Labour export; Government's Gains and failures

The relentless cries of suffering by the workers, especially those that exit the country to seek jobs as house-helps has been heard over and over again with media reports indicating that over 20 cases of death or loss of organs are reported every year.

During their last sitting at State House, cabinet made an impromptu demand that Ms Betty Amongi the Minister of Gender, Labour and Social Development gives an update on the condition for the immigrant workers and their condition.

Sources indicate that Amongi was caught off-guard and asked to present a paper on the same after making research from various stakeholders before she could give an informed position from her ministry. This paper will then give cabinet a decision to either ban the exportation of labour to Middle East countries following the numerous reports of workers dying or facing mistreatment from their hosts.

But experts have indicated that Labour externalisation industry plays an important role in helping ease the pressure of unemployment in the country and boosting the national economy through the foreign exchange remittances generated by the migrant workers which account for about 5 per cent of the gross national product as of 2021.

As the externalization of workers marks 10 years, a 2022 report by the Uganda Association of External Recruitment Agencies (UAERA) under the Africa Safe Migration Index indicates that with 230 recruitment agencies in the country, over 195, 000 workers have successfully traveled to Saudi Arabia, and over 100, 000 have since returned.

The report also indicates that over the 10 years, 90 cases of domestic violence are reported annually, while 257 mental health cases are reported every year and three per cent death. This means that out of every 100 workers that are externalized, three of them die of different causes.

Amongi meets labour export companies

On Wednesday last week, while meeting with different recruitment agencies for the immigrant workers at Hotel Africana, Ms Amongi sought the opinion of the stakeholders before the cabinet decision and promised to present their views. Sources that attended the closed-door meeting told this newspaper that the recruiters complained to the minister about government officials who have gotten involved in the business and end up fighting each other for the benefits in the business.

“You know there is money in this business and top government officials want to use this opportunity to get money so they are fighting each other. They keep promoting propaganda which is killing these businesses,”
one of the sources quotes a stakeholder in the meeting.

Ms Amongi says that the intention is to weigh in on how much is likely to be lost if the ban is implemented and what the government could save especially the women who have since lost their lives and mistreated.

Minister of Gender Labour and social development Betty Amongi

”We know that there are problems but also some people have jobs and bring a lot of money to the country as revenue. That is why I was sent to collect data and present a paper in cabinet on Monday,”
Hon Amongi said in an interview for this story.

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The UAERA report indicates that labour exportation contributes Shs4.5 trillion as revenue to the Gross Domestic Product, which is higher than the exportation of coffee which is apparently the highest local income to the economy.

For instance, out of all the 7000 prospective domestic service workers that are externalized by labour agencies, 10USD (about Shs37, 500) is paid to Local Clinics and Hospitals, which translates to $70, 000 (about Shs262m). Every passenger is charged $30 (about Shs112, 500) monthly which remittances are channeled to the consolidated fund.

Experts say it would be erroneous for the government to ban the externalization of labour to Middle East. Mr Ahmed Hajji a researcher in labour exportation services says,

“The best for government would be for them work on the gaps in the industry. Other countries like Philippines which is so big on labour exportation have a very good system which is why their workers are even paid better and those are the benchmarks that Ugandan government needs to take.”

According to him, the problems can be solved if the government follows the Philippine Overseas Labour Office Monitoring Model, Uganda can set up – a semi –autonomous entity called – The Uganda Migrant Workers Labour Office (UMWO) to act as the link of Ugandan Migrant workers wherever they are .

He suggests that this should be directly under the Office of the President –Diaspora Affairs section working alongside the Ministry as the operating arm of government for the administration and monitoring of its policies and programs applicable to the Migrant Workers.

Experts also propose that this can be dealt with when a committee is set up with five positions to oversee the work including; Labour Attaché (MoGLSD), Foreign Service personnel (MOFA), Welfare Officer, representative from the Office of the President –Diaspora Affairs section (Coordinator) and Interpreter

“Other than the fact that the government gains so much from the industry, the individual workers have success stories. Uganda doesn’t have enough jobs for these women, if they are being mistreated, government needs to come in and support them,”
Hadji says.

Minister of Labour Betty Amongi meets Ugandan workers in Saudi Arabia

24/7 understands that a domestic worker earns about $270 (Shs1,000,000) per month for two years. This means that the person is able to earn a gross income of Shs24, 000, 000 which they can send home, and take care of household and personal expenses including Housing, Education, food, health and Micro Investments.

The UAERA report contrasts earlier Ministry of Gender findings released last year highlighting externalisation of labour between 2010 and April 2021, migrant workers, indicating that the number stood at 9,967 in 2010 with majority of them going to Iraq, Afghanistan and United Arab Emirates, have grown three-fold, increasing to 28,233 by the end of April 2021.

The huge growth in 2021, which was captured just four months within the year, according to official data, was due to returnee migrant workers, who had sought to return to either complete their contracts that had been disrupted by the outbreak of Covid-19, or seek new employment opportunities.

However, there has since been a shift in the destination with majority now going to Saudi Arabia, United Arab Emirates and Qatar. Somalia also takes a substantial number, which in the last 12 years has grossed 3,445 migrant workers, the ministry report states.

According to government data, at least 98 per cent of migrant workers to the Middle East, which currently stands at 140,402, are employed as casual labourers with only 0.2 per cent holding professional jobs, while 1.8 per cent work in semi-professional placements. Migrant labour export, especially to the Middle East, has played a key role in the growth of Uganda’s remittances, earning the country more than $500m in 2019.

According to Bank of Uganda, in 2019, remittances earned Uganda $1.21b, boosted by receipts from labour exports to Middle East.Almost 95 per cent of the commodities exported to the region is gold, which is now Uganda’s largest export. Externalisation of labour is currently an important phenomenon, especially in Asia, Middle East and Africa.

Museveni speaks out

President Museveni recently, while speaking during celebrations to mark International Labour Day, surprised Ugandans when he castigated labour exporters, saying he does not believe in labour export, urging Ugandans to concentrate on industrialisation, ICT, services and agriculture to create mass employment.

On Thursday , following the minister’s submission and the President’s comments, dozens of returnees addressed the media at Hotel Africana indicating that the few challenges in the trade can be solved through proper government policies other than banning the opportunities for them to get employment.

Ms Betty Namugosa a resident of Buwenge Sub- County in Jinja District, says that she applied to externalization permit four years ago and she has since worked Saudi Arabia and gained from the business.

“I had separated with my husband for mistreating me and he left me with the responsibility of taking care of our four children. I have used the money I have been earning for the four years of my two contracts to educate my children as well as setting up a catering service business as my side income,”
she said.

Namugosa is just one of the many beneficiaries of the labour exportation who stood up against banning the sector from operation.

Fatuma Nakate resident of Kasawo in Kayunga District, a beneficiary of Middle East employment noted that she went to Saudi Arabia in 2015 when the monthly salary was Shs 750,000 but she worked tirelessly until her salary was increased to Shs900,000.She attributed the increment to the good working relationship she established with her bosses which enabled her to always speak out in case she met challenges.

Ms Winnie Catherin Banura, the UAERA Secretary General says that for better regulation of labour migration in Uganda, the Ministry has embarked on strengthening the collection, management and analysis of labour migration data, including information on labour demand and supply.

“This necessitated the development and implementation of an External Employment Management Information System (EEMIS). These measures and improved regulations within the sector have secured the future of migrant workers like Agasha (not real name), a 24-year-old woman who spent two years working in Saudi Arabia,”
Banura says.

The state minister for gender told 24/7 that the government will do whatever it takes to correct and streamline the trade so that there are no challenges.