residance passport

Labor Shortage Drives Wages Up by 40%

Urgent Need for New Visas Security Inspections Intimidate 70% of Illegal Workers on Projects

Due to a severe shortage of expatriate labor, new housing projects, especially in Mutlaa City, are facing significant disruptions and delays. The situation is worsened by the fact that many workers are not sponsored by companies, making them wary of working on these projects due to fear of inspections.

A viral video on social media highlights the extent of this issue, showing a security checkpoint in Mutlaa City that has caused fear and confusion among expatriate workers. The video depicts workers abandoning their vehicles and fleeing on foot to avoid inspections and the risk of deportation. This labor crisis is affecting the progress of housing projects. A reliable source from the Public Authority for Manpower (PAM) clarified that PAM oversees inspections of commercial establishments and companies, not street-level inspections. PAM is also tasked with addressing workers’ issues and regularizing their residency status to ensure project completion.

Housing project specialists and business owners are calling for urgent solutions, including the issuance of new visas to bring in additional workers for upcoming projects. Fahad Al-Arbash, Head of the Union of Restaurants and Cafes, noted that rising costs have led some citizens to hire readily available workers for construction, as large companies’ high costs are often unaffordable. This has led to instances where contractors abandon projects or fail to complete them, leaving citizens vulnerable. Al-Arbash emphasized the need for the municipality to mediate between citizens and contractors, advocating for a bank guarantee to protect citizens’ rights and a clear legal framework to address breaches.

Mishaal Al-Hajri, head of the volunteer committee for Mutlaa City, reported that the project is heavily impacted by the labor shortage. Although construction resumed after the COVID-19 pandemic, the scarcity of skilled workers has hindered progress. Al-Hajri pointed out that PAM’s measures, such as closing visa issuance and cracking down on illegal labor, have negatively affected both citizens and housing projects. He urged PAM to facilitate the actual labor needs through proper contracts to ensure efficient project completion.

Saba’a Al-Dousari, Head of the Mutlaa City Volunteer Committee, highlighted a significant shortage of construction craftsmen, leading to a more than 40% increase in daily wages since before 2020. He called for a more organized approach to managing expatriate workers, including assessing company needs to determine the required number of workers by profession. Approximately 70% of construction workers in Mutlaa City and other areas are undocumented, making them fearful of security inspections. Al-Dousari suggested that if a worker with valid residency status, such as Article 20, is arrested, their status should be adjusted. He also advocated for reopening visa issuance for workers from Arab countries, especially Egypt, under regulated conditions.

Dr. Mukhlef Al-Enezi, spokesperson for the residents of Mutlaa City, emphasized that illegal workers make up a large portion of the labor force, particularly in construction. He pointed out the difficulty in finding skilled workers, as many are often arrested due to residency issues after agreeing to work. Dr. Al-Enezi urged the state to find solutions for improving the conditions of these workers, such as by establishing a dedicated company or providing temporary sponsorship. He noted that citizens are suffering from project delays and high costs due to unresolved residency issues and called for effective state intervention to address these challenges.

 

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