INVESTORS in various sectors have called on the Ministry of Labor to start implementing a Nitaqat system for Saudis working in the private sector.
Accordingly, employment of each Saudi can be tracked, his/her previous jobs and reasons for leaving the jobs. And like all companies, Saudi employees shall be categorized based on different zones on their commitment and periods they stayed in each job.
The idea was first mooted by the Human Resources Development Fund (HRDF) but has not been implemented.
Bringing Saudi employees in the private sector under the ambit of the extended Nitaqat system is the only possible way to protect companies from the high rate of turnover in their businesses, Amal Shira, a member of the human resource committee of the Jeddah Chamber of Commerce and Industry (JCCI) said.
Shira's views regarding a sharp increase in Saudization quota that companies are asked to meet based on the third phase of Nitaqat system, were part of a open and frank discussion between business owners, members of various JCCI committees and the Ministry of Labor officials in Jeddah on Thursday.
All were there at a workshop at the JCCI premises to give and shed more clarity on the third phase of Nitaqat that is likely to be enforced some time next month.
Investors in engineering industry and hospitals noted that they were being subjected to more problems with the new system. Several investors wondered how could they adhere to new guidelines when they found it difficult to meet the earlier conditions.
Owner of a training company complained that although several Saudi youths registered with his company, only 25% of them complete the two-year training.
Small businesses, especially those where employment of females is mandatory, are the most affected by Saudization process, said Muhi Al-Deen Hakami, assistant to the secretary general of the JCCI.
“When a female employee does not come to the shop for any reason the owner looks from a distance at his closed shop! He cannot do business without her, and his income does not allow him to recruit two employees,” Hakami said. He elaborated that in many companies Saudis leave jobs because they either were waiting for scholarships or because they move to the public sector. Faisal Bashousha, head of JCCI's car dealers committee, said the Saudi market needs to change its system. Earlier it used to recruit low-paid expatriates who were ready to work in any region and at any time. For Saudi youth, the competition is high, he said.
Investors criticized ministerial studies recommending an increase in the Saudization quota. These studies, they said, were unilateral and conducted without their views. They also questioned the evaluation of phase two of Nitaqat, which “was not successful in many sectors.” However, ministry officials came down heavily on businesses where expatriates are still given preference over Saudi employees.
They maintained not all Saudis are under qualified and are leaving their jobs randomly. “A majority of them are keen to work and move to new companies because of lucrative job offers,” they said.
Speaking to Saudi Gazette, Sultan Al-Harbi said that only 10 percent of the companies contributed to “together online gate” through which they can provide their suggestions and comments. He added that comments and observations of the investors would be taken into consideration.
He said elaborate studies have been conducted to embark on the third phase of the Nitaqat, which increases Saudization rate in different sectors and adds new fields to the list.
Samir Husain, head of the JCCI's human resources committee, said they will submit their recommendations to the ministry soon.
These recommendations, he said, include reduction in the percentage of Saudization in the downstream industry and a request to the ministry to provide a medium of communication that will allow business owners to be updated about new laws and regulations. The recommendations also include calling on the ministry to provide a detailed study on the rate of turnover in companies and its causes.
