The US & Human Trafficking: If you live in a glass house, don’t throw stones.

The US makes such a big deal of human trafficking, but from what I see, not so much as it applies to them.

I’ve been in contracting in Kuwait for a while now.  I’ve participated on large bids and I’ve seen the companies I’ve worked for lose contracts based on price rather than technical capability. 

The big question is:  how can some companies undercut others with such huge differences in price?  How do you win contracts if you bid ethically?  Seems like you are destined to fail.

So… a company wins a contract.  They recruit a bunch of people to fill slots; some from third countries, but many from the US.  Many Americans coming to Kuwait don’t understand local employment law and are taken advantage of. "I knew I would have to work long hours.  I knew I was going to be paid well, so I expected it."  Wokey dokey, well what about your RIGHTS as a worker? What about the TCN guy working next to you?  If you were in the US, would you put up with it - or would you be calling the DOL hotline?

Kuwait has a 48 hour work week.  If an employee is in Kuwait, holding an Article 18 visa; that employee is governed by the Kuwait Labor Law.  No if’s and’s or but’s about it. (The law also does NOT differentiate between labor and management; "exempt" or "non-exempt" which are US-based terms and non-existent in Kuwait; all are entitled to the same rights.)  It has been a “gray area” because no one really knows or understands the SOFA agreement Kuwait has with the US Military.  Since it is secret – it can be twisted to appear as if working with the US military in Kuwait, on USG contracts can be “exceptions” to the law.  However, per Kuwait law, all Article 18 visa holders are entitled to the stipulations in the Kuwait Labor Law.  Want proof?  Challenge it through Kuwait’s court system.  And win. Precedent cases:  There are several cases on the internet where former American employees have successfully sued US companies working in Kuwait - and won.  [There is no tort law in the Kuwait legal system.  You will only be given payment for what you rightfully should have been given (in this case, back overtime).  You will not be able to claim damages.]

Bit o' Advice:  Maintain accurate time keeping.  Record your actual hours worked (by law on a USG contract you MUST but employers illegally may tell you differently).  Keep timesheets.  Keep company memos and pay policies regarding overtime.  Build your case.

So let’s go back to how companies are winning contracts with low prices.  They are bidding with no overtime.  They INTEND to make their employees work overtime (anything over 48 hours per week is OT).  They probably have their employees sign time cards with the maximum allowable hours.  (And many of us in Kuwait have seen this.)   How can you work a 14 hour day, 6 days a week (maximum amount of OT in a year ceilings at 180 hours BTW and some companies exceed that) and receive no overtime?  By law, you shouldn't;  But according to some employers here in Kuwait, suuuuuure you can.  You just don’t pay the overtime.  They force their employees to sign a paper stating that they aren’t obligated to receive overtime:  the “exception” I mentioned earlier.

WRONG. WRONG. WRONG.  (And not just unethical, but illegal.)

Is it because the employer's don't know any better?  Emmmm..... no.  They have lawyers.  They get it.

This all falls under a little term the US came up with called, "Human Trafficking".  It pertains to work without compensation.

So if  X company ethically prices their manpower according to a 48 hour work week WITH overtime, and Y company unethically prices their manpower without; who is going to win the bid?  That's right kids, THE LOWEST BIDDER.

Why, pray tell, don’t US contracting officers take this into consideration?  They should.  Maybe because the contracting officers at Rock Island 1) change periodically, so there is never a history of shared knowledge, or 2) just don’t understand local labor laws or perhaps even 3) the “exception” fib is being told to the contracting officers as well.

There is an employment law in the US which is commensurate to Kuwait’s Labor Law.  It is called the US Service Contract Act of 1965 (FAR 22.1001). 

My personal opinion/advice to an ethical company would be to address the elephant in the room immediately in the proposal:  Discuss human trafficking and fair wages/benefits.  Do a comparison matrix of the US Service Contract Act of 1965 and the Kuwait Labor Law.  Attach the Kuwait Labor Law to your proposal.  Detail how your pricing reflects the ethical benefits and wages to be paid to your staff members – by LAW.  Unless more ETHICAL contractors educate those awarding the contracts (and lawmakers/politicians), the cycle is going to continue.


Contracting officers:  practice what you preach.  All these rhetorical conferences I attend (yawn) listening to discussions about ethics in USG contracting.... puh-leeeeeze.  Where is the enforcement?  Where are the audits?  Is it all taken at face value?

Employees who should be getting OT but are not:  DO something about it.  It is your right. Get a Kuwaiti lawyer, file a case and a power of attorney, and when you are ready to leave – hand it over to them to get your compensation.  A group of wronged employees can’t do much in Kuwait, but if the company they are working for is a US company and working on a USG contract; get back to the States and file a class action suit.  (All those tuff looking contractors running around and they're not going to stand up for their own rights?  Nancy boys!)

For more on this subject, see my previous post on the FAR and OT at:  http://desertgirlkuwait.blogspot.com/2011/11/little-diddy-on-far-and-kuwait-labor.html