Alarm raised over Saudi Arabia labor localization

Repatriated Filipino workers in Saudi Arabia queue for the training scholarship certificates given by the government upon their arrival in Manila. AFP File Photo

MANILA, Philippines—A migrant group has warned the Aquino administration to brace for the possible impact of Saudi Arabia’s labor localization program, which enters its new phase on Saturday.

John Leonard Monterona, Middle East regional coordinator of Migrante, said that overseas Filipino workers (OFW) in the oil-rich kingdom might be affected by the Nitaqat labor scheme that provides incentives to private companies employing Saudis.

“We are hoping that the Aquino administration through the labor department and other line agencies are already prepared for the impact of the Nitaqat especially to those OFWs who will be terminated from their jobs,” Monterona said.

He said the new phase could particularly affect Filipinos employed in firms the Saudi labor ministry would categorize as ‘Red’ companies, or those with the least number of local employees.

“We could see a stiff implementation of the Nitaqat in the coming days,” Monterona said.

Monterona said that “all, if not most, of the private companies employing expatriates workers have been given coded colors corresponding to the minimum numbers of Saudis it employed.”

Under the Nitaqat, the Iqama or residence permits of foreign workers in companies categorized under ‘Red’ will not renewed, he said.

News reports have quoted Saudi labor Minister Adel Fakeih as saying that his office will be providing benefits and incentives to private firms employing Saudis once the next phase of Nitaqat commences.

Those companies will continue to receive incentives until November 26, Monterona, quoting news reports, said.
He said the labor ministry intends to intensify its inspection of private companies to ensure their compliance to the Nitaqat scheme.
He said the “‘Sagip Migrante’ hotlines have been flooded” with inquiries on how they can find out under which categories their employers have been categorized. Monterona stated that workers could ask their HR or administration managers about the category “but sad to say, many are not telling the category of the company.”

The Migrante officer revealed that the Saudi labor ministry, “as per news reports, already received 1.5 million Saudi job seekers several weeks ago.”

Since the announcement of Nitaqat’s new phase, Migrante said it has monitored 62 Filipino workers—mostly those working in the medical sector—terminated from their jobs in Saudi.

But Monterona clarified that Migrante has not verified if those termination cases were due to the Nitaqat.

About 1.8 million Filipinos are working in Saudi Arabia.