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. 
 
¶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