VZCZCXYZ0020
OO RUEHWEB

DE RUEHJMA #0076 0171332
ZNR UUUUU ZZH
O 171332Z JAN 07
FM AMCONSUL JERUSALEM
TO RUEHC/SECSTATE WASHDC0000
INFO ARAB ISRAELI COLLECTIVE
RHEHNSC/NSC WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEHBS/USEU BRUSSELS

UNCLAS JERUSALEM 000076 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
NEA FOR FRONT OFFICE; NEA/IPA FOR 
WILLIAMS/SHAMPAINE/BELGRADE; NSC FOR ABRAMS/DORAN/WATERS; 
TREASURY FOR SZUBIN/LOEFFLER/NUGENT/HIRSON; OPS PLEASE PASS 
TO TRAVELING PARTY 
 
E.O. 12958: N/A 
TAGS: ECON EFIN PGOV KWBG IS
SUBJECT: PA EMPLOYEE STRIKE ENDS 
 
REF: 2006 JERUSALEM 4893 
 
¶1.  (SBU) SUMMARY:  THE PALESTINIAN AUTHORITY (PA) AND THE PA 
UNION OF PUBLIC EMPLOYEES ARRIVED AT AN AGREEMENT ON JANUARY 
13 TO END THE PUBLIC EMPLOYEES STRIKE, WHICH BEGAN SEPTEMBER 
2, 2006.  THE PA PROMISED TO BEGIN IMMEDIATELY TO PAY ALL 
SALARY ARREARS AND CURRENT PAYMENTS, WITH DECEMBER SALARIES 
PAID IN FULL ON JANUARY 25.  ACTING PA MINISTER OF FINANCE 
SAMIR ABU AISHEH TOLD THE PRESS THAT THE PA CONSIDERED 
ALLOWANCES PROVIDED BY THE TIM MECHANISM AS PARTIAL SALARY 
PAYMENTS TO PA EMPLOYEES.  THE PA UNION OF PUBLIC EMPLOYEES 
AGREED TO ALLOW WORKERS TO RETURN TO WORK ON JANUARY 14.  BY 
JANUARY 16, ACCORDING TO NEWS REPORTS, AN ESTIMATED 95 
PERCENT OF PA WORKERS HAD RETURNED TO WORK.  END SUMMARY. 
 
BACK TO WORK 
------------ 
 
¶2.  (SBU) THE PUBLIC EMPLOYEES STRIKE LAUNCHED ON SEPTEMBER 
2, 2006 CAME TO AN END ON JANUARY 13 WITH THE SIGNING OF AN 
AGREEMENT IN RAMALLAH BETWEEN THE PALESTINIAN AUTHORITY (PA) 
AND THE PA UNION OF PUBLIC EMPLOYEES.  PA DEPUTY PM NASSER AL 
SHAER AND PA UNION OF EMPLOYEES HEAD BASSAM SAKERNEH SIGNED 
AN AGREEMENT IN RAMALLAH ON JANUARY 13 THAT BROUGHT PA 
EMPLOYEES BACK TO WORK WITH ALL SALARY PAYMENTS AND ARREARS 
TO BE MADE OVER THE NEXT FOUR OR FIVE MONTHS.  THE AGREEMENT 
STATED THAT PA EMPLOYEES WOULD RECEIVED THEIR DECEMBER SALARY 
PAYMENTS ON JANUARY 25. 
 
¶3.  (SBU) ACCORDING TO PRESS REPORTS, 50-60 PERCENT OF 
WORKERS RETURNED TO WORK ON JANUARY 14 AND BY JANUARY 16 AN 
ESTIMATED 95 PERCENT OF PA EMPLOYEES WERE BACK AT WORK. 
 
TIM MECHANISM PAYMENTS 
---------------------- 
 
¶4.  (SBU) ACTING PA MINISTER OF FINANCE SAMIR ABU AISHEH TOLD 
AL QUDS DAILY ARABIC NEWSPAPER ON JANUARY 11 THAT THE PA 
CONSIDERED ALLOWANCES PROVIDED BY THE TIM MECHANISM AS 
PARTIAL SALARY PAYMENTS TO PA EMPLOYEES, AND, ACCORDING TO 
NEWS REPORTS, THE CALCULATION OF SALARY ARREARS WILL REFLECT 
THIS. 
 
SOURCES OF REVENUE 
------------------ 
 
¶5.  (SBU) ABU AISHEH TOLD MEMBERS OF THE PRESS ON JANUARY 13 
THAT THE PA OFFICE OF THE PRESIDENT HAD AGREED TO FACILITATE 
THE TRANSFER OF THE MONEY DEPOSITED INTO AN ARAB LEAGUE 
ACCOUNT BY PM HANIYYAH IN DECEMBER - FOLLOWING HIS 
UNSUCCESSFUL ATTEMPT TO BRING THE FUNDS THROUGH THE RAFAH 
CROSSING.  THE OFFICE OF THE PRESIDENT AGREED TO HELP WITH 
THE TRANSFER IF SECURITY FORCES SALARY PAYMENTS ARE MADE 
WITH THESE FUNDS, ACCORDING TO PRESS REPORTS. 
 
¶6.  (SBU) ABU AISHEH STATED THAT THE USD 22.5 MILLION PLEDGED 
BY THE GOVERNMENT OF QATAR WILL BE USED TO PAY SALARIES OF PA 
EMPLOYEES OF THE MINISTRY OF EDUCATION (SEE REFTEL).  HE TOLD 
THE PRESS THAT ANOTHER SOURCE OF PAYMENT WILL BE DOMESTIC TAX 
REVENUES, WHICH SHOULD INCREASE ONCE THE PA STARTS PROVIDING 
SERVICES AGAIN. 
WALLES