The labor subcontracting business may no longer be lucrative as blue-collar foreign workers recruited on a salary of less than SR1,000 a month are unable to cope with a rising cost of living from inflation in Saudi Arabia. Worth as much as SR500 million, the labor supply business involves mostly Asian workers who get extremely low wages and no other financial benefits for jobs in often unhealthy and hazardous conditions These workers mostly make between SR1,200-1,500 a month, but that's only on paper since 50 percent of the amount goes to the recruiting company or individual employers. Some workers end up with a measly SR300 a month at a time when it costs SR10 for a decent breakfast to help one get through the day's labor. “What we get is peanuts, hardly enough to help us eat,” said one worker who asked not to be identified for fear of company action against him. “In the past, it meant something but now everything has gone up,” he said. Although the labor sub-contracting business is legal, it becomes illegal when the subcontractor merely recruits and supplies workers without substantial capital or investment to complete the work contract from the principal efficiently or ensure that the workers get all their rights under the labor law. Thousands of sub-contracted workers have surrendered to the Passports Department in recent months, seeking deportation at Saudi government expenses since they could not even afford a one-way ticket back home. Following the sharp rise in the cost of living over the past year, such subcontracted workers have had no choice but to look for a second job in violation of residency laws, make money through illegal ways, or simply the leave the country. The recruiting companies sign contracts with larger firms for supply of workers for a fixed monthly wage. The number can range between 200 and 3,000 workers per subcontract. For the labor supply companies, this would mean a substantial income since they collect 50 percent of eack worker's income every month. Some workers have questioned the legality of the 50 percent cut from their measly wages. “I was recruited by a company with some other workers, 400 in all” said one worker who also asked not to be identified. “I receive my contracted salary minus SR500, because of the 50 percent cut.” This means that for this single labor supply contract, the recruiting company makes SR200,000 a month. – Okaz __
