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Private companies undermine Saudization
Published in The Saudi Gazette on 10 - 08 - 2012


Muhammad Al-Ehaidib
Okaz newspaper

RECENTLY, the Ministry of Labor said that the minimum wage for Saudi workers set at SR3,000 a month, does not apply to Saudis working in the private sector. This shows that the ministry has lost its battle against the private sector.
I went out to investigate what happens to the Saudis working in low-paying private sector jobs such as cashiers, drivers and security guards. I found out that their working conditions were terrible – they received the maximum wage determined by the private companies they work for, such as SR2,000 a month or even lower.
Since the Human Resources Development Fund is supporting many Saudis working in the private sector by paying half of their salaries, then the original cost of employment by the private establishment is only SR1,000 a month (assuming they get paid SR2000 a month.)
I have mentioned in previous articles that some of these private companies are forcing citizens to sign contracts that state they are making a certain wage when in reality they are paid much less. By doing this, the Human Resources Development Fund ends up paying the majority of the Saudi worker's salary, which, in effect, means citizens are a source of income for these private establishments.
The private sector is obviously undermining all Saudization attempts. It is a sector that is taking everything without giving anything back in return.


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