Thousands of workers protest sacking by Saudi firm Binladin

Disgruntled employees at the Saudi Binladin Group set company vehicles on fire to protest delays in salary payment and reports of the layoff of 50,000 foreign workers.

Society

2 min read

The New Arab

01 May, 2016

Gulf-based construction firms have been among the hardest-hit by lower oil prices [AFP]

Angry employees at a Saudi construction group set fire to more than seven of the company's buses, in the latest protest over not being paid salaries for six months and reports of a large round of layoffs.

Firefighters put out the blaze without any injuries reported, the spokesman for Mecca's Civil Defence Nayef al-Sharif said.

For several weeks, thousands of the Binladin Group employees have been staging rare protests in Mecca and the Red Sea coastal city of Jeddah, as some said they had not been paid for six months.

The attack on the company's vehicles come a day after the Saudi al-Watan newspaper quoted unnamed source confirming that the company has terminated the employment of 50,000 foreign workers and issued them exit visas.

Many of those workers are refusing to leave without being paid their late wages, the newspaper said.

Saudi daily Arab News reported that the layoffs included engineers, foremen, steel fixers, carpenters and welders at the firm. The paper said employees were offered severance pay.

Following the catastrophic collapse of a crane belonging to the company in Mecca, killing hundreds, the Binladin Group was banned from taking on new work at the behest of Saudi King Salman

The newspaper cited various possible reasons for the terminations, including government restrictions on the firm and changes to Saudi labour law that have made it more difficult for firms to hire expatriates over local Saudis.

Following the catastrophic collapse of a crane belonging to the company in Mecca, killing hundreds of pilgrims, the Saudi Binladin Group was banned from taking on new work at the behest of Saudi King Salman

Gulf-based construction firms have been among the hardest-hit by lower oil prices which curbed and sometimes delayed government spending on major infrastructure projects.

Last year, Saudi Oger, one of the kingdom's largest contractors, laid off 15,000 employees, while current workers have also complained over non-payment.

Saudi Arabia's deputy crown prince announced that the government arrears owed to Saudi Binladin Group and Saudi Oger will be paid "soon."

Mohammed bin Salman pinned the delay on the series of governmental decisions taken over the past few years to allow ministries to spend over $1 trillion.

Agencies contributed to this report.

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