ARAB NEWS: JUNE 24, 2013 Amnesty faces major hurdles In April 2013, Custodian of the Two Holy Mosques King Abdullah ordered the Ministries of Labor and Interior to enforce the sponsorship system regulating the labor market, to fight unemployment and implement the two-year-old Nitaqat system. The Nitaqat system prescribes the percentage of Saudi nationals businesses must employ. However, many companies circumvented the system by using employees who were not under their sponsorship. Following initial raids, when about 200,000 illegally employed foreigners were deported, the king granted a three-month grace period for expatriates to normalize their work status. Now employees can only work for their sponsors, and women who are here on family visas cannot take up jobs. Throughout the three-month grace period, millions of workers have been transferring their sponsorships to their current employers to avoid deportation. However, there have been worker shortages at some companies and private schools. According to observers, most affected are Yemenis, Indians, Pakistanis and Bangladeshis, who work in low-paid jobs across the Kingdom. There is little doubt that the illegal labor market will shrink. Saudi Arabia officially hosts 8 million foreign workers, while economists say there are another 2 million unregistered non-Saudi workers in the Kingdom. “Foreign employees working without labor visas are competing with Saudis for jobs since they accept lower wages,” said Saudi economist Ihsan Buhulaiga. “The current campaign will no doubt strongly affect the retail and services sectors,” he said, pointing out that nearly 1.2 million work visas were granted to foreigners in 2011 and 2 million in 2012. Many projects have been on hold since April. “It turns out that the number of illegal workers in the country is not on all levels,” said a Western businessman who wanted to remain anonymous. “A number of building projects have halted, which shows how great the dependence is on illegal workers.” Criticism is mounting over the short time given for employees to rectify their status. Government offices, embassies and consulates are overburdened and incapable of handling the huge numbers of people turning up. Another hurdle is the lack of reliable information. Rania I., a 35-year-old housewife and mother, spent more than four days trying to find the office responsible for her case. “Acquiring an iqama for my maid turned out to be an odyssey,” she said. She was shocked and depressed at “seeing all those people in a state of despair.” By implementing this policy, the government is building on Saudization. Yet, the situation on the ground shows that Saudis need more training to meet the needs of the market. The majority of Saudis prefer working in the public sector where they are paid better for shorter working hours and enjoy more holidays. “The Labor Ministry has the right to promote the employment of Saudis to replace foreigners, but this should not disrupt economic activity because sectors such as construction need foreign workers,” said Group Chief Economist at the National Commercial Bank Said Al-Shaikh. Al-Shaikh said the retail sector employs 1.7 million non-Saudis while 2.8 million foreigners work in construction. Nearly 700,000 people are employed in the industrial sector of which only 20 percent are Saudis. Samar A., a 52-year-old business owner, had problems with the new system because Saudi men she hired would “not show up for work.” She said it would "take time to train" Saudi workers. "We have to give ourselves and them the time to do so. The government should have considered this when implementing this law,” she said. After a few trials, she closed down one of her three businesses because she could not meet the Saudization quota. “The government came out with the policies seven weeks after the announcement. This leaves us with less time to rectify the situation. An extension should be given on that basis,” says Faris F., an HR manager at a big Saudi company. He rejected claims that it was difficult to fire Saudis by saying “there are clear rules that protect both sides.” The reason why many Saudis risk employing illegal or runway workers is cost. “It costs about SR 10,000 to get a maid from abroad,” said 31-year-old Reem H. “My maid ran away after three months because she found a better position as a waitress. My husband can’t afford paying this amount again. And I can’t be at home with two kids and no helper.” Implementing the new policies is a good step forward, but many problems have been created. The authorities should help Saudis find other suitable and affordable solutions for their labor needs.
Posted on: Mon, 24 Jun 2013 05:25:33 +0000
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