Construction Group lays off 50,000 Workers
Construction company Saudi Binladin Group has laid off 50,000 staff, Saudi newspaper Al-Watan reported.
The total workforce at Binladin, one of Saudi Arabia’s biggest firms and among the Middle East’s largest builders, is around 200,000, according to its LinkedIn page.
Al-Watan, citing unnamed sources, reported that the group has terminated the contracts of 50,000 workers — apparently all foreigners — and given them permanent exit visa to leave the Kingdom.
The paper said the workers refused to leave the country without getting paid and some had not received wages for more than four months.
They were protesting in front of the Binladin’s offices in the country almost daily, the paper added.
Binladin did not immediately reply to an e-mail seeking comment on Friday, a day off in the Gulf region.
The company has had a series of pay disputes with workers this year.
Labor market reforms, designed to push more Saudi citizens into private sector jobs, have since 2011 made it more difficult and expensive for construction firms to hire foreign workers, pressuring the industry.
Binladin has been discussing how to manage its debts with banks and a few have agreed to refinance some debt through steps such as extending maturities, with some providing short-term financing for the company’s working capital including staff wages, banking sources had said.
A sign that the downturn is affecting company cashflows and we are not out of the woods yet..
I agree with Wunae. Bin Laden has suffered badly due to that incident. It appears the company's heydays are over.
Brit this isn't directly related to the economy. The Bin Laden group lost all their government work after their crane crashed and killed over 100 pilgrims in Mecca.
I would assume that most of those laid off are low paid site workers..
However, it also shows how the economy can affect the life of an expat..
I felt very bad for those 50,000 employees who lost their livelihood, it's a difficult situation for their families, God may help them.
Laid-off workers should be paid before they are send-off to their respective countries. How can a company not pay its employees for months altogether and then orders them to leave. Saudi govt must intervene and make sure than these poor workers are paid.
It's a big group with revenues dependent on projects