JEDDAH, 18 May — Saudi Aramco, one of the largest job providers in the Kingdom, has decided to lay off several workers as part of an austerity move effective from the beginning of next month. The company’s top administration has decided “to buy the services of the excess staff in a package,” a company statement said recently.
There are two options open for the redundant workers — either to retire voluntarily or to prepare for rehabilitation in other divisions of the company after undergoing necessary training.
While refusing to explain the motive behind the new move, Salim Al-Aedh and Muhammad Rafie, vice presidents of the company, said the scheme will be operative for six months effective from June 1 on an experimental basis. Employees who refuse to accept the new package will be terminated while those who do not respond will be deemed accepting the second option for rehabilitation.
According to a reliable source, the company needed fewer number of employees with the installation of advanced computers which not only replace humans but can also give better output. However, the latest technology requires several employees to undergo new training to do their jobs.
A team from the president’s office will visit the company’s branches in Dhahran, Ras Tanura, Abqaiq, Al-Odhaila, Jeddah and Yanbu to explain the new position.
Saudi Aramco employs more than 56,000 people in various specialized fields. They include geologists, program analysts, data operators, laboratory technicians, marine biologists, fire fighters, doctors, etc.
The company has achieved 80 percent Saudization which has been made possible by a special training scheme. The scheme, considered one of the most advanced in the world, is an attractive employment source for Saudi youths. In 1994 alone, 9,500 youths joined the scheme.
According to Fahd ibn Jumaa, a prominent Saudi economist, Saudi Aramco’s decision to force early retirement on a large number of employees is bound to have repercussions in the society and will reflect negatively on the economy.
“Aramco can, no doubt, function with a considerably less number of employees. Several employees are a burden on the company with their huge salaries and perks while international competition demands adoption of stringent austerity measures for survival,” Jumaa said. “However, a cutback on the size of the work force will increase the social burden and will increase the number of unemployed youths in the country.”
It will be hard for the laid-off employees to find new jobs as the private sector does not require their expertise. Moreover, the precedent set by Saudi Aramco will be followed by other companies which want to cut operational costs, the economist warned.
