JEDDAH, 26 September 2004 — Labor Minister Dr. Ghazi Al-Gosaibi has rejected proposals to fix a minimum wage in order to encourage more Saudis to join the private sector, saying it would turn the Kingdom’s economy upside down.

He said the system, implemented in many countries, was not advisable for Saudi Arabia where the number of expatriate workers exceeded the national work force by five to six times.

“No country has implemented separate wage systems for nationals and expatriates. If we implement the minimum wage system for Saudis alone it will be considered a violation of human rights,” the minister said, according to Okaz Arabic daily.

“If we implement the minimum wage system, it will turn our economy upside down, create a black market for manpower and double manpower cost,” he said, adding that it would also increase the rate of unemployment among Saudis.

“Suppose we fix a minimum wage of SR3,000, it will lead to the closure of most factories here. Even if we fix SR1,000, it will double the salary of domestic servants,” he pointed out.

Gosaibi emphasized that minimum wage would not help unemployed Saudis. “On the contrary, it will double the number of unemployed in the country as companies will fire Saudis earning a monthly salary of SR1,200 if a higher salary is fixed as minimum wage,” he explained.

Gosaibi also pointed out that the government had allocated more than SR1 billion from this year’s huge budget surplus for vocational and technical training of Saudis.

Gosaibi held a meeting with labor office directors in Riyadh yesterday and discussed future plans to solve the country’s unemployment problem.

The minister’s statement came at a time when the Shoura Council is debating the new Labor Law. Muhammad Al-Sharif, a member of the Shoura, has urged the consultative body to remove the obstacles that stand in the way of women’s employment.

He said Chapter 9 of the law must be redrafted to encourage employers to open new areas for women’s work in light of the recent Cabinet decision urging both private and public sectors to create more job opportunities for women.

Sharif opposed giving women 10 weeks of maternity leave, saying it would discourage companies to employ them.