ALLOWANCES PAID TO PA EMPLOYEES IN NOVEMBER

C O N F I D E N T I A L SECTION 01 OF 02 JERUSALEM 004863 SIPDIS SIPDIS NEA FOR FRONT OFFICE; NEA/IPA FOR WILLIAMS/SHAMPAINE/STEINGER; NSC FOR ABRAMS/DORAN/WATERS; TREASURY FOR NUGENT/HIRSON; BRUSSELS FOR LERNER; PLEASE PASS TO USAID FOR KUNDER/MCCLOUD/BORODIN E.O. 12958: DECL: 11/24/16 TAGS: EFIN ELAB PGOV KWBG SUBJECT: ALLOWANCES PAID TO PA EMPLOYEES IN NOVEMBER REF: A. JERUSALEM 4844 ¶B. JERUSALEM 4722 Classified By: Consul General Jake Walles, Reasons 1.4 (b) and (d) ¶1. (C) Summary: The PA government paid all PA employees an allowance of NIS 1000 (USD 233),starting November 25 in Gaza and November 28 in the West Bank. The Union of Public Employees called on PA employees to pick up their allowances but to continue the general strike. The Temporary International Mechanism (TIM) completed its second disbursement (since the TIM Window III's expansion in October) of NIS 1500 (USD 350) allowances to all non-security service PA employees normally earning less than NIS 2500 per month. The TIM plans to start disbursing NIS 1000 allowances to social hardship cases December 2. These separate allowance payments from the PA government and the Temporary International Mechanism, combined with the allowance payments from the PA Presidency November 22 and 23, to PA teachers and PA security service members respectively, have allowed some PA employees to "triple dip," while the vast majority have "double dipped." The PA Presidency Economic Advisor confirmed November 29 that there is no clear and coordinated strategy, hence the multiple allowances within the same month. End summary. PA government pays all PA employees NIS 1000; general strike continues -------------- ¶2. (SBU) PA employees started receiving a flat-rate allowance of NIS 1000 (USD 233) through PA post offices in Gaza on November 25 and in the West Bank on November 28. According to press reports, the PA Ministry of Telecommunications and Information Technology made arrangements with the Union of Public Employees (UPE) for West Bank postal employees to return to work to distribute the allowances; Gaza postal employees are not on strike. According to press reports November 29, social welfare cases and martyrs' families separately received USD 100 allowances from the PA post offices. The Maan news agency quoted Acting PA Finance Minister Samir Abu Aisha saying that domestic revenues are funding the allowances. ¶3. (SBU) According to a UPE flyer, UPE leader Bassam Zakarneh called on PA employees to pick-up their allowances but to continue their general strike. ECON Specialist spoke November 28 with friends and family members of PA employees in the West Bank and confirmed that the allowance payment is not associated with any strike-ending agreement between the government and the UPE, but negotiations continue. (Note: The General Union of Teachers reached an agreement with the PA government on November 6, settling their strike. End note.) The PA police are reportedly helping maintain order at the post offices in the West Bank. TIM pays NIS 1500 allowance to PA employees earning under NIS 2500 -------------- ¶4. (C) Hans Duynhouwer, head of the Temporary International Mechanism (TIM) Management Unit, told EconChief November 29 that the TIM just completed a disbursement of NIS 1500 (USD 350) allowances to all civil service (not security service) PA employees who earn less than NIS 2500 per month (previewed in ref b),also known as "low income cases." This is the second payment to "low income cases" since the TIM's Window III was expanded in early October. However, the focus of the expansion, the social hardship cases, have not yet received their first payment. Duynhouwer said the original 36,000 social hardship cases would start receiving their NIS 1000 (USD 233) allowances on December 2. (Note: The TIM Management Unit decided in October to pay low income cases an allowance of NIS 1500 and social hardship cases an allowance of only NIS 1000. End note.) The expanded group of social hardship cases, the 40,000 to 50,000 beneficiaries from the World Food Program's partners executing the Food-for-Work and Food-for-Training programs, will start to receive their NIS 1000 allowances the week of December 4. Three sources for allowances allow some to "triple dip" and majority to "double dip" -------------- JERUSALEM 00004863 002 OF 002 ¶5. (C) There have been three payment sources for allowances in November: the PA Presidency, the PA government, and the Temporary International Mechanism. Certain PA employee groups, such as teachers, have been able to "triple dip" while others, such as the majority of civil servants and the security services, have "double dipped." The majority of PA teachers likely received roughly NIS 4500 to-date in November: (1) NIS 1000 from the PA government on November 11 as a first payment to end their strike; (2) about NIS 1000 or the balance of their November monthly salary from the PA Presidency on November 22, as part of the strike-ending deal (ref A); (3) NIS 1000 from the PA government on November 25/28; and (4) NIS 1500 from the TIM. PA civil servants (not security service members),normally earning less than NIS 2500 and who are not teachers, received two payments in November: (1) NIS 1000 from the PA government on November 25/28 and (2) NIS 1500 from the TIM. Security service members, excluding the Hamas Executive Force, received two payments in November: (1) an allowance of NIS 1000 from the PA Presidency November 23 (ref A) and (2) the NIS 1000 allowance November 25/28 from the PA government. ¶6. (C) EconChief voiced concern November 29 to PA Presidency Economic Advisor Mohamed Mustafa about the multiple allowances being paid. Mustafa agreed that there is no clear strategy and that it was more of an ad hoc intervention approach conducted separately by the PA government, PA Presidency, and the TIM. He said he would like to meet with key donors to discuss the issue next week. WALLES