Saudi probes local redundancies at private firms

SACKING INQUIRY: The labour ministry is looking onto the impact of the global crisis on the employment status of Saudis. (Getty Images)

The Saudi government has set up a team of investigators to look into media reports that nationals have been made redundant from private companies on the back the global economic crisis.
 
The Ministry of Labour, which has established the team, will investigate claims that companies have used the economic downturn as an excuse to fire local employees.  

Abdel Wahid Al Humeid, deputy labour minister, confirmed that as of Tuesday no such cases of redundancy had been confirmed, according to a report in the Saudi Press Agency.

An increase in the foreign work force during the last two years had been the necessary result of the Kingdom’s economic boom, he said, adding that the ministry now had to tackle the issue in a flexible manner.

He added that a minimum wage should form part of an integrated economic policy, but warned that if wages went up then society had to be prepared to face the consequences of price rises, and an increase in the rate of inflation.
   
Humeid was speaking on the sidelines of daily newspaper Al Iqtisadia’s ward ceremony for the best Saudi working environment.

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