Private schools blame Saudization for their financial woes

February 4, 2013

saudiRiyadh, Feb 4: About 13 private schools in Jeddah laid off staff and students after experiencing significant financial hardships following the decision by the Ministry of Labor to raise minimum wage for Saudis teachers, school officials said.

The closure of private schools will increase public education costs on the government.

“Private schools save the government SR12 billion annually, given the fact one public education pupil costs the government about SR 20,000 a year,” said Othman Al-Qasabi, chairman of the committee for private schools at Riyadh Chamber of Commerce and Industry.

The Saudization quota required from girls’ schools by the Ministry of Labor led to difficulties and hardships for these schools that had to raise their fees by 50 percent, which was rejected by many parents who drew their offspring out.

Private school Principal Al Zahra Girls’ School Buthaina Al-Ghamdi said the minimum wage decision has affected the school in terms of having to bear higher expenses, but not to the extent of closing it.

She said the school did not approve any increase in fees paid by pupils, adding that Saudi teachers needed training on the new developed curriculum.

Pupils of a closed private school would turn to public schools and that means more costs for the government and would also affect the quality of education in terms of having overcrowded classrooms.

“With the increase in the salaries of teachers it is not feasible for private schools that charge a pupil SR 8,000 or less a year to stay open,” Al-Qasabi said. “And with the fact most parents won’t pay more than SR 10, 000, the schools (the ones charging less than SR 8, 000) would close and their pupils would turn to public ones.”

Al-Qasabi, however, believes that increasing teachers’ salaries was a necessity, stressing the importance of incentives and motivation for teachers. Incentives play a major role in the educational process.

He said adding private schools teachers’ salaries are the lowest in Saudi Arabia relative to other jobs. He also called on the government to financially support private schools’ pupils in a way that expands the market, improves quality and reduces costs for the government.

It was reported the National Committee for Private Schools recorded a number of withdrawals from private schools as parents could not afford increased fees and preferred to enroll their children at public schools. Most of the closed schools are girls’.

“Most private schools owners are unable to bear the increase in salary,” said Farida Farsi, chairwoman of the committee for girls’ private schools at Jeddah Chamber of Commerce and Industry. “They are small investors who rent residential buildings (villas) and opened private schools at their neighborhoods as a result of the Ministry of Education’s failure to accommodate all of a neighborhood’s pupils in its (the neighborhood’s) government schools.”

However, schools only have to pay SR 3, 100 of the SR 5,000 minimum wage as the remaining SR 2,500 is paid by the government’s Human Resources Fund.

“Many schools cannot afford the portion they have to pay, which is added to increased costs that are the result of stricter Civil Defense requirements of equipment and systems. The bankruptcy is due to several reasons not only the minimum wage decision. Some owners may have found it is the best solution.”

Malek bin Taleb, head of the national private schools committee, said the majority of private schools for girl closed their doors, while some others for boys will follow.

“Most of these schools will permanently leave the sector in the wake of the decision and the ensued regulations and instructions,” he added.

He said that more private schools will follow, given the Ministry of Education’s committee on increasing fees of private schools’ refrainment from listening to demands by the committee, stressing that the problem seems more explicit at girl’s school, where the required Saudization quota is close to 100 percent compared to boys’ schools.

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News Network
April 27,2020

Dubai, Apr 27: Saudi Arabia has reported 1,289 new Covid-19 cases on April 27, its Ministry of Health tweeted.

Of the newly diagnosed cases, Jeddah recorded 294 infections, followed by Makkah (218) and Madinah (202).

The ministry also confirmed five additional coronavirus-induced deaths, spiking the total death toll to 144.

2,507 people are talking about this
Since the outbreak of the virus strain in the Chinese city of Wuhan late last year, Saudi Arabia has reported a total of 18,811 Covid-19 infections.

As many as 2,531 patients have till now recovered from the virus.

Oman
The sultanate registered 51 new Covid-19 cases on April 27, including 37 nationals and 14 expatriates, spiking the total number of infections to 2,049, Oman News Agency tweeted.

Meanwhile, 10 coronavirus-related deaths have been confirmed in the country.

Qatar
The Ministry of Public Health has reported 957 Covid-19 cases among the 3,420 people tested in the last 24 hours.

As many as 85,709 people have been tested for the virus across the country.

The total number of Covid-19 infections since the outbreak has now risen to 11,244.

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Agencies
May 26,2020

Riyadh, May 26: The authorities in Saudi Arabia have decided to ease some restrictions put in place over coronavirus fears, allowing movement and resumption of some economic and commercial activities, Saudi Press Agency reported early Tuesday citing an official source at the Interior Ministry.

The move also allows restarting of domestic flights, opening of mosques, restaurants and cafes and work attendance, however, the temporary suspension of Umrah pilgrimage remains in force.

The easing of restrictions will be carried out in a phased manner, with the first phase beginning on Thursday (May 28) and ending on May 30.

In the first phase, the movement within and between all regions of the Kingdom in private cars will be allowed from 6 a.m. to 3 p.m. except in Makkah. Economic and commercial activities will resume in retail and wholesale shops and malls but beauty salons, barber shops, sports clubs, health clubs, entertainment centers and cinemas will continue to remain shut due to social distancing concerns.

In the second phase, which begins on May 31 and ends on June 20, the movement is allowed from 6 a.m. and 8 p.m. in all areas of the Kingdom, except in Makkah. All congregational prayers, including Friday prayers, will resume in all mosques across the Kingdom except in Makkah.

The suspension of workplace attendance will end, allowing all employees in ministries, government entities and private sector companies to return to working from their offices provided that they follow strict precautionary guidelines.

The suspension on travel between regions in the Kingdom using various transport methods will no longer be in place. Airlines will be allowed to operate domestic flights if they adhere to precautionary measures set by the civil aviation authority and the Ministry of Health. The suspension of international flights, will, however, continue until further notice.

Restaurants and cafes serving food and beverages can reopen, however, beauty salons, barber shops, sports clubs, health clubs, entertainment centers and cinemas will be barred from reopening in the second phase. The ban on social gatherings of more than fifty people, such as weddings and funerals will also continue to remain in force.

In the third phase commencing on June 21, the Kingdom will return to "normal" conditions as it was before the coronavirus lockdown measures were implemented.

Meanwhile in Makkah, the first phase measures will be implemented between May 31 to June 20 and the second phase will begin on May 21. Friday prayers and all congregational prayers will continue to be held in the Grand Mosque, only to be attended by Imams and the employees.

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Mohammed Sarfraz
 - 
Tuesday, 26 May 2020

I think second phase is May 31 to June 20. Must be a typo. 

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Agencies
June 9,2020

Dubai, Jun 9: Dubai's Emirates airline has begun laying off employees to reduce cost and save cash as the carrier looks to rightsize its workforce.

"We at Emirates have been doing everything possible to retain the talented people that make up our workforce for as long as we can. However, given the significant impact that the pandemic has had on our business, we simply cannot sustain excess resources and have to rightsize our workforce in line with our reduced operations. After reviewing all scenarios and options, we deeply regret that we have to let some of our people go," the spokesperson said in the statement.

Citing sources, Reuters and Bloomberg earlier reported that a majority of those being made redundant are cabin crew workers as well as a minority of its engineers and pilots, including those flew the Airbus A380.

"This was a very difficult decision and not one that we took lightly. The company is doing everything possible to protect the workforce wherever we can. Where we are forced to take tough decisions we will treat people with fairness and respect. We will work with impacted employees to provide them with all possible support," said the statement.

The spokesperson, however, didn't disclose how many employees are being made redundant in this latest round of rightsizing the workforce.

Emirates on Sunday confirmed that it extended the period of reduced pay for its staff for another three months till September. It had previously reduced basic wages by 25 to 50 per cent for three months from April, with junior employees exempted.

The airline had employed around 60,000 people at the end of its 2019-20 financial year.

Saj Ahmad, chief analyst at StrategicAero Research, said the announced job cuts at Emirates will likely not be the last given the unprecedented damage that Covid-19 has had not just on air travel, but on the entire aviation industry as a whole.

"Emirates' massive international network means that job reductions were always a last resort option as the company staves off cash burn and expenses at a time when revenues are dried up. While Emirates SkyCargo is enjoying a resurgence in activities, the reality is that this income will never offset the lost money from passenger operations," he added.

"Whilst some salary reduction schemes have prevented bigger job cuts for now, the absence of a cure or medicinal suppressant of Covid-19 means that air travel is unlikely to even reach pre-9/11 levels within 3-5 years, let alone pre-Covid-19 levels in that same time period. For that reason, Emirates' reduction in headcount is necessary to stay competitive, agile and be ready for when air travel can resume with a degree of normalcy that we have been accustomed to for decades," said Ahmad.

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