Big companies use intermediaries to increase profit, report says

Wage gap pay gap
(Photo: Freepik)
AMMAN — A new report uncovered a scheme used by large companies to increase their profits through the use of intermediary companies and paying outsourced employees less than in-house employees, the Jordan News Agency, reported. اضافة اعلان

The report was published on Wednesday by the Phenix Center for Economics and Informatics Studies' Jordan Labor Watch in cooperation with the Friedrich-Ebert-Stiftung (FES).

It said there is a major pay gap between large companies' staff and intermediary businesses' workers despite doing the same job.

Beyond just job insecurity, outsourced workers were denied certain rights and benefits that the in-house staff enjoy. For example, technicians in a company in the Kingdom were paid JD1,000, meanwhile, their counterparts who were outsourced are paid JD500 even though they carry out the same job and in the same geographical areas.

Intermediary businesses' workers are also denied 13th and 14th-monthpay and the at-risk bonus, the report said. The bonuses range between JD70 to JD100 for the large companies' staff, while support workers receive only JD15.

Moreover, outsourced 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 counterparts.

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

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