Thousands of OFWs in Saudi Arabia face lay-off in Middle East oil crisis
At least 50,000 overseas Filipino workers (OFWs) in the industrial section of Saudi Arabia will be affected by the current energy crisis in the Middle East by March, 2016, according to a migrant group protecting the rights of workers abroad.
Primarily affected are workers of Saudi Oger Ltd. and Bin Laden Co., two of the biggest contractors hired by the Saudi government for construction and industrial projects, Migrante-KSA (Kingdom of Saudi Arabia), a group looking after the welfare of OFWs, said.
Migrante-KSA said at least 20,000 OFWs from Saudi Oger Ltd. have already been affected by the crisis since last year, while at least 5,000 OFWs are set to be retrenched by Bin Laden Co. by March, 2016, with the austerity measures being employed by the Saudi government.
Earlier, Saudi Aramco, the country’s national oil industry, warned of the retrenchment of 25 percent of its labor force due to financial cutbacks.
“A big crisis is in our midst, even as the Philippine government attempts to downplay it. Since October last year, our OFWs in these two biggest companies have either been ‘idled,’ their iqamas (work permits) not renewed, their wages withheld for as long as six months, or their work hours lessened,” Garry Martinez of Migrante said.
Martinez said thousands of OFWs are now “tambays” (jobless) in construction and industrial camps while they await resolution of labor cases they filed against their companies.
“They filed cases for nonpayment of wages and other
labor violations. The very least the Philippine government should do is to ensure that they be paid their dues and be given their end- of-service benefits,” Martinez added.
Saudi Oger, Ltd., and Bin Laden Co., being the two biggest contractors, hire numerous sub-contractors that employ thousands more of OFWs.
Migrante-KSA is also facilitating the labor cases of the OFWs in the following small companies: Al-Aman Contracting, 30 OFWs; Drake & Scull, 15 OFWs; Rabya Contracting, 10 OFWs; Al-Omari, 12 OFWs; MRF (Bin Laden), 15 OFWs; Arab Tec, 1,000 OFWs; Kabbani, 2 OFWs; and Alrashid Abetong (Riyadh), 300 OFWs.
“The shrinking labor markets in Saudi and the Middle East will also inevitably cause stricter immigration measures that may endanger the welfare of our OFWs. Already, the KSA government is implementing crackdowns on undocumented migrants and tightening regulations in business establishments,” Martinez said.
Martinez said the group’s chapters in KSA had already reported riots and violence erupting in some of the labor camps because of withheld wages.
“What does the government plan to do with the effects of the Middle East energy crisis? There remains no clear blueprint from the Philippine government on what it plans to do in the event of massive retrenchment and displacement of migrant workers. Like before, the government is downplaying the potentially collosal consequences of the crisis on the lives and welfare of our OFWs, not to mention its negative effects on the domestic economy,” said Martinez.
The group said there are two million OFWs in Saudi Arabia alone. It has the largest Filipino population in the Middle East. Filipinos are the fourth biggest group of migrant workers in Saudi Arabia.
“What awaits tens of thousands of OFWs in the event of their emergency return? Definitely there are not enough domestic jobs available,’’ Migrante said.
Martinez said the Philippines lacks a comprehensive and sustainable reintegration program for returned OFWs as the Aquino government only offers doleouts and band-aid – not long-term – solutions to unemployment, low wages, and lack of social services.
He added that most of the government’s reintegration programs for returned OFWs are made up of loans and one-time livelihood programs.
Martinez branded the Overseas Workers’ Welfare Administration’s ( OWWA) “Balik- Pinas” reintegration package as “an insult” to OFWs. “This reintegration package comes from funds that come directly from OFW contributions. Walang ilalabas na pondo ang gobyerno para rito (The government is not providing any funds for this program). OFWs are required to pay a $ 25 OWWA membership fee for every two-year contract,” Martinez said.
Martinez said that the government has to decisively deviate from its labor export policy and instead focus on creating decent and sustainable local jobs to end the cycle of forced migration.
“It is high time that the government review its labor export policy in light of these recent developments in the Middle East. No domestic jobs are available for our OFWs in the event of their emergency return. The government’s recourse is to once again seek markets for them abroad despite the ongoing global financial crisis that continues to displace thousands and thousands of our OFWs. It’s a neverending vicious cycle. When does it end?” Martinez added.
Gov’t prepared
In Malacañang, presidential spokesman Edwin Lacierda said the Philippine government is prepared should there be a worst-case scenario in the Middle East that may affect millions of overseas Filipino workers following the decision of oil-producing countries in the Middle East to scale down oil production to save the oil industry.
He said Department of Labor and Employment (DOLE) Secretary Rosalinda Baldoz has already issued statements that OFWs will find some assistance by way of livelihood assistance, in case they decide to come home.
“We’re hoping that the situation abroad, the oil price situation will stabilize in a manner that will not exacerbate the anticipated situation of our OFWs being unemployed. So tingnan po natin. But whatever the situation, handa po ang ating bansa sa ano mang scenario (So we will see. But whatever the situation is, our government is prepared),” Lacierda said.
President Aquino himself had earlier assured that the government has the capacity to absorb Filipinos working in the Middle East should there be a need for repatriation. Middle East countries Saudi Arabia and Qatar, as well as Russia and Venezuela agreed to scale down oil production as oil prices continued to plunge. (With a report from Madel Sabater-Namit)