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Rise in wages due to amnesty ‘unjustified'
Published in The Saudi Gazette on 17 - 06 - 2013


Saudi Gazette report


RIYADH — Expatriate workers in small firms, due to the scarcity caused by the campaign against violators of residency and work laws, might exploit the situation to demand an increase in wages, observers have warned.
This increases the demand for Saudi nationals. The citizens, observers said, should not emulate their expatriate colleagues in seeking an enhanced wage which will be "illogical."
The positive factors emanating from the rectification campaign will become apparent in the long run, observers said, adding that temporary increase in wages is not a measure of the rise in prices of services being provided.
Observers also called for stopping control of expatriate workers over some professions by opening maintenance centers in the districts supported by the state so as to employ Saudi workers and gradually get rid of cover-up (Tasattur).
Muhammad Al-Saad, an investor in the contracting sector, said the building and construction sector is the most prominent field in which expatriate workers toy with the wages and prices due to Tasattur controlling a majority of small firms. This has resulted in expatriate workers controlling the prices hence increasing fears that this will increase the cost of construction of houses for the citizens.
He added that many expatriate workers are exploiting the current situation by raising their daily wages. The citizen agrees to pay these higher wages without looking into the negative effects. The situation requires of the citizens not to relent to the greed for higher wages by expatriate workers hence raising wages in an illogical manner. It is important that these violations ought to stop amid the availability of millions of workers working in the Kingdom legally.
Al-Saad stressed the importance of controlling the current practices by expatriate workers, who have increased their wages, by boycotting them and not relenting to their demands so that these high wages do not become a prevalent norm in the market.
Also, the citizen should not be the one paying for these high wages. Waleed Al-Sibei, an economic analyst, said the results of the rectification campaign will appear in the long run whereas its temporary effects cannot be considered to be a measure or criterion for the rise in prices of services being provided. At present they have increased to double their previous level amid expatriate workers exploiting the increasing demand in the local market.
He said the spread of Tasattur in the small firms sector reaching 80 percent is increasing the demand for disengaging expatriate workers' control over some professions. This can be achieved by opening maintenance centers in the districts through an initiative by the state to start establishing small centers, which will employ Saudi nationals in them and get rid of Tasattur practices by expatriates gradually. Aside from these they will get rid of their continuous control on wage levels despite the existence of tens of thousands of technical education graduates waiting for the establishment of such centers.


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