This record is a partial extract of the original cable. The full text of the original cable is not available.

041404Z Jan 06

C O N F I D E N T I A L SECTION 01 OF 02 MANAMA 000020 
 
SIPDIS 
 
E.O. 12958: DECL: 01/03/2016 
TAGS: PGOV PREL ELAB ECON BA POL HUMRIT
SUBJECT: NATIONAL JOB PROJECT KICKS OFF REGISTRATION 
CAMPAIGN 
 
REF: 2005 MANAMA 1773 
 
Classified By: Charge d'Affaires Susan L. Ziadeh for reasons 1.4(b) and 
 (d). 
 
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Summary 
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¶1.  (C) The long-awaited $80 million National Employment and 
Training Project began registering Bahrain's estimated 20,000 
unemployed January 2 at 20 centers around the country. 
Minister of Labor Dr. Majeed Al-Alawi has stated publicly 
that the project will end unemployment in the Kingdom.  Dr. 
Al-Alawi has been personally very active in promoting the 
project reaching out to both Shi'a and Sunni clerics, 
politicians, political societies, and the business community, 
and in coming days will attend village meetings to speak 
directly with the public.  The GOB has been pressuring 
employers to participate in the project.  According to 
Bahrain Training Institute (BTI) Director Mohamed Dirbas, 
employers must work to overcome a deep-seated feeling of 
mistrust harbored by many unemployed persons. 
Editor-in-Chief Mansour Al-Jamri highlighted the shortage of 
trust on the part of the public for any project offered by 
the government, while personally supporting the plan. 
Australian firm EFI International is a partner with the 
Ministry on the project, and the BTI is the primary provider 
of training.  End Summary. 
 
¶2.  (U) The press reports that almost 2,000 of Bahrain's 
estimated 20,000 unemployed, 14% of the Bahraini workforce, 
registered January 2 and 3 on the first two days of 
registration for the GOB National Employment and Training 
Project (NETP).  Minister of Labor Dr. Al-Alawi continued to 
be visible as he visited several of the 20 centers, 15 of 
which are temporary sites opened specifically for the 
project's registration period.  In a segmented registration 
plan, job seekers over 30 years of age will register in the 
first week, those 25-30 in the second week, those 20-24 in 
the third week, and those under 20 in the fourth week.  The 
second month of registration will be open to anyone who 
missed the earlier specified week.  The heaviest volume is 
expected in weeks two and three as 56% of the unemployed are 
in the 20-30 age bracket.  The $80 million project has as its 
goal to train unemployed Bahrainis to assume jobs which are 
currently filled by expatriate workers, who make up 
approximately 55% of Bahrain's workforce of 320,000.  The 
Ministry of Labor has targeted 10,000 new workers to be 
employed within calendar year 2006 and another 10,000 in 
¶2007.  This training and employment program is a critical 
component of the Crown Prince's economic reform project 
launched in fall 2004. 
 
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Come One, Come All...But Don't Dally 
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¶3.  (C) Dr. Al-Alawi said publicly December 27 that those 
seeking jobs are being given a "golden opportunity" to 
receive training and employment.  He stressed that those who 
miss the two month registration window, and therefore do not 
participate in the project, will no longer be considered 
unemployed.  (Note:  This appears to be a warning to a group 
of persistent protesters from the Committee of the Unemployed 
who have carried on sporadic protests in recent weeks 
following violent clashes with police in late November and 
early December, per reftel.  End note.) 
 
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Al-Alawi and the Press Reach Out to the People 
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¶4.  (U) Dr. Al-Alawi has conducted a highly visible public 
affairs campaign to spread the word about the NETP.  He began 
in early December, meeting with prominent Shi'a clerics 
Shaikh Isa Qassim, Shaikh Abdulla Al-Ghuraifi, and Shaikh 
Hussein Al-Najati, among others, to garner their support for 
the program as they speak to Shi'a followers, who are 
disproportionately represented in the ranks of the 
unemployed.  Several subsequently promoted the program during 
their Friday sermons.  Dr. Al-Alawi then met with Sunni 
shaikhs, politicians, business leaders and leaders of 
political societies.  In coming days the Minister, a former 
Shi'a exile himself who returned from London following the 
launch of the King's reform program, plans to visit a string 
of villages to speak directly to the people and their local 
leaders to encourage them to register under the project. 
 
¶5.  (U) Arabic daily Al-Wasat Editor-in-Chief Mansour 
Al-Jamri January 4 threw his full support behind the project 
while admitting that a major problem is that "there is a lack 
of trust among civil society leaders and religious scholars 
in any project or idea offered by the government."  He 
advocated that the government use additional media such as 
television and radio to build public trust, and called upon 
civil society groups and clerics to support the plan.  The 
project has used a scientific and realistic approach, which 
previous unemployment plans failed to do, to identify the 
unemployed, and this aspect will lead toward success, he 
added. 
 
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The Institute in the Spotlight 
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¶6.  (C) In a December 21 meeting with Poloff, BTI Director 
Mohamed Dirbas also pointed to mistrust between Bahraini 
unemployed and employers.  Employers have historically sought 
trained expatriate labor, which has been less expensive and 
usually does not raise its voice through union involvement. 
Bahraini workers feel betrayed by these hiring practices. 
Dirbas explained that the GOB has put pressure on businesses 
to hire trained Bahrainis and to cooperate with the Ministry 
of Labor on the project.  To make Bahraini workers more 
economically competitive with expats, the GOB has presented 
to parliament labor reform legislation that establishes fees 
for employing expat workers. 
 
¶7.  (C) Dirbas said that BTI has already hired unemployed 
university graduates to seek out job openings in the market 
and will continue hiring to meet increased demands as BTI 
takes the lead in training the registered unemployed.  The 
General Organization for Social Insurance has identified 
sectors of the job market that currently employ expats, but 
whose jobs and salaries Bahraini workers would welcome. 
Dirbas cited that 76% of the unemployed are high school 
graduates and school drop-outs.  Another 15% have additional 
schooling up through the equivalent of an associate degree 
and the remaining 9% are university graduates.  Beginning 
monthly stipends and salaries for jobs found through the NETP 
correspond to one's educational level ranging from BD 100-300 
($265-800). 
 
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Assistance from Outside This Time 
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¶8.  (U) The GOB hired an Australian firm, EFI International, 
to partner with the Labor Ministry for 18 months for a sum of 
$10 million to conduct a field study, provide expertise in 
the assessment process, monitor training programs, and direct 
the placement of trainees into jobs.  For those applicants 
lacking marketable skills, project staff conduct a 
post-registration assessment at one of ten centers to 
identify an applicant's skills and aptitudes.  Based on the 
results, the applicant will begin a training program at one 
of three levels:  craftsman, technician or specialist. 
 
¶9.  (U) According to those close to the program, previous 
efforts dealing with the problem of unemployment were not 
successful partly because they lacked a system to identify an 
individual's aptitudes.  Applicants were pushed to take jobs 
for which they were not trained and in which they were not 
skilled, resulting in discouragement and failure.  There was 
also much alleged corruption attached to previous efforts. 
Ministry of Labor officials are far more optimistic this time 
because EFI International provides more accountability and 
oversight, assessment and training are a key feature of the 
process, and the 20 registration centers make for easy public 
access.  Previously registration was handled only through the 
Ministry itself.  In addition, this project is staying away 
from construction jobs, which are shunned by Bahrainis. 
 
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Comment 
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¶10.  (C) Optimism is running high over the NETP.  The GOB has 
been very effective in its public relations campaign and the 
Labor Minister himself deserves much of the credit.  That 
said, this is just the beginning and if the Ministry does not 
come through on its public promises, there will be great 
disappointment.  The government's focus on this project may 
be read by some as a political victory for activists who have 
held (sometimes violent) demonstrations over the past year 
protesting lack of employment prospects.  Nonetheless, the 
project is an integral part of the Crown Prince's economic 
reform program to transform Bahrain's economy from a low 
labor-cost model to a services-oriented, knowledge-based 
model and, in the process, remedy its persistent unemployment. 
 
ZIADEH