Consulate General of the Republic of the Philippines in Jeddah

Press Release No. 2010/28

Date: 7 May 2010

Philippine Labor Office in Jeddah conciliates

pizza chain labor row
Philippine Consul General Ezzedin Tago commended the Philippine Overseas
Labor Office in Jeddah for its quick action and astute conciliation which avoided a
possible walk-out or labor strike, both of which are banned in the Kingdom, by more
than 100 Filipinos working with Pizza Hut in Jeddah.

A report by Labor Attaché Vicente Cabe cited the conciliation efforts led by
Assistant Labor Attaché Wesley Gacutan who met with the group of Filipinos and Awni
and Bashar Shaker, Ltd. (operator of Pizza Hut Restaurants) to address the concerns of
the Filipinos.

In the last week of April, two Filipino workers presented to the Consulate’s Labor
Section a letter complaining about various labor issues ranging from illegal deductions
in pay and benefits to maltreatment at the workplace. Without delay, Asst. Labatt
Gacutan contacted the company. After insistent prodding, Mr. Awni Z. Shaker, owner
and general manager of the company agreed to a conciliation meeting on 02 May 2010
at the Consulate.

During a conciliation meeting at the Philippine Consulate on 02 May 2010, the

spokesmen of the 126 Filipino workers and a group from the company led by Mr. Awni,
reached an 8 point agreement addressing the concerns of the Filipino workers.

The management agreed to, among others stop unnecessary deductions, respect
the privacy of the workers in their accommodations; stop any physical harm; increase
salaries increases after 2 years of satisfactory service; provide adequate water supply
at the accommodation; workers will not be forced to work during prayer time in
accordance with the Saudi labor code; and exit permit processing would be expedited
by the company.

The 8-point agreement was affirmed by the Awni and Basher Sahker Ltd on 03
May and by ninety (90) of its workers (out of 126) on 04 May 2010. Finally, on 5 May
2010, a formal settlement agreement was signed by the parties’ representatives in the
presence of Assistant Labor Attaché Gacutan.

Consul General Tago thanked the employer for responding to the complaints of
the Filipinos. “I think the Filipino workers made a good choice by bringing their
problems to the Consulate for conciliation before taking drastic action like going on
strike or absconding from their employer”, Consul General Tago added. “With the
Labor Attache’s help, we were able to improve their conditions, and their continued
employment”, he added.

P.O. BOX : 4794 Jeddah – 21412, Saudi Arabia Tel. No. : +966 (02)6696303/6670925 Fax No. : 6696797
Email: pc.jeddah@gmail.com Website: http://www.pcgjeddah.com