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R 250519Z JUL 08
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TO RUEHC/SECSTATE WASHDC 8470
INFO RUCPDOC/USDOC WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEHNE/AMEMBASSY NEW DELHI 2187
RUEHKA/AMEMBASSY DHAKA 1020
RUEHIL/AMEMBASSY ISLAMABAD 8011
RUEHKT/AMEMBASSY KATHMANDU 6188
RUEHKP/AMCONSUL KARACHI 2370
RUEHCG/AMCONSUL CHENNAI 8616
RUEHC/DEPT OF LABOR WASHDC
RUEHLMC/MILLENNIUM CHALLENGE CORPORATION

UNCLAS SECTION 01 OF 03 COLOMBO 000719 
 
SENSITIVE 
SIPDIS 
 
STATE FOR SCA/INS AND DRL/IL FOR TU DANG 
STATE AND GENEVA PLEASE PASS TO USTR 
DOL/ILAB FOR TINA MCCARTER 
MCC FOR S GROFF, D NASSIRY AND E BURKE 
 
E.O 12958: N/A 
TAGS: ECON ELAB EAID ETRD PHUM SOCI MV
SUBJECT:  MALDIVES: EMPLOYMENT BILL RATIFIED AMID CONCERNS 
 
¶1. (U) Summary:  The President of Maldives recently ratified an 
employment bill which sets new rights and responsibilities for 
workers including a minimum wage, a limit on weekly working hours, 
and the establishment of an institution to resolve 
employment-related disputes.  The legislation was criticized by the 
Ministry of Employment and local industry bodies for exempting 
workers at resorts.  Industry leaders argue that the new laws are 
too broad to appropriately apply to each industry and that the new 
administrative procedures will adversely impact small to medium 
enterprises.  The Ministry and industry bodies are separately 
creating proposals to reflect these concerns.  Meanwhile, government 
efforts are underway to inform the public of new legislation and to 
establish three new labor-related authorities within two months of 
July 11, the date the bill came into force.  The government plans to 
join the International Labor Organization (ILO) by end 2008.  End 
summary. 
 
NEW WORKER RIGHTS 
----------------- 
 
¶2. (U) The Maldives employment bill passed a parliamentary vote in 
April 2008, was ratified by the President on May 26, and came into 
effect on July 11.  The bill was drafted based on principles of the 
International Labor Organization (ILO), which Maldives reports it 
intends to join by end 2008.  As the country's first comprehensive 
employee rights package, the legislation brings local and expatriate 
workers under one law and consolidates industrial regulations. 
Salient features of the bill include:  a ban on forced labor and 
discrimination; minimum age for employment set at 16; a maximum 
48-hour work week with entitled leave; a minimum wage; a code to 
discipline and dismiss employees; regulations on employee contracts; 
a workplace ethics code; and a rview of employment agencies. 
(Note:  To date, th final legislation has not been officially 
translted into English from Dhivehi; however, unofficialEnglish 
translations were created by and for indstry representatives.) 
 
¶3. (U) The legislation aso establishes a labor relations authority, 
a laor tribunal, and a minimum wage board.  The Ministr of 
Employment is responsible for setting up eac of these groups and 
will determine its organizaion, rules, operation, procedures, and 
membershi.  Once established, however, the labor relations 
authority and tribunal will be independent from the Ministry, and 
the board will report directly tothe Minister of Employment on an 
ad-hoc basis.  he seven-member labor tribunal will mediate and 
esolve disputes between employer and employees in the public sector 
and across all industries (except resorts) in the private sector. 
The President of Maldives appoints the chairman of the tribunal. 
The ten-member labor relations authority will enforce the law and 
labor regulations.  A three-member wage board, appointed by the 
President, will advise the employment minister on setting minimum 
wage rates per industry.  The Ministry hopes these respective groups 
will be established by early September. 
 
AWARENESS CAMPAIGNS 
------------------- 
 
¶4. (U) The Ministry is engaged with local media to promote the new 
rights and responsibilities accorded to all workers.  Outreach to 
the public began before the bill was ratified, and has since 
increased.  The Ministry encouraged employees to form 
industry-related associations so that it can reach more workers via 
targeted outreach seminars. 
 
PRESIDENT WELCOMES AMENDMENTS 
DESPITE CONCERNS 
----------------------------- 
 
¶5. (U) The People's Majlis (parliament) passed the employment bill 
with eleven amendments to the original document.  There were 
initially 46 amendments proposed; members of parliament agreed to 
continue discussing the remaining 35 following the bill's passage. 
According to local reporting, President Gayoom, acknowledging the 
bill's shortfalls, stated that he ratified a bill that necessitates 
amendments because he believed that a problematic bill is better 
than none.  Gayoom also said he welcomed future amendments and 
proposals by industry bodies. 
 
 
COLOMBO 00000719  002 OF 003 
 
 
NOT FAR ENOUGH:  RESORT WORKERS OVERLOOKED 
------------------------------------------- 
 
¶6. (U) Although most of the eleven amendments passed were minor and 
editorial in nature, the last-minute exclusion of resort workers 
from certain basic rights - including maximum working hours and time 
slots for meal, prayers, and breaks -- caused a great deal of 
controversy.  The legislation already exempted people working in 
emergency services, seagoing vessels and aircraft, seaports and 
airports, industrial islands and executive posts from these 
requirements.  A legal officer from the Ministry of Employment 
explained that these workers (with the exception of executives) are 
covered by international conventions that Maldives recognizes. 
 
¶7. (U) To date, there has been no official explanation as to why the 
Majlis extended the exemption to resort staff. However, several 
members of Parliament are owners or part-owners of resorts, which 
may explain the exemption.  The action drew extreme criticism from 
some MPs.  Workers at the 90+ tourist resorts in Maldives represent 
the largest economic sector in the economy (as a portion of GDP). 
One local paper quoted Minister of Information Mohamed Nasheed 
saying that the exemption was "necessary in order to allow the 
industry to prosper, and that employment packages were 'different' 
at resorts as each hotel maintains their own contractual agreements 
with their employees, which are not regulated by the government. 
The Ministries of Employment and Legal Reform submitted an amendment 
to overturn this provision on July 17. 
 
TOO FAR: INDUSTRY CONCERNED ABOUT IMPACT 
------------------------------------------ 
 
¶8. (U) Numerous industry bodies, including Maldives National Chamber 
of Commerce and Industry, Maldives Association of Tourism Industry, 
and Maldives Association of Construction Industry, are working 
together to propose changes to the legislation out of concern it 
will adversely impact local businesses.  Industry contends that the 
new laws fail to distinguish different scales of enterprises within 
the employment market, that they are too broad (i.e., "impractical 
and archaic"), and not specific enough to each industry.  Industry 
leaders argue that the legislation favors employees and does not 
take into consideration the general rights of the employers.  For 
example, industry representatives contend that the eight hour work 
day with required overtime pay will be a problem in the construction 
field, where tasks require 14 straight hours to complete.  Industry 
seeks a "friendly and flexible" set of revisions that would provide 
greater discretion to employers and employees to set the conditions 
of their contractual agreements, including labor grievances, number 
of maximum hours, and leave allowance. 
 
¶9.  (U) Industry leaders also claim that the new laws will adversely 
impact small to medium scale enterprises which do not have the 
resources to handle the new administrative requirements required for 
labor disputes or the maintenance and provision of employment and 
salary records.  Industry also wants participation by its 
representatives on the new labor tribunal, minimum wage board, and 
labor relations authority. 
 
COMMENT 
------- 
 
¶10. (SBU) Although more work is needed to ensure both implementation 
and compliance with international labor standards, the passage of 
Maldives' first comprehensive employment legislation is a positive 
step. (While the law does not provide for certain basic workers' 
rights promoted by the ILO such as freedom of association and the 
right to organize and bargain collectively, these are addressed in 
Maldives' new constitution, which is pending ratification.) 
Maldives stated desire - as noted publically by the Foreign Ministry 
and Attorney General - to join the ILO in 2008 is also encouraging. 
The ILO Director in Sri Lanka told EconOff that she is confident 
that Maldives will achieve ILO membership by end of the year.  In 
late June, Maldives' Acting Minister of Employment participated at 
the International Labor Conference in Geneva and met with the 
Director General of ILO.  Maldives will also be participating in 
several ILO-sponsored conferences in Sri Lanka this year. 
 
¶11.  (U) The Ministry has welcomed the proposed labor law seminar 
 
COLOMBO 00000719  003 OF 003 
 
 
sponsored by the American Center for International Labor Solidarity 
and funded by DRL, and requested that all Maldives stake holders 
participate, including workers associations, employers associations, 
the media, the Human Rights Commission, the Civil Service 
Commission, Maldives Police Service, representatives from the major 
employers, the Presidents Office, the Ministry of Justice, the Civil 
Court, and the High Court.  Post will coordinate with DRL and ACILS 
on seminar organization.