Al-Durra promises to lower cost of hiring domestic helpers
KUWAIT: A government-backed recruitment agency for domestic helpers in Kuwait is mooted to lower fees and clean up the industry. But embassies of countries with large populations of domestic helpers here as well as private recruiting agencies, both in Kuwait and in those countries, oppose the plan. This fall, the newly-established recruitment company tasked with hiring domestic helpers from labor-exporting countries such as the Philippines and Sri Lanka is set to launch operations.
Speaking exclusively with Kuwait Times, Saleh Al-Wehaib, General Manager of Al-Durra (KSCC), said the government-run agency will start recruiting domestic helpers once the labor-sending sources and fees are successfully negotiated and requirements of the relevant embassies are clear.
"We are in the process of introducing the company to the governments of labor-exporting countries. We submitted our profile to relevant higher authorities and spoke to their ambassadors. They told us to present our company's profile and submit all their requirements and documents. We are here to follow all the set rules and procedures specified by these countries. Once everything is completed, we will start recruiting. The privately-owned domestic labor supplying agencies currently operating will remain, but they have to compete with the new lower recruitment costs we will be introducing," Wehaib said.
Profitable business
It is the costs that are at the heart of the problem. Embassies and private recruitment agencies don't want lower costs - as this will mean lower revenue. Though no specific statistics are available, recruitment of domestic helpers is a lucrative business for both sides.
There are around one million domestic workers in Kuwait. Most of them come from India, Sri Lanka, the Philippines and a few from African nations. Recruiters typically charge sponsors anywhere from KD 600 to KD 1,600. In many cases, the workers also pay a fee to the recruiting agency in their home countries. Both sides earn revenue with every worker recruited - in fact, recently, a delegation of Philippine recruitment agency owners traveled to Kuwait to meet agency owners here.
In response to skyrocketing recruiting fees, the government of Kuwait established Al-Durra. According to Wehaib, Al-Durra's costs for recruiting housemaids will be much less; however he chose not to mention a specific figure, citing ongoing price negotiations. One source, discussing the potential new business model, suggested that recruiting fees may drop to around KD 700. However it is unclear if this is the figure being considered by Al-Durra.
Asked whether a fee of KD 350, previously floated as a likely charge, was viable, Wehaib replied in the negative. "No. It will not be that low, but it won't cost KD 1,500 too - it will be a lesser amount. I cannot divulge the amount at present since we do not have the authority to release the figure yet. We visited the countries sending domestic helpers and we have become aware of the market reality and the amount involved in recruitment," he said.
Embassies and agencies not keen
Whatever the final fee, it's unlikely to meet with approval from local and home country recruiters. Already, embassies of labor-exporting countries are speaking out against the plan. Sri Lankan Ambassador to Kuwait Kandeepan Bala said that any lower fees than that currently charged will not be acceptable.
"The recruitment agencies are earning through commissions. We do not want to interfere, but it will be difficult for anyone to recruit with such sums. This is the system - the norm - in recruiting domestic helpers. In Sri Lanka, the cost of recruiting housemaids is KD 1,200 to KD 1,400, and from this the local recruiter will get about KD 200, and the recruitment agency in Sri Lanka gets KD 200. The remainder is given to the housemaid. The housemaid is responsible for her own welfare once in Kuwait, but they already have the money - approximately KD 650, in addition to their agreed monthly salary," he told Kuwait Times.
Commenting on how the embassy views Al-Durra, Bala said: "They went to the Philippines, India and Sri Lanka to introduce their agency, but it is still unclear at the moment how much will they really charge for the recruitment of workers. I don't see their operation as problematic - they already told us that all existing agencies will still be allowed to operate as they do currently."
The Philippines is also aware of Al-Durra's recent establishment, Philippine Ambassador to Kuwait Renato Pedro Villa said. Philippine Labor Attache to Kuwait Alexander Padaen noted "negotiations with Al-Durra are currently underway". "Costs are more of a business concern. Our work, however, is to ensure the compliance of employers with embassy requirements and contractual obligations," he said. He confirmed that Al-Durra had been in contact with the embassy, but no agreement has been made yet regarding costs.
Many recruiting offices in labor-exporting countries work in concert with local private recruitment agencies and may feel their revenue streams threatened by the new system being set up by the Kuwaiti government.
The Al-Durra Company was established through (law no. 69 of 2015) as a closed Kuwaiti shareholding company for the recruitment of domestic helpers. Al-Durra is owned by various government agencies such as the Union of Consumers Cooperative Society (60 percent), Public Institution for Social Security (10 percent), Kuwait Airways (10 percent), Public Authority for Minor Affairs (10 percent) and Kuwait Investment Authority (10 percent).
Since the majority of the shares are owned by co-ops, the Al-Durra Company will have branches in all six governorates, namely Nassim Cooperative Society (Jahra governorate), Zahra Cooperative Society (Hawally governorate), Adan and Qusoor Cooperative Society (Mubarak Al-Kabeer governorate), Fahaheel Cooperative Society Ahmadi Governorate), Rawda and Hawally Cooperative Society (Capital governorate) and Ishbilya Cooperative Society (Farwaniya governorate). "With the shares coming from government institutions, we are purely and 100 percent a government-run recruitment agency," Wehaib said.
Al-Durra publicizes that its mission is to recruit and train domestic helpers to offer an alternative to the unreasonable fees and "monopolistic practices" of privately-owned recruitment companies. Another stated objective is to operate with transparency so as to improve Kuwait's image and reputation internationally with regards to human rights, and to build strong relations with labor-sending countries, opening new channels.
Final works on accommodation sites to be used for future incoming domestic helpers are underway. Upon arrival in Kuwait, domestic helpers are taken to the accommodation for a brief stay as a rest period before commencing work, as requested by some embassies. From there, they will be taken to their embassies for an orientation before being dropped off at their new places of work. Al-Durra will also handle cases of runaways, with transfer of sponsorship a unique privilege of the company. The interior ministry has given the right to relocate a worker only to Al-Durra, while those signed up with other agencies must leave Kuwait should they quit work.
By Ben Garcia and Isobel Ransome