Cabinet halts registration of new labour companies

Gender minister Betty Amongi delivers a lecture at the UPDF Command and Staff College-Kimaka in Jinja on May 11. Photo/Gender Ministry

What you need to know:

  • This comes barely a year since the line ministry issued new laws to streamline the industry.

Cabinet has halted the registration of new labour export companies in Uganda until the line ministry provides a comprehensive report on the measures being taken to ensure the safety and wellbeing of migrant workers.
This was revealed by the minister of Gender, Labour and Social Development, Ms Betty Amongi, while addressing members of the Uganda Association of External Recruitment Agencies (UAERA) at Hotel Africana in Kampala yesterday.

According to Ms Amongi, the report on streamlining the labour export industry, which she presented during a recent Cabinet meeting chaired by President Museveni, was rejected on grounds that it left out pertinent issues.   
“... we debated on the issue for about three hours. The President and the Vice President, Ms Jessica Alupo, and other ministers directed that I go back and compile a more comprehensive report on the measures that companies are taking to address complaints from all Ugandans working abroad so that they are reduced,” Ms Amongi said.
The minister revealed that some Cabinet ministers suggested banning labour export altogether.

“Others suggested that we put on hold and resort to measures that will ensure that the workers are safe. We have closed the system, waiting for discussions with Cabinet. As people licensed to externalise labour, this meeting should help us to get your inputs. We have done our draft but I need your input in what should be contained in the paper that I am expected to present to Cabinet,” she said.
Ms Amongi said some of the concerns raised during the Cabinet meeting included lack of a clear mechanism of addressing the distress of workers in homes, difficulties in getting exit visas after their contracts have expired and denial of telephone services to communicate with relatives back home.
“That is why they believe it is modern day slavery. These are some of the things that we need to respond to in the Cabinet paper,” she said.

 The minister also revealed that the issue of body organ harvesting was more pronounced during the Cabinet discussion. “They believe that organs are being harvested from some migrant workers,” Ms Amongi said.
She revealed that a total of 276 firms are licensed to export labour.
“Cabinet is saying these are too many companies. Come up with a mechanism to retain companies that are lawfully placing workers in right places and those that are not considered serious might be told to pack,” she said.

Ms Amongi, however, said the industry is greatly contributing to Uganda’s revenue base. She revealed that between 2020 and 2021, remittances from migrant workers stood at $900 million compared to coffee exports that fetched $559m during the same period.
The chairperson of UAERA, Mr Baker Akatambira, promised to protect the rights of Ugandan migrant workers and urged government to always intervene should the rules be breached.

Background
In 2019, government suspended licensing new labour export companies in order to address challenges in the sector. Consequently, the government introduced a number of  measures, including bringing into effect the Employment (Recruitment of Ugandan Migrant Workers) Regulations Statutory Instrument No. 47 of 2021.
The statutory instrument, among others, provides for verification of all job orders, accreditation of all foreign recruitment agencies and prohibits non-Ugandans from owning external recruitment agencies.