JORDAN APPROVES NEW RULES FOR QIZ GOLDEN LIST AND SLOWLY

UNCLAS AMMAN 001063 SIPDIS SENSITIVE SIPDIS STATE FOR EEB/TPP/ABT, NEA/ELA, DRL, G/TIP STATE PASS TO USTR (CMILLER, AROSENBERG, LKARESH) STATE PASS USAID E.O. 12958: N/A TAGS: ELAB ECON ETRD EAID KTEX JO SUBJECT: JORDAN APPROVES NEW RULES FOR QIZ GOLDEN LIST AND SLOWLY MOVES FORWARD WITH REGULARIZATION PROCESS REF: AMMAN 727 SENSITIVE BUT UNCLASSIFIED. NOT FOR DISTRIBUTION OUTSIDE USG. ¶1. (SBU) Summary: Jordan's Ministry of Labor (MOL) approved new regulations for employing foreign workers in the Qualifying Industrial Zones (QIZs) on April 2. The regulations set the parameters for a new "Golden List" of QIZ factories which abide by best practices regarding labor rights. Companies that have engaged in non-payment of wages, forced labor, child labor, withholding of passports, and require more than an average of four hours of overtime would not be eligible for the Golden List, and therefore would be required to pay a hefty financial guarantee to be exclusively used for foreign workers. MOL has also proceeded with the regularization process of 6,000 illegal foreign workers in 56 companies in the QIZs, but remains frustrated that about half of the companies have not taken the necessary steps to legalize the status of their foreign workers. End Summary. New Regulations Lead to New Golden List -------------- ¶2. (SBU) Labor Minister Bassem Salem approved new "Regulations on Bringing and Employing Foreign Labor in the Qualifying Industrial Zones" on April 2 that will go into effect on May 2. NOTE: The Regulations are currently being translated into English from Arabic, which MOL plans to post on its website (www.mol.gov.jo) once completed. END NOTE. Inspection Directorate Chief Dr. Amin Wreidat told Emboffs April 7 the regulations set the criteria for a new Golden List for QIZ factories, which must abide by best practices regarding labor rights in line with international standards and local law. Wreidat noted that the old 100-point system was flawed because a company could effectively fail to pay wages, but still be on the Golden List if good practices in other areas allowed the company to reach the required 80 points. Although membership in the new Golden List is still based on achieving 80 out of 100 points, Wreidat noted that there are certain "red lines" that cannot be crossed and would disqualify companies from the Golden List, including forced labor, non-payment of wages, child labor, withholding of passports, and more than four hours of overtime on average per day. Additionally, although Jordanian law does not prohibit or limit deductions of food and accommodation from the minimum wage, Golden List members cannot deduct more than 23% of the minimum wage for those items. ¶3. (SBU) According to Wreidat, the primary incentive of Golden List membership is exemption from a bank guarantee, which is set at JD 30,000 (USD 42,373) for QIZ companies with under 100 workers, JD 50,000 (USD 70,622) for companies with 101-200 workers, and JD 75,000 (USD 105,932) for companies with more than 200 workers. The money is frozen in a bank account as long as the company is operating in Jordan. Wreidat noted that the new regulations specify that the bank guarantee may only be used according to a court decision toward ensuring foreign workers' rights if the employer violates any obligations arising from the law. Wreidat said that the Jordanian courts had previously allocated some of the funds to Jordanian managers instead of the foreign workers. ¶4. (U) Another regulatory change is the need for an employer seeking foreign laborers to provide a letter from the Ministry of Labor in the country of origin to confirm that a foreign worker applicant has not paid any unnecessary fees to an employment agency, other than those specified by law. Wreidat explained that this measure attempts to reduce the role of brokers in source countries often unknown to their embassies in Jordan, and to reduce the likelihood of foreign workers paying exorbitant fees to recruitment agencies in their home country. Previously, the Jordanian MOL requested such a letter from the guest worker's embassy in Jordan, but has since determined that such a policy was not effective. ¶5. (U) Wreidat also commented that the regulations provide new minimum requirements for medical care and protections for whistleblowers. Companies with more than 1,000 workers must have one full-time doctor, two nurses, one occupational health and safety (OHS) specialist, and one OHS technician. Factories with 500-1,000 workers must have one full-time doctor, one nurse, and one OHS specialist. Companies with less than 500 workers must have one part-time doctor, one nurse, and one OHS technician. Additionally, only the Ministry of Labor, rather than factory management, can now terminate the OHS specialists, to ensure their ability to freely report problems found. Regularization Process Slowly Moving Forward -------------- ¶6. (SBU) After the GOJ waived overstay penalties for 6,000 illegal foreign workers in 56 QIZ factories, MOL held workshops and distributed brochures to the workers and employers to keep them informed of regularization procedures (ref A). About half of the factories have actually begun the process, which Wreidat admitted has been slow due to the medical check-ups and background checks required before new permits can be issued. In order to expedite the process, Wreidat negotiated the Ministry of Health's approval to have health workers administer the medical exams over the weekend and in mobile units that traveled to the QIZs. Companies are covering the extra cost of these services. ¶7. (SBU) Wreidat expressed frustration with the companies that have not contacted MOL to begin the regularization process. The amnesty period for all the illegal QIZ workers to adjust their status will end June 2. He said that some of these companies were even trying to let go of the workers to avoid the JD 410 (USD 574) worker fee, of which JD 210 (USD 294) covered a new worker permit and JD 200 (USD 280) covered the past period for which the worker had been employed without documentation or permits. MOL plans to send out warning letters to these companies to begin the regularization process, or risk being shut down once the grace period has passed. In the meantime, Wreidat confirmed that MOL will not approve any new applications for foreign workers from these factories. ¶8. (SBU) Wreidat further explained that of the JD 200 (USD 280) per worker the MOL would collect from factories for employment during the past period, JD 43 (USD 61) would be set aside for a new humanitarian fund for foreign workers. Wreidat explained that verbal approval had been granted by the Ministry of Finance for such a scheme, and written confirmation would soon be forthcoming. He estimated that at the completion of the regularization process, the fund would have nearly JD 300,000 (USD 423,729) that could be used to assist needy workers in the future. Examples of possible uses include the cost of repatriation, payment of overstay fines/penalties, food, and temporary shelter for abused workers. 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