Mahmoud Ahmad

 

AN Arabic daily recently published an article in which a member of the Eastern Province Chamber of Commerce and Industry criticized the Indian government’s decision that called for a minimum wage of SR1,500 ($400) a month for an Indian laborer recruited to work in the construction industry. The member argued that such a decision would harm the Saudi construction sector.



He pointed out that this move to set a minimum wage would add additional burden on investors in this industry. The member said that the cost would not be limited to the SR1,500 but would include other incremental costs — housing, insurance, renewal of Iqama (residence permit) among other things, which might bring the actual wage to SR3,000 ($800).



The member then compared the suggested minimum wage with the wages in neighboring countries and said that the new minimum wage would harm ongoing projects, whose costs are still projected on the old salary scale. He also pointed out that Saudi Arabia recruited more than 350,000 construction workers from India in 2012, which is half of the total number recruited to work in the Gulf countries —which is estimated at 747,000 workers.



I am not going to talk about the economic impact of this decision and how much the construction companies would lose or face drastic cuts in profits as a result of the Indian government decision. But what I want to talk about is why these companies find SR1,500 per worker as a salary that’s not fair or harmful to their interest. From a humanitarian point of view, SR1,500 as a salary in Saudi Arabia is not enough in my opinion. I do not know how many people are surviving on such salaries these days. Those who are surviving on such salaries or less must be living in very difficult conditions to survive — making compromises and cuts that becomes a perennial problem that beset them lifelong.



I would like to ask a simple question. Why do construction companies think SR1,500 for workers is not fair. Especially when the cost of living is rising and everything is expensive. I understand, every company works for a profit and always focuses on the bottom line to operate. But most do not make an effort to pay a fair wage when they can get something on the cheap. I know for a fact few companies will make an attempt to find out what is fair for their employees. For most will always think to keep the cost down, because the less they pay their employees the more they save and line their pockets with extra cash. It is also a fact that most employees in this sector are paid a pittance, and working for salaries under SR5,000 a month — which itself is less in face of the current price rise and cost of living.



A recent report published in the Al-Eqtisadiah daily showed that 285 workers died while at work last year because of lack of safety measures by the companies they were working for. More than 1,500 workers working in the construction industry died during the past three years, five percent of them were Saudis. Also 9,900 workers were disabled because of injuries at work. Amid such grim statistics, I find it really gross that the firms display such a callous attitude. I cannot believe that construction companies find it unfair for construction workers, from all nationalities, to receive a fair wage despite them working in extremely dangerous environment, sometimes with no safety measures, and amid harsh conditions.

 

There have been some unfortunate comments comparing the number of fatalities to the number of workers in the construction sector. I think it is stupid, even heartless, to say that the number is low compared to the overall number of construction workers because we are talking about 1,500 innocent souls, made worse by the fact that the vast majority of them dying as a result of neglect. We are talking about 1,500 bereaved families learning that their son, brother and father who went to work overseas to support their lives have lost their lives and will not be coming back home any more.



Away from the mathematics of making profit or saving money, these companies should not think of their employees as mere objects that they should milk for everything. They should not look at a salary that is not enough as fair. Some companies frown on employees who dare to speak up for themselves or their colleagues. They view this attempt to ask for a salary increase or any positive factor that favors them as a sign of mutiny that needs to be dealt with immediately. They quell dissent or bury requests with a silken threat of dismissal — sometimes even collectively. The greed of owners and construction companies should stop and they should pay what is fair and think about the dignity of employees and workers first before they think about profit. I know this is difficult but they have to at least make an attempt. If one firm leads the way, then there’s every possibility others would follow suit.



I believe it is within the country’s right to take the needed measures to ensure fair living of their citizens when working abroad as it is the right of the country recruiting them to accept or reject the proposed minimum wage. Paying fair wages to all people in private and public sector is needed.  Also important is paying them on time.



I believe what is needed is the formation of an independent committee that could examine the cost of living and determine fair wages of construction sector employees, from all nationalities. The panel must base their findings on the  cost of living in Saudi Arabia, and not base it on the cost of living back in the workers’ countries. This committee will have the right to impose the determined wages in the construction firms on the basis of countries the workers are from. This, in my view, could bring about a fair turn of events for all in this sector.

 

— The writer can be contacted at mahmad@saudigazette.com.sa Twitter: @anajeddawi_eng