MALDIVES CONSIDERS MAJOR LABOR REFORMS

UNCLAS SECTION 01 OF 02 COLOMBO 001624 SIPDIS SENSITIVE DEPT FOR SA/INS, DRL:TFAULKNER LABOR FOR ILAB:SHALEY, MMITTELHAUSER E.O. 12958: N/A TAGS: ECON ELAB MV PREL SUBJECT: MALDIVES CONSIDERS MAJOR LABOR REFORMS REF: A. COLOMBO 1587 ¶B. COLOMBO 1582 ¶1. (U) Summary: After years of inaction, the Maldives government is set to embrace far-reaching labor reforms which appear to be linked to President Gayoom's overall political reform program. The Minister of Employment and Labor seeks US assistance. End Summary. ¶2. (U) In a September 21 meeting with Econoff, Minister of Employment and Labor, Abdul Rasheed Hussain, described an ambitious program of action that would bring the nation into compliance with international core labor standards and address the pressing problem of youth unemployment. (Note: In 1995, the USG suspended the GoRM's eligibility under the GSP system because of its lack of protection for labor rights. The law does not recognize workers' rights to form or join unions, or to strike. End note.) ¶3. (U) Projects Hussain described include: 1) a new ILO-consistent labor law, with plans to ratify ILO core labor conventions; 2) a plan for seminars leading from island level up to regional level, culminating in a national seminar to identify demand for labor and labor capacity; 3) a National Action Plan; 4) establishment of a fund to support a joint government-private sector skills development program for youth; 5) development of regulations and guidelines for occupational health and safety; 6) establishment of labor tribunals; and 7) a monitoring and inspection system for the country's many foreign workers. ¶4. (U) Hussain noted that pressure from high youth unemployment and the relatively large number of foreign workers (40% of the labor force),have led the GoRM to seriously address labor issues. (During a previous visit by Econoff in early 2004, Attorney General Hassan Saeed mentioned a new labor law as part of a slate of laws to be enacted in the GoRM reform program.) Hussain mentioned that it was drafted by an ILO expert, and was expected to go before Parliament late this year or in the first 2005 session. He assured Econoff that ratification of ILO conventions would follow. ILO membership is a goal but, Hussain said, he recognized that the government must put labor protections in place first. Requests for USG Assistance �A; -------------- ¶5. (U) The Minister asked for USG assistance, specifically in the following areas: exchanges and training opportunities, information (especially on OSHA issues and training), International Visitor (IV) slots, visits by USG officials and assistance from the Solidarity Center. Post has already proposed supporting a National Seminar on the Labor Law described by the Attorney General through a DRL grant. Econoff promised to pursue avenues for assistance. Following are descriptions of the major efforts planned by the Ministry: Occupational Safety and Health -------------- ¶6. (U) At present, there are no national laws and few regulations, standards or reporting requirements to protect workers. Hussain said he would be eager to get information on establishing such protections, storing and disseminating the information, and adding a reporting requirement for employers. National Seminar -------------- ¶7. (U) Starting from the island level, and working up through atoll, regional and finally on the national level, seminars will be held to identify labor opportunities and needs. The intent is to address difficulties in creating employment. Hussain disagreed with the oft-repeated belief that Maldivians do not want to do the work that is available. He claimed there are many opportunities created by new infrastructure and resort development projects. Through these seminars, the Ministry would learn about the youth skills available and the employers' demands for labor. At least one person per 1,000 citizens would attend these seminars, which began this week. The national seminar, to be held in August 2005, would result in an action plan to address the mismatch between skills and demands. National Fund for Skills Training -------------- ¶8. (U) The Ministry has agreed with employers on a shared cost training program. The Ministry will pay for academic instruction of unemployed youths, and the employers will hire them as apprentices for two years, which hopefully will lead to full-time job offers. The GoRM is also reviewing the 50/50 scheme, currently requiring employers to hire one Maldivian for each foreign worker. In reality, the Minister said, this means that the Maldivians work on the boats or as room attendants, and the foreigners work in management. With this new training plan, they hope to prepare Maldivians to take some of the positions with higher responsibility. A 60/40 plan is also being considered. Foreign Worker Protection -------------- ¶9. (U) There is little government oversight of foreign workers, 40% of the labor force, beyond registration. There have been allegations of abuse (poor working conditions, nonpayment of wages, restricted freedom of workers) and new efforts will begin to address this. Officials will inspect places that employ foreign workers, and, as of January 1, 2005, workers, rather than employers, will hold their worker's permit cards. Expiration of MultiFiber Arrangement(MFA) -------------- ¶10. (U) The Minister said that, though the factories that will depart Maldives on expiration of the MFA are staffed overwhelmingly by foreigners, the move will have an impact on Maldivian workers. Jobs in nearby shops, food and supplies provision, and transport will be lost, along with revenue from the property leases. Comment -------------- ¶11. (SBU) While these proposals are welcome, and Post recommends USG support, they must also be viewed in the broader context of President Gayoom's ambitious but stalled political reform in Maldives. These labor reforms would garner wide international attention and support, but the GoRM needs to move ahead simultaneously on broader political reform and general improvement in the human rights arena as well. LUNSTEAD