Bahrain's new national trade union has announced plans to push for a minimum wage structure for both Bahrainis and expatriates in the private sector.

The Bahrain Labour Union Free Federation (BLUFF), which was formed last Wednesday, wants separate pay grades for skilled and unskilled Bahrainis and expats.

If successful it would make Bahrain the first country in the Gulf to guarantee a minimum wage for its foreign workers.

The idea is designed to combat exploitation and involves establishing minimum salaries in the private sector for skilled and unskilled Bahrainis, and skilled and unskilled expats.

Bahrainis are entitled to a minimum salary of BD400 for graduates and BD250 for non-graduates, but the union says this is not laid down in law.

Meanwhile, it says that informal pay structures do not protect foreign employees since they are not binding and may be too low.

"We want to set minimum wage for skilled and unskilled local and foreign workers that will put an end to abuse of low-wage workers," said BLUFF internal and external relations head Ali Albinali.

The BLUFF executive board is headed by 15 members including chairman Yaqoob Mohammed, president Bassim Kuwaitan, secretary-general Osama Salman Hassan and treasurer Ali Mohammed Abdulla. It includes two women, Women Affairs president Fatima Abdulla Fakhroo and member Suha Ahmed.

Mr Albinali revealed members met yesterday to discuss minimum wage plans along with garnering support from other trade unions. "It is important that we consider housing, healthcare and other social benefits while discussing a minimum wage for citizens and expats," he said.

"This is the first time such an initiative is being carried out to study different parameters and set a fixed wage for every worker, depending on their skills."

The BLUFF founding member and Alba Trade Union chairman said when it came to wages for Bahrainis, firms were bound only by a "gentlemen's agreement".

"There is no law that stipulates that Bahrainis should get minimum wage in private sector," he said. "But if our proposal is considered this could change."

He added it was important for workers to get what they deserved based on their qualification and experience.

"GCC countries are planning to introduce Value Added Tax that will also have its impact on the budget of families," said Mr Albinali.

"There is a lot of homework required and we want to sit with the government, employers and businessmen to discuss the minimum wage issue."

Earlier this month, Labour Minister Jameel Humaidan said a new minimum wage system was being studied that could reduce unemployment and increase Bahrainisation in the private sector.

BLUFF was launched last week in competition with the existing General Federation of Bahrain Trade Unions, which was previously the only umbrella organisation grouping together unions in different sectors. Its founders describe the new labour federation as an independent body that represents the interests of both Bahrainis and expatriates, without any political agenda.