Opinion | Columnists

Nationalisation more than just numbers

It is shocking that some companies are interested in meeting quotas instead of qualitatively developing their workforces

  • By Tariq A. Al Maeena, Special to Gulf News
  • Published: 00:00 October 31, 2010
  • Gulf News

Curiosity sets in
  • Image Credit: LUIS VAZQUEZ/ Gulf News
  • Faced with a booming population and a rising number of the unemployed especially among the youth, the matter has begun to warrant more than a passing interest to get nationals on to the labour workforce.

In the corridors of the labour ministries of regional governments, there is creeping awareness and concern on the issues of nationalisation, a process by which nationals are systematically prepared to replace expatriates at various key industries and levels. We've all heard of Saudisation, Emiratisation, Omanisation and the like; buzzwords that have slowly crept into the national psyche. The obvious target is to achieve a respectable level of employment for a budding national labour force.

But nowhere in the region has this awareness manifested into a serious concern as in Saudi Arabia, the regional economic heavyweight.

Faced with a booming population and a rising number of the unemployed especially among the youth, the matter has begun to warrant more than a passing interest to get nationals on to the labour workforce.

Along those lines, at a recent consular function in Jeddah, I bumped into an old acquaintance of mine, one whom I hadn't seen for well over a decade, Lars Svenson.

We sat down and began to catch up on our activities over the last 10 years.

"Lars, last I saw you, you were a foreman of a road construction outfit or something. After we lost touch, I was so sure that you had finally packed it in and left for the fjords of Norway. What have you been doing with your life all this time?"

Slyly and with a smug look, he reached into the inside pocket of his jacket and handed me his business card: ‘Lars Svenson, Director of Human Resources, XYZ Manufacturing Company'.

He went on to explain that this was a local company and he had been fortunate to fall into it after contracts for roadworks had pretty much dried out midway into the last decade.

XYZ hired him, smoothed out his rough edges, and after several training seminars and symposiums here and abroad, managed to turn him into an executive. He felt very fortunate to be with them.

Currently he was monitoring a Saudisation programme for the company, that he had developed and begun implementing some time back, and in fact had in the past two years increased the percentage of nationals by a whole 13 per cent!

"Thirteen per cent in two years?" was my incredulous reply, not knowing whether statistically that was a commendable figure or not.

"Yes," was his beaming response. He went on to say that with the programme he had studied and developed, the company would be 100 per cent nationalised by 2016.

Curiosity sets in

Why 2016, I wanted to know. What was the significance of that particular year?

He would be near retirement by then, he continued, and it would be fitting if he were to be the last expatriate out of the door of XYZ.

"Well, tell me about this 13 per cent," I enquired. Were they success stories so far? Had they managed to absorb their responsibilities and to contribute effectively, I wanted to know. Just who and how far up the company structure were they? And how many heads did 13 per cent translate into?

Initially, there were eleven in the group, but three had dropped out because of mediocre effort or lack of interest, he explained. The remaining totalled eight. He had picked them out carefully after several interviews, assigned them to their expatriate counterparts and monitored them.

Once they had successfully demonstrated that they were capable of managing their tasks competently, notices of termination were given to their counterparts who subsequently left for their home countries.

The company did not show any drop in performance of profits, and while Lars' Saudi superiors were not too keen to observe or understand his programme, they were pleased with the percentages. It would look good in their annual report to the Ministry of Labour.

"Very impressive, Lars, But tell me… who are these accomplished guys… lower or mid-management staff perhaps..?"

"No, no, no… Tariq", he responded. "My programme is designed to start at grass roots level. Of the eight, two are secretaries, one a typist and the remaining five are tea boys!"

I must say that I am rarely at a loss for words, but in my stunned and confused state, it must have taken me some great effort to get up and walk away quietly.

 

Tariq A. Al Maeena is a Saudi socio-political commentator. He lives in Jeddah, Saudi Arabia.

Comments (2)

  1. Added 12:05 October 31, 2010

    Is it about the job description? Quality is also about how qualified are they at making tea!!!!!!, nowadays, the labor markets are at high levels of competition and the intensive use of human capital is an ascending trend... With the laws of the market economy, the survival is for the fittest.... Unless you need to get back into the battle with bureaucracy.... Nationalism has nothing to do with labor markets (from a corporate point of view)...Unless you are looking forward to change the current economic systems inside G.C.C?

    Anonymous, Dubai, United Arab Emirates

  2. Added 12:02 October 31, 2010

    Two points this excellently written piece raises rulers and managers should heed. One, Lack of motivation among youth in Saudi Arabia and the rest of the Gulf, is due to lack of incentives in the private sectors, especially since the government jobs are more lucrative. In order for youth and citizens in general, to be motivated, competitive and driven to invest their time, energy and labor, they have to feel partly owners of their input and output. Now they don't feel either because they have no say in the decision-making processes whether political or financial. Two, dissatisfaction with jobs begets apathy and that can only lead to one thing: Pricey and Chaotic instability. This requires drastic changes in all social, political, economic and educational institutions and structures.

    Ali Alyami, Washington, United States

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