OMAN COMMITS TO SIGNIFICANT LABOR REFORMS

UNCLAS SECTION 01 OF 02 MUSCAT 000531

SIPDIS

DEPARTMENT FOR NEA/ARPI (S. STEINGER) AND DRL (J. DEMARIA)
DEPARTMENT PASS USTR FOR J. BUNTIN AND A. ROSENBERG
DOL FOR J. SHEA AND B. SHEPARD
US MISSION GENEVA FOR LABOR ATTACHE

E.O. 12958: N/A
TAGS:
SUBJECT: OMAN COMMITS TO SIGNIFICANT LABOR REFORMS


1. (U) On March 26, Minister of Commerce and Industry Maqbul
bin Ali Sultan transmitted the following letter to
Congressman Bill Thomas, Chairman of the House Ways and Means
Committee. Shared with the Embassy by a Min Commerce
official, the letter is in response to questions raised about
Oman's compliance with recently ratified International Labor
Organization (ILO) Conventions.


2. (U) Begin text of letter:

I sincerely appreciate the opportunity to work with you on
the passage of the U.S.-Oman Free Trade Agreement and I
welcome your interest in our labor laws. Over the last few
years Oman has made significant progress in reforming our
laws to comply with the International Labor Organization
(ILO) core labor standards. We are currently consulting with
the ILO to further modernize our laws and practices, taking
into account the ILO standards. Therefore, Oman makes the
following commitments:


1. Oman is hosting an ILO delegation in April of this year
in order to determine how to incorporate ILO Convention 98
into our labor laws. Oman will then seek the views of the
Council of Oman, the Council of Ministers, the Chamber of
Commerce and Industry, representative committees and other
interested parties (hereinafter, "Interested Parties").
Thus, Oman will be able to issue a Ministerial Decision,
after consultation with Interested Parties, no later than
October 31, 2006 that incorporates the standards of ILO
Convention 98 into Oman labor laws.


2. The Ministerial Decision referenced in number 1 above
will clarify that Article (106) of the Omani labor law allows
workers, at their option, to be reinstated for any
termination that resulted from lawful union activity.


3. After consultation with Interested Parties, Oman will
issue a Royal Decree amending Royal Decree 35/2003 (Omani
labor law) by no later than October 31, 2006, that states
that more than one representative committee may be formed in
order to represent workers in their relations with a single
enterprise.


4. After consultation with Interested Parties, Oman will
issue a Royal Decree amending Royal Decree 35/2003, as noted
in point 3 above, to amend Articles (108-110) of the labor
law to reflect that each representative committee may belong
to the Main Representative Committee and that other main
representative bodies may be formed. This action will be
taken no later than October 31, 2006.


5. After consultations with Interested Parties, Oman will
issue a Ministerial Decision by no later than October 31,
2006, ensuring that penalties for anti-union discrimination
are adequate to deter acts of discrimination.


6. After consultations with the ILO and with Interested
Parties, Oman will issue a Ministerial Decision by no later
than October 31, 2006, that will ensure that technical
standards for strikes do not exceed the standards of the ILO.


7. As provided by the Basic Law of Oman, Oman does seek the
views of Interested Parties before making any changes in the
legislation and will commit to continue this practice in the
future.


8. After consultations with Interested Parties, Oman will
amend Ministerial Decisions 135/2004 and 136/2004 by no later
than October 31, 2006, in order to remove all government
involvement in representative committees' activities.

End Text.

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COMMENT
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3. (U) According to members of the Main Representative
Committee (MRC),the ILO delegation will arrive in Muscat on
April 4 for a two day fact-finding mission and to review
possible technical assistance plans. MRC members are anxious
to begin basic skills building and organizational training
and have already received offers from union representatives
in Bahrain, Jordan and Morocco to come to Oman to meet
counterparts, share experiences and network. Committee
members, some unaware of the behind-the-scenes commitments,
are upbeat and positive about ongoing developments at the
Ministry of Manpower and are encouraged by significant
changes that appear to be forthcoming.
GRAPPO