Saudi Oger staff to be transferred to other companies

Saudi Oger staff to be transferred to other companies

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Saudi Oger

Riyadh — Employees of troubled construction company Saudi Oger will be moved to other firms, the Ministry of Labor and Social Development said, amid unconfirmed reports that workers there will be laid off from July 31.

The ministry said there were 1,200 Saudis among a total of around 8,000 workers at the company, which has built many huge infrastructure projects in the Kingdom, from universities and roads to airports and hospitals.

It said it planned to move some 600 Saudi employees to other facilities and would continue to look for jobs for the remaining Saudis working there.

The Minister of Labor and Social Development has directed Chairman of the Human Resources Development Fund Dr. Ali bin Nasser Al-Ghafais to find suitable jobs for Saudis while they transfer 6,000 expatriate workers to other companies, spokesman of the ministry Khalid Aba Al-Khail was quoted as saying.

He said that expatriate employees working in the company with temporary contracts are allowed to be transferred to other companies.

As for those who would like to leave Saudi Arabia when their contract comes to an end with the company, their departure procedures will be facilitated and their full rights will be reserved in coordination with their respective embassies.

A document described as an internal Saudi Oger memo and seen by Reuters notified employees that July 31 would be the last working day there, in light of “the circumstances that the company is going through.”

The letter, which was also mentioned in a news article by Al-Hayat on Saturday, was signed by the administration of Saudi Oger.

The letter did not specify whether the company would close down operations.

A spokesman for Saudi Oger could not be reached for comment, while a source close to the company said there was no decision to close it down. This was confirmed by another senior official.

Sources have told Reuters Saudi Oger plans to transfer some staff working on a mega government project to a new company, in an attempt to mitigate increasing financial pressure.

The contractor owes banks in the Kingdom about SR13 billion ($3.5 billion) and faces a funding crisis because it has not received any new funds from the government for projects.

Sources told Reuters in April the government had appointed PricewaterhouseCoopers to conduct a review of Saudi Oger’s major projects in the country and examine how much it is owed by the government.

The review is likely to determine how much the company will receive in outstanding payments, as well as whether it will continue working on the projects.

The labor ministry has previously intervened to transfer 3,800 foreign staff at Saudi Oger to other companies, while a further 11,500 left the firm. — Agencies

7 COMMENTS

  1. This is a very sad news that a one time No. 2 construction giant in Saudi Arabia has to finally close down. As they say: What Begins has to End.
    But the million dollar question still remains unanswered:
    What will happen to the outstanding dues of the former employees of Saudi Oger??
    Will they be paid or not? If yes then when?
    Hundreds and thousands of them have been left behind like orphans. Nobdoy seems to care about them. They and their families have been suffering since about two years now.
    I am sure the Saudi government – which is the Kingdom of Humanity – would listen to these former employees of Saudi Oger and duly intervene to settle their outstanding dues – which includes more than a year of unpaid salaries and end of service benefits of many many years.

  2. This is really very sad news for us that after 31st July, there is no more Saudi Oger because we spend almost 2 decade of our life to this company.
    Now I want to know what measures taking by the Govt. Of Saudi Arabia about our outstanding balance salaries & EOS. We are still waiting more than a year about the rescued action plan from MOL & MOJ for the affected employees of Saudi Oger but unfortunately until now no action taking up. We are treating like orphan & Nobdoy seems to care about us.
    This is the second Ramadhan here but still our families are suffered badly & I don’t now how our families celebrate the Eid.
    Please resolve the issue of this unpaid workers salaries & EOS on urgently on humanitarian basis before Eid ul Fitr..
    Jazakallah khair

  3. We work for the development of this country (KSA) for decades Alhumdulillah! But now its KSA turn to pay back, we request Saudi government to resolve the matter urgently and clear the dues of unpaid Oger employees.

  4. It’s a really very sad news that after 31/7/2017 there is no more saudi oger. I spent charming time of my life to this comoany and left from this company with empty hand. Company didn’t pay my outstanding dues and service benefit. Like me more than 30000 employees are still waiting to get their dues. Now the question is who will pay and when will pay the employees dues either Saudi Oger owner or Saudi Government?

  5. Very sad but nobody ready to tell us about our remaining salary and benefit. We are all ex imploy of Saudi Oger in deep troble

  6. Kindly Note . We have pending our 8 Month Salaries ; End of Service Benefits to recive from Saudi Oger . We have registered the legal case in Labour Court . How we continue this case ….

  7. Long 10 years of my life time, I worked hard for this company without any pay raise or promotion. The reason I continued my employment is to build up my family from financial crises. In 2004, I decided to resign the job and left the country for good. In my opinion, the reason for the great fall of the Company is poor and uneducated managements..

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