Saudi asks cos to sack expats first, then locals (Source: Local Newspapers)

Saudi asks cos to sack expats first, then locals

Dubai: In a move that may affect hundreds of expatriates, including Indians, Saudi Arabia has asked all companies in the Kingdom to fire foreigners first if they have to layoff staff. "Labour offices are instructing companies to start with foreigners first if they have to sack staff,'' the 'Saudi Gazette' quoted Muhammad al-Hamdan, head of the labour office in the eastern province, as saying. In fact, Al-Hamdan said that labour office inspectors, working for the ministry of labour, have started investigating companies believed to have sacked Saudi staff, because of the financial meltdown. "Businesses are not permitted to fire Saudi staff and must retain them by transferring them to other jobs made available within a firm by firing expatriate staff,'' he said. According to government figures, the unemployment rate among Saudis is 5.4%. However, government data shows it is closer to 11% and private economists say the figure could be much higher. In the eastern province, the labour office has visited major companies like Sabic or Saudi Arabian Basic Industries Corporation, whose profits plunged 95% last year as a result of the global slowdown, to ascertain jobs of Saudis are not affected. The labour office has a history of protecting the jobs of Saudis in the private sector.