Dubai, Jan
25: In a move that may affect hundreds of expatriates,
including Indians, Saudi Arabia has asked all companies in the
kingdom to fire foreigners first if they have to layoff
staff.
"Labour offices are
instructing companies to start with foreigners first if they have
to sack staff," the 'Saudi Gazette' quoted Muhammad Al-Hamdan, Head
of the Labour Office in the Eastern Province, as saying.
In fact, Al-Hamdan said that
Labour Office inspectors, working for the Ministry of Labour, have
started investigating companies believed to have sacked Saudi
staff, because of the global financial meltdown.
"Businesses are not
permitted to fire Saudi staff and must retain them by transferring
them to other jobs made available within a firm by firing
expatriate staff," he said.
According to government
figures, the unemployment rate among Saudis is 5.4 per cent.
However government data shows it is closer to 11 per cent and
private economists say the figure could be much higher.
In the Eastern Province, the
Labour Office has visited major companies like SABIC or Saudi
Arabian Basic Industries Corporation, whose profits plunged 95 per
cent last year as a result of the global slowdown, to ascertain
jobs of Saudis are not affected.
The Labour Office has a
history of protecting the jobs of Saudis in the private sector in
troubled times. Al-Hamdan said that Labour Office had intervened a
few years ago during a financial crisis that affected contracting
companies, by getting Saudis transferred to different posts in the
same companies instead of letting management fire them.
