Local press: Private sector must follow suit
Published: Mar 22, 2011 22:39 Updated: Mar 22, 2011 22:39
THE least that the private sector is expected to do is not mitigate the nation’s happiness over the royal decree ordering the payment of two months’ extra salaries to all employees who work in the public sector.
Had I not been a strong believer in market freedom and the concept of a free economy, which makes it imperative on the government not to intervene in the affairs of the market, I would have hoped for a royal decree ordering the private sector also to pay employees two-month salaries.
The private sector would never have reached its current position had it not been for the lavish government spending on the economy and the billions spent by citizens at the end of every month.
I would not be deviating from reality if I were to say that the private sector’s response to the two-month salary bonus has been shy and humble, especially since there are over 200,000 private companies and establishments with revenues that are no less than the government’s budget.
Banks do not pay a single riyal in interest to the million customers who deal with them. They also fail to repay the good done to them by the nation by donating to welfare projects. Operation and maintenance companies annually make over SR32 billion in government contracts. Every major car hire company has a fleet of thousands of cars. Just imagine how much money they make each year and also keep in mind the small number of Saudis who work for them.
There are over 42,000 sales representatives employed by supply companies. Has any of you seen a Saudi among them? Without generalizing, there is corruption in this particular sector and opportunities to take bribes. Why are there no Saudis in these types of jobs? What qualifications do those employed in these jobs need to have? Why do we not allow Saudis to benefit from these jobs for which those employed do not need particular degrees?
Over SR7.3 billion is generated annually from the sale of medicines and medical accessories. Have you seen any Saudi employed in this job? The income generated from this sector alone is well over the budget given to King Saud University, which employs over 7,000 people. Why can’t we get Saudis into these sectors via royal decrees to cut down the number of unemployed Saudis?
It is a pity that the private sector is so miserly not to pay its employees an additional two-month salary despite the money it makes from the Saudi government and Saudi citizens.
— almosa@alwatan.com.sa
Comments
KIP
Mar 23, 2011 12:08
Report abuseANONYMOUS
Mar 23, 2011 12:09
Report abuseMOHAMMED
Mar 23, 2011 12:13
Report abuseROBERT
Mar 23, 2011 12:15
Report abuseJOHN BRIAN SHANNON
Mar 23, 2011 12:17
Report abuseTraditionally, governments only 'set the bar' for remuneration and provide common-sense regulatory controls, as well as stand up for employees rights and company rights internationally.
Whether a private company chooses to pay the two-month's salary bonus is up to them. It is optional, of course. You will find that the better companies WILL pay the bonus and also the type to act legally and morally in business affairs.
Those companies choosing to pay the bonus (Company A) will find their employees happier, working more productively and taking on extra responsibility. This is always best for a business. Another great benefit for them is that the best workers in each sector will approach such businesses and try to gain employment with them. Over time, these companies will end up with a majority of the best workers who will contribute greatly to their success!
For companies choosing to not pay (Company B) - eventually, they will lose their good employees, the ones they keep will be less loyal, less productive and less likely to take on an extra workload. Slowly, these businesses go into decline and one day, will simply close down, or move away to another country with lower standards.
In the end, Company A ends up with everything they started with - PLUS everything Company B loses, daily, weekly, monthly and yearly. Until they own everything.
Eventually, companies wanting to do business in the Kingdom will figure this out for themselves and will choose to become like Company A, in their own self-interest!
If this isn't the best example of a government 'setting the bar' for companies wanting to operate inside the Kingdom, I don't know what is. Just from one announcement, things are about to begin changing very profoundly in the Kingdom of Saudi Arabia!
It's just another reason to love and respect your Great King and his excellent Ministers. They are setting the standards to benefit you, the citizens and expats of Saudi Arabia!
May God's light illuminate your path.
John Brian Shannon