ALKHOBAR, 9 July — In a class action lawsuit, 497 Saudi workers at British Aerospace (BAE) brought their case before Dammam’s Labor Court yesterday. After initial statements were made by the lawyers, the court adjourned the case until August 20 so the documents presented could be examined and verified, and the points in the petition could be thoroughly considered.

It is clear to all parties involved that any ruling in this case will be a landmark decision and could drastically alter the employment landscape in the Kingdom.

The issues in the case originated nearly a year ago in September 2001, when the Saudi workers at BAE were asked to fill out a form titled, "Continuation of Request with Yamamah Project." The form had spaces for the employees to write in all personal details. Surprisingly, statements on the form were also made to the effect that signing the form gave BAE the right to start a new contract under new terms with the worker on Jan.1, 2003 and that there might be a change of salary in that new contract. The form threatened that any worker who did not sign the form would be terminated effective Jan. 1, 2002.

The Saudi workers objected and would not sign. They stated that they had never been employed by Yamamah Project. They had always been employed directly by BAE. On May 28, 2002, a second form was issued by BAE which was less outwardly aggressive in language than the first form, but still resulted in the same contract modifications. Workers were given until June 26, 2002, to sign or face termination. Representatives from BAE met with the workers and told them that the forms were being used to verify every worker’s position as BAE had discovered that there were 200 workers on the payroll who were employed in fictitious jobs. These workers were referred to as the "200 Club" by the BAE officials.

The Saudi workers were also informed that any reduction in salary was simply due to the poor economy. It was not a personal slight against any worker. When the Saudi workers asked why the salaries of BAE’s British and Australian employees were not being similarly reduced, they were informed that it was not possible to do so because those employees were protected from such action by the British and Australian labor laws.

Despite efforts by the Saudi workers to convince BAE to desist from their moves, the company has resolutely continued in their actions and thus the lawsuit was launched by lawyer Jamal A. Al-Muzein on behalf of the workers. BAE is being represented in the case by the law office of Salah Al-Hejailan.

"In our petition to the court we have put forward two main points,"said Al-Muzein. "First, we requested that BAE be forced to withdraw the forms and cease efforts to make changes in the workers’ contracts. Second, we requested that BAE be made to stop discriminatory practices in regards to salaries and benefits. Under the Saudi labor law workers in the same company, with the same qualifications, doing the same work, must be given the same salaries and benefits with no regards to race, gender or nationality. At BAE, British and Australian workers with lower qualifications than their Saudi colleagues are being paid higher salaries and receiving better benefits. Although this is common practice at many companies in Saudi Arabia it is not legal."

While the court is adjourned BAE is maintaining pressure on the workers. Yesterday BAE announced that medical coverage and salary would be stopped for any worker whose national file does not show a profession of company worker. Some workers have the occupation student or government employee in their national files. Those workers must now convince BAE to give them time off to change their job classification or they will lose their benefits and salaries.

Despite the latest ultimatum from BAE, the workers have stated that they will not back off in their legal action. In fact now the workers are in the process of creating a union under the Ministry of Labor’s new regulations so they will be better represented and protected in the future.