UNION-RELATED STRIKE SHUTS SALALAH PORT

UNCLAS SECTION 01 OF 02 MUSCAT 001874 SIPDIS SENSITIVE USDOL FOR ILAB STATE PASS USTR (J. BUNTIN, A. ROSENBERG) STATE FOR DRL, NEA/PI, AND NEA/ARPI E.O. 12958: N/A TAGS: ELAB EWWT PGOV ETRD ECON PREL MU SUBJECT: UNION-RELATED STRIKE SHUTS SALALAH PORT -------------- Summary -------------- ¶1. (SBU) Port Salalah, Oman's leading container transshipment facility, was shut down December 11-12 following an impromptu employees walk-out spurred, apparently, by management's decision to fire the popular head of the workers' committee. Though strikes are not unprecedented in Oman, this walk-out stands out for having paralyzed one of the nation's major international transportation hubs, completely without warning. Government officials moved quickly to broker a compromise with the port management firm that brought workers back to their jobs by the night of December 12. The labor movement was further bolstered by the government's firm resolve to prevent management retribution against union leaders. End summary. -------------- Impromptu Strike -------------- ¶2. (U) Workers at Salalah Port walked off the job on December 11, bringing Oman's largest container transshipment facility to a screeching halt for two days. The sudden action was reportedly prompted by port management's decision not to renew the employment contract of Salim al-Ma'ashani, a purchasing manager and elected head of the facility's workers committee (as Omani unions are called). (Note: Salalah Port Services Company (SPS),which is a joint venture primarily involving Danish shipping giant AP Moeller-Maersk and the Omani government, operates the government-owned port on a long-term contract. End note.) Al-Ma'ashani had reportedly been insisting that port workers be paid for uncompensated overtime when management moved to fire him. With numerous other frustrations apparently having built up, the employees at the port's container berths (the core aspect of the port's overall operations) staged a walk-out in solidarity with al-Ma'ashani. By the morning of December 12, Embassy contacts reported a heavy police cordon around the port facility. ¶3. (SBU) Oman's Minister of Manpower, Juma al-Juma'a, informed the Ambassador of the strike on December 11, on the eve of his Ministry's participation in a USG-funded Regional Labor Dialogue. The Minister said the government would intervene to calm the situation, and expected operations to resume at some level by December 12. Over the next 48 hours, officials from the Ministries of Manpower and Transportation, representatives from the national-level Workers Main Committee, plus local dignitaries and security officials, hammered out a compromise between management and labor. The Ministry of Manpower's Director of Labor Welfare told Emboffs on December 13 that the settlement was in the workers' favor (he did not elaborate),noting that he had earlier that day submitted the official report on the resolution to the Minister of Manpower. SPS Senior Manager Chris Holt (protect) confirmed to P/E Chief on December 13 that port operations resumed as of the 2100 shift change on the evening of the 12th, and that the port was operating at full capacity once again. ¶4. (SBU) While details on the workers' demands and ultimate resolution have not been officially revealed, the complaints apparently revolved around the behavior of certain senior managers (primarily expatriates) of SPS, calls to amend overtime and allowances policies (particularly regarding danger and noise concerns),and bringing basic wages more on par with other major international ports. Another demand was that al-Ma'ashani be rehired; by all accounts, he was. (Note: Al-Ma'ashani also happens to belong to the same powerful Dhofari tribe as Sultan Qaboos' mother. End note.) -------------- Open Yet Shut -------------- ¶5. (SBU) Despite the history-making nature of this first strike involving one of Oman's new labor unions, the Omani press remained absolutely mute. Events unfolded, however, simultaneously with a USG-funded Regional Labor Dialogue that had drawn together top labor officials and union representatives from the U.S., Oman, and other Arab states. Omani workers' committee members from the national and enterprise-level discussed the strike with animation during the Labor Dialogue. Two national committee members confided to Emboffs that the negotiations had been tough and that they were relieved the episode was over. Tellingly, during a panel discussion at the Dialogue, the Director General of Manpower declared in the presence of the Ministry Under Secretary that the Port Salalah strike was both "legitimate SIPDIS and successful." Notwithstanding the press silence, popular Omani Internet message board "Al-Sablah" was in frenzy about the strike, as its discussion generated over 12,000 hits in just three days. The overwhelming online sentiment supported the workers. -------------- Impact -------------- ¶6. (SBU) Formal unions (which are based on enterprises rather than trades) are still new to Oman, and this is the first major instance where confrontation between a workers committee and management led to a shut-down strike. The tremendous economic importance of Salalah as Oman's largest port makes this strike the most significant in recent memory. It is perhaps an optimistic sign that the dispute was resolved both quickly and peacefully, and that the government has moved to protect a union leader from possible retribution by his employer. BALTIMORE