Oman tightens its belt, but it’s the labourers who go hungry
About 2,000 migrant workers in Oman are owed up to four months’ wages by employers struggling without the lifeline of government contracts.
As oil prices have fallen, fewer government contracts were awarded to private companies. As a result, workers – most of them from the Indian subcontinent – have not been paid.
Ganesh Amitraj, an Indian electrician who has worked for the same building company for six years, said he had not been paid since May.
“I was told my wages were delayed but I will be paid later, but not told when. There are 16 like me in this company,” Mr Amitraj said.
Mujib Raman, a building worker, and 22 of his colleagues have complained to the Indian embassy in Muscat after not being paid for four months.
Their company had a contract with Muscat International Airport that expired in February and was not renewed.
“July was the fourth month we have not been paid. We have informed the Indian embassy and they promise us they will do something about it,” Mr Raman said.
He said most of the unpaid workers lived in company accommodation and did not have pay rent or utility bills, but needed help to pay for food.
“Members of the Indian cultural club and close friends help with our grocery bills. They understand the situation we are in,” Mr Amitraj said.
An official at the Indian embassy said that the wages of nearly 1,000 Indians were unpaid.
“We received complaints from hundreds of workers who did have not been paid in the last few months,” an embassy spokesman said.
“We are in contact with the officials of the companies concerned to put it right.”
Oman announced a budget deficit of 3.3 billion rials (Dh31.49bn) for this financial year after oil prices plummeted by more than 50 per cent from $115 a barrel in June 2014 to about $50.
Economists said the sultanate has cut down on building projects awarded to private companies this year by more than 40 per cent, with only 1.3bn rials worth of contracts compared to 3.2bn rials last year.
“Most of the major companies in the country rely on government projects to survive,” said economist Saleh Al Habsi.
“They have overheads and many of them employ hundreds of workers in the construction sector to build roads, bridges, ports and other infrastructure.
“They can either restructure their businesses by taking out loans to keep up with the overheads or they can send workers home.”
Mr Al Habsi said at least 2,000 foreign workers were waiting for their wages. The companies concerned declined to comment.
Oman’s ministry of manpower said it was aware of the situation.