Riyadh, Feb 2: The radical change in labor laws in the Kingdom has created many difficulties for industrialists, according to the head of the national industrial committee at the Saudi Council of Chambers.
Saad Al-Mejil told an Arabic language daily that labor laws had been in use for the past 30 to 40 years, but industrialists were surprised by the many new requirements of different government bodies.
Al-Mejil suggested that the best solution is for industrialists to cooperate with government bodies to find a solution to their problems.
“The ‘Together’ website, which was launched by the Ministry of Labor to allow businesses to share their opinions and recommendations regarding labor law issues, has received a number of suggestions. This has caused the Minister of Labor to delay some decisions so these suggestions can be reviewed and amended if necessary,” he said while adding that if labor laws are implemented in their current state they will contribute in the departure of expertise from the country resulting in the closure of many factories.
Al-Mejil noted that although the Kingdom is the world’s largest producer of cement due to the abundance of the required raw material in the country, it still imports cement from other countries due to shortages in subsidized fuel for factories. The current price of fuel for factories is $0.75.
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