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