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Saudi Binladin receives new funds to pay workers

Saudi Binladin receives new funds to pay workers

Binladin is said to have finished paying months of back pay to 70,000 workers

Troubled construction firm Saudi Binladin Group has received delayed funds from the government to settle the remaining back pay owed to its employees, according to reports.

The firm was reported to have laid off up to 77,000 foreign workers in May, many of which were owed months of wages, following a cash crunch linked to falling government spending and a ban from news projects after the Makkah Grand Mosque crane disaster.

Read: Binladin latest: Firm cuts 77,000 jobs, could lay off Saudis

AFP cited the firm’s chief communications office, Yaseen Alattas, as saying it had received some payments in the last few weeks.

He added that Saudi Binladin had already finished payments to around 70,000 laid-off workers.

“They got paid completely with all their due salaries and their final indemnities,” Alattas said.

Some workers still with the company are also expected to be paid from the government funds coming in.

These payments will continue “based proportionally” on those received from the government.

Saudi labour and social development minister Mufrej Al Haqabani said in August that Binladin would clear all of its dues by the end of September.

Read: Saudi’s Binladin to clear all workers’ dues by September-end – report

AFP said Alattas was not specific about the number of employees remaining at the company after he previously claimed the number of laid-off workers was a fraction of the group’s manpower.

The Wall Street Journal reported earlier this week that the government had paid Saudi Binladin between $800m and $1.1bn in September to cover unpaid wages.

In June reports suggested the company was also selling off property and other assets to pay workers.

Read: Saudi Binladin Group selling off property, other assets to pay workers

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