Labor fees raise prices



JEDDAH: ARAB NEWS

Published — Saturday 15 December 2012

Last update 15 December 2012 1:27 am

| نسخة PDF Print News | A A

The Consumer Protection Association (CPA) reported a rise in consumer prices after the Ministry of Labor implemented its fee on foreign labor.
The chief executive of the Consumer Protection Association, Nasser Al-Toam, said his organization noticed prices rose in the wake of the Ministry of Labor’s decision to charge businesses an annual fee of SR 2,400 on each foreign worker.
Al-Toam said: “Price hikes were observed in some women’s shops, in the construction sector, and at car wash stations.” The CPA is currently reviewing these cases and will follow them up and report on the findings, he said.
“The decision to charge a fee on foreign labor was taken in haste and it will have negative implications for the consumer, as well as psychological, social and economic effects,” he added.
“If we look at the economic impact of the decision, inflation will impact the whole business sector and the consumer will have to bear the burden of the additional SR 15 billion in fees,” he said.
He demanded human rights organizations and the Shoura Council to intervene and challenge the charges.
“Most merchants have already begun to raise prices, while others say they cannot continue to bear the burden themselves. As a result, the consumer will no doubt have to pay for this decision,” he added.
Al-Toam said: "We are experiencing a decision-making crisis where no parties are consulted. There should be a gradual implementation of any decision like this, as well as alternative options. The ministry acknowledges some businesses do not employ Saudis at all, so I wonder why they are not subject to the same decision? Why do we deal with a wrong-doing with an even greater one?” he said.
The ministry will look into compensating those affected, he said, but this is not the right way to address the situation. No standards have been defined around this decision and will lead to corruption in some cases.
He said the decision to pay compensation is irrational and without foundation, and is just a waste of resources.
Al-Toam said various ministry departments could utilize their resources and work together to control consumer prices.
He hoped the Royal Court would intervene and freeze the decision until the impact of the fees on the consumer can be properly gauged.

What's happening around Saudi Arabia

JEDDAH: The father of the suicide bomber who blew himself up in a mosque in Kuwait has blamed “evil” forces for his son’s behavior.Sounding confused and sad, Sulaiman Al-Gabbaa, the father of Fahad Al-Gabbaa, said: “An evil hand has sent my son to hi...
JEDDAH: The Saudi Traffic Department has denied that it is introducing new license plates for cars.It said hackers posted pictures of the supposedly new license plates on its Twitter account on Sunday. The department said the news, which went viral,...
JEDDAH: The Al-Haramain Train project is described as the largest public transportation project in the Middle East. This vital and strategic project is one of the implementation schemes of the mass expansion of the Saudi railway across the country.Th...
JEDDAH: The number of marriages between expatriates and Saudis has dropped 84 percent to 1,928 since the start of this Islamic year that began on Oct. 24, compared to the same period the previous year.The Ministry of Justice said that there were 12,0...
JEDDAH: The General Authority for Civil Aviation (GACA) launched the idea of a project called Watani to link all parts of the Kingdom by air by beefing up activities at important provincial airports.Capt. Abdul Hakim Badar, assistant vice president a...
JEDDAH: Unofficial marriage is a refuge for a divorced mother to lead a married life while keeping her children in her custody but without the knowledge of the former husband who could demand the custody of the children if he learned about the ex-wif...
JEDDAH: Makkah’s health department has set up a committee to verify the sick leave certificates of employees.The department stated it would apply government regulations on sick leave, which includes people providing the address of the facilities wher...
RIYADH: The directorate of roads and transport has registered 20 cases of violations worth SR24,500 in Al-Qassim, where the transport ministry continued its surveillance drive against the companies in the transport business.According to the directora...
RIYADH: The implementation of an integrated health plan to combat MERS has resulted in a sharp drop in cases, with only one out of 736 samples testing positive for the contagion in the Kingdom in the last six days. Health Ministry spokesman Dr. Khal...
RIYADH: Muslims must cut traditionally high electricity use during Ramadan in line with the principles of austerity and self-control they are supposed to adopt in this month, economists say.Economist Al-Sadeq Idris said energy use increases during Ra...
JEDDAH: The Ministry of Commerce and Industry will begin next Tuesday to check whether companies are complying with new laws requiring them to place proper price labels on all their products.It is mandatory for companies to stop using phrases such as...
RIYADH: Minister of Islamic Affairs Saleh Al-Asheikh chaired the first meeting with Yemeni scholars to exchange ideas on how to strengthen their role in restoring peace in their country.The first Saudi-Yemen scholars meeting, dubbed the “outreach sch...
RIYADH: To cope with the growing number of applicants (boys and girls) at technical colleges that reached 126,023 last year, a state-run organization launched an online unified portal to ease the enrolment procedures.According to the Technical and V...
RIYADH: A senior government official from Dhaka, who visited Riyadh last week, has sorted out technical issues to expedite issuing 1.5 million machine readable passports (MRP) to Bangladeshi expatriates in the Kingdom. Information and Communication T...
JEDDAH: Jeddah municipality is keen to provide health and food security to residents and visitors of the city, and they are continually conducting inspections of food stores, restaurants, markets and food storage facilities to avoid any violations by...

Stay Connected

Facebook