RIYADH, 6 July — Labor officials in Riyadh and Dammam are investigating complaints filed by Saudi employees against the BAE Systems for violating the labor law.
The British company has allegedly forced all its Saudi employees to sign a new annual contract with the company or face termination of contracts, a move considered a clear violation of Saudi labor law.
"The company’s decision to change the permanent contracts of Saudi employees and reduce their salaries contravenes the Local Labor and Laborers’ Law (Articles 2 and 6) which stipulates that "our contracts cannot be changed, and whatever we have gained by either contracts or any other agreement written or otherwise must not be changed," said a Saudi employee of the company who spoke to Arab News yesterday on condition of anonymity.
This move, applicable only to Saudi employees and not their expatriate counterparts, is another violation of Saudi labor law (Article 58) which stipulates that "Saudis have priority to assume positions if they have the same qualifications," added the employee.
"There is an urgent need to develop the role of the Labor Office and the Ministry of Labor to counter such violations of companies and employers."
BAE Systems, which has been in the Kingdom for nearly 30 years, has sacked a Saudi employee in the Eastern Province after he refused to sign the new contract.
The employee, Yahya Al-Fifi, has filed a lawsuit against the company and the case is still being investigated by the Labor Office in Alkhobar. "It is a warning sign for all Saudi employees of the company in Riyadh, Dhahran and Tabuk," said Al-Fifi.
More than 2500 Saudi employees are affected by the new measures of the company. A workers’ committee has been formed to solve the problem.
In Dammam, 657 Saudi employees have filed a lawsuit against the company, which runs Al-Yamamah Project in Dhahran, after they were forced to sign the new contracts which are valid for only one year.
"There are about seven violations of Saudi labor law in the new contract," said one of the members of the workers’ committee.
In Tabuk, 22 Saudi employees have filed another lawsuit against the company after the new measures.
