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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