MINISTERS PROMISE ACTION ON QIZ LABOR ISSUES

C O N F I D E N T I A L SECTION 01 OF 02 AMMAN 005566

SIPDIS

SIPDIS

STATE PASS TO USTR
STATE PASS TO DEPARTMENT OF LABOR

E.O. 12958: DECL: 07/23/2016
TAGS: ELAB ETRD PHUM GTIP KTEX JO
SUBJECT: MINISTERS PROMISE ACTION ON QIZ LABOR ISSUES

Classified By: Classified by Ambassador David Hale for reasons 1.4 (b)
and (d).


1. (SBU) SUMMARY: Ambassador raised continuing USG concerns
about the QIZ labor situation with the King's top aide and
relevant ministers, in each case without aides present. GoJ
leadership understands the importance of the problem but
there was divergence on how different GoJ elements perceived
progress toward a solution. The King's office has promised
to push ministries to coordinate and move quickly. END
SUMMARY.

Minister of Labor Offers Himself a Pat on the Back
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2. (SBU) In a July 19 meeting, Minister of Labor Bassem
Salem, while reiterating public comments that acknowledged
Jordan's QIZ labor problems, was at times complacent in
addressing Ambassador's concerns about the quality of
inspections to date, the fact that the Ministry had closed
only one factory, the Ministry's lack of capacity to move
more than a few workers at a time from bad factories to good
ones, and failure to get employers to return passports to
employees. Instead, Minister Salem focused on the actions he
had taken; this included a claim that he bent Jordanian legal
requirements in order to move some workers to good factories
in order to end labor violations more quickly. Salem claimed
that the National Labor Committee (NLC) follow-up report of
June 13 was actually positive for Jordan.


3. (C) COMMENT: That Salem should cite the June 13 NLC report
in this way suggests he is out of touch. While it commends
the government for taking some action and cites widespread
improvement in a number of factories, Salem failed to
acknowledge Parts B & C of the report, which refer to the
'Not-So-Positives' and 'Failures' of government to take
action in a number of other factories. Additionally, the NLC
issued an 'urgent update' to the report which alleges
beatings, long hours, and no food and water for workers at
one factory, Western. Some of his own cabinet colleagues
have described the millionaire businessman/Minister as
"aloof" from the issue. END COMMENT.


4. (SBU) On July 20, MoL officials responsible for moving
workers informed EconOff that 150 workers from the Western
factory in Irbid, tired of waiting for promised MoL action,
had left the facility that morning of their own volition and
were being sheltered at their respective Embassies in Amman.
MoL officials said they were aware of the problems at Western
(reported septel) and had planned to move these workers for
some time but now, due to diplomatic pressure, would have
move to more quickly.

Minister of Industry and Trade Passes the Buck
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5. (C) Minister of Industry and Trade Sharif Zu'bi July 18
told Ambassador that he had heard of no prosecutions against
any of the factory owners or managers on any charges,
including labor violations. He criticized the Minister of
Interior for not being more focused on criminal prosecution.
Zu'bi expressed concern about the Ministry of Labor's slow
action to date and industrialists' problems with the
Ministry's short-term implementation of patchwork labor fixes
that fail to address a comprehensive approach to their needs.
The Minister was also very critical of the MoL inspection
regime, stating that a number of inspectors are corrupt and
"only go to conduct inspections when their wives need new
clothes." COMMENT: While Zu'bi recognizes the seriousness of
the problem and that a more pro-active approach is required,
he often finds himself at odds with the MoL and his comments
may reflect his differences with Salem. In the past, Zu'bi
supported the industry's resistance to an MoL push for visa
fee hikes and bank guarantee deposits. Zu'bi's primary goal
is to enhance Jordan's investment appeal. He should be
commended for following a hard line with the industry in
pursuit of this objective. He repeatedly tells them that
they need to recognize that they have "bad apples" among

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them. But as one senior Jordanian official commented, Zu'bi
is in a "pass the buck" mode. END COMMENT.

Minister of Interior Stuck in Neutral
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6. (SBU) In a July 18 meeting with the Ambassador, Minister
of Interior Eid Fayez referenced a weekly meeting with the
Ministers of Labor, Industry and Trade, and Foreign Affairs
on QIZ issues to demonstrate the commitment his Ministry has
made to the allegations of labor violations. In response to
Ambassador's concern over the failure to prosecute a single
case for labor violations, Fayez showed Ambassador a file of
alleged violations that he had passed to the Public Security
Directorate (PSD) a month prior for "immediate action."
Since then, Fayez said no further action has taken place
because there are no complainants willing to file charges
against factory owners. When asked why the state could not
pursue charges based on PSD investigations, Fayez said he
would research the legalities of this possibility. Fayez
concurred that he appreciates the potential negative
consequences for Jordan if criminal cases of labor violations
are not prosecuted.

King's Office Director Favors Stronger and More Immediate
Action
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7. (SBU) In a July 19 meeting with the Director of the King's
Office, Bassem Awadallah, Ambassador found a receptive
audience ready to tackle QIZ labor violation problems
immediately. Awadallah clearly expressed his concern about
the problem and unhappiness about the progress to date.
Awadallah is motivated to see expedited action that more
thoroughly rids the sector of labor violators. As a first
step, Awadallah promised to convene the Ministers of Labor,
Industry and Trade, Interior, and Foreign Affairs "to knock
heads." Labor Minister confirmed to Ambassador that the
meeting was held on July 23, and the King's desire for real
progress was made abundantly clear. Ambassador has also
briefed the Foreign Minister of the potential impact that
issue could have on Jordan's image and bilateral
relationship, points he readily acknowledged. We expect the
four-Minister Cabinet group to continue to meet, and Embassy
will keep the pressure on for implementation.
Hale