Identifier
Created
Classification
Origin
06AMMAN3551
2006-05-18 17:05:00
CONFIDENTIAL
Embassy Amman
Cable title:  

JORDAN RELEASES INITIAL REPORT ON ALLEGED LABOR

Tags:  ELAB ETRD KTEX ECON PGOV JO 
pdf how-to read a cable
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P 181705Z MAY 06
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INFO RUEHEG/AMEMBASSY CAIRO PRIORITY 2413
RUEHTV/AMEMBASSY TEL AVIV PRIORITY 4222
RUEHJM/AMCONSUL JERUSALEM PRIORITY 3914
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY 0283
RUEHGV/USMISSION GENEVA PRIORITY 0525
RUEHBJ/AMEMBASSY BEIJING 0093
RUEHLM/AMEMBASSY COLOMBO 0092
RUEHKA/AMEMBASSY DHAKA 0074
C O N F I D E N T I A L AMMAN 003551 

SIPDIS

SIPDIS

STATE PASS TO USTR

E.O. 12958: DECL: 05/18/2016
TAGS: ELAB ETRD KTEX ECON PGOV JO
SUBJECT: JORDAN RELEASES INITIAL REPORT ON ALLEGED LABOR
ABUSES IN THE GARMENT INDUSTRY

REF: A. AMMAN 3401

B. AMMAN 3327

C. AMMAN 3257

Classified By: AMBASSADOR DAVID HALE FOR REASONS 1.4 (B) AND (D).

C O N F I D E N T I A L AMMAN 003551

SIPDIS

SIPDIS

STATE PASS TO USTR

E.O. 12958: DECL: 05/18/2016
TAGS: ELAB ETRD KTEX ECON PGOV JO
SUBJECT: JORDAN RELEASES INITIAL REPORT ON ALLEGED LABOR
ABUSES IN THE GARMENT INDUSTRY

REF: A. AMMAN 3401

B. AMMAN 3327

C. AMMAN 3257

Classified By: AMBASSADOR DAVID HALE FOR REASONS 1.4 (B) AND (D).


1. (SBU) SUMMARY: On May 18, Minister of Labor Bassem Salem
released the Ministry of Labor's (MOL) initial report of its
actions regarding alleged labor abuses in the Qualifying
Industrial Zone (QIZ) garment industry (Ref C). The MOL
report indicates serious problems with QIZ factories'
underpayment, non-payment, excessive overtime hours and other
violations of safety and health codes, as well as improper
administration of guest workers' paperwork. On the basis of
MOL inspectors' spot visits to QIZ factories (including all
of the factories noted in a report by the private, U.S.-based
National Labor Committee),the MOL issued 248 citations for
non-compliance with GoJ regulations. Other actions include
plant closures and new GoJ measures implemented to safeguard
foreign guest workers' rights. Salem also released a
proposed "Action Plan" that provides in-depth corrective
measures to ensure that Jordan is meeting or exceeding
international labor standards. The GoJ report is frank in
its self-criticism, noting many deficiencies in a number of
GoJ ministries and corrective actions already taken,
including many of the key recommendations made by the
National Labor Committee (NLC),whose highly publicized
report had sparked this review of labor practices in Jordan.
The NLC has indicated general support for GoJ measures. END
SUMMARY.

Labor Ministry Finds Multiple Violations
--------------


2. (U) Minister Salem released a 33-page report and
seven-page "Action Plan" outlining the findings of 25 MOL
inspectors who had followed specially-prepared MOL guidelines
in reviewing the operations of factories in five separate
Qualifying Industrial Zones (QIZs). (Post is forwarding
English versions of these texts to NEA/ELA.) Salem noted the
MOL found serious labor, health and safety violations in many

of the factories. Salem said the investigation to date had
found no evidence to support allegations of physical or
sexual abuse of foreign workers. He stressed that the
random-sampling, open interview technique the MOL used with
foreign workers may not have been able to adequately
ascertain all of the facts. (Note: Investigations are
continuing.)


3. (SBU) According to the MOL report, of the 28 QIZ
contractor and sub-contractor factories cited in the NLC
report, three had since closed and three were found to have
never been established in Jordan (Note: NLC representatives
told us they may have mis-heard the names in their interviews
of laborers). The MOL investigated the 22 remaining
factories and in addition, began the process of what one MOL
contact told us will be a review of all factories producing
garments destined for the U.S. market. To date, the MOL has
issued 107 citations against the companies noted in the NLC
report and another 141 citations against the other companies
investigated so far. The vast majority of the offending
companies are sub-contractors, not allowed to apply to a
government committee that reviews products for compliance
with the U.S.-Israel-Jordan QIZ agreement on Israeli content
that gives duty-free access to the U.S. (Note: Many of the
approved QIZ companies have contracts with major U.S. buyers,
which have labor compliance codes to be enforced by visiting
expatriate auditors. End Note.) Two sub-contractor companies
slated for temporary closure - Mina in Al-Hassan QIZ, and
Southern in Tajamouat QIZ - will be allowed to reopen once
deficiencies are corrected, according to MOL sources.

Major Findings
--------------


4. (U) The major findings of the report on labor violations
in QIZ factories (most applying to guest workers) are:
-- Excessive overtime (Note: GoJ law specifies a 60-hour
limit in any seven-day period);
-- Under-payment of wages, due to violations in wage
calculations;

-- Non-payment of wages;
-- Violations of work permit regulations for guest workers
(no permits; failure to renew);
-- Violations of Social Security requirements (registration,
withholding, and payments);
-- Multiple violations of health and safety codes; and,
-- Overcrowded dormitory housing and lack of hygiene in
bathrooms.


5. (SBU) In a chart of allegations made for each company,
the report notes either "no complaint" or "could not verify"
for allegations of physical or sexual abuse. Among the GoJ
shortcomings listed in the report is the failure of the
Ministry of Interior to follow up allegations regarding such
abuses. In the "Action Plan" (only partially implemented to
date),a recommendation notes the Ministry of Interior is
investigating allegations covering the past 12 months, and
will bring criminal charges against QIZ owners and managers
if warranted.

Corrective Steps Taken
--------------


6. (U) In addition to citations for non-compliance, the
Ministry of Labor has:
-- Temporarily suspended the hiring of foreign workers;
-- Announced that no employer is authorized to hold a guest
worker's passport unless the worker personally agrees in
writing;
-- Requested companies to draft work contracts in the
workers' native language, certified by the workers' embassy;
-- Opened labor inspection offices in the QIZ compounds; and,
-- Established complaint boxes in each factory to be opened
only by specialized inspectors.

More Steps Planned
--------------


7. (U) The Ministry of Labor also announced GoJ-approved
actions to be taken imminently, including a telephone hotline
and a "Golden List" of companies complying with labor
standards. The MOL plans to consult with the International
Confederation of Free Trade Unions (ICTFU) on inclusion of
guest workers within the General Confederation of Jordanian
Trade Unions. (Comment: Their inclusion would require
amendment to Jordan's Law on Unions. An interim step being
considered is to allow foreign workers to organize
associations that might partially mimic unions. End
Comment.) The "Action Plan", which encompasses all types of
guest workers -- including household domestic workers -- has
yet to be approved in the inter-agency process, and includes
more long-term measures such as MOL capacity-building and
improvements to the labor inspection system.

GoJ engaged with NLC Officials
--------------


8. (C) In a private discussion with Emboffs, NLC and United
Steelworkers representatives visiting Jordan said May 17 that
they had met with Minister Salem and Minister of Industry and
Trade Sharif Zu'bi, as well as QIZ industry representatives,
and had received "positive responses across the board" and
commitments to quickly remedy any problems found. They
characterized the GoJ response to date as the "best response"
they had seen in their dealings with labor issues over the
years in some 20 nations.

Challenges: Back Wages, Full Labor Unions
--------------


9. (C) Challenges remain, however. A major concern is the
ability of guest workers in QIZs to secure back wages owed
them, especially due to employers' miscalculation of overtime
and/or illegal application of a piece-work system. NLC's
Kernaghan said a "symbolic payment" might be all that workers
could expect. He suggested that Jordan should remove
non-compete clauses from guest workers' contracts to permit
them to move to employers of their choice. NLC will be
formally recommending this, noting that such freedom of
movement would help raise labor standards in Jordan. The NLC
would also like to promote the presence of foreign NGO's

(e.g., from Bangladesh) in Jordan to promote workers' rights.


10. (C) COMMENT: While the response to labor abuse
allegations is still a work in progress and much remains to
be done, the GoJ has shown determination in tackling the
challenge to guarantee international labor standards for all
workers in Jordan.
HALE