The Saudi Binladin Group has reportedly asked its circa 17,000 Saudi national staff to either resign or wait for alleged delayed payments plus a compensation package equivalent to two months’ salary.
Local media claimed the construction giant has lost billions as a result of the fatal Makkah crane crash last year, and that many staff are allegedly waiting for at least four months’ worth of wages.
The group is reportedly laying off 77,000 foreign workers, and plans to axe thousands of jobs held by Saudi nationals. It has around 217,000 employees in total.
Saudi Gazette on Tuesday cited company sources as saying Saudi employees have been told to “quit or wait” for an additional two-month salary package on top of delayed payments. But the source did not say for how long those staff would have to wait.
According to the newspaper, the company’s dues have reached more than SR4.8 billion ($1.2 billion) payable in 2017, and a further SR595 million ($148.6 million) payable in 2018.
In a statement on Monday, the Saudi Binladin Group claimed that all dismissed workers received “full compensation,” and described the job cuts as a routine measure amid a slowdown in the construction industry.
“Adjusting the size of our manpower is a normal routine, especially whenever projects are completed or near completion,” the company said. “Most of the released jobs had initially been recruited for contracted projects with specific time frame and deliverables.”
Meanwhile, security authorities are reportedly investigating an incident on Saturday when aggrieved Binladin Group workers torched seven company buses.
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