Top construction firm punished for delaying salaries

JEDDAH: The Labor Ministry is taking several measures to resolve the issue of some workers’ complaints of delayed salaries. The ministry would stop providing its services, including social security and passport affairs, to Saudi Oger Ltd. as part of its punitive steps, a source told local media on Monday.
The ministry has also formed a committee to address the issues raised by Saudi Oger employees, the source said, adding that the Riyadh governorate is expected to coordinate with the committee to resolve the matter.
The ministry has reportedly vowed to settle the salary dispute either by paying off the employees or clearing the arrears in installments.
Saudi employees of Saudi Oger have claimed that they have not been paid for four months. The workers were quoted as saying that they have financial commitments with banks and that they have to manage their family expenses.
The company, however, claimed that the salaries were delayed because it had not received payments for the projects that were implemented.
According to local media, Farid Shaker, director of Saudi Oger, had promised in an internal memo 10 days ago that a month’s salary would be paid to each worker within a week effective Feb. 14. However, the company reportedly failed to meet the commitment.
He had also promised that the regular payment of the salaries would resume from March and that the dues would be cleared in installments, the report said.
“The company had announced that it had no money to pay the salaries,” Sayyar Al-Shammari, an engineer working with Saudi Oger, was quoted as saying.