Identifier
Created
Classification
Origin
02AMMAN3761
2002-07-09 14:52:00
UNCLASSIFIED
Embassy Amman
Cable title:  

LABOR TRENDS IN QUALIFYING INDUSTRIAL ZONES

Tags:  ELAB ETRD 
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UNCLAS SECTION 01 OF 03 AMMAN 003761 

SIPDIS

LABOR FOR EVERETT MURTAGH
STATE PASS USTR FOR NED SAUMS
STATE PASS USAID FOR MSCOVILL
COMMERCE FOR PTHANOS

E.O. 12958: N/A
TAGS: ELAB ETRD
SUBJECT: LABOR TRENDS IN QUALIFYING INDUSTRIAL ZONES

REF: 01 AMMAN 5728

UNCLAS SECTION 01 OF 03 AMMAN 003761

SIPDIS

LABOR FOR EVERETT MURTAGH
STATE PASS USTR FOR NED SAUMS
STATE PASS USAID FOR MSCOVILL
COMMERCE FOR PTHANOS

E.O. 12958: N/A
TAGS: ELAB ETRD
SUBJECT: LABOR TRENDS IN QUALIFYING INDUSTRIAL ZONES

REF: 01 AMMAN 5728


1. SUMMARY. Labor conditions at the qualifying industrial
zones (QIZs) are satisfactory and tending toward improvement.
The QIZs continue to grow, resulting in increased demand for
labor, and the demand for trained domestic labor is pressing.
Foreign source labor, especially within the textile sector,
remains relatively high at about 30% of the QIZ workforce.
Improving domestic productivity and cost advantages of
domestic labor, if coupled with badly needed vocational
training, may eventually push down the demand for foreign
laborers. END SUMMARY

-------------- --------------
VISITS TO QIZS REVEAL IMPRESSIVE GROWTH AND PRODUCTION
-------------- --------------


2. On June 30, the Ambassador and emboffs visited the Al
Tajammouat QIZ, which is located approximately 30 minutes
south of Amman. The Ambassador toured three QIZ factories,
escorted by Park Manager Halim Safiti. According to Safiti,
there are 20 QIZ-inspired factories in Al Tajammouat, of
which 17 are currently operational. These factories employ
7,000 laborers, and Salfiti expects that number to reach
10,000 by the end of 2002. 70% of the work force is
domestic, over 95% are women, and most come from East Amman,
Zarqa and Madaba. The tour of the factories was impressive;
rows upon rows of Jordanian women, mostly dressed in
conservative/traditional attire, working with sewing machines
and other textile equipment. Labor conditions at these
plants are good. Workspaces are clean and well lit, exits
are clearly marked and workers seemed to be in good spirits.
In one factory, the temperature was a bit high, and Safiti
took the Ambassador's suggestion that the plant look into
more effective cooling equipment. According to Safiti,
salaries of the workers at some of these plants are 20% above
minimum wage (which is currently 80 JD per month),with
incentive programs for superior quality/quantity production.
(Note: There has been some concern expressed by embassy
contacts to COMMOFF regarding workers at this QIZ being paid
at less than minimum wage).


3. On July 7, poloff met with Fathallah Omrani, President of

the Union of Workers in Textile Garment and Clothing
Industries, at the Al Husn QIZ, located near the city of
Irbid. (Note: Omrani is a long-time contact of the embassy
and will be traveling to Washington July 12 for consultations
with the ILO, labor NGOs and USG officials). Omrani escorted
poloff through two factories - owned by Tefron and Century
Wear. Both of these factories operate exclusively with
Jordanian labor, and are under contract with Victoria's
Secret, Gap, and Calvin Klein. The factories employ 300 and

SIPDIS
2100 workers, respectively. Century Wear plant manager Jamil
Karka explained that there is such a surplus of (untrained)
labor in the Irbid area that he could "hire 500 workers
tomorrow if he had the extra capacity to do so".


4. The floors of the Al-Husn factories are air conditioned
(while the managerial offices were not),and were at full
capacity. They are well lit, clean, and workers have access
to fresh water and clean bathrooms. Exits are clearly
marked. Salaries at these factories were at minimum wage (80
JD),with incentive programs that push the average monthly
wage to over 100 JD per month. Karka was proud to say that
his factory has one of the best reputations for labor
conditions in Jordan, and Omrani confirmed this. Century
Wear's factory employs higher labor standards, not only
because of the self-asserted magnanimous nature of Karka, but
because US companies expect enhanced labor standards. Omrani
commented that US companies are most vigilant regarding the
issue of labor conditions at the QIZ factories and as a
result, laborers at these factories enjoy better conditions.


--------------
UNION BOSS SETS UP HEALTH CLINIC
--------------


5. Following the tour of the factories, Omrani escorted
poloff to a recently opened health clinic that serves workers
of the QIZs in Al-Husn The health clinic was funded with a
USD 92000 grant from the Government of Japan. The clinic
employs 7 doctors (one of whom is a dentist) and provides
basic check-ups and examinations to workers and their
families. All workers, regardless of union membership, may
receive free treatment at the clinic, and family of union
members will also be able to receive free treatment soon.
Omrani has arranged for 9 of the QIZ textile companies at
Al-Husn to contribute 1 JD per month per worker to the clinic
in order to allow it to sustain operations. In its first six
months, the clinic provided treatment to nearly 5000 workers,
and has operated with a small surplus. Omrani hopes to
secure funding for a similar clinic at the QIZ near Zarqa
soon.

--------------
EFFECTIVE VOCATIONAL TRAINING NEEDED DESPERATELY
--------------


6. Poloff met on June 13 with Abdel Abdel Jaber, Assistant
Director General for Technical Affairs at the GOJ's
Vocational Training Corporation. Abdel Jaber is directing a
program through which 12000 Jordanians will receive
vocational training subsequent to a three month tour in the
Jordanian Army. Abdel Jaber said that his program had
attracted over 40000 applicants, and that the VTC has, in the
past, placed over 80% of trainees in jobs, including
approximately 60% in jobs related to their vocational
training. There are 30 vocational training subjects in which
trainees may study, and there are plans afoot to open centers
throughout Jordan.


7. Although the GOJ has recognized the pressing need for
expanded vocational training, both labor leaders and plant
managers criticized the VTC as a clunky and ineffective
bureaucratic mechanism. According to managers at Al
Tajammouat, the VTC "misses the mark" by training workers in
fields for which there is no demand. Omrani commented that
while the VTC places laborers into employment, these workers
generally do not last, largely because the VTC provides
outdated or poor training. Companies often train their own
work force; at Tefron one of fourteen production lines is
dedicated to trainees. The trainees spend an average of two
months on the training line before joining the work force.
Results have been good, but the demand for trained labor at
the QIZs far exceeds the currently available supply. This is
why, Omrani explains, companies look eastward to China and
Sri Lanka for trained workers.


8. USAID, in collaboration with the GOJ, will provide
vocational training to 1000 Jordanians in Irbid via the
Jordan U.S. Business Partnership Program. The plan is to
have highly skilled Sri Lankan garmenteers give intensive
training to Jordanians in groups of 15-20 at a time over the
course of a year. The cost of this program will not exceed
USD 300,000, based on a one year estimate. The goal is to
increase the supply of trained Jordanian garmenteers to help
meet QIZ demand. Depending on the effectiveness of this
initiative, USAID may continue with vocational training
endeavors.

--------------
CULTURAL FACTORS
--------------


9. Aside from the lack of trained workers, Jordanian cultural
norms also hamper productivity. Even Omrani concedes that
Jordanian workers, "will not work as hard as the Chinese".
Additionally, Jordanians, and in particular women, have heavy
familial responsibilities. Nearly all Jordanian female
textile laborers leave employment after marriage; this
curtails the average working career for such laborers to less
than four years, according to Karka. In the face of
experienced labor imported from countries such as China on
two year contracts, Jordanians are generally less productive.
Omrani commented that on top of everything else, many QIZ
companies do not enforce maximum workday laws on imported
labor, and the GOJ is, according to him, averse to
challenging such companies, whose investors may already be
tepid toward further investment in Jordan.


10. Plant manager Karka was optimistic about shifting
Jordanian cultural views toward female labor. There is a
growing number (currently about 10% of Century's workforce)
of married female laborers, and Karka was proud to report
that the women at his factory were happy and enjoyed
workplace camaraderie. The jobs give them their own income,
their own identity, and their own sense of worth, he said.
The prediction that Jordanian women would not or could not
produce quality textile goods has been proven false, Karka
concluded.

--------------
COMMENT
--------------


11. In light of satisfactory labor conditions, greatly
increasing production, and growing acceptance by Jordanian
society, the QIZs will benefit most from efforts to augment
vocational training. As reported in reftel, the biggest
sticking point in continued development of the QIZs is a lack
of trained Jordanian labor. Given the current political
climate and the recent economic slump, the fact that
thousands of traditionally clad Jordanian women, working in
western-style factories (built partially through ISRAELi
capital investment),producing goods for export to the US is
a major success story.

Gnehm