OFWs in Saudi anxious as crisis bites

By Jerome Aning
Philippine Daily Inquirer
Posted date: January 27, 2009

MANILA, Philippines—Overseas Filipino workers in Saudi Arabia are becoming increasingly worried about their job security after a local labor official there reportedly advised companies affected by the global financial crisis to sack their foreign workers first.

Migrante-Middle East said local newspapers on Monday quoted the head of the Saudi labor office in the Eastern Province Muhammad al-Hamdan as saying that the government labor office has instructed companies to start with foreigners first if they have to sack employees.

“Even the Saudi government is now wary of the effect of the global financial crisis and thus come up with such a protective measure -- their nationals will be the last to be sacked in their jobs, foreign workers first to include OFWs," Riyadh-based Migrante-ME regional coordinator Monterona said in a statement e-mailed to the Philippine Daily Inquirer.

The Eastern Province (Ash-Sharqiyah) is Saudi Arabia’s largest province. The kingdom’s main oil and gas fields are mostly located in the province, onshore and offshore.

Monterona said while economists believed that the Middle East will be the least affected by the global financial crisis, there are several companies in Saudi Arabia whose profits plunged by as much as 90 percent last year as a result of the falling prices of petroleum and the credit crunch.

He said major Eastern Province-based companies are also affected, such as the Saudi Arabian Basic Industries Corp. (Sabic), one of the world’s leading manufacturers of chemicals, fertilizers, plastics and metals, reported as much as 95 percent decline in fourth quarter earnings last year.

As indicated in a report on its website (www.sabic.com), Sabic reported a net profit of 311 million riyals in the fourth quarter of 2008 compared with 6.87 billion riyals in the same period last year. The company said its overall net profits in 2008 amounted 22 billion riyals, about 19 percent lower than 2007’s 27 billion riyals.

Monterona said there is a “considerable” number of Filipinos employed at Sabic, adding, “Once this company decided to terminate its workers and staff due to the global financial crisis, we do hope and pray that our fellow OFWs there would not be the first to be terminated.”

“The ‘sack-expats first’ policy looming in Saudi Arabia should be one scenario that the Arroyo administration must be ready to face,” the OFW leader said, adding that other Middle Eastern countries affected by the financial crisis might impose similar policies, too.

Meanwhile, Migrante-ME called on the government to fully disclose all claims made on, and beneficiaries of, the P250-million Filipino Expatriate Livelihood Support Fund (FELSF), offered for retrenched OFWs by the Overseas Workers Welfare Administration.

“We want to be sure that the money will go through the intended beneficiaries and not to the pockets of corrupt officials or be used for early electioneering," Monterona said.

Migrante-ME added that an independent body, which would include church-based and migrants groups, could also be formed to look into the disbursement of funds.

On December 4, 2008, President Gloria Macapagal-Arroyo signed an administrative order that created a special livelihood program fund for returning expatriates. The OWWA contributed P100 million to the fund.

OWWA on Monday awarded the first four beneficiaries of the FELSF namely Lilia Camacho of Pasig City; Vedasto Marmol Jr. of Malabon City; Maria Garces of Tanza, Cavite; and Rose Ann Bucao of General Trias, Cavite.

OWWA Administrator Carmelita Dimzon said displaced OFWs could borrow up to P50,000 from OWWA to start a business or expand a livelihood project. The loan is available at low interest, no collateral, and payable over 24 months after a grace period of 90 days, interest-free.

Applications may be filed with the family welfare officer at the Regional Welfare Office of OWWA.

The latest weekly monitoring of the Department of Labor and Employment showed that some 5,000 OFWs have returned to the country as a direct result of the global financial crunch. These were OFWs terminated on or after October 15, 2008 due to closures or downsizing of their companies as a result of the crisis.