Background
Etihad Airways was established in July 2003 and was based in Abu Dhabi International Airport as its main hub. This company has a fleet size of 107 aircraft that travel to more than 120 destinations all over the world. Its main competitor is Emirates Airlines. The company was established through a royal decree that wanted to portray a unified United Arab Emirates region. The airline makes more than 1,000 weekly flights, and this makes it the second-largest airline in the region. Today, it has more than 13, 535 employees that work in different departments.
Impacts of the Current Economic Circumstances on Employment and Wages
The United Arab Emirates is a fast-growing economic hub of the Middle East because of the huge demand for labor and technology. The influx of foreigners from Africa and Asia is a serious threat to the unemployment crisis already witnessed in this region. It is evident that this region did not have sufficient labor, especially in fields that required experienced and skilled workers. Professionals trooped from various regions, especially Africa and Asia to seek employment in the Middle East (Hanieh, 2013). The region needed a quick-fix solution to the unexpected demand for professional services. However, the government failed to regulate the number of immigrants that sought employment in this region. Today, most locals are unemployed, and this means that there are higher chances they may remain poor if the government does not establish measures to revise job allocation policies. There is no guarantee that locals will be given preference because most of them do not have the required skills. However, this region should consider creating room for locals to get jobs that suit their academic levels and experience.
Secondly, the wages and salaries offered to locals are not adequate. This company requires highly trained staff to ensure it provides competitive services to its clients. However, this does not mean that locals will not get jobs. The sad thing about this issue is that locals are given casual jobs and those that do not require training. Consequently, their salaries are low because their job groups cannot qualify them to earn a high income (Hanieh, 2013). Manual jobs are underpaid because people believe that they have little academic knowledge, and nobody can do them. Etihad Airways operates beyond the borders of the United Arab Emirates, and this means that its staff must have a broad knowledge of international issues. Therefore, the management of this company hired foreigners who understand international issues to help shape people’s perceptions of its operations (Herb, 2014). This company believed that it should not be perceived to be an Arabs’ only service provider. Therefore, it was necessary to recruit foreigners to improve its public image.
Thirdly, there is a unique twist in the employment sector in the UAE. Most multinational companies like Etihad Airways have realized the need to employ locals in their top management positions. This decision was influenced by the desire to create a “home look” and attract locals who travel overseas for business and academic duties (Hanieh, 2013). The situation created opportunities for locals to get employed in different positions like pilots and flight attendants. It is true that most locals do not use English, but communicate using Arabic. Therefore, it was necessary to employ locals that understood both Arabic and English. The language barrier is a serious factor that hampers the success of businesses in the United Arab Emirates. Therefore, foreigners and locals have different employment opportunities in this company.
Moreover, the practice of Emiratisation has been perceived wrongly by foreigners who control a significant part of the economy. The government established this policy to ensure locals got employed in various public and private companies (Herb, 2014). The leadership of this region realized that most of its staff was foreigners, and this posed a serious threat to the future of its economy. Therefore, they established Emiratisation, which is a process of encouraging locals to seek employment in all sectors. In addition, it compelled foreigners to employ locals regardless of their academic qualifications or work experience. The practice has been perceived as an evil way of pushing foreigners out of business in this region. Therefore, most foreigners are not sure if their businesses will be there in the future (Herb, 2014). The locals that control most sectors do not pay attention to international standards regarding salaries and work environments. Some foreigners believe that Emiratisation targeted them, and thus they do not think that there is hope for a better future in this region.
Lastly, America’s attack on Iran and other Arab nations has created enmity between locals and foreigners. Most locals believe that all foreigners are Americans and are in their land to deplete resources (Herb, 2014). This perception has been advanced by ideological differences in politics and affected the relationships between locals and foreigners. In addition, the campaigns to discourage people from using sources of energy that pollute the environment have lowered the demand for oil and its products (Hanieh, 2013). Depletion of petroleum deposits increases the demand for the few available employment opportunities. Foreigners repatriate profits to their countries, and this means that there are fewer investments and few new job opportunities.
References
Hanieh, 2013, Lineages of Revolt: Issues of Contemporary Capitalism in the Middle East, Haymarket Books, Chicago.
Herb, M 2014, The Wages of Oil: Parliaments and Economic Development in Kuwait and the UAE, Cornell University Press, New York.