VZCZCXYZ0007
PP RUEHWEB

DE RUEHAM #1063/01 1011552
ZNR UUUUU ZZH
P 101552Z APR 08
FM AMEMBASSY AMMAN
TO RUEHC/SECSTATE WASHDC PRIORITY 2222
INFO RUEHTV/AMEMBASSY TEL AVIV 1120
RUEHDM/AMEMBASSY DAMASCUS 3855
RUEHEG/AMEMBASSY CAIRO 3602
RUEHGB/AMEMBASSY BAGHDAD 5934
RUEHLM/AMEMBASSY COLOMBO 0179
RUEHNE/AMEMBASSY NEW DELHI 0276
RUEHBJ/AMEMBASSY BEIJING 0156
RUEHKA/AMEMBASSY DHAKA 0146
RUEHHI/AMEMBASSY HANOI 0037
RUEHJM/AMCONSUL JERUSALEM 4957
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHC/DEPT OF LABOR WASHDC

UNCLAS AMMAN 001063 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EEB/TPP/ABT, NEA/ELA, DRL, G/TIP 
STATE PASS TO USTR (CMILLER, AROSENBERG, LKARESH) 
STATE PASS USAID 
 
E.O. 12958: N/A 
TAGS: ELAB ECON ETRD EAID KTEX JO
SUBJECT: JORDAN APPROVES NEW RULES FOR QIZ GOLDEN LIST AND SLOWLY 
MOVES FORWARD WITH REGULARIZATION PROCESS 
 
REF:  AMMAN 727 
 
SENSITIVE BUT UNCLASSIFIED.  NOT FOR DISTRIBUTION OUTSIDE USG. 
 
¶1.  (SBU) Summary: Jordan's Ministry of Labor (MOL) approved new 
regulations for employing foreign workers in the Qualifying 
Industrial Zones (QIZs) on April 2.  The regulations set the 
parameters for a new "Golden List" of QIZ factories which abide by 
best practices regarding labor rights.  Companies that have engaged 
in non-payment of wages, forced labor, child labor, withholding of 
passports, and require more than an average of four hours of 
overtime would not be eligible for the Golden List, and therefore 
would be required to pay a hefty financial guarantee to be 
exclusively used for foreign workers.  MOL has also proceeded with 
the regularization process of 6,000 illegal foreign workers in 56 
companies in the QIZs, but remains frustrated that about half of the 
companies have not taken the necessary steps to legalize the status 
of their foreign workers.  End Summary. 
 
New Regulations Lead to New Golden List 
--------------------------------------- 
 
¶2.  (SBU) Labor Minister Bassem Salem approved new "Regulations on 
Bringing and Employing Foreign Labor in the Qualifying Industrial 
Zones" on April 2 that will go into effect on May 2.  NOTE: The 
Regulations are currently being translated into English from Arabic, 
which MOL plans to post on its website (www.mol.gov.jo) once 
completed.  END NOTE.  Inspection Directorate Chief Dr. Amin Wreidat 
told Emboffs April 7 the regulations set the criteria for a new 
Golden List for QIZ factories, which must abide by best practices 
regarding labor rights in line with international standards and 
local law.  Wreidat noted that the old 100-point system was flawed 
because a company could effectively fail to pay wages, but still be 
on the Golden List if good practices in other areas allowed the 
company to reach the required 80 points.  Although membership in the 
new Golden List is still based on achieving 80 out of 100 points, 
Wreidat noted that there are certain "red lines" that cannot be 
crossed and would disqualify companies from the Golden List, 
including forced labor, non-payment of wages, child labor, 
withholding of passports, and more than four hours of overtime on 
average per day.  Additionally, although Jordanian law does not 
prohibit or limit deductions of food and accommodation from the 
minimum wage, Golden List members cannot deduct more than 23% of the 
minimum wage for those items. 
 
¶3.  (SBU) According to Wreidat, the primary incentive of Golden List 
membership is exemption from a bank guarantee, which is set at JD 
30,000 (USD 42,373) for QIZ companies with under 100 workers, JD 
50,000 (USD 70,622) for companies with 101-200 workers, and JD 
75,000 (USD 105,932) for companies with more than 200 workers.  The 
money is frozen in a bank account as long as the company is 
operating in Jordan.  Wreidat noted that the new regulations specify 
that the bank guarantee may only be used according to a court 
decision toward ensuring foreign workers' rights if the employer 
violates any obligations arising from the law.  Wreidat said that 
the Jordanian courts had previously allocated some of the funds to 
Jordanian managers instead of the foreign workers. 
 
¶4.  (U) Another regulatory change is the need for an employer 
seeking foreign laborers to provide a letter from the Ministry of 
Labor in the country of origin to confirm that a foreign worker 
applicant has not paid any unnecessary fees to an employment agency, 
other than those specified by law.  Wreidat explained that this 
measure attempts to reduce the role of brokers in source countries 
often unknown to their embassies in Jordan, and to reduce the 
likelihood of foreign workers paying exorbitant fees to recruitment 
agencies in their home country.  Previously, the Jordanian MOL 
requested such a letter from the guest worker's embassy in Jordan, 
but has since determined that such a policy was not effective. 
 
¶5.  (U) Wreidat also commented that the regulations provide new 
minimum requirements for medical care and protections for 
whistleblowers.  Companies with more than 1,000 workers must have 
one full-time doctor, two nurses, one occupational health and safety 
(OHS) specialist, and one OHS technician.  Factories with 500-1,000 
 
workers must have one full-time doctor, one nurse, and one OHS 
specialist.  Companies with less than 500 workers must have one 
part-time doctor, one nurse, and one OHS technician.  Additionally, 
only the Ministry of Labor, rather than factory management, can now 
terminate the OHS specialists, to ensure their ability to freely 
report problems found. 
 
Regularization Process Slowly Moving Forward 
-------------------------------------------- 
 
¶6.  (SBU) After the GOJ waived overstay penalties for 6,000 illegal 
foreign workers in 56 QIZ factories, MOL held workshops and 
distributed brochures to the workers and employers to keep them 
informed of regularization procedures (ref A).  About half of the 
factories have actually begun the process, which Wreidat admitted 
has been slow due to the medical check-ups and background checks 
required before new permits can be issued.  In order to expedite the 
process, Wreidat negotiated the Ministry of Health's approval to 
have health workers administer the medical exams over the weekend 
and in mobile units that traveled to the QIZs.  Companies are 
covering the extra cost of these services. 
 
¶7.  (SBU) Wreidat expressed frustration with the companies that have 
not contacted MOL to begin the regularization process.  The amnesty 
period for all the illegal QIZ workers to adjust their status will 
end June 2.  He said that some of these companies were even trying 
to let go of the workers to avoid the JD 410 (USD 574) worker fee, 
of which JD 210 (USD 294) covered a new worker permit and JD 200 
(USD 280) covered the past period for which the worker had been 
employed without documentation or permits.  MOL plans to send out 
warning letters to these companies to begin the regularization 
process, or risk being shut down once the grace period has passed. 
In the meantime, Wreidat confirmed that MOL will not approve any new 
applications for foreign workers from these factories. 
 
¶8.  (SBU) Wreidat further explained that of the JD 200 (USD 280) per 
worker the MOL would collect from factories for employment during 
the past period, JD 43 (USD 61) would be set aside for a new 
humanitarian fund for foreign workers.  Wreidat explained that 
verbal approval had been granted by the Ministry of Finance for such 
a scheme, and written confirmation would soon be forthcoming.  He 
estimated that at the completion of the regularization process, the 
fund would have nearly JD 300,000 (USD 423,729) that could be used 
to assist needy workers in the future.  Examples of possible uses 
include the cost of repatriation, payment of overstay 
fines/penalties, food, and temporary shelter for abused workers. 
 
Visit Amman's Classified Website at: 
http://www.state.sgov.gov/p/nea/amman 
 
Hale