Local press: Private sector must follow suit

By ALI SAAD AL-MOSA | AL-WATAN

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

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Private companies paying extra? HA! That'll be the day! I work for a private school as a teacher and they can't even pay me on time, let alone pay me the amount that was agreed apon in the contract! When I have raised these issues with the owner (a Saudi) I was told to take my problem to the Saudi Labour Ministry! You can just imagine how far I would get if I did that! Since they have my passport and control when I may leave, I am stuck working for a heartless individual until my "contract" is over! So as for getting a raise, or a bonus (or even what I am supposed to be paid) I will not hold my breath because I would die! That may make my sponser happy though, because then they would not have to pay my end of contract monies and they could charge 170,000SAR to my family for my body!

ANONYMOUS

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With all due respect to the Custodian of the two holy mosques and the citizens of Saudi Arabia, we need to note the reason to why the private sector isn't ready to employ so many Saudis as expatriates. One of the main reason is that Saudi are reluctant to do their jobs promptly and I am not speaking about all of them but yes more than 50%. While the expats work their backs off to earn what they do deservedly, there are Saudis who don't even show up for work many days a month but still take away their pay without any cuts, while an expat doing that would lose his pay for not showing up at work. Has to be noted that equality of treatment of Saudis and expats can lead to a beter work environment and probably push those reluctant citizens to work harder for their bread. If this weren't the reason, no private sector companies would be against it. Many might consider this comment of mine as too bold but the truth has to be out there to realize before reaching a conclusion. There definitely are those hard working citizens out there too of whom many I have come across, who also get stereotyped for the wrong done by the other less responsible one. Things need to change, people need to know that today's world is a world of survival of the fittest and maybe the expats are proving stronger than the citizens at the moment.

MOHAMMED

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I do remember in my former company, the owner of the company allocate his personal money to give all employees half salary as their gift on one of the Ramadan. But the Palestian GM, Lebanese HR and Kerala Secretary did not give my money for no reason. It was not the bonus but Goodwill Gesture from the owner. Oh yes I said haram and Insha Allah I will get it on the day of Judgement.

ROBERT

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I disagree. Private companies are not obligated to follow the government's example here. The King and the royal-family-staffed government released this "bonus" program to the masses primarily to keep them from protesting and so that government could retain its power without conflict. The private sector has no responsibility to help the authoritarian monarchy stay in power.

JOHN BRIAN SHANNON

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Private companies can do as they like as long as they abide by the laws of the country. It is the same all over the world.

Traditionally, 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
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