Saudi Arabia: Shortfalls in migrant workers’ insurance scheme highlight need for major reforms on eve of ILO labour complaint

8 November 2024

Major and comprehensive reforms are urgently needed to protect migrant workers in Saudi Arabia, said Amnesty International, ahead of a key meeting tomorrow at which the International Labour Organization (ILO) will begin its examination of a landmark complaint filed by global trade union Building and Wood Workers' International (BWI) against Saudi Arabia over wage theft, forced labour and the prohibition of trade unions.

On 7 October Saudi Arabia announced the launch of an insurance scheme to protect migrant workers' wages- the latest in a series of labour rights reforms over the past few years as part of the country's Vision 2030 plan to diversify the economy. However, the scheme and other reforms still fail to offer sufficient protection to foreign workers from exploitation and abuse.

"Saudi Arabia must take the landmark complaint, which is supported by Amnesty International and other organizations, as a warning to bring its labour laws and practices fully in line with international standards."

Stephen Cockburn, Amnesty International's Head of Economic and Social Justice

"Saudi Arabia must take the landmark complaint, which is supported by Amnesty International and other organizations, as a warning to bring its labour laws and practices fully in line with international standards. Although Saudi Arabia's new insurance scheme is a recognition of the need to address wage theft and compensate workers if employers don't pay up, in reality it is so full of holes that few workers are likely to benefit," said Stephen Cockburn, Amnesty International's Head of Economic and Social Justice.

The insurance scheme sets unrealistic conditions for claims to be made and excludes some of the most marginalized workers, such as domestic and seasonal workers. Crucially, workers are only eligible to submit a claim if wage payments are delayed for 80% or more of their company's workforce for six months or longer.

Overall, migrant workers remain vulnerable to abuse and exploitation on a massive scale in Saudi Arabia through the country's restrictive Kafala sponsorship system, weak enforcement of laws and impunity for abusers.

"Authorities in Saudi Arabia must move beyond half-hearted half-measures on workers' rights and focus on driving through comprehensive reforms and initiatives that are robustly implemented. With Saudi Arabia set to be confirmed as the host of the 2034 World Cup, this matters more than ever. The rights of every migrant worker in the country are at stake," said Stephen Cockburn.

Background

The complaint lodged against Saudi Arabia by global trade union Building and Wood Workers' International (BWI) relates to severe human rights abuses and wage theft involving 21,000 workers. BWI lodged its complaint to the ILO in June 2024. It will be heard on 7 November at the ILO Governing Body meeting, and if accepted, could create a committee to look into the complaints and produce a report recommending further action.

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