JEDDAH, 18 February 2005 — The Labor Ministry’s recent decision to postpone for another three years the Saudization of taxi business infuriated Saudis working in the sector who have now sought the intervention of higher authorities. The drivers complained of the losses they said they continued to incur as a result of the unfair competition from expatriate drivers.
As many as 1,200 drivers and owners of taxis assembled outside the palace of Crown Prince Abdullah in Riyadh calling for his intervention. They said the decision by the ministry shows a lack of seriousness in enforcing Saudization.
The drivers said the ministry’s decision to postpone the replacement of foreign drivers came as a shock to them. They said the continued presence of large numbers of foreign drivers would only cause them more losses. They described the ministry’s move as a reward for taxi companies which they accused of dragging their feet on Saudization.
The replacement of foreign taxi drivers with Saudis was originally planned to have been completed by the beginning of 2005. Minister of Labor Ghazi Al-Gosaibi has now admitted the plan faltered because of the “irregularities and twisted tactics” that accompanied its enforcement. He said Saudization did not exceed 8 percent according to official figures, while in reality the actual figure is no more than 1 percent.
“The ministry has over the past years been making serious and sustained efforts to Saudize the limousine sector, targeting a 100 percent figure by the beginning of 1426 H (February 2005). Despite all such attempts the percentage of Saudi drivers working in limousine companies did not exceed 8 percent, according to the official estimates. However, the actual Saudization rate is far less than this and may not exceed 1 percent because of the twisted tactics and irregularities that accompanied the process,” the minister said in earlier statements.
Irregularities he cited included some taxi companies registering cars with their licenses showing the drivers were Saudis while in fact the cars remained grounded and never used.
“When excluding the drivers of those grounded cars and other irregularities we find that the actual Saudization percentage did not exceed 1 percent,” Al-Gosaibi admitted. Instead of seeking a 100 percent Saudization of taxi drivers, the ministry said it has now settled for a 30 percent figure which if achieved could provide 10,000 jobs for Saudi drivers.
This figure, said the minister, will mean all Saudis seeking to work as taxi drivers will find work.
Al-Gosaibi said the ministry would not allow taxi companies to hire new drivers from abroad. He said both the ministry and the Human Resource Development Fund would back the employment of Saudi drivers under a plan agreed upon by the two parties.
Out of the more than 40,000 taxis operating in the Kingdom, very few are driven by Saudis. Individual Saudis own and operate a few thousands with the rest owned and operated by some 700 companies.
