VZCZCXRO7233
PP RUEHDE RUEHDIR
DE RUEHMS #0072/01 0241531
ZNR UUUUU ZZH
P 241531Z JAN 07
FM AMEMBASSY MUSCAT
TO RUEHC/SECSTATE WASHDC PRIORITY 7697
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE PRIORITY
RUEHC/DEPT OF LABOR WASHDC PRIORITY
RUEHGV/USMISSION GENEVA PRIORITY 0132

UNCLAS SECTION 01 OF 03 MUSCAT 000072 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR NEA/ARP, NEA/MEPI (S. FRANCESCHI AND B. 
ORBACH), DRL (A. ANZALDUA), NEA/PD (D. BENZE) 
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: PGOV PHUM ELAB ETRD KMPI MU
SUBJECT: LABOR PROGRAMMING NEEDS IN OMAN 
 
REF: A. 06 MUSCAT 1565 
 
     ¶B. MUSCAT 27 
     ¶C. STATE 4786 
     ¶D. 06 MUSCAT 1635 
 
¶1. Summary: The recently signed U.S.)Oman Free Trade 
Agreement (FTA) presents numerous opportunities for the USG 
to build the capacity of unions, promote worker rights, 
encourage greater activity on the part of women, and support 
our democratization goals.  Labor unions likely will be, for 
the foreseeable future, the only non-governmental 
organizations (NGOs) in Oman able to vocally advocate for 
human rights and exemplify democracy at work.  Accordingly, 
USG support to develop a vibrant labor movement and ensure 
the successful implementation of Oman's labor reforms will 
significantly advance our overall reform agenda.  Contacts 
have identified a number of program priorities: facilitating 
tripartite communication among business, labor and 
government; building judicial capacity to resolve labor 
disputes; raising awareness about unions in communities 
outside Muscat; and supporting linkages among employer 
associations to develop shared best practices in working with 
unions.  Additional opportunities for USG support include: 
supporting the development of sector-level labor 
organizations; training government workplace and safety 
inspectors; and enhancing the support network for migrant 
workers.  End summary. 
 
- - - - - - 
Background 
- - - - - - 
 
¶2. During the second half of 2006, Oman passed a number of 
labor reforms in conjunction with the U.S.)Oman FTA (ref A). 
 Contacts among business, labor and government tell poloff 
that the quick pace of reform has left them little time to 
develop the groundwork needed for effective implementation 
(ref B).  Unions are weak, and despite the presence of 
representative committees - Oman's precursor to unions - 
since 2005, contacts say that unions face the prospect of 
essentially building their organization and leadership from 
scratch.  Presently, two MEPI-funded programs are expected to 
form the nexus of USG labor assistance to Oman ) 
specifically, a program led by the International Labor 
Organization (ILO) to promote union development and core 
labor standards; and a program run by a regional 
non-governmental organization (NGO) to aid unions with 
organizing and conducting elections.  Contacts state, 
however, that they need greater USG assistance to help them 
implement labor reforms. 
 
¶3. USG support for labor in Oman - particularly developing 
viable labor unions - will greatly assist Post in pressing 
our broader reform agenda.  Once developed, unions will form 
the most visible and active segment of Oman's civil society, 
since the government maintains strict controls on the 
registration and activities of other types of NGOs. 
Therefore, unions promise to become Post's primary civil 
society partners in projects that advance human rights and 
democratic reform.  Unions should provide many Omanis with 
their first experience in direct democracy through union 
elections, and will also present women with new opportunities 
for leadership.  Post accordingly encourages the Department 
and other agencies to make supporting labor in Oman a 
priority.  Post provides the following list of project ideas, 
which Omani interlocutors have proposed during regular 
discussions with emboffs, as a starting point for increased 
USG assistance. 
 
- - - - - - - - - 
Programming Ideas 
- - - - - - - - - 
 
¶4. Facilitate Tripartite Communication: In a December 2006 
meeting with the Ambassador, Minister of Manpower Juma bin 
Ali al-Juma recommended that Post send representatives from 
Omani business, labor, and government to the United States to 
learn from their U.S. counterparts about best practices in 
labor relations.  Post believes that such a trip could help 
facilitate communication among these three sectors; provide a 
core group from each sector with a common set of experiences 
upon which to build relationships; and augment the ILO's 
proposed training plan.  Key issues and themes of the program 
could include: the role of government in promoting labor 
 
MUSCAT 00000072  002 OF 003 
 
 
relations; how labor leaders interact with both private and 
public sectors; how businesses benefit from maintaining 
positive relationships with labor; successful examples of 
labor dispute resolution; and best practices for managing 
labor relations in a diverse, multinational labor force. 
(Note: The ability to nominate a candidate for the 
International Visitor Leadership Program/Multi-Regional 
Project for labor in FY-07 (ref C) could partially fulfill 
the Minister's request.  Post has contacted the Bureau of 
Education and Cultural Affairs to develop this idea into a 
Single Country Program.  End note.) 
 
¶5. Build Judicial Capacity to Settle Labor Disputes: Contacts 
in the Ministry of Legal Affairs tell poloff that very few 
judges have experience in resolving labor disputes.  Business 
leaders have independently expressed that the lack of 
judicial experience undermines their faith in the dispute 
resolution process.  Post recommends that we include a 
workshop for judges on labor dispute resolution in the second 
phase of a MEPI-funded, American Bar Association project on 
legal reform in Oman. 
 
¶6. Conduct Labor Outreach in Salalah:  Labor contacts in 
Salalah - located in Oman's southeast -  tell poloff that 
there currently are only two unions in the important port 
city, and that they sorely need help to promote union 
development in Salalah's rapidly growing industrial and 
service sectors.  Labor contacts say that there is a broad 
lack of awareness among workers and employers about the role 
of unions and the extent of workers' rights under Oman's 
labor reforms.  Reflecting the thoughts of other employee 
leaders, the President of the union at the Crowne Plaza Hotel 
recommended that Post develop a train-the-trainer program for 
worker representatives from each of Salalah's major 
companies.  The program agenda could cover the basics of 
union organizing, collective bargaining and strikes, and how 
to conduct effective relationships with employers and 
government.  He added that the program should include a 
follow-up and evaluation component.  By channeling assistance 
outside the Muscat area, this program could help ensure 
balanced labor development throughout the country. 
 
¶7. Support Linkages Among Employer Associations: Employers 
tell poloff that they lack experience in dealing with unions, 
and are worried that collective bargaining and strikes may 
disrupt the stability of Oman's labor market (ref B).  The 
management of the Oman Society for Petroleum Services (OPAL), 
an influential non-governmental organization representing 
more than 200 companies in Oman's oil and gas industry, asked 
Post to design a program that brings together employers 
and/or employer associations from Oman, the United States and 
other Arab FTA countries to study best labor practices 
through case studies and other practical exercises.  The 
program would assist OPAL and employers in other sectors in 
developing guidelines for union relations that protect core 
labor standards.  In addition, it would help them in building 
international connections for ongoing support.  Finally, such 
a program could also aid in integrating women in the 
workforce and in Oman's labor unions. 
 
¶8. Promote Sectoral Organizations: Under Ministerial Decision 
311, unions are able to form federations that can represent 
workers in an entire sector.  Minister al-Juma reportedly 
wants unions to begin forming federations before the end of 
2007 (ref B).  While the MEPI regional office already is 
funding training for individual unions in organizing and 
conducting elections, Post is unaware of plans to help unions 
understand the role of sector-level organizations or the 
functions of their administrative bodies.  Post recommends 
that the USG support programming that introduces unions to 
broader labor federations in the United States and other 
countries with mature labor movements.  This support would be 
most useful toward the end of calendar year 2007 or early 
2008, since unions currently are focusing on organizing 
elections at the company level. 
 
¶9. Train Workplace and Safety Inspectors: Throughout Oman, 
many private companies maintain housing compounds for their 
low-skilled migrant workers.  Poloff has observed that the 
living conditions in some of these compounds ) locally known 
as "labor camps" - are cramped and lacking in hygiene, and 
may fail to meet international norms or comply with domestic 
laws regarding health and safety (ref D).  Officials at the 
Ministry of Manpower (MOM) admit to poloff that many of the 
 
MUSCAT 00000072  003 OF 003 
 
 
Ministry's inspectors who are responsible for investigating 
workplace complaints and enforcing compliance with Omani law 
lack experience and proper training.  Oman is in the process 
of recruiting new inspectors and is close to passing updated 
occupational health and safety regulations.  Post believes 
that a training program for MOM inspectors provides another 
mechanism for increasing worker protections. 
 
¶10. Enhance Support for Migrant Workers: Labor attaches in 
source country embassies have asked poloff for support in 
developing a brochure for newly arrived migrant laborers, 
which would explain in multiple languages their rights - 
including membership in a labor union - and the range of 
services available to them.  This project would model a 
brochure that source country embassies in Kuwait developed 
with USG support titled "What Workers Need to Know."  The 
labor attaches in Oman tell poloff that they would solicit 
the support and involvement of the Omani government so that 
workers could receive the brochure at the ports of entry. 
This project could result in enhanced collaboration among 
source country embassies, and provide essential information 
to potential trafficking victims.  In addition, by educating 
migrant workers about their right to join a union, the 
project could help expand unions' potential membership base. 
 
 
¶11. Comment: Oman needs significant assistance to 
successfully implement its labor reforms.  Unions in 
particular require substantial and sustained support.  Since 
the USG was the driving force behind these reforms under the 
auspices of the FTA, Post strongly believes that we likewise 
should play a central role in garnering the technical and 
programmatic support that Oman needs to help ensure their 
success.  In addition, support for union development falls 
squarely in line with our democratic reform agenda.  With 
leaders elected at thegrassroots level and accountable to 
workers, unions can serve as Oman's most visible examples of 
dmocracy in action.  Post will send additional progamming 
ideas septel as they arise, most likely once the ILO training 
is underway.  End comment. 
GRAPPO