Government To Propose Maximum Working Hours For Resort Employees

Dhivehi Observer

http://www.blogger.com/post-create.g?blogID=4827101270199115654

Friday, July 18, 2008

Proposed amendments to the new Employment Act will award tourism staff full labour rights including a maximum 48-hour working week, after the newly registered Tourism Employees Association of Maldives (TEAM) raised the possibility of strike action.

President Maumoon Abdul Gayoom personally intervened to request the new concession, legal reform minister Mohamed Nasheed said on his personal blog on Wednesday.

The move could drastically affect business and working conditions in the country's largest industry, which generates 30 per cent of gross domestic product (GDP).

But doubts have already been raised over whether the proposed change will pass a parliamentary vote.

Changes

Government first proposed changes to the Employment Act, which came into force last week, after an apparent mistake left out tourism staff from key provisions such as a minimum wage and protection from unfair dismissal.

But staff in the sector had been intentionally excluded from clauses such as maximum working hours because they were "seen by many employers to be seriously destructive to their trade and business," Nasheed wrote in June.

However President Maumoon Abdul Gayoom said the Act must offer tourism workers full rights with "no exception" after a Monday meeting with TEAM representatives, says Nasheed.

TEAM president Ahmed Easa said he was very happy with the government's decision, which means employees would not be required to work more than 48 hours, but could still choose to do so for overtime pay.

But Mohamed Sim Ibrahim, the Secretary General of the Maldives Association of Tourism Industry (MATI), spoke out against the move, saying the Maldivian economy would be "affected adversely."

Sim added he did not expect the amendment to be passed easily by parliament, as many MPs are involved in the tourism business.

Haywire

On an earlier blog post, Nasheed quotes an entrepreneur who argues staff strength on resorts would have to be tripled to comply with eight hour shifts, causing "staff to be recruited more than guests can be accommodated on an island sending overhead costs haywire."

Sim agrees, saying, "there will be difficulties," and "services will become more expensive," which could lead to a decrease in the number of tourist arrivals to the Maldives.

According to Sim, tourism in the Maldives is currently declining, with arrival numbers decreasing and several tour operators pulling out of the country.

No Losses

Easa says additional staff would have to be hired if amending legislation is passed, but would not "create losses."

"It is actually good for the economy because it is our money that circulates in the local economy," argues Easa. "Wealthy businessmen's money is actually spent abroad."

Staff at resorts already work nine or ten hour shifts, and would continue to do so if they are paid overtime, Easa said. "We will even work double shifts if we are paid well."

Resort Owners

Nasheed promised TEAM members that amending legislation would be submitted to the parliament "at the earliest possible opportunity."

However, Sim predicts it will "not be easy" to pass the amendment through parliament, as many MPs are also prominent businessmen with tourism shares.

Prominent businessmen in parliament include Dhaal atoll MP Ahmed Shiyam, who owns Sun Travel, and Gaaf Alif MP Abdullah Jabir of Yacht Tours.

Cabinet ministers such as youth minister Waheed Deen, fisheries minister Hussein Hilmy and atolls minister Thasmeen Ali – who automatically vote in parliament – are also resort owners.

Union

TEAM was registered on Monday to "work for the rights of tourism employees," says Easa adding: "This is the first step towards forming a union."

TEAM submitted a petition of 5500 signatures on July 3 to Gayoom, the tourism ministry, the Majlis (parliament) and the human rights commission over the industry's exclusion from the Employment Act.

"We are out to fight for our rights," Easa said as the group was launched. But he said any strike would be "a last resort…as our actions can bring the backbone of the economy [tourism] to a standstill."

Resorts are required to employ at least 50 per cent Maldivians, but many have struggled to meet the quota, with locals complaining of poor pay and working conditions.