MUSCAT: Between 2014 to 2018, a total of 10,334 expat and Omani workers were laid off by 106 companies, including 5,000 in 2017 alone, according to a report issued by the General Federation of Oman Trade Unions (GFOTU) to mark achievements during the first four years of its operations.

Last year, however, the total number of redundancies stood at just 1,334, a reduction of 73 per cent, and the number of companies involved had dropped to 18, according to the data released by the Federation.

This decrease is apparently the result of improved efforts by the GFOTU to resolve issues between the company and employees before the company decides to end the contracts. 

A federation spokesperson said: “There are many reasons for the decline in the number of layoffs, the most important is the formation of a technical committee which specialises in layoff cases in the oil and gas sector. During the last period, the committee has sought to find solutions to avoid layoffs before they occur. If the company decided to follow through with the layoffs, then the committee would seek to find employment opportunities for the workforce in other oil companies in accordance with the worker’s qualifications and practical experience.”

The companies which laid off workers during the four-year period were divided between the sectors of commerce and industry, construction, oil, gas, electricity, and water.

“The second reason for the decrease in layoffs is due to the relative increase in the price of a barrel of crude oil in 2018 compared to the same period in 2017, which led to an improvement in the economic situation of companies,” the official added.

“The reasons for companies to lay off the labour force varied between the end of the project in which the labour force is employed, the liquidation and closure of the company for economic reasons, and the inability to continue its commercial operations,” said the official.

In the case of companies failing to comply with Labour Law, particularly in the transfer of manpower without loss of benefits, the Federation has an active role in protecting workers’ rights and searching for appropriate solutions to avoid layoffs, the official went on.

“In this regard, the federation has represented the national workforce in front of the competent government authorities and formed a technical committee to face the mass layoffs that occurred during the harsh economic conditions.”

This committee holds regular meetings to study the cases and follow up the distribution of national manpower in companies in the oil and gas sector, to ensure that employee wages match their skills and experiences.

As it stands, there is no law so far that insures employees against layoffs, however, the federation is studying the introduction of such legislation.

“Insurance against unemployment is under consideration by the competent authorities; the federation has been carefully following the study, as it represents one of the social protection guarantees that comply with international standards,” added the official.

The General Federation of Oman Trade Unions was established under Royal Decree No 74/2006 to represent the Sultanate’s workers before official authorities and local, regional and international forums.