Saudi Gazette report RIYADH – Construction contractors have criticized a Ministry of Labor decision that forces private companies to pay SR2,400 a year for each expatriate worker not covered by their Saudization quotas. They accused the ministry of resorting to such decisions to cover up its own failures in localizing jobs, adding such laws would not help it achieve its goals. They said the ministry is simply collecting taxes, a solution that will not lead to a localization of jobs. Members of these firms, speaking at a workshop hosted by the Riyadh Chamber of Commerce and Industry on Tuesday, said a committee should be formed to talk to higher authorities and explain the disadvantages of the Labor Ministry's decision. They recommended studying the decision from a legal point of view and possibly raise a grievance with the Board of Grievances. The contractors said the ministry failed to implement two key decisions it had made to help the sector deal with Saudization and recruitment issues. They said the immediate implementation of the decision to penalize companies based on the number of foreigners they have has badly harmed the sector as the wages of the workers have gone up and many of them have abandoned their jobs. The ministry's failure to respond to the contractors' demands would aggravate their problems, including being unable to fulfill their contracts, they claimed. Eventually, many of them will leave the market, especially small contractors, they said. They expressed readiness to absorb trained Saudis in different jobs and urged the ministry to provide them with trained nationals to replace their foreign workers. They also expressed willingness to offer attractive incentives and salaries to Saudis. Dr. Faisal Al-Sharif, member of the contractors committee at the chamber, said: “Our experience with them showed Saudis were not interested in the field because it needs special skills. He said the decision will increase the cost of the projects due to the spike in the wages of workers and an indirect increase in the prices of building materials and support services.
