Abstract
This report seeks to provide an insight into stakeholder management considerations during the construction phase of the Burj Khalifa. In particular, construction workers, their conditions, and their role in delayed project completion have been examined. Recommendations have then been provided to discuss how delays could have been averted through improved stakeholder management.
Project Overview
Formerly known as the Burj Dubai, the Burj Khalifa stands as the tallest skyscraper ever built with a total height of 829.8 meters. Construction of the Burj began in 2004 and was estimated to conclude in 2008. The building was opened to the general public in 2010. A key factor that prompted the conception of such a magnanimous project was the urge to bring urban construction strategies to the construction industry in the UAE (Gahendra, 2012). The Burj Khalifa adopts several complex design strategies such as the utilisation of a ‘Y’ platform to prevent high pressure winds from toppling the structure (Abdelrazaq, 2010).
Several factors have affected the time and cost considerations of this complex design and construction phase; these factors have been influenced by stakeholders that include but are not limited to the construction companies, on-site management teams, and the workforce. An in-depth analysis of the construction workers as a stakeholder is considered in the essay.
Introduction to Stakeholder Analysis
Stakeholders either influence, or are influenced by the outcome of an undertaking. Stakeholder management involves the identification and classification of these stakeholders to facilitate effective communication channels for mutual benefit (Chinyio and Olomolaiye, 2010). Construction stakeholder management refers to a “comprehensive collection of ideas and research” to facilitate the utilisation of best practices in the field of construction (Waheed, 2012). Although construction stakeholder management in Dubai is a considerably new discipline, it has gained both influence and legitimacy due to the high value adding nature of the construction Project Life Cycle. The Burj Khalifa, a pioneer in pushing the boundaries in construction planning and execution, has effectively utilised many principles governing stakeholder management to produce an architectural marvel. However, certain stakeholder groups could have been better managed.
In particular, the construction workforce and its position in the probable power-interest matrix utilised by the project management team is considered in order to highlight the discrepancies that lead to certain delays. As illustrated in Figure 1, the assumed placement of the workforce when considering only the construction phase indicates low levels of power (coercive, utilitarian or normative), legitimacy and urgency. As a result, several gaps which affected effective stakeholder control began to take form.
Figure 1
Workforce Stakeholder Analysis
Hindered Communication Systems
A majority of the 7500 skilled workers employed were immigrants from countries such as India, Pakistan, Bangladesh, Nepal and Sri Lanka. A major hurdle faced by the management teams was the ‘communication barrier’; since a large diversity in workforce nationality existed, no common language for instruction was available. As a result, translators were employed to conduct essential health and safety inductions properly, adding to the project overheads (Lowe, 2010).
Rules and Regulations
No Smoking Policy
During the construction of the Burj, a zero tolerance policy for smoking was in place. Although this was beneficial for worker health, over a 100 employees were fired immediately due to smoking regulations, no matter the situation or the circumstance. (Lowe, 2010).
Safety Concerns
A zero incident policy was implemented throughout the construction phase. The workers were required to wear PPE equipment at all times along with a full body harness at heights.
Moiz Al Deen, the Health and Safety Manager at the Burj was quoted saying, "When working on the higher levels, workers had to be trained in certain health and safety [measures] for certain levels depending on the work they did. It was very thorough; we checked their medical history, physical ability etc" (Lowe, 2010).
In addition, the voltage of power tools was reduced from 220 to 110 volts and fire hydrants and extinguishers were provided on every floor to ensure safety. Security officers were positioned around the construction site, along with safety barrier mechanisms on all floors. For increased security altogether, CCTV cameras were placed at every entrance and exit of the tower.
Confisticating passports
It is common practice for employers in Dubai to confiscate workers’ passports to prevent or restrict travel. A Human Rights Watch Report has documented the use of the Kafala Visa or Sponsorship system by the UAE. The Kafala system ties foreign domestic workers to employers who act as their sponsors; this exposes workers to greater risks of being abused and exploited.
Exploitation also extends to revoking sponsorships, resulting in deportation. (Migrant-Rights, 2015) Certain employers have tried to justify the holding of passports by emphasising, “that it guarantees a return on the money they invest on each worker in visa fees and other expenses.” Furthermore, workers would be prevented from stealing money and confidential business and trade secrets more effectively.
The extent of the plight of the workforce was highlighted when an Indian worker named Athiraman Kannan committed suicide. Kannan jumped off the 147th floor of the Burj and hit the 108th floor. It is speculated that Kannan took such a drastic step because his passport had been confiscated and he was denied the permission to leave the country (Menon & Abocar, 2011).
Working Conditions
Weather Conditions
During peak summer months, the temperature in Dubai can reach highs of 50 degrees celsius. Expat workers were expected to work around 14 hours a day in these temperatures. ( Webb, 2014) However, regulations were soon reformed, requiring workers to take compulsory breaks between 12:30 pm and 3:30 pm.
Living Conditions
The workers were housed in labour camps generally located away from the city. They would be filled into buses and transported to and from the work site. The living conditions in the labour camps were repugnant; the latrines were unhygienic and the internal roads were littered with waste. (Migrant Rights,2010) Workers were crammed in small rooms and were made to share basic cooking and sanitary facilities. These hazardous working conditions may have resulted in additional mental and physical pressures.
Wages
Original
A high price was paid by workers, but little was paid to them for the project. In addition to the atrocious working conditions, migrant workers were paid extremely low wages and exploited due to the absence of minimum wage regulations. A report from the Human Rights Watch Study in 2006 stated that skilled carpenters were paid $7.60 and labourers were paid $4 per day (BBC News, 2006). A stark contrast to the per month average per capita income of $2,106 in the UAE, monthly wages averaged $160-200 for workers on the project (migrant rights, 2010). The report also mentioned numerous abuses that the construction workers endured involving unpaid wages withheld by employers for months and large debts owed to recruiters in home countries who arranged for visas and travel costs for migrant workers (Human Rights Watch, 2006). Workers owed amounts up to almost $2000-3000 to recruitment companies, a practice that is banned by law in the UAE which requires employers to fund visas instead (Human Rights Watch, 2006). Although migrant workers faced inhumane treatment, many were compelled to remain in jobs as a means to support impoverished families and pay off loans taken to fund their initial migration. This reflected the overall plight of the construction workers working on the project (Menon & Abocar, 2011).
Edited
In addition to atrocious working conditions, migrant workers were paid low wages and were considerably exploited due to the absence of minimum wage regulations in the UAE. A report from the Human Rights Watch Study in 2006 stated that skilled carpenters were paid $7.60 and labourers were paid $4 per day (BBC News, 2006). A stark contrast to the per month average per capita income of $2,106 in the UAE, monthly wages averaged $160-200 for workers on the project (migrant rights, 2010). The report also mentioned numerous abuses that the construction workers endured involving unpaid wages withheld by employers for months and large debts owed to recruiters in home countries who arranged for visas and travel costs for migrant workers (Human Rights Watch, 2006). Workers owed amounts up to almost $2000-3000 to recruitment companies, a practice that is banned by law in the UAE which requires employers to fund visas instead (Human Rights Watch, 2006). Although migrant workers faced inhumane treatment, many were compelled to remain in jobs as a means to support impoverished families and pay off loans taken to fund their initial migration. This reflected the overall plight of the construction workers working on the project (Menon & Abocar, 2011).
STRIKES
Following these various problems faced by construction workers, they were compelled to riot and protest against low wages and unfair treatments. Workers constructing the Burj Khalifa went on strike twice between 2006 and 2007 during the whole span of the project. With trade unions illegal in the country, workers lacked support. Despite being outlawed, strike action was carried out (Al Jazeera, 2007). They complained of being given low pay and were asked to work 12 hours a day and for 6 days a week in miserable conditions (migrant rights, 2010). In March 2006, around 2500 Arabtec workers working on the building and the areas around took extreme actions. This involved breaking into offices, destroying numerous computers and files, smashing construction equipment and about two dozen cars, and beating security officers resulting in an estimated damage of one million dollars overall. Initial riot arose due to delay of buses after their shifts to their residential camp (AP, 2006). The following protest took place in November of 2007 where around 4,500 workers laid down their tools and refused to work on the construction and later caused vandalism. In both instances, several workers were threatened with mass deportation and sent back to the labour camps by the police. While majority workers returned to work, few faced deportation as a result of the strike (Nakhoda, 2011). New York based Human Rights Watch intermediated to comment on the situation, calling out “to end abusive labour practices” and describing workers’ conditions as “less than human” (Al Jazeera, 2007).
Recommendations
Creating an intermediate committee between the workers and the government
We recommend the creation of an independent committee, which will monitor the working conditions of migrant workers and keep records of them in order to keep the government informed and updated on the conditions. This committee would also provide the support required by the migrant workers due to the absence of trade unions in the country. Through this, the UAE government can ensure the safety and security of workers both physically and financially, and avoid the exploitation of construction workers by their employers; ensuring salaries are paid and passports of workers are not confiscated. While spontaneous inspections are occasionally conducted on construction sites to monitor work practices, it is essential to additionally create this commission to carry out routine checks and prepare reports on a quarterly basis to be presented to the government. These reports would be able to inform the government of any unfair practices carried out by employers, comment on conducted inquiries and determine penalties and consequences to be faced by employers as a result of breaking labour rules and regulations in the UAE. This commission would also be able to inform workers of their rights as employees through orientations and written documents upon their arrival into the country, thereby allowing workers to seek justice in cases where their rights are being violated. Hence, the commission would be able to ensure the rights of workers are protected and their basic needs are met, further avoiding any riots and strikes that could take place and prevent damage of any property and equipment. This would not only allow completion of the project in time but also save millions of dollars that was lost in the strikes carried out during the construction of the Burj Khalifa. Through the committee, the workers would be well informed of their rights and given better working conditions, improving the management of the construction stakeholders.
Improving transparency in labour data
There needs to be transparency in qualitative and quantitative labour data and the exact situation of workers is difficult to explain and understand as there is a lack of transparency. There needs to be proper reporting on the number of labour disputes, their resolution, collection and public disclosure of statistics on injuries and deaths, causes, etc. News reporting in the UAE is very filtered and often facts like construction related deaths are often omitted. For example, the UAE media publicly acknowledged only one death of a worker and even called it a suicide but nothing was reported about other deaths and injuries which have been known to have occured. The UAE needs to implement strict labour laws and should mandate public reporting.
Another labor law that should be strictly implemented is, prohibiting companies from conducting business with foreign based recruitment agencies which charge high fees for travel, visa, employment and other related factors from workers. And for the companies that fail to comply with this should be penalised with high fines.
While UAE law refrains local construction companies from charging workers any kind of fees, the government should be strict about local construction companies recruiting from agencies located across countries that charge high amount of fees from the workers. Looking at the condition in which these labourers live, they should be reimbursed with the amount of their fees at the end of their tenure. Although this seems harsh but it is quite feasible if the UAE government works with the government of these countries to make sure that these practices are abolished. Lastly, UAE has strong and influential ties with the countries from where the labor generally comes.
Three of the most essential resources for construction are material, laborers and money. Had the laborers not been exploited, had they not been living in such revolting conditions, there would have been no strikes , no destruction of material and no wastage of money and time .