Identifier
Created
Classification
Origin
09AMMAN1179
2009-05-21 11:38:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Amman
Cable title:
Mediterranean Resources Apparel Industry (MRAI) in
VZCZCXYZ0000 PP RUEHWEB DE RUEHAM #1179 1411138 ZNR UUUUU ZZH P 211138Z MAY 09 FM AMEMBASSY AMMAN TO RUEHC/SECSTATE WASHDC PRIORITY 5157 INFO RUEHLM/AMEMBASSY COLOMBO 0219 RUEHKA/AMEMBASSY DHAKA 0195 RUEHIL/AMEMBASSY ISLAMABAD 0285 RUEHKT/AMEMBASSY KATHMANDU 0071 RUEHML/AMEMBASSY MANILA 0152 RUEHNE/AMEMBASSY NEW DELHI 0327 RUCPDOC/DEPT OF COMMERCE WASHDC
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.
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
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