Discrimination in fixing wages

Discrimination in fixing wages

May 17, 2016
Hala-Al-Qahtani
Hala-Al-Qahtani



Hala Al-Qahtani
Alsharq

When workers at the Grangemouth oil refinery in Scotland went on a strike in 2013 protesting the move to cut their salaries, its owners Ineos Enterprises announced their decision to close down the refinery although it met 85 percent of the country’s energy needs.

This forced many workers to leave Scotland searching for jobs in the Gulf countries. When the economic tremor had shaken the world, many banking, industrial and factory employees in US and Europe left jobless. They also came to the Gulf expecting special treatment.

Gulf Business magazine recently reported that expatriate workers receive the highest salary in the GCC countries with the average salaries of Westerners, Asians and Arabs on steady increase.

The salary difference is based on passports. A worker holding an American passport will receive a salary 29 percent higher than the wage of an Asian and 7 percent higher than that of an Arab.

The average salary in the Gulf rose by 7 percent last year compared to 2014 with the chief executive officer of a multinational company receiving $49,960 or SR176,128 monthly, which is 4.88 percent higher than the salary in 2013. The magazine published the report after conducting a survey of multinational companies in the Gulf region.

After the collapse of oil prices, Gulf salaries dwindled only by 1 percent this year. A manager or HR expert now earns SR42,967 a month in Saudi Arabia against SR43,240 in 2015, and this salary still remains attractive. But a Saudi cannot expect that salary.

We cannot find a convincing reason for this strange phenomenon. We recruit expatriates and provide them with the highest salary and then complain about their huge home remittances.

Despite global economic developments, irrespective of oil prices going up or down, the Kingdom’s economy is expected to remain strong and stable by the grace of God. Salaries of expatriates would remain the same even if economies of their respective countries collapse.

When we observe the equation of American and European employees’ salaries in the Gulf we believe that it must be reviewed because of the discrimination on the basis of nationality.

As Saudi Arabia has started the transformation process, which requires more jobs to accommodate new graduates and close the chapter of unemployment, effective measures must be taken for employment of Saudis in all sectors, offering them good salaries and benefits.

I would like to take this opportunity to praise the Labor and Social Development Ministry for the preemptive measure it has taken through its website titled “Together We Take the Decision.” It has presented a three-point proposal through the website.

1. All firms must make sure that their employment and HR jobs are occupied by Saudis. 2. Firms shall be banned from involving foreigners in any employment or HR jobs directly or indirectly. 3. Such works should not be given to foreigners under any other job names.

Violators of this clause will be punishable on the basis of a ministerial decision No. 4786 dated 28/12/1436H with a fine of SR20,000, which will increase depending on the number of foreign workers in the company.

Implementation of this proposal will stop many employment violations, change wrong situations and end the suffering of many Saudi workers fired by foreign HR managers who deliberately give minor jobs and low salaries to Saudi workers leaving them depressed.

The foreign managers underestimate the capabilities of Saudi workers and fire them from jobs before giving them an opportunity to display their talent and then they are replaced by foreigners. We look forward to the ministry implementing this law as early as possible on multinational companies without exception, including those in Dhahran Techno Valley, Aramco and SABIC.

While awaiting this law, I use this column to request Deputy Crown Prince Muhammad Bin Salman, the prince of youth who spearheads the Kingdom’s transformation process, to support the Labor Ministry’s proposal, as it represents the desire of the majority Saudi workers.

The present discriminatory system that offers top salaries to American and European employees, much higher than what Saudis receive must end before implementing the transformation plan, which is likely to attract more multinational companies to invest in the Kingdom.

The Labor Ministry must protect the honor of Saudi workers as it should not leave them to suffer more discrimination on the basis of nationality. At present, Saudis find corporate values of citizenship, justice and integrity as meaningless because of the discriminatory regulations.


May 17, 2016
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