Many sponsors exploit grace period to make extra money

April 16, 2013

Jeddah, Apr 16: A number of Saudi sponsors have taken advantage of the need of the foreign workers to rectify their status before the grace period of three months is over to ask for huge sums of money so as not to issue them a final exit visa. nitaqat

This scenario has caused over-crowdedness by workers and domestics in front of their respective consulates to find a solution for their problem or at least facilitate their travel procedures particularly since many are unable to pay the ransom which at some cases exceeded SR15,000.

The vacant lot near the Philippines Consulate in Jeddah was overflowing with male and female Filipinos forcing the traffic police to rush to the scene to organize traffic.

Some of the Filipino workers said their sponsors told them bluntly that they can no longer retain them lest they may be subjected to punishment after the grace period is over. “This is why we have rushed to our consulate to facilitate our travel back home,” said a Filipino who did not want his name to be published.

Another Filipino said the majority of them could not correct their status because they have been staying illegally in the Kingdom for several years. “Some of them have escaped from their original sponsors and were working for other Saudis,” he added.

He said the violators of the system of labor and residence will face harsher punishment if they are unable to correct their status before the termination of the grace period. “This is why they came to their consulate to find a solution to their predicament or otherwise deport them home,” he said.

Rakan Al-Ayoubi, a Saudi citizen, said he came looking for a housemaid because he and his wife are both working and their need for a domestic is pressing. He said he cannot recruit a housemaid from the Philippines or Indonesia as recruitment from these two Southeast Asian countries has been halted. “I am also afraid that the housemaid may escape and in this case the recruitment office will not refund the money I have spent on her recruitment,” he said.

He recalled that his housemaid became terrified when she came to know about the crackdown on violators by the Labor Ministry and the Passports Department.

“We woke up one day to discover that she was missing. We tried to contact her but her mobile phone was switched off. I think she must have been persuaded by one of the brokers to escape,” he said.

Al-Ayoubi said he was tired of paying large sums of money to obtain a housemaid from the black market. “We are waiting for the crucial moment when the country is cleaned of the violating foreign manpower. When the decision is fully implemented, it will rid the country of the black market and put an end to the high prices. We want to go back to the past system when a housemaid was recruited at a fixed amount of money and was paid a modest salary,” he said.

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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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KT
April 14,2020

Dubai, Apr 14: Saudi Arabia reported 435 new cases of coronavirus, bringing the total number of infections in the country to 5369, the Ministry of Health announced on Tuesday.

According to the ministry of health the number of recoveries today are 84 cases, making total of recoveries in the kingdom 889.

The ministry also confirmed 8 deaths bringing the total number of deaths in the kingdom to 73.

Saudi Arabia imposed a 24-hour curfew and lockdown on the cities of Riyadh, Tabuk, Dammam, Dhahran and Hofuf and throughout the governorates of Jeddah, Taif, Qatif and Khobar. This week the curfew was extended until further notice.

Containment efforts
Saudi authorities are racing to contain an outbreak of coronavirus in the Islamic holy city of Mecca.

The total number of coronavirus cases reported in Mecca, home to 2 million people, reached 1,050 on Monday compared to 1,422 in the capital of Riyadh, a city more than three times the size. Mecca’s large number of undocumented immigrants and cramped housing for migrant workers have made it more difficult to slow the infection rate.

Saudi Arabia has reported one of the lowest rates of infection in the region, with around 5,000 cases in a population of over 30 million.

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Arab News
March 9,2020

Dubai, Mar 9: The eyes of the world will be on the oil markets when the big trading hubs in Europe and North America open following the end of the deal between Saudi Arabia and Russia that has helped to sustain crude at relatively high levels for the past three years.

There were big falls on Friday when ministers from the Organization of the Petroleum Exporting Countries (OPEC) failed to get a deal with non-OPEC members — the so-called OPEC+ — to extend output agreements. Brent oil was down nearly 10 percent at $45.27 going into the western weekend.

Saudi Aramco took immediate action to cut prices after the OPEC+ collapse, offering big discounts for crude deliveries from next month, when the current output restrictions end.

According to a notification sent to customers by Saudi Aramco, seen by Arab News, the Kingdom’s oil giant will cut between $4 and $8 per barrel, with the biggest discounts being offered to buyers in northwest Europe and the US.

Roger Diwan, an oil analyst at consultancy IHS Market, said: “We are likely to see the lowest oil prices of the past 20 years in the next quarter.”

West Texas Intermediate, the US oil benchmark, fell to $28.27 in November 2001.

The move raises the possibility of a “crude war” between the three biggest oil blocs — the US, Russia and the Arabian Gulf. Some analysts believe the American shale industry is more vulnerable to low prices than either the Russians or the Saudis.

Robin Mills, head of the Qamar consultancy, told Arab News: “I don’t think this was premeditated but Saudi Arabia has clearly swung quickly into action to put the Russians under pressure. But the Russians, with low debt and a flexible exchange rate, can cope with a few months of low prices.”

The boom in US shale has made the country the biggest oil producer in the world, but with high financing costs. Lower global prices would put a lot of shale companies out of business.

On the other hand, American motorists, and President Donald Trump, would be pleased to see lower fuel prices in an election year.

In Moscow, one prominent financier with ties to the Kingdom played down the long-term significance of the Vienna fallout.

Kirill Dmitriev, chief executive of the Russian Direct Investment Fund, told Arab News: “Saudi Arabia is our strategic partner, and cooperation between our two countries will continue in all areas. We will also continue to work within the framework of the Russia-Saudi Economic Council.”

One Russian official, who asked not to be named, added: “There is a good relationship between Alexander Novak, Russian energy minister, and his Saudi counterpart Prince Abdul Aziz bin Salman, and I am sure they will continue talking to each other less formally.”

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