Following imposition of quotas
Maysan labor department reduces foreign workforce in companies to 20%
MAYSAN – In Maysan, the Labor Department has reported a reduction in the percentage of foreign workers to 20% within companies operating in the area, alongside an increase in the local workforce to 80%. This change follows legal measures taken against 37 companies in an effort to boost the employment of Iraqi nationals.
The move mostly targets the construction industry.
Zaid Al-Bahadli, the director of the Labor Department, discussed with the Al-Sabah newspaper, as reported by 964media, the department’s efforts to decrease foreign labor usage and monitor companies that do not adhere to these guidelines.
According to Al-Bahadli, the department has pursued legal action against over 37 companies, resulting in financial penalties imposed by the Maysan Federal Court for breaches of labor laws, leading to a decrease in foreign labor employment by these companies.
He detailed the establishment of a policy, after discussions with international companies in Maysan, that restricts the issuance of work permits without prior approval from the department. This requirement aims for companies to submit comprehensive documentation for their employees, to support decision-making processes. The Ministry of Labor is focusing on replacing foreign workers with local staff, particularly in preparation for roles within international oil companies.
Al-Bahadli indicated a significant shift in the labor composition within the region, with foreign workers now constituting about 20% and local employees making up 80% in these companies. He emphasized the Ministry of Labor’s ongoing efforts to create job opportunities for locals by allocating roles previously filled by foreign workers.
Iraq is adopting economic nationalist policies by setting quotas for foreign workers, an approach aimed at mitigating political unrest. This movement towards prioritizing Iraqi citizens for jobs within the country is echoed in the Kurdistan Region, which has also established its own quotas for foreign labor.
Experts offer varied perspectives on the implications of such policies. Hard quotas for foreign workers, while designed to secure jobs for local populations, present a range of economic challenges and opportunities. On one hand, they can lead to immediate increases in local employment; on the other, they may restrict the flexibility businesses need to respond to changing market demands and access specialized skills not available locally.
The debate extends to the comparison with more flexible immigration systems, such as visa points systems, which assess potential workers based on a range of criteria like skills and labor market needs. While no single approach is universally endorsed, the discussion highlights the complexity of balancing local employment and political priorities with the broader economic goals of competitiveness and innovation.