VZCZCXRO1383
PP RUEHDE RUEHDIR
DE RUEHMS #1565/01 3101349
ZNR UUUUU ZZH
P 061349Z NOV 06 ZDK
FM AMEMBASSY MUSCAT
TO RUEHC/SECSTATE WASHDC PRIORITY 7376
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY
RUEHC/DEPT OF LABOR WASHDC PRIORITY
RUEHGV/USMISSION GENEVA PRIORITY 0122

UNCLAS SECTION 01 OF 02 MUSCAT 001565 
 
SIPDIS 
 
SIPDIS 
 
DEPARTMENT FOR NEA/ARP, NEA/PI (S. FRANCESKI AND B. 
ORBACH), DRL (A. ANZALDUA) 
DEPARTMENT PASS USTR FOR J. BUNTIN AND A. ROSENBERG 
DOL FOR J. SHEA, B. SHEPARD AND J. RUDE 
US MISSION GENEVA FOR LABOR ATTACHE 
 
E.O. 12958: N/A 
TAGS: ELAB ETRD KMPI PGOV PHUM MU
SUBJECT: STATUS OF OMANI LABOR COMMITMENTS UNDER THE FREE 
TRADE AGREEMENT 
 
REF: MUSCAT 01541 
 
MUSCAT 00001565  001.15 OF 002 
 
 
 ¶1. Summary: Oman committed to enact specific labor law 
reforms by October 31, 2006 under Free Trade Agreement (FTA) 
negotiations.  To date, Oman has met almost all of its 
commitments regarding worker protections, collective 
bargaining and the right to strike.  However, it has not 
published implementing regulations for reforms covering union 
organizing, or issued a pending circular prohibiting the 
withholding of passports.  A clarification of compulsory 
labor provisions for public servants in Oman's Basic Law also 
is outstanding.  End Summary. 
 
¶2. In a letter dated May 8, 2006 to former-U.S. Trade 
Representative Robert Portman, Minister of Commerce and 
Industry Maqbool Ali Sultan specified his government's 
commitment to fulfill certain labor obligations resulting 
from the U.S.- Oman FTA.  Maqbool pledged that Oman would 
make a number of reforms to its Basic Law and 2003 Labor Law 
by October 31, 2006.  The following paragraphs list the 
commitments in the May 8 letter and the steps Oman has taken 
to fulfill them. 
 
- - - - - - - - - - - - - - - - - - 
Oman's Commitments to Labor Reform 
- - - - - - - - - - - - - - - - - - 
 
¶3. Commitment: Prohibit employers from engaging in forced 
labor and withholding workers' passports or other documents. 
Action: On July 8, 2006 the Sultan issued Royal Decree 
74/2006, amending the 2003 Labor Law to prohibit forced labor 
and set penalties not to exceed one month in prison and/or 
500 Omani Riyals (OR).  Minister of Manpower Juma bin al-Juma 
reportedly is prepared to sign an administrative circular 
carrying the force of law that will prohibit employers from 
withholding passports (ref A). 
 
¶4. Commitment: Increase the penalties against employers who 
hire child labor or abuse women in the workplace. Action: The 
Royal Decree of July 8 amended Article 118 of the 2003 Labor 
Law to raise the fines from 100 OR per violation to 500 OR. 
The Decree also increases possible prison terms for repeat 
offenders from one week to one month. 
 
¶5. Commitment: Permit workers to form more than one union per 
firm, and unions to create and choose among more than one 
federation to represent their collective interests. Action: 
The Royal Decree of July 8 officially recognizes workers' 
right to form unions, formerly called "representative 
committees," and a General Federation, formerly called "The 
Main Representative Committee," which would represent them at 
regional and international fora.  In addition, the Decree 
amends and adds to Articles 108 and 110 of the 2003 Labor Law 
to allow more than one union per firm. The Sultan issued 
Royal Decree 112/2006 on November 4 to amend Article 109 to 
allow unions to create more than one General Federation. 
Royal Decree 112 further authorizes the creation of a new 
body called the General Confederation for Oman's Laborers. 
 
¶6. Both Royal Decree 74 and 112 state that the Ministry of 
Manpower (MOM) would publish regulations under a Ministerial 
Decision covering the registration, formation and activities 
of unions and their representative bodies.  The Ministerial 
Decision reportedly is complete, and contacts state that 
Minister al-Juma is prepared to sign and issue the Decision 
(ref A). 
 
¶7. Commitment: Expand the definition of wrongful termination 
to include termination for lawful union activity, and raise 
the penalties against employers who engage in anti-union 
discrimination.  Action: Royal Decree 74 adds language to 
Article 110 of the 2003 Labor Law specifically prohibiting 
employers from firing or imposing other penalties on workers 
who engage in union activities.  The Decree also amends 
Article 112 to include new penalties for impeding union 
development not to exceed one month in prison and/or 500 OR. 
 Royal Decree 112 expands the prohibition in Article 110 to 
cover the newly-authorized confederation.  The new Decree 
does not, according to local press, amend Article 106 to 
specifically list reinstatement as a remedy for workers 
wrongfully dismissed. 
 
¶8. Commitment: Remove government involvement in workers' 
ability to form unions and conduct their activities.  Action: 
 
MUSCAT 00001565  002.2 OF 002 
 
 
The Royal Decrees of July and November amend Article 110 of 
the 2003 Labor Law to read that unions, federations and the 
confederation are free to act as independent entities without 
interference in their affairs by government or any other 
party. 
 
¶9. Commitment:  Require employers to engage in collective 
bargaining over terms and conditions of employment, including 
wages and hours of work, and guarantee workers' right to 
strike.  Action: Royal Decree 74 creates a new article in the 
2003 Labor Law, Article 107/bis, directing the MOM to issue 
implementing regulations covering collective bargaining and 
the right to strike.  On November 1, Minister al-Juma issued 
a Ministerial Decision titled "Regulations of Collective 
Bargaining, Labor Disputes Resolution, Strikes and Closure" 
to meet this requirement. 
 
¶10. Commitment: Specify which classes of public service could 
be required under compulsory labor provisions.  Action: 
According to Minister Maqbool, the government committed to 
amend Article 12 of Oman's Basic Law to clarify the classes 
of public employees that may fall under its provisions.  Such 
clarification remains outstanding. 
GRAPPO