The attack on Oasis compound in Khobar was the latest in a series

The indefinite monthly payment follows a one-off payment of �4,500 in December after housing compounds were bombed in May 2003, killing 35 people.

The security situation has deteriorated since then.

Earlier this month al-Qaeda militants beheaded an American engineer they had been holding hostage.

The British-owned defence firm made the �1,000 cash offer in an e-mail to each of its 2,400 staff in Saudi Arabia, describing it as an "emergency security payment", the employee said.

Response to bombing

The employee said that people have been on edge since the housing compounds came under fire in May 2003 but that employees were encouraged to stay on the payroll to get the lump-sum offer in December.

Everyone assumed the latest payment was because there had been resignations BAE employee

The new, monthly offer came after militants took dozens of hostages at the Oasis housing compound in the Khobar last month.

"Everyone assumed the latest payment was because there had been resignations. Everybody assumed it was to get you to stay," he said.

Many married employees have sent their families back to the UK but felt it was financially worth their while to stay on, he added.

Most of the 30,000 Britons in Saudi Arabia live in fortified compounds and regular security-related meetings are being held.

BAE has also made concessions on flights to the UK and arranged for employees to have long sought-after multi-exit visas for weekend trips to Bahrain, according to the employee.

Special circumstances

A BAE spokesman refused to comment on any security payments that may have been made, but confirmed the company takes into account special circumstances.

The spokesman said he did not think BAE's workforce in Saudi Arabia would fall dramatically, although the company was considering sending home the dependents of workers.

"People who work for BAE are committed to what we are doing and we are committed to helping Saudi Arabia," he added.

Fred Finan, an executive with international corporate security specialist Diligence, said such practices were not unique and bonuses to employees are becoming more common place.

"People are leaving Saudi Arabia and companies are going to have to use inducements as well as taking practical steps by making things more secure for employees and their families.

"At the end of the day, it's an individual's judgment as to whether �1,000 a month is a reasonable amount".

At the request of our readers in Saudi Arabia e-mailing us their stories, all names have been withheld

The extra money being paid by BAE Systems as 'danger money' is a necessary act to try and counter the falling manpower level. Ever since the second 'Gulf War' last year and the resulting increase of attacks on Westerners in the Kingdom, there has been a steady flow of manpower out of the country. At a recent General Managers' meeting in Riyadh, it was revealed that if the present situation continued the manning situation would reach "meltdown" by the end of the year. BAE Systems had to do something to retain its workforce as it is now almost impossible to recruit from the UK; the negative press is ensuring that no one wants to come out. Extra money was the obvious solution as it had worked, to a certain extent, last year with the extra-ordinary bonus paid in December. However, as soon as that was paid the terminations flowed in to HQ. This current extra will certainly help; I know of several who have rescinded their terminations.
Whether it will prove beneficial in the long term remains to be seen. Some see this extra money as the pay rise that has been denied to them for the past 3 years. Ultimately, everyone has their own personal threshold as to how much risk they feel they can take. Extra money may help to raise that threshold but further security breaches will only continue the flight of BAE Systems' workers out of the country.
Khamis Mushayt, Saudi Arabia

While KSA (Kingdom of Saudi Arabia) is not Iraq, It was once a secure, enjoyable place to live and bring up your children, it is not that now. There is a possibility for a religious revolution akin to Iran. At the least there will be a continual low grade terror campaign against expats. Companies like BAE Systems are loath to admit this for fear of having to pay there employees in the Kingdom for the new situation.
Dhahran, KSA

I work for the Airline within Saudi Arabia and the security situation is causing some concern although Jeddah itself is so far "incident free" I among other expats within the community are considering whether to stay or leave and often wonder why Jeddah is so far untouched. As for Company incentives, as of today i know of nothing being offered to "persuade" us to stay.
Jeddah, Saudi Arabia

Many expats here are nervous and considering leaving. I sent my family out a couple of weeks after the Al-Khobar incidents, as have many others. Security was tightened up significantly immediately after the recent events - security precautions tend to be reactive.
There is talk of inducements being offered to entice employees to stay, but little has happened yet. Companies appear to be waiting to see the scale of departures before adding to the packages.
Al-Khobar, KSA

At the moment, I have no thoughts of leaving, but I will decide between now and the end of July. Regarding the security position, I am a contractor to Saudi Aramco through Al-Hoty Establishment. My company, Al-Hoty have stated that they are not responsible for my security and Saudi Aramco also state that they are not as I am not a regular employee. Therefore it seems as if I must be responsible for my own security. Regarding the extra payment the BAE employees are getting, there has been talk of this within Saudi Aramco, but it seems as if there is going to be an extra payment, then it may only be to American regular employees. Contractors and non-Americans seem to be worth nothing to this company. The increase in security is there to see, but when going through roadblocks the security personnel are not even out of their vehicles and all cars drive past them. If cars are told to stop, it seems that it's only western people whose cars are searched, if you are Arab looking, the majority of the time you will be waved through.
Al-Khobar, Saudi Arabia

Like very many expats here, I work for a private Saudi Company not related to the Oil business. My company has been extremely supportive & considerate of the situation and are doing everything possible to make us safe. They have paid for my family to go back to the UK and agreed to relocate us to a safer location outside Saudi elsewhere in the Gulf. They are providing full communication facilities so that I can still perform my management functions, i.e. by email/video conferencing etc, combined with bi-weekly visits to Saudi.
It is the attacks on family compounds that are of most concern. Many friends and colleagues have sent their families home early for the summer vacations and all are waiting to see if the attacks are maintained during the summer before they decide to bring families back in Aug/Sept.
Most of the oil workers work at ARAMCO and they live in extraordinarily secure compounds situated within even larger secure facilities.
Jeddah, Saudi Arabia

I am currently working in Riyadh in Saudi Arabia. I am actively searching for a job elsewhere because everyone says they are doing things to protect us, but we are basically on our own. Our company does not care as long as we are billable. No one has offered us any extra money. Our company and our client are doing nothing to persuade us to stay. Absolutely nothing! It is not only me, either. I know of many expats that are searching for other work.
Florida USA

I am contracted to the American defense contractor Raytheon. The company has made a weak attempt to keep its employees by offering an extra 25% of base pay. If you're one of the Executives here, that will be some nice pocket change indeed, but for the average employee, it comes out to around $500 per month only. There have been no equal offers for all, as with BAE, nor any large one off payments. The evacuated dependents were receiving a per diem, but that was stopped as on 1 June due to "financial reasons." The company's attitude seems to be like it or leave. Still unkown whether or not this will be enough to stem attrition, and whether or not the company will be able to fulfill its contractual obligations to "the customer" should attrition continue at its current rate. My leaving will depend on whether or not any incidents take place here in Jeddah.
Jeddah, Saudi Arabia

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