Mediterranean Resources Apparel Industry (MRAI) in

UNCLAS AMMAN 001179 SENSITIVE SIPDIS STATE FOR EEB/TPP/ABT, NEA/ELA, NEA/RA, DRL, G/TIP STATE PASS TO USTR (SFRANCESKI, CROMERO, LKARESH) COMMERCE FOR ITA/OTEXA MARIA D'ANDREA E.O. 12958: N/A TAGS: ELAB ECON ETRD EAID KTIP KTEX JO SUBJECT: Mediterranean Resources Apparel Industry (MRAI) in Ad-Dulayl QIZ Under Liquidation REF: 08 Amman 2600 SENSITIVE BUT UNCLASSIFIED. NOT FOR DISTRIBUTION OUTSIDE USG. ¶1. (SBU) Mediterranean Resources Apparel Industry (MRAI),an Emirati-owned garment factory in Ad-Dulayl Qualifying Industrial Zone (QIZ),is currently under liquidation after suffering significant financial losses. Since a strike in September 2008 (ref A),MRAI had been having financial difficulties that led to delayed payment of wages for November and December 2008, which were ultimately paid in full according to the Ministry of Labor (MOL). In January 2009, MRAI decided to downsize from about 1,240 employees to 691 employees, based on decreased orders from U.S. buyers and the request of some workers to return home after finishing their contracts. MRAI repatriated 268 foreign workers, 248 of whom had finished their three-year contracts, in January and February 2009 with salaries and social security benefits paid. MOL approved the transfer of 72 workers to another factory in the QIZ, with the workers' consent. ¶2. (SBU) At the end of February 2009, about 400 workers went on strike again due to an electricity failure in the dorms, which MRAI said was fixed within a few days; the National Labor Committee alleged the strike was due to the beating of five Sri Lankan women by Jordanian workers, which MOL investigations revealed was inaccurate. MOL explained that a number of female Sri Lankan workers, who resided in the same building where the food was prepared, blocked the food supply to the workers who did not participate in the strike, held the Jordanian food providers hostage for a few hours, and threw stones and water at MOL labor inspectors. ¶3. (SBU) MRAI General Manager Ameed Hasan Abdel-Qader indicated that half of the workers ended up returning to work but another 195 workers submitted their resignations and had no demands other than to be repatriated. The company was able to facilitate repatriation of 25 workers, but was working with MOL and source country embassies to ensure the remaining 170 workers received February wages, social security benefits and airline tickets, which the factory did not have the funds to cover. ¶4. (SBU) Abdel-Qader confirmed to Econoff on May 3 that the remaining 170 workers were still being housed and fed in MRAI's dormitories. MRAI had yet to pay them their final financial settlements, including February wages. He indicated that another 490 workers, as well as himself, were still due April wages. The lawyer managing the liquidation process has made public statements that the salaries will be paid in full as a first priority once the company's assets are liquidated, hopefully by the end of May. Visit Amman's Classified Website at: http://www.state.sgov.gov/p/nea/amman Beecroft