beneficiaries of such parcels. If the process of allotment is a lottery, it should be strictly that, and not be subject to political caprice.

In the event that an applicant is not allotted a plot, his/her money should be speedily refunded after following a simplified procedure. If it is protracted period, sufferers lose in terms of purchasing power, and also have to forgo the opportunity to earn on that amount over the period delayed. Who will compensate them for that? I am disregarding the fact that they may have to spend some money to get back the deposited money.

This brings me to the all-important point; we cannot expect to increase remittances in a vacuum. Some of the factors that have a bearing on remittances are:

* Creating a stable and conducive socio-economic and political climate that can help create a functioning economy.

* Strengthening the institutions that establish rule of law, strengthen oversight, weed out corruption and create public confidence in the police and the courts.

* Simplifying bureaucratic entanglements and regulations.

* Easing infrastructure blockages (power shortages, transportation bottlenecks, port and customs delays).

* Enhancing technology and telecommunications facilities for greater integration with world markets, etc.

These factors would contribute toward creating a favourable investment climate to attract not only NRBs but also MNCs.

A factor that is not necessarily related to creating a favourable investment climate, but can, nevertheless, significantly increase remittances is exporting ever increasing numbers of skilled manpower (train them first so they can earn more, save more, and send more). However, it is well known that the presence of an educated and skilled workforce in a country helps to attract foreign direct investment.

If one creates the fastest, safest, and cheapest remittance mechanism, but the factors mentioned above are absent in Bangladesh, remittance will increase to some extent, but not dramatically. It will also increase as more people find jobs abroad, but not dramatically. The super-rich NRBs will keep out (as will most MNCs), and they are the large players. They will prefer to invest in safe havens.

Dr. Shaikh Abdul Hamid is an NRB residing in Boston, USA, for about 22 years. He is Professor of finance/economics. He is also a Research Associate of National Defence College, Dhaka, and a Governor of SERVE Foundation — a not-for-profit organisation registered in Bangladesh and in the USA — and dedicated to nation building.

Govt targets child labour phase out

July 20, 2008

The government yesterday finalised the draft of National Child Labour Elimination Policy-2008, seeking to phase out child labour and rehabilitate over 1 million children engaged in risky jobs.

At a meeting at the secretariat the labour and manpower ministry also resolved to have 30,000 working children enrolled for primary education and introduce stipends for them.

Identifying ship breaking as the most hazardous job, it decided to commission two taskforces–one to be comprised of government officials and the other of non-government ones–to visit Chittagong and report back on child labour situation there.

Labour and Manpower Adviser Anwarul Iqbal who chaired the meeting said a long term initiative to eliminate child labour would follow once the draft policy is approved by the cabinet.

“Hopefully, we will place the draft before the council of advisers by the end of this month,” he told reporters after the meeting that gave a unanimous consent to the draft.

Government officials and representatives of NGOs, factory owners and employees were involved in scripting the draft over four long years.

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Russia looks to Bangladesh for garment expertise

July 20, 2008

First batch of skilled worker expect to leave in next two months

Russia looks to Bangladesh for garment expertise

Skilled Bangladeshi textile workers are being hired to work in Russia, further evidence of Bangladesh’s growing status as a world leader in garment expertise.

Abdul Matin Chowdhury, secretary to the Ministry of Expatriates’ Welfare and Overseas Employment, said 60 skilled workers will go to Russia in the first batch within the next two months. More could soon follow, he added.

Although garment industry leaders have previously complained of a shortage of skilled labour in Bangladesh, yesterday they welcomed the Russian initiative as proof of the strong development and international competitiveness of the local garment sector.
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Manpower export

July 20, 2008

Manpower export

I must congratulate Helal Ahmed Chowdhury, Managing Director of Pubali Bank, for coming up with a very innovative scheme for funding the prospective job seekers abroad. A substantial number of the expatriate wage earners are victims of the unscrupulous manpower agents who extract substantial sums from job seekers for employment abroad. Pubali Bank has initiated an expatriate lending project whereby the bank will advance money to the prospective job seekers who will repay the loan from their remittances.

I do have some personal experience regarding manpower export. It just so happens that when Bangladesh commenced exporting manpower and introduced the manpower license system my license number was number one. That is to say that I was the first to get hold of a manpower export license.
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Kingfisher plans to operate flights to Bangladesh

July 20, 2008

Kingfisher Airlines, a major private airline in India, is planning to launch its flights to Bangladesh by October this year, sources at the aviation industry said.

It will initially operate its aircraft to two destinations in Bangladesh.

Kingfisher has taken necessary preparations including hiring of local manpower to launch the flights from Kolkata to Dhaka and Chittagong said a senior official who is working with the local office at Banani in the city told the FE Wednesday.

Kingfisher, a brand of United Breweries, mainly popular for liquor and beverage industry in India, launched its aviation business in India in 2005.

Vijay Mullaya, UB Chairman and also a liquor baron in India, has around 55 aircraft mostly Airbus.

Local office sources said the Kingfisher airline is likely to operate two flights daily, one in the morning and another in the evening, between Kolkata and Dhaka from October.

For the Kolkata-Chittagong route, Kingfisher has planned three flights a week.

At present, Air India and India’s another private sector airline Jet Air operate flights in Dhaka-Kolkata route.

Besides, Indian government-owned Air India’s economy carrier Air India Express announced that it would operate six flights a week from Dhaka to Kolkata from July 20.

Among the Bangladeshi carriers, Biman Bangladesh, GMG Airlines operate flights between Kolkata and Dhaka while United Airways, a venture by UK-based expatriates, is going to fly to Kolkata from the end of this month.

Nazrul Islam, an official of private GMG Airlines, said operating of more Indian carriers in the routes might intensify competition but that would not be a threat for Bangladeshi airlines.

‘If Bangladeshi airlines can ensure quality services for their passengers, no newcomer is a threat to them,’ said the executive of GMG that has interline agreement with Kingfisher.

Aviation industry people predicted that Kingfisher might have eye on the passengers who fly from Dhaka to middle-east and western destinations.

Bangladesh offers to provide more manpower to Saudi Arabia

July 4, 2008

President Prof Iajuddin Ahmed Thursday said Bangladesh was ready to provide more skilled and unskilled manpower to Saudi Arabia for fulfilling the demand of the labour market of the oil-rich country, reports UNB.

He also said Saudi Arabia could import pharmaceutical products and medicines and explore the possibility of joint-venture investment in boosting Bangladesh’s readymade garment sector that would also benefit the Saudi investors.   Read more