"Saudi Arabia’s National Workers’ Committee proposed a minimum wage of SR 6,000 (US $1,600) for Saudi nationals. Saudi businesses unanimously said, “No!”
All agree that SR 6K would be a decent salary. The businesses, however, say they can’t stay in business if they have to pay that, a four- or five-fold multiple of what they pay foreign workers and at least twice the going rate for low-skilled Saudis.
What’s encouraging is that the businesses aren’t rejecting the concept entirely; they’re just arguing about how deep a cut they’re going to have to take to their bottom lines. If they’re not earning a profit — or worse, if they’re losing money — then there won’t be any jobs, at any salary. Nor can businesses simply raise the prices they charge for their goods and services. Not only are prices of certain goods fixed by the government, but Saudis show great flexibility in finding substitute goods at lower prices, even if it involves Intellectual Property piracy or the black market."
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