Ministry urged to compensate firms for switched employees

Updated 26 February 2013
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Ministry urged to compensate firms for switched employees

The Chamber of Commerce and Industry (CCI) in the Eastern Province has contacted the Ministry of Labor a several times asking that businesses be given compensation for the expenses paid in training the employees who later join other companies, Abd ar-Rahman ar-Rashid, chairman of CCI, said.
The ministry has yet to reach a decision regarding the matter. He explained that many companies incur large amounts of money in qualifying and training new Saudi employees who leave the original company following signature of a contract upon receiving offers from other businesses.
Ar-Rashid stressed the need for respect and courtesy amongst companies. He said that competition and rivalry should be in a positive way and must be conducted through legal channels.
No one should be employed with another company until his contract expires with his original company, he asserted. He added that when a person switches his original company, the Ministry of Labor should step in and impose financial fines on the employee.
This can compensate the original firm that provided training.
He also added that there are no rules to penalize a party leaving his/her company prior to the expiry of their contract. This, he said, encourages companies to get the better of each other and to try to lure competent employees even though they are still bound by active contracts. He explained that one of the most important reasons for attrition is that some professions are in high demand in the Saudi market.
Ar-Rashid said he would bring up the matter during the meeting of businessmen with the minister of labor next Saturday. He urged that a prompt resolution is needed so that the problem does not worsen and cause some companies to lose money or pay fines or even go out of business owing the Nitaqat (naturalization) process and other initiatives.
A number of businessmen have called upon the ministry to centralize all private sectors via the ministry. They urged the ministry to step in promptly to curb employee attrition, because it has become a worrying and disturbing phenomenon.
Many companies have gone to the trouble of establishing dedicated training institutes, hiring trainers and specialists and giving them high salaries in order to train young Saudis on the professions needed by the market. But, in most cases, the trainee leaves the company that trained him to work for another company for a salary that is only SR 500 more than the salary he was paid at his parent company.
Meanwhile, Said Zahrani, chairman of SRACO, said that employee attrition has become a common phenomenon, which has caused large financial losses among specialized companies that have dedicated training facilities. He said that the Eastern province witnesses an attrition rate of more than 50 percent among private sector employees.
He said that there are Saudi companies operating in other Arab and Gulf countries that practice a better system.


Disappointed fans hail improved performance by Saudi Green Falcons after defeat ends World Cup dream

Updated 31 min 43 sec ago
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Disappointed fans hail improved performance by Saudi Green Falcons after defeat ends World Cup dream

  • A fan named Yousif, who watched the match at the General Sports Authority viewing tent, was happy that the game at least was close this time.
  • Saudi Arabia will face off against Egypt, who also lost their opening two group A games against Uruguay and Russia, on June 25.

JEDDAH: Saudi Arabia’s World Cup dreams were shattered on Wednesday after Uruguay beat the Green Falcons 1-0 in the second of the three group-stage matches. Most Saudi fans in Jeddah were much happier with the team’s performance in game two, following the resounding 5-0 defeat by host nation Russia in the opening match on June 14, but still bitterly disappointed by the loss, which means the team cannot qualify for the knockout round.

Yousif, who watched the match at the General Sports Authority viewing tent, was happy that the game at least was close this time. “Although we lost, the performance was much better than the first game with Russia. I hope we win our next match,” he said.

Nasrah, who watched the game with her two sons, said: “I was really disappointed because we played good today and nothing less than a win should have been acceptable. I am also disappointed to see the looks on my boys faces when the game ended as they were hoping for a win.”

Khalid Al-Raghbi said at least it had been a good match to watch. “We played a bit better today,” he added. “I wish we would have won but at least we performed better than our last match against Russia.”

Before the game, Ibrahim Al-Turki had been optimistic about Saudi Arabia’s chances. “We didn’t expect today’s result. I was thinking that Saudi would win by two goals, and Uruguay would score one,” he said.

The result was especially disappointing given the close result and the number of chances the Saudis had to score, said Badr, who added: “I don’t know what to tell you because we are deeply disappointed. At least if we lost with a big defeat I would say we deserved it. We had the potential but we could not score.”

Shadi Al-Ghamdi said he wished the national team’s much improved performance in their second game had been more evident in their first. “I am very proud of the players, I thought they played very well. I just wish they had played like this against Russia," he said.

Safah was less complimentary and said that the Saudi players had let their fans down, adding: “They seemed scared whenever they attempted to score any goals.”

Saudi Arabia will face off against Egypt, who also lost their opening two group A games against Uruguay and Russia, on June 25. It will be the final game in the competition for both sides, with only pride to play for, as they battle it out to see who will finish third in the group and who will be left in bottom spot.