Govt of Oman looks into layoff of workers in the oil and gas sector

OMAN— The Council of Ministers, Omans Cabinet, formed a committee to look into the layoffs of Omanis working in the oil and gas sector.

In a statement it issued following a meeting last week, the Council said that companies operating in all sectors “should not take such steps without referring to the departments concerned in the government to find the best possible means that enable them to retain their national manpower.”

Over 1,000 Omanis in the oil and gas sectors have been laid off in recent weeks by contracting companies citing loss of contracts due to the slump in oil prices. Oil and gas unions threatened to go on strike on November 18, the country’s national day, in protest against the move. While collective action by unions is legal in Oman, strikes in the oil and gas sector are forbidden by law, due to the significance of the sector to the national economy.

Sayyid Fahd Bin Mahmoud Al Said, Deputy Prime Minister, said that the government, acting in line with directives from Sultan Qaboos, is working diligently “to safeguard the stability of offspring of this country who are working in different sectors. It is a fixed policy that cannot be evaded,” according to the Oman News Agency (ONA).

There are more than 20,000 Omanis working in the oil and gas sector in the country, and there are 25 trade unions in the oil and gas sector, according to Gulf News.

Cheap oil has slashed the government’s revenues, pushing it deep into the red; Oman posted a budget deficit of 2.68 billion riyals (Dh25.56 billion) in the first eight months of this year, swinging from a 205.7 million riyal surplus a year earlier, the English speaking newspaper added.

Meanwhile, in a statement issued recently, trade union leaders in Oman have urged the committee tasked with looking into layoffs in the oil and gas sector, to act quickly to resolve the crisis.