VZCZCXYZ0001
RR RUEHWEB

DE RUEHAM #3992 2700834
ZNR UUUUU ZZH
R 270834Z SEP 07
FM AMEMBASSY AMMAN
TO RUEHC/SECSTATE WASHDC 0425
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHXK/ARAB ISRAELI COLLECTIVE

UNCLAS AMMAN 003992 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/ELA (ALLEN, RANA) 
STATE PLEASE PASS TO USTR (SAUMS, ROSENBERG, KARESH) 
STATE PLEASE PASS TO USAID 
 
E.O. 12958: N/A 
TAGS: ELAB ECON PGOV JO
SUBJECT: Jordanian Labor Minister Continues to Focus on Improving 
Labor Situation in QIZs 
 
Refs: A) Amman 3579 
       B) Amman 3472 
 
Sensitive but unclassified; please protect accordingly. 
 
¶1.  (U) This message contains an action request.  See paras 6-7. 
 
¶2.  (SBU) Summary: In a September 26 meeting with the Ambassador, 
Minister of Labor Bassem Salem provided an update on labor issues, 
noting that despite some intermittent problems, dramatic 
improvements have been made, particularly in the Qualifying 
Industrial Zones (QIZs).  The Ministry of Labor (MOL) continues to 
explore innovative ideas to augment the unskilled labor force in 
Jordan, including the establishment of satellite QIZ factories in 
remote villages with heavy female unemployment.  Post requests 
feedback from USTR on the possibility and process of extending QIZ 
designations to such satellite factories within Jordan.  End 
summary. 
 
¶3. (SBU) The Minister attributed improvements in labor compliance 
largely to the efforts of the USAID-funded Labor Advisor Lejo 
Sibbel, who has spearheaded a change in the culture of the Ministry 
and developed positive relationships with the private sector.  He 
would like to see Sibbel stay on for another year in order to 
continue building and transferring skills to the MOL inspection 
team.  NOTE: USAID is willing to consider extension of the contract 
if Sibbel agrees.  END NOTE.  The Ambassador also noted that USAID 
plans to contribute approximately $2.7 million to the International 
Labour Organization's (ILO) Better Work Jordan program, which should 
help strengthen the inspection regime and public-private dialogue. 
 
 
¶4. (SBU) Regarding the regularization of workers' permit status, 
Salem confirmed that MOL, in cooperation with the Jordan Garment and 
Apparel Textile Exporters' Association (JGATE), is still in the 
process of determining which factories merit the waiver of penalties 
for workers who had been transferred from other shut-down factories 
and lacked permits (Ref A).  Poor record keeping and some 
undocumented employee shuffling by the factories to avoid fees has 
made this an arduous undertaking.  Nevertheless, Salem hopes to 
complete the process soon, and has received approval from the 
Minister of Interior and former Finance Minister to issue the 
waiver, which will cost the government a "couple of million JD's 
(Jordanian dinars)." 
 
¶5.  (SBU) The Ambassador noted that the private sector continues to 
complain about the bureaucratic red tape involved in bringing in 
foreign laborers (Ref B).  Salem acknowledged that the Ministry has 
intentionally made it a clean, but not necessarily easy process - 
i.e., not subject to "wasta" (influence) or quick turnaround - in 
order to encourage use of Jordanian labor.  He noted that the MOL is 
finalizing an employment policy that should help clarify procedures. 
 NOTE: As of July 31, MOL reported 51,340 total workers in the QIZs, 
of which 36,166 or about 70 percent, are foreign.  END NOTE. 
 
¶6.  (SBU) Efforts to increase Jordanian employment in unskilled 
sectors include an army training program in which participants will 
be employed in a civilian capacity in the private sector for two 
years after training.  Given that the program only applies to males 
aged 18-35, Salem has created a public-private committee to examine 
another proposal targeting women.  Built on a model used in Sri 
Lanka, the proposal entails already-established investors in 
Jordan's QIZs building satellite factories in villages that suffer 
from heavy female unemployment and are located far from the QIZs. 
The Jordanian government would subsidize the investment, for example 
through reduced rental fees or utilities for a given period.  Noting 
that this proposal is only in the brainstorming stage, Salem 
questioned whether there would be the possibility of giving such 
factories QIZ status. 
 
¶7.  (SBU) ACTION REQUESTED:  Post requests feedback from USTR on the 
possibility and process of extending QIZ designations to satellite 
factories within Jordan. 
 
Visit Amman's Classified Website at: 
http://www.state.sgov.gov/p/nea/amman 
 
Hale