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UAE's migrant workers fret over future in coronavirus economy – TheChronicleHerald.ca

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By Alexander Cornwell, Lisa Barrington and Davide Barbuscia

DUBAI (Reuters) – When Kapil left his Nepali village for an airport job packing cargo in the United Arab Emirates, he thought he was securing a future for himself and his family.

But less than a year after arriving in the Middle East trade and tourism hub, he questions whether it was the right decision after learning there would be no work this month.

“I’m totally hopeless,” said 29-year-old Kapil, whose wife and five-year-old son are in Nepal.

The coronavirus crisis has taken a heavy toll on the economies of the oil-rich Gulf, heavily reliant on low-paid foreign workers.

They are the backbone of the Gulf economies, taking jobs in construction, services and transport, and are now facing the realities of the pandemic.

Reuters spoke to over 30 workers like Kapil in Dubai, Abu Dhabi and Sharjah, who all said they are now enduring hardship due to coronavirus.

Many have racked up debt and would go hungry without the help of charities as they wait for work and to be paid.

Some said they found little reason to stay without work and wanted to return to their home countries despite being owed months of wages; hundreds of thousands have already left.

The treatment of migrant workers in the Gulf has come under greater scrutiny, with human rights groups saying conditions have deteriorated because of the pandemic.

In the UAE, most attractive because of the economic opportunities it offers, there is no social safety net for foreigners, who make up about 90% of the population.

A laundry service worker from Cameroon told Reuters he had not been paid in months and was now selling fruit and vegetables on the street earning 30 to 40 dirhams a day ($8-$11).

The UAE government communication office did not respond to emailed questions about migrant worker welfare.

In May, the UAE Foreign Minister Sheikh Abdullah bin Zayed al-Nahyan said the Gulf state was committed to protecting the rights of all workers, state news agency WAM reported.

DEBTS

Those in blue collar jobs are the most vulnerable. They are paid low wages, work long hours and often live in cramped dormitories that have been coronavirus hotbeds.

Many also pay fees to recruiters in their home country, a practice common for low paying jobs in the Gulf.

Kapil, who said he paid a recruiter 175,000 Nepali rupees ($1,450) for his UAE job, is not sure when he will work again.

His employer told staff they would only be paid when they worked and it was unclear whether there would be any work next month, he said.

Kapil said he had been earning around $600 a month – six times more than his teacher salary in Nepal – working up to 12 hours a day, six days a week at the airport.

He said not working had left him stressed and unable to provide for his wife, child and elderly parents in Nepal.

Kapil, who showed his employment contract and other documents to Reuters, asked that his full name not be published and his employer not identified over fears he could face repercussions.

Arriving in the UAE last October, Kapil thought he would work at the airport for a few years before finding a better job, possibly using his teaching skills.

Now he just hopes to work until the end of the year to pay back his loans.

“The global economy is getting worse and it’s affecting each and every business … I think during this time it’s hard to find any other job.”

UNPAID WAGES

No official statistics of how many people have left the UAE are available. But at least 200,000 workers, mostly from India but also from Pakistan, the Philippines and Nepal, have left, according to their diplomatic missions.

Sectors like construction and retail were struggling even before the crisis, which exacerbated hardship for workers already exposed to payment delays.

Mohammed Mubarak has not been paid for around 11 months for security work at a Dubai theme park.

“The company doesn’t know when they’ll be able to pay us, and we are suffering,” the Ghanaian said.

Government coronavirus restrictions that forced many businesses to shutter for weeks began to ease in May. Shopping centres, water parks, bars and restaurants – all staffed by migrant workers – are once again open, raising hopes.

Zulfiqar, a Pakistani in Dubai for 12 years, sent his family home early in the outbreak but stayed on hoping for work, sharing a room and what cash he has with a dozen other unemployed men.

“Things in Pakistan are also not good,” he said.

(Reporting by Lisa Barrington, Davide Barbuscia, Aziz El Yaakoubi; Reporting and writing by Alexander Cornwell; Editing by Giles Elgood)

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Minimum wage to hire higher-paid temporary foreign workers set to increase

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OTTAWA – The federal government is expected to boost the minimum hourly wage that must be paid to temporary foreign workers in the high-wage stream as a way to encourage employers to hire more Canadian staff.

Under the current program’s high-wage labour market impact assessment (LMIA) stream, an employer must pay at least the median income in their province to qualify for a permit. A government official, who The Canadian Press is not naming because they are not authorized to speak publicly about the change, said Employment Minister Randy Boissonnault will announce Tuesday that the threshold will increase to 20 per cent above the provincial median hourly wage.

The change is scheduled to come into force on Nov. 8.

As with previous changes to the Temporary Foreign Worker program, the government’s goal is to encourage employers to hire more Canadian workers. The Liberal government has faced criticism for increasing the number of temporary residents allowed into Canada, which many have linked to housing shortages and a higher cost of living.

The program has also come under fire for allegations of mistreatment of workers.

A LMIA is required for an employer to hire a temporary foreign worker, and is used to demonstrate there aren’t enough Canadian workers to fill the positions they are filling.

In Ontario, the median hourly wage is $28.39 for the high-wage bracket, so once the change takes effect an employer will need to pay at least $34.07 per hour.

The government official estimates this change will affect up to 34,000 workers under the LMIA high-wage stream. Existing work permits will not be affected, but the official said the planned change will affect their renewals.

According to public data from Immigration, Refugees and Citizenship Canada, 183,820 temporary foreign worker permits became effective in 2023. That was up from 98,025 in 2019 — an 88 per cent increase.

The upcoming change is the latest in a series of moves to tighten eligibility rules in order to limit temporary residents, including international students and foreign workers. Those changes include imposing caps on the percentage of low-wage foreign workers in some sectors and ending permits in metropolitan areas with high unemployment rates.

Temporary foreign workers in the agriculture sector are not affected by past rule changes.

This report by The Canadian Press was first published Oct. 21, 2024.

— With files from Nojoud Al Mallees

The Canadian Press. All rights reserved.

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PBO projects deficit exceeded Liberals’ $40B pledge, economy to rebound in 2025

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OTTAWA – The parliamentary budget officer says the federal government likely failed to keep its deficit below its promised $40 billion cap in the last fiscal year.

However the PBO also projects in its latest economic and fiscal outlook today that weak economic growth this year will begin to rebound in 2025.

The budget watchdog estimates in its report that the federal government posted a $46.8 billion deficit for the 2023-24 fiscal year.

Finance Minister Chrystia Freeland pledged a year ago to keep the deficit capped at $40 billion and in her spring budget said the deficit for 2023-24 stayed in line with that promise.

The final tally of the last year’s deficit will be confirmed when the government publishes its annual public accounts report this fall.

The PBO says economic growth will remain tepid this year but will rebound in 2025 as the Bank of Canada’s interest rate cuts stimulate spending and business investment.

This report by The Canadian Press was first published Oct. 17, 2024.

The Canadian Press. All rights reserved.

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Economy

Statistics Canada says levels of food insecurity rose in 2022

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OTTAWA – Statistics Canada says the level of food insecurity increased in 2022 as inflation hit peak levels.

In a report using data from the Canadian community health survey, the agency says 15.6 per cent of households experienced some level of food insecurity in 2022 after being relatively stable from 2017 to 2021.

The reading was up from 9.6 per cent in 2017 and 11.6 per cent in 2018.

Statistics Canada says the prevalence of household food insecurity was slightly lower and stable during the pandemic years as it fell to 8.5 per cent in the fall of 2020 and 9.1 per cent in 2021.

In addition to an increase in the prevalence of food insecurity in 2022, the agency says there was an increase in the severity as more households reported moderate or severe food insecurity.

It also noted an increase in the number of Canadians living in moderately or severely food insecure households was also seen in the Canadian income survey data collected in the first half of 2023.

This report by The Canadian Press was first published Oct 16, 2024.

The Canadian Press. All rights reserved.

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