DAMMAM — Transport companies have joined construction contractors and private companies in protesting against a decision by the Ministry of Labor to charge private organizations SR2,400 annually for each expatriate not covered by their Saudization quotas. Investors in the field said the ministry's decision has aggravated the problems and challenges facing the land transport industry. They said the entire private sector did not know the real motives behind the ministry's insistence on implementing the decision. They said the Ministry of Labor should have gradually implemented and enforced its decision instead of implementing it straightaway. The ministry also did not seek the opinion of the Saudi Council of Chambers of Commerce about the decision or even consider feedback from businesses, the investors said. They said the decision will cause huge losses to the sector and force many businesses to leave the market. The decision will negatively impact the country's economy and cause living costs to shoot up, they warned. They said a few years ago the sector positively responded to the introduction of a SR150 human resources fee that was to be paid every time a worker's work permit had to be renewed. The businessmen willingly paid the fees as they understood the importance of financing the Human Resources Development Fund that helps in finding job opportunities for Saudi jobseekers, the investors claimed. Meanwhile, investors in local transport service providers have voiced concerns about tasattur (cover-up) businesses. They said more than 60 percent of companies operating in the market are foreign companies registered in name of Saudis. They said these companies unfairly compete with local firms by offering much cheaper fares. The reduced prices do not affect their revenues because they do not have any financial obligations or rent to pay, unlike legitimate companies that have to maintain offices. In addition, they subscribe to the GOSI's pension system that covers all Saudis working in the private sector. Transportation laws ensure local transport companies rent yards for their fleets and extend medical insurance to their employees.
