ERBIL, Kurdistan Region of Iraq - About 80 Iraqi employees working for the Italian engineering and energy company Bonatti in Iraq’s southern province of Basra say they were dismissed despite their contracts remaining valid until July this year, accusing the firm of replacing them with foreign labor who receive higher wages.

Ahmed Jaber, one of the dismissed workers, told The New Region that the company informed employees suddenly of their termination, without prior notice or legal justification.

He said all affected workers were committed to their duties and had no violations on record, adding that most are primary breadwinners facing hardship amid rising living costs and limited job opportunities.

Another employee, Hassan Kadhem, said the company retained foreign workers of Egyptian, Indian, Pakistani, and Russian nationalities, whose salaries are up to three times higher than those paid to Iraqi workers performing the same jobs at the same sites.

He described the move as clear discrimination and a violation of laws that prioritize Iraqi labor and prohibit ending valid contracts without cause.

Ali Fadel, representing a group of dismissed workers, said they submitted an official appeal to relevant authorities demanding urgent intervention, a formal investigation, and either reinstatement or fair compensation under the law.

The workers also urged the Ministry of Labor and Social Affairs and judicial bodies to take action to protect Iraqi workers’ rights and prevent their replacement by foreign labor without legal safeguards.

The prevalanece of foreign labor and its effect on local employment has long been a touchy issue in Basra, where many international firms maintain a presence.

Haider al-Marriani, a member of the Iraqi Parliament’s Labor Committee, told The New Region in May that more than 5,000 foreign workers are now employed in Basra, mostly in the oil sector. He said many of them entered the country illegally, taking jobs while thousands of young Iraqis remain unemployed and overlooked.

“The Labor Committee can only oversee and recommend,” Marriani said. “The foreign labor issue is handled by the Ministries of Oil and Interior, so the local government can’t really step in.”

Marriani said oil companies often set tough requirements that block local workers, such as long experience, foreign training certificates, and strict age limits. Even degrees from Iraqi technical schools are not accepted, he said, making it very hard for locals to get jobs.

“This strengthens the role of foreign workers and keeps local talent out,” he added.