Big companies hire staff via middlemen to cut costs, report finds

Amman, Dec. 28 (Petra) — A new report, titled “Support Businesses: Large Corporations’s Means to Cut Costs at the Expense of Workers,” uncovered malpractice by large companies in a scheme to increase their profits.

The Phenix Center for Economics and Informatics Studies’ Jordan Labor Watch, in cooperation with the Friedrich-Ebert-Stiftung (FES), released the report on Wednesday, showing a major pay gap between large companies’ staff and support businesses’ workers, who provide external services on behalf of the company, despite doing the same job.

In addition to job insecurity, those workers were denied certain rights and benefits that the company’s staff enjoy. For example, technicians in a company in the Kingdom are paid JD1,000 while their counterparts in the support business are paid JD500 even though they carry out the same job and in the same geographical areas.

Support businesses’ workers are also denied 13th and 14th month pay and the at-risk bonus, which ranges between JD70 to JD100 for the large companies’ staff, while support workers receive only JD15.

Moreover, support workers have complained about the poor coverage that their health insurance provides and the poor quality of health providers that the insurance covers compared with their company counterparts.

The report recommended terminating the accreditation of support businesses or regulating their work under a special system that guarantees support workers the same pay and social protection as their company counterparts.

//Petra// AJ
28/12/2022 15:26:16