Troubled Saudi firm lays off 1,300 employees

Published September 29, 2016
Protesting workers hold signs asking the Pakistani government to intervene. ─ Photo courtesy Basit Sheikh
Protesting workers hold signs asking the Pakistani government to intervene. ─ Photo courtesy Basit Sheikh

RIYADH: Woes deepened on Wednesday for employees of troubled conglomerate Saudi Oger which laid off more than 1,300 staff at a printing plant for the Holy Quran, a newspaper reported.

The once-mighty firm led by Lebanon’s billionaire and former prime minister Saad Hariri has been hit by a decline in income from its core construction business after Saudi Arabia delayed or cancelled projects in the face of plummeting oil revenues.

Other construction companies, which are dependent on state contracts, have also suffered because of delayed government receipts.

But sources earlier said the broader economic context is compounded at Saudi Oger by deeper problems including poor management.

The Saudi Gazette said the contract staff at the King Fahad Quran Printing Complex in the holy city of Madina received termination notices on Tuesday.

It said it obtained a copy of the notice ordering workers “to complete the end of service procedures” as their contracts had been terminated on September 3.

They are the latest among tens of thousands of employees of Saudi Oger to suffer from the firm’s financial troubles.

More than 30,000 Saudi Oger Ltd construction workers, mostly from India, Pakistan and the Philippines, have gone unpaid for up to nine months. The Saudi Gazette said the printing plant staff had also gone months without pay or allowances.

Last month, King Salman announced a $27 million assistance plan for unpaid construction workers. It helps them with food, medical needs, a trip home, exit visas or, if they want, transfer to another employer in Saudi Arabia.

On its website, Saudi Oger says it was the prime contractor in the construction of the Madina printing plant and then became involved in its operation and maintenance.

The Saudi Gazette said the government had begun the tendering process to find a new operator.

Published in Dawn September 29th, 2016

Opinion

Enter the deputy PM

Enter the deputy PM

Clearly, something has changed since for this step to have been taken and there are shifts in the balance of power within.

Editorial

All this talk
Updated 30 Apr, 2024

All this talk

The other parties are equally legitimate stakeholders in the country’s political future, and it must give them due consideration.
Monetary policy
30 Apr, 2024

Monetary policy

ALIGNING its decision with the trend in developed economies, the State Bank has acted wisely by holding its key...
Meaningless appointment
30 Apr, 2024

Meaningless appointment

THE PML-N’s policy of ‘family first’ has once again triggered criticism. The party’s latest move in this...
Weathering the storm
Updated 29 Apr, 2024

Weathering the storm

Let 2024 be the year when we all proactively ensure that our communities are safeguarded and that the future is secure against the inevitable next storm.
Afghan repatriation
29 Apr, 2024

Afghan repatriation

COMPARED to the roughshod manner in which the caretaker set-up dealt with the issue, the elected government seems a...
Trying harder
29 Apr, 2024

Trying harder

IT is a relief that Pakistan managed to salvage some pride. Pakistan had taken the lead, then fell behind before...