Identifier
Created
Classification
Origin
07AMMAN3579
2007-08-26 13:05:00
CONFIDENTIAL
Embassy Amman
Cable title:  

SLOW BUT STEADY PROGRESS ON QIZ LABOR ISSUES

Tags:  ELAB ETRD EAID JO QIZ 
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RR RUEHWEB

DE RUEHAM #3579/01 2381305
ZNY CCCCC ZZH
R 261305Z AUG 07
FM AMEMBASSY AMMAN
TO RUEHC/SECSTATE WASHDC 0108
INFO RUEHEG/AMEMBASSY CAIRO 3351
RUEHDM/AMEMBASSY DAMASCUS 3688
RUEHGB/AMEMBASSY BAGHDAD 5453
RUEHKA/AMEMBASSY DHAKA 0125
RUEHC/DEPT OF LABOR WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
C O N F I D E N T I A L AMMAN 003579 

SIPDIS

SIPDIS

STATE FOR NEA/ELA RANA, G/TIP, AND DRL
STATE PLEASE PASS TO USTR (KARESH, ROSENBERG, SAUMS)
STATE PLEASE PASS TO USAID

E.O. 12958: DECL: 08/26/2015
TAGS: ELAB ETRD EAID JO QIZ
SUBJECT: SLOW BUT STEADY PROGRESS ON QIZ LABOR ISSUES

REF: A. AMMAN 3472

B. EMAIL ROSENBERG-SCHWEDT-BROWN-PISANI 6/18/2007

Classified By: Ambassador David Hale, For Reasons 1.4 b,d

C O N F I D E N T I A L AMMAN 003579

SIPDIS

SIPDIS

STATE FOR NEA/ELA RANA, G/TIP, AND DRL
STATE PLEASE PASS TO USTR (KARESH, ROSENBERG, SAUMS)
STATE PLEASE PASS TO USAID

E.O. 12958: DECL: 08/26/2015
TAGS: ELAB ETRD EAID JO QIZ
SUBJECT: SLOW BUT STEADY PROGRESS ON QIZ LABOR ISSUES

REF: A. AMMAN 3472

B. EMAIL ROSENBERG-SCHWEDT-BROWN-PISANI 6/18/2007

Classified By: Ambassador David Hale, For Reasons 1.4 b,d


1. (SBU) Summary: Since the Ministry of Labor (MOL)
published a Plan of Action in March 2007, Jordan has been
making slow but steady progress on labor issues in the
Qualifying Industrial Zones (QIZs). For the first time, a
Jordanian court found supervisors in one factory guilty of
physical abuse and issued a fine. The Ministry of Labor
(MOL) has also begun a regularization process of illegal
workers through issuance of around 5,500 temporary ID cards.
Although companies remain frustrated with bureaucratic
lethargy and lack of labor (Ref A),MOL has slowly been
building capacity and the institutional framework to identify
and resolve labor issues proactively. End Summary.


2. (U) The Ministry of Labor reported that 99 factories in
the QIZs employed a total of 52,058 individuals, of which
15,175 were Jordanian and 36,883 were foreign, as of June 30,

2007. Women, including 9,230 Jordanians and 20,262
foreigners, comprised 57 percent the QIZ labor force. The
MOL currently has 91 trained inspectors on staff.
USAID-funded MOL Advisor Lejo Sibbel told Econoff and USAID
that he expects 20 additional inspectors to be hired within
the next two months. Although capacity is still lacking in
the MOL, Sibbel said that in 95 percent of the recent QIZ
labor cases brought to the MOL's attention, particularly by
the National Labor Committee (NLC),the MOL has already
identified the issues and been working to resolving them.

Progress: First Conviction for Physical Abuse in QIZ
-------------- --------------


3. (U) After investigating various allegations by the NLC,
MOL posted June 30 on its website (www.mol.gov.jo) a first
report on inspections issues, which responds to the NLC
reports on specific factories and aims to provide more
details on inspection reform activities. In one significant
case, MOL had been monitoring the working conditions at

Cotton Craft factory since the end of 2006. Given that some
of the violations alleged by workers fell outside the scope
of Jordan's labor law, a GOJ Inter-Ministerial Committee
carried out the inspections, and in line with the Committee's
recommendations, MOL assisted six workers in filing a legal
case against three supervisors who allegedly had slapped
these workers. A Jordanian Court found the supervisors
guilty and fined them. This was the first time the judicial
system found factory supervisors guilty in relation to
complaints of physical abuse. Cotton Craft was sold in June
2007, and MOL continues to monitor an agreement with the new
management.


4. (U) MOL also posted an update covering April and May to
its March 2007 Action Plan that outlines steps taken to
directly improve working conditions through enforcement,
compliance and enhanced institutional capacity. Some
highlights include:
-- 43 country-wide inspections from March 30 to May 31
conducted by a nine-person MOL Inspection Force, formally
established in March 2007;
-- Establishment of a new National Training Center for Labor
Inspectors, with ILO providing initial technical assistance;
-- Establishment of an Inter-Ministerial Technical Level
Committee, composed of working-level staff from the
Ministries of Labor, Justice, Interior and Trade and the
Intelligence Department, to investigate and respond to
non-labor law violations, such as physical and sexual abuse
and trafficking; and
-- Holding of a workshop, organized May 30-31 by the Jordan
Garments, Accessories, and Textiles Exporters' Association
(JGATE) and the International Labour Organization (ILO) as
part of the GTIP-funded project to raise employers' awareness
of the issue of forced labor and trafficking issues.


5. (SBU) Minister of Labor Bassem Salem has remained engaged
on labor issues in the QIZs. Sibbel noted that Salem
personally accompanied MOL inspectors to the Al-Hassan QIZ
where approximately 430 Bengali workers from Al Mithaliya
factory began a strike on August 2, requesting amendments to
their contracts, which currently allow for deductions of food
and accommodation from their base salaries, among other
demands. Since its adoption in 1996, Article 2 of Jordan's
Labor Code has allowed for the possibility of wage components
to include payments in kind. Given that the workers launched
a strike without giving 14-day notice to employers - as
required by the local labor law - and that the demands were
inconsistent with the terms in their contracts, MOL found
that the workers did not have legitimate cause to strike,
making the strike "illegal," and said that they would be
fined in accordance with the law. MOL offered to facilitate
repatriation for any worker who preferred to return home
rather than go back to work. As of August 26, Sibbel said
approximately 100 workers whose contract had expired or was
about to expire had agreed to return home, with the company
paying any overstay fines and airline tickets. Most of the
rest of workers on strike appear to have returned to work.

Allegations of Workers Held Against their Will
-------------- -


6. (SBU) Following up on Ref B reports from Jones NY
headquarters that there were up to 3,000 migrant workers who
were not being allowed to leave the country, EconCouns raised
the issue with MOL Secretary General Majed Habashneh.
Habashneh responded that MOL has been trying to compile
better statistics to determine the overall number of
employees working without permits, estimated to be
approximately 6,700. He listed various reasons for their
status, including insufficient paperwork by company
management, slow GOJ bureaucracy in processing the paperwork,
and penalty fees accrued for lack of worker permits.


7. (U) MOL has been working with the JGATE to identify
illegal workers and provide temporary ID cards. Sibbel said
that the MOL just received the last batch of cards from the
manufacturer and as of August 19, had distributed
approximately 5,500. The cards will be valid until November

2007. During this period of regularization, companies with
legitimate fines will be required to pay them. MOL will
request a waiver of fines from the Ministry of Interior for
other companies that should not have such financial
responsibility - i.e., for taking on workers transferred from
another company that the MOL shut down due to gross labor
violations. After this period, any individual whom the MOL
finds does not have the proper paperwork will be expatriated.
Sibbel estimated that MOL would begin enforcing these
regulations in early 2008.


8. (U) NOTE: MOL instituted a similar regularization system
for illegal Egyptian workers that resulted in issuance of
over 12,400 permits to Egyptian laborers submitted at the
Egyptian Embassy in Amman. Once the regularization grace
period ended, MOL began inspections in mid-July 2007. MOL
reported that as of August 20, police had taken into custody
3,857 illegal workers (mostly Egyptians, but also some
Syrians and Iraqis),of whom 1,051 were repatriated. A
number of those arrested were released for humanitarian
reasons. END NOTE.


9. (C) Econoff and poloff also spoke with the Jones NY Social
Compliance Auditor in Jordan, Kesava Murali, regarding the
specific factory allegations. Murali confirmed that he had
encountered cases of workers whose contracts had ended but
were not being allowed to leave the country, either because
their replacement had not yet arrived or because the factory
still had to pay penalty fees for lack of worker permits. He
could not, however, provide hard numbers, nor confirm that
these individuals were being forced to stay in Jordan against
their will. He said that the 3,000 number was a rough
estimate, assuming that there were at least 30 workers in
similar situations in each factory multiplied by 100
factories.


10. (C) Murali did identify one factory in particular,
Mediterranean Resources Apparel Industry (MRAI),that he
claimed had many violations including 900 employees without
permits. As Jones NY had decided to cease doing business
with MRAI, Murali passed information on the factory to MOL.
Sibbel confirmed August 19 that MOL inspected the factory in
early August and conducted 225 random interviews with
workers. As part of the ongoing investigation, MOL is still
gathering information from MRAI to determine the number of
workers whose contracts have actually expired. If there are
cases in which the factory is holding workers against their
will, the MOL will facilitate their repatriation. Sibbel
mentioned that MOL had found one other case in which a
handful of individuals whose contract had expired were not
being released from employment. After the factory gave the
excuse that no economy flights had been available, MOL
ordered that the workers be returned home, even if business
class tickets had to be purchased.


11. (U) In general, Habashneh said that the Ministry of Labor
can request the Ministry of Interior to issue waivers of
penalties or contracts in specific cases, to ensure that no
employee is held in the country against his or her will on
this basis. Having worked closely with MOL on contract
waivers for humanitarian cases, the National Center for Human
Rights has offered to provide workers a direct cell phone
number in the event they need help with requesting such a
waiver. To provide more effective channels of communication
for workers to MOL, the Ministry added cell phone numbers to
its hotline, which initially only consisted of a landline.

Comment
--------------


12. (SBU) The GOJ has continued to make slow but steady
progress on the labor front. Buyers and factory operators,
while not 100 percent satisfied with the speed of
implementing the action plan, have indicated that the GOJ is
doing a much better job of communicating next steps, in part
thanks to the efforts of Sibbel. Ongoing training and
recruitment of inspectors should help ease the constraints of
limited short-term capacity as well. Other areas that could
facilitate labor improvements include: better interagency
coordination; thinking beyond inspections to enhancing worker
productivity; adopting new technologies and moving to
higher-end products; finding ways to attract local labor; and
factory acceptance that labor can no longer be used as a cost
reducer. Many of these issues will be addressed through the
USAID-funded SABEQ program which aims to improve Jordan's
competitiveness and the Better Work Jordan program that is
currently being developed by ILO with USAID and other donor
support.

Visit Amman's Classified Web Site at
http://www.state.sgov.gov/p/nea/amman/
Hale