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


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Summary
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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.

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Impromptu Strike
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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.)

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Open Yet Shut
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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.

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Impact
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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