Briefer on the problems of OFWs affected by the Saudi crisis

Saudi Arabia is currently facing a budget deficit for the first time since 2009. The crude price
decline has strongly influenced the kingdoms economy since oil sales account for about 80%
of its revenues. It has prompted the government to cut spending, delay projects and sell
bonds. This resulted to the financial instability of its contractors which employs large
numbers of migrant workers. OFWs are drastically affected by non-payment of salaries,
withholding of benefits, massive retrenchment and other contract violations. The numbers
of affected migrant workers are still increasing amid continuing and worsening crisis.
Non-payment of salaries and benefits
In Saudi Oger Ltd.
Unpaid salaries for up to 9 months for some, affecting 20,000 OFWs
Lessening or withholding the end-of service benefits and tickets for repatriation
Being unable to renew their iqamas or licences
Workers who want to be repatriated are being idled until the expiration of their exit
visas
In Saudi Binladen Group
Thousands of workers and sub-contractors were not paid their salaries for 2-6 months
Expiration of iqamas
Withholding of benefits
Lessening or withholding of benefits
Some OFWs were forced to return home without their end-of-service benefits (ESBs).
Some OFWs were obliged to sign an agreement stating that the ESBs will just be sent
to the Philippines after the OFWs repatriation.
Some OFWs were forcibly classified under voluntary resignation instead of
termination nor end-of-contract for the company to not be obliged to provide the
workers benefits.
Expiration of iqamas and idling of workers
The employers are responsible for the payment for their workers iqamas. When the
iqama fails to be renewed, the bank account/ATM of the worker will automatically be
frozen, making their salaries unattainable.
Workers who want to return to the country are not given exit visas and are being
idled without being paid by their companies
In numerous cases, police force the workers who get caught with expired iqamas, to
pay a penalty mounting to 350 SR, instead of the policy to collect the penalty from the
employers instead.

Extensive retrenchment
According to Saudi Binladen Groups internal memo confidentially acquired by
Migrante-KSA in October last year, 2,000 out of their 15,000 workers are set to be
terminated for the companys 3rd batch of dismissal.
Many sub-contractors of the company are also closing down, resulting to dismissal of
workers.
Saudi Aramco, the countrys national oil industry, had already warned of massive
retrenchment of 25% of its labor force due to financial cutbacks.
Aside from these are the documented numbers of terminated/repatriated workers
from contstruction contractors such as Alrashid Abetong and Schlumberger
Extortion of Philippine posts
In Jeddah, an OFW filing a labor case is forced to pay 75 SR for translation fee for the
translation of the print-out of the POEA Information Sheet which is unnecessary to the
case.
Officials also demand 75 SR for each translated page of the OFWs demands.
In a dialogue with POEA last December 2015, it was decided that the collection of
these translation fees were to be halted.
Migrante hopes that the Duterte administration will urgently tend to the demands
presented by stranded OFWs and their families to the Aquino administration:
Negotiate with employers for the payment of salaries and benefits, and issuance of
exit visas.
Emergency mass repatriation for stranded OFWs. Government to shoulder
immigration penalties and other costs related to repatriation.
Provide legal assistance and other support (free translations fees, transportation
expenses) for distressed OFWs who filed labor cases against their companies, and
facilitate the provision of subsistence allowances through the OFWs recruitment
agencies.
Ban the deployment workers to bankrupt and crisis-ridden companies.
Emergency financial assistance to returned OFWs and families of distressed OFWs.
Speedy resolution of cases of repatriated OFWs lodged at the POEA and NLRC.
Comprehensive reintegration program for returning OFWs.