RUMBLINGS THAT SAUDI ARABIA MAY FOLLOW BAHRAIN AND

C O N F I D E N T I A L SECTION 01 OF 02 JEDDAH 000194

SIPDIS

DEPT FOR NEA/ARP, DRL, GTIP

E.O. 12958: DECL: 05/30/2014
TAGS: ELAB KCRM KFRD KWMN PHUM KTIP SA
SUBJECT: RUMBLINGS THAT SAUDI ARABIA MAY FOLLOW BAHRAIN AND
DROP THE SPONSORSHIP SYSTEM; RUMORS OF PROGRESS ON DOMESTIC
LABOR LAW AND ANTI-TRAFFICKING LEGISLATION

REF: JEDDAH 0172

JEDDAH 00000194 001.2 OF 002


Classified By: Consul General Martin R. Quinn for reasons 1.4 (b) and (
d)


1. (C) SUMMARY: Recent media reports and an account from a
Saudi Ministry of Labor official indicate that the Saudi
Arabian Government (SAG) is considering an end or change to
the labor sponsorship system just weeks after Bahrain took
the same major step. There continue to be signs and
speculation that both a domestic labor law and an
anti-trafficking law are moving forward, but the exact status
of these long-running bills remains unclear. Media and
government remain focused on legislation, with less interest
as to whether and how changes will be implemented and
enforced. END SUMMARY.

SPONSORSHIP SYSTEM


2. (SBU) AL-MEDINA BLURB SUGGESTS AN END TO SPONSORSHIP IS
IN SIGHT: The following short blurb in the May 16 Saudi
Arabic daily Al-Madina suggested that the SAG Council of
Ministers is considering changes to the sponsorship system:

Begin text.

(U) A well-informed source at the Ministry of Labor told
Al-Madina that the Ministry of Labor submitted to the
Council of Ministers a draft regulation on recruitment
policies for foreign labor. The draft regulation would
replace the current sponsorship system, and requires the
establishment of private companies to oversee the employment
of unskilled laborers. The new list will eliminate fraudulent
visas and trafficking in visas, as
well as improve the relationship between the foreign worker
and the employer.

End text.


3. (C) MINISTRY OF LABOR CONSULTANT SUGGESTS THINGS ARE
HAPPENING: Dr. Satti M. Taha, economic expert (Sudanese
national) in the Studies and Research Department under the
Deputy Ministry for Planning & Development at the Saudi
Arabian Ministry of Labor, shared his view, in May 19
meeting, that the SAG is considering a major change to the
sponsorship system. He could not offer specifics as to
what, when, or how the system will change: "I have been
hearing about it. Something is going to happen, but I am not
sure if it will be a change or an improvement (to the
sponsorship system)." Taha claims that discussion of the
sponsorship system is taking place among concerned ministers.



4. (C) NEW RECRUITMENT COMPANIES A POSSIBLE ALTERNATIVE:
Taha mentioned what he sees as a likely possibility, that new
recruitment companies will become the main replacements for
the sponsorship system. In this scenario, Taha says
individuals will have their visas sponsored (under greater
control) by a recruitment company instead of individual
employers. He admitted that these new labor importation
companies would not include all classes of employees such as
domestic workers.


5. (U) Recent press coverage has also highlighted the
possibility of using recruitment companies, including the
following May 16 article in Al-Madina (separate item from the
article noted para 2 above):

Begin text.

A well-informed source at the Ministry of Labor informed
Al-Madina newspaper that the Ministry has completed a list
that regulates the work of recruitment companies in
cooperation with the owners of recruitment offices, Chambers
of Commerce and employers. This list was submitted to the
Minister Council as these companies will begin to function
once approved. It is expected that they will be the
substitute for the individual sponsorship system. The source
also declared that there is a proposal for the establishment
of new companies to accommodate foreign workers after the
completion of the projects they were recruited for and to
provide them with quality services to prevent them from
falling into prohibited acts.

End text.


JEDDAH 00000194 002.2 OF 002



6. (C) BAHRAIN'S DECISION TO END SPONSORSHIP INFLUENCING
SAG?: The government of Bahrain's recent decision to end
their labor sponsorship system has received extensive media
attention as well as kudos from organizations including Human
Rights Watch. Taha pointed out the change in Bahrain in
noting the current SAG interest in changing its system.
Later, however, he clarified that the SAG is not being
influenced by this "small country that is minute compared to
Saudi Arabia."


7. (C) INDIAN DCM SKEPTICAL OF CHANGE TO SPONSORSHIP: Indian
DCM Rajeev Shahare (protect) suggested skepticism in a May 18
meeting with Riyadh poloff. In particular he noted that the
business community is reticent about any changes to the
sponsorship system. Shahare noted that current labor law is
good, but the problem is a lack of enforcement. He added
that Saudi labor law also has significant gaps, notably that
it does not cover domestic workers and drivers in the
country.

ANTI-TRAFFICKING


8. (C) MOL OFFICIAL SAYS ANTI-TRAFFICKING LEGISLATION "WILL
BE APPROVED": Dr. Taha, the Labor Ministry consultant
indicated that an anti-trafficking law "will be approved,"
but could not explain why the matter has
been delayed, other than noting that the legislation must
pass through multiple levels of government scrutiny. In
November the Shura Council was apparently set to debate a
comprehensive anti-trafficking law devised with the
cooperation of several ministries. However, since that point
there has been no sign of any progress.
Al Sharq Al Awsat newspaper reported April 15 that two Shura
Council members are drafting a law with 60 new articles
related to the recruitment of foreign labor. The specifics of
this draft are not clear and could be totally unrelated to
the changes discussed in November.

DOMESTIC WORKERS


9. (C) MOL OFFICIAL NOTES PROGRESS: Dr. Taha at the Labor
Ministry reported May 19 that the Shura Council was
continuing to discuss a new labor law for domestic workers as
recently as the week before although he was unsure whether
the provisions had been approved yet. This possibility
follows March media reports that the Shura Council had
considered the domestic worker issue and then failed to pass
any new law. Al-Madina newspaper reported March 7 that the
Council was planning to discuss new draft regulations
pertaining to domestic workers in the Kingdom. Domestic
workers are not currently included under the mandate of Saudi
labor law. Draft regulations were purported to address
salaries, travel allowances, working hours, transfers between
employers, penalties for non-compliant employers, and other
issues. Al-Yom Arabic daily reported March 17 that the Shura
Council had not approved changes to the domestic labor
regulations.


10. (C) COMMENT - STILL WAITING FOR LEGAL CHANGES, BUT
IMPLEMENTATION IS THE REAL TEST: There has been significant
discussion over the past year about changes to the
sponsorship system, the domestic labor law, and the
possibility of passing a comprehensive anti-trafficking law.
However, no major change to the legal code has yet taken
place. The system for enacting change remains opaque, and the
rumblings for the time being may be nothing more than
wheel-spinning. As the Indian official noted, the current
Saudi labor law already offers significant protections to
many classes of workers. However, with so many other legal
issues in the Kingdom, the real question is enforcement. END
COMMENT.
QUINN