STRIKING TEACHERS AGREE TO RETURN TO WORK; RISK OF

C O N F I D E N T I A L JERUSALEM 004747 SIPDIS SIPDIS NEA FOR FRONT OFFICE; NEA/IPA FOR WILLIAMS/SHAMPAINE/STEINGER; NSC FOR ABRAMS/DORAN/WATERS; TREASURY FOR SZUBIN/LOEFFLER/NUGENT/HIRSON E.O. 12958: DECL: 11/07/2016 TAGS: EFIN ELAB PGOV KWBG SUBJECT: STRIKING TEACHERS AGREE TO RETURN TO WORK; RISK OF NON-PAYMENT REMAINS; HEALTH WORKERS TO ESCALATE STRIKE CLASSIFIED BY: CONSUL GENERAL JAKE WALLES, REASONS 1.4 (B) AND (D). ¶1. (SBU) REPRESENTATIVES FROM PRESIDENT ABBAS'S OFFICE, THE GENERAL UNION OF TEACHERS AND THE PA MINISTRIES OF FINANCE, LABOR AND HIGHER EDUCATION REACHED AN AGREEMENT NOVEMBER 6 ENDING A TEACHERS' STRIKE LAUNCHED AT THE START OF THE SCHOOL YEAR IN PROTEST OF NON-PAYMENT OF PA EMPLOYEE SALARIES. UNDER THE AGREEMENT, AS REPORTED IN THE LOCAL PRESS, TEACHERS WILL RETURN TO THEIR SCHOOLS NOVEMBER 7 IN PREPARATION FOR THE OPENING OF ALL PUBLIC SCHOOLS ON NOVEMBER 11. THE MINISTRY OF FINANCE AGREED TO START PAYING NIS 1000 IMMEDIATELY TO EACH TEACHER AND THE REMAINDER OF THEIR MONTHLY SALARY BY NOVEMBER 20. STARTING JANUARY 1, SALARY ARREARS WOULD BE PAID IN FOUR MONTHLY TRANCHES. PALESTINE RADIO REPORTED THAT THE PA AGREED NOT TO TAKE ANY ACTIONS AGAINST TEACHERS OR OFFICIALS WHO PARTICIPATED IN THE STRIKE. ¶2. (C) DEPUTY GOVERNOR OF THE PALESTINIAN MONETARY AUTHORITY (PMA) JIHAD AL-WAZIR TOLD ECONCHIEF NOVEMBER 7 THAT THE NIS 1,000 PER TEACHER PARTIAL SALARY PAYMENT WOULD BE COVERED BY ABOUT USD 25 MILLION IN DOMESTIC REVENUES. THE PA, HOWEVER, DOES NOT HAVE SUFFICIENT FUNDS TO COVER THE REMAINING BALANCE DUE NOVEMBER 20. AL-WAZIR SAID THAT PA OFFICIALS WHO NEGOTIATED THE AGREEMENT ENDING THE STRIKE ARE HOPING THAT A NEW GOVERNMENT WILL BE FORMED BY THEN THAT, WITH INTERNATIONAL APPROVAL, COULD ENSURE THE RESUMPTION OF EXTERNAL ASSISTANCE AND THE TRANSFER OF CUSTOMS AND VAT REVENUES FROM ISRAEL. ¶3. (C) IN RESPONSE TO THE END OF THE TEACHERS' STRIKE, HEALTH WORKERS PUBLICLY ANNOUNCED THAT THEIR STRIKE WOULD INTENSIFY, TO INCLUDE THE CLOSURE OF EMERGENCY ROOMS IN THE WEST BANK. ICRC MISSION HEAD KATHARINA RITZ TOLD POLOFF NOVMEBER 7 THAT A NEWLY COMPLETED ICRC WEST BANK HOSPITAL ASSESSMENT INDICATED THAT THE STRIKES ARE SERIOUSLY HAMPERING THE PROVISION OF HEALTH SERVICES. RITZ SAID THAT HEALTH WORKERS IN THE WEST BANK HAD THREATENED TO COMPLETELY CLOSE DOWN ALL HEALTH SERVICES NOVEMBER 7 UNLESS THEY RECEIVE ALL BACK PAY. WALLES