KUWAITI PARLIAMENT PASSES PRIVATE SECTOR LABOR LAW

UNCLAS KUWAIT 001214 SIPDIS NEA/ARP, NEA/RA E.O. 12958: N/A TAGS: PGOV PREL PINR KTIP KU SUBJECT: KUWAITI PARLIAMENT PASSES PRIVATE SECTOR LABOR LAW REF: KUWAIT 1195 National Assembly Ratifies Private Sector Labor Law -------------- -------------- ¶1. (U) Updating an antiquated 1964 law, the Kuwaiti National Assembly unanimously approved on December 23 the second -- and final reading -- of its Private Sector Labor Law. The law will come into effect by Amiri decree either by his signature or on the lapsing of a 30-day deadline for his signing. The approximately 70 new articles and amendments in the updated law are largely viewed as beneficial to Kuwait's large expatriate laboring community. Pressure from the USG, international organizations and NGOS, and reform initiatives undertaken by Minister of Social Affairs and Labor (MOSAL) Dr. Mohammed Al-Afasi are credited with providing the impetus for the passage of this bill into law. Benefits to private workers include: -- more favorable working conditions, -- longer leaves, -- higher severance pay, -- more secure salaries (minimum wage for workers according to their professions). ¶2. (U) Of key importance in the amendments is a provision for the establishment of a state-owned recruitment company to oversee and manage the importation of foreign labor, a move intended to eliminate visa trading and illicit recruitment of foreign workers. (Note: The new law punishes more harshly -- 3 years imprisonment and/or raised fines up to KD 5000 -- the illicit recruitment of workers. End note). Hailed publicly as an "historic accomplishment" by Chairman of Kuwaiti Trade Union Federation Khaled Al-Azmi, the passage of this law, though it does not address the plight of Kuwait's half million domestic workers, will hopefully pave the way for an anti-TIP bill previously approved by the National Assembly's legislative committee. Issue of Loans Debated -------------- ¶3. (U) In another important parliamentary action on the same day, the National Assembly also debated the highly contentious issue of consumer debt forgiveness and in the early morning hours of December 24, MPs passed the first reading (of two) of a law that dismisses interest on and reschedules private debt. This matter promises to provide an interesting backdrop to future relations between the National Assembly and the GoK: Many of the Islamist and tribal candidates in the May elections highlighted debt forgiveness as a key campaign platform agenda, while the GoK, though emerging strong from its weathering of recent interpellations (reftel),deems the law as costly and impractical by rewarding fiscally irresponsible behavior. Post will report further developments septel. ********************************************* ********* For more reporting from Embassy Kuwait, visit: visit Kuwait's Classified Website at: http://www.intelink.sgov.gov/wiki/Portal:Kuwa it ********************************************* ********* JONES