More than 30,000 employees of construction giant Saudi Oger have filed official complaints over alleged non-payment of wages, according to local media.
A source from the company reportedly said 31,000 Saudi and foreign workers had lodged complaints with the Labor Office claiming their salaries have been delayed for several months.
The workers cannot leave the country as the ministry has put a lock on Saudi Oger’s foreign recruitment and social security insurance services, Arab News reported.
It said according to the source the company has terminated the contracts of Saudi engineers and foreign workers in all of its branches in Riyadh, Jeddah, Makkah, Madinah, Jazan, Hail and the Eastern Province without settling their dues.
An estimated 23 percent are Saudi nationals, the source said, adding that some engineers have not been paid salaries for the past nine months.
In March, an executive from Saudi Oger told Reuters that the company had adopted a financial recovery plan that would enable it to resume payments from that month.
However, by June, the matter had still not been resolved and workers were reported to have set fire to company buses in Jeddah in protest.
Saudi Oger is one of several Gulf-based construction firms that have been hit hard by the fall in oil prices and resulting decrease in projects.For all the latest construction news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.