CSC asks Labor Ministry to delay 3rd phase of Nitaqat by 3 years

The Council of Saudi Chambers has reportedly asked the Labor Ministry to delay by three years the implementation of the Nitaqat program’s third phase that aims to further increasing the percentage of Saudis working in private firms.
Labor Minister Adel Fakeih announced recently that the third phase of Nitaqat would be launched on Rajab 1 (April 20), including advanced systems to create more job opportunities for citizens in the private sector.
“The raising of Saudization percentage should be carried gradually within a timeframe of not less than two to three years,” the CSC said in a letter to the labor minister. The CSC indicated that the turnout of Saudis at a job fair organized by the Riyadh Chamber of Commerce and Industry recently, offering about 3,000 jobs, was much less than expected as only 1,409 men and women attended interviews of companies, even after a strong advertising campaign.
“Some of the jobs offered a monthly salary of SR15,000 while many companies were giving two-day weekend,” it added.
The CSC said it feared that the raising of Saudization rate at this situation would have a negative impact on the job market as companies would not be able to get adequate number of Saudi workers, especially for small and medium enterprises (SMEs).
The Labor Ministry wanted downstream industries to raise the Saudization rate from 25 percent to 41 percent, big retail and wholesale firms from 29 percent to 44 percent and other big commercial establishments from 29 percent to 66 percent. It also wants SMEs to increase the number of Saudi workers gradually within a timeframe.
A foreign investor, who requested anonymity, called upon the ministry to look into the practical problems facing businesses in the country before imposing its decisions. “We don’t get qualified Saudi workers to meet the Nitaqat conditions. Many of these workers leave the organization after receiving training. Companies will not be able to provide high salaries to beginners,” he told Arab News.
Meanwhile, Ali Al-Masaad, chairman of Yanbu Chamber of Commerce and Industry, advised the ministry to force private companies to pay SR3,000 for every Saudi worker they do not employ according to the law.
“This will enable the ministry to collect SR3 billion a month, or SR36 billion a year, which could be partly pumped to national companies to improve the situation of employees, while the other part for scholarships designed to train the unemployed in foreign countries.
He also proposed to raise the cap on salaries of Saudi employees in the private sector equal to Civil Service scale. “This will provide job security for Saudi men and women, with annual bonuses and full retirement benefits,” he added.