VZCZCXYZ0002
PP RUEHWEB

DE RUEHAM #0230/01 0271220
ZNR UUUUU ZZH
P 271220Z JAN 09
FM AMEMBASSY AMMAN
TO RUEHC/SECSTATE WASHDC PRIORITY 4304
INFO RUEHLM/AMEMBASSY COLOMBO 0193
RUEHKA/AMEMBASSY DHAKA 0167
RUEHIL/AMEMBASSY ISLAMABAD 0276
RUEHKT/AMEMBASSY KATHMANDU 0059
RUEHML/AMEMBASSY MANILA 0126
RUEHNE/AMEMBASSY NEW DELHI 0299
RUEHOT/AMEMBASSY OTTAWA 0248
RUEHRO/AMEMBASSY ROME 1590
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS AMMAN 000230 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EEB/TPP/ABT, NEA/ELA, NEA/RA, DRL, G/TIP 
STATE PASS TO USTR (SFRANCESKI) 
COMMERCE FOR ITA/OTEXA MARIA D'ANDREA 
 
E.O. 12958: N/A 
TAGS: ELAB ECON ETRD EAID KTIP KTEX JO
SUBJECT:  Update on Labor Issues in Jordan 
 
REFS: A) 08 Amman 3267 
      B) 08 Amman 2206 
      C) 08 Amman 1063 
      D) 07 Amman 4993 
      E) 07 Amman 4991 
      F) 07 Amman 4038 
 
SENSITIVE BUT UNCLASSIFIED.  NOT FOR DISTRIBUTION OUTSIDE USG. 
 
¶1.  (SBU) Summary:  The Government of Jordan (GOJ) has continued to 
take measures to strengthen its institutional capacity to identify 
and correct labor violations, in part by hiring 60 new inspectors in 
¶2008.  Inspectors for the International Labour Office's (ILO) Better 
Work Jordan program have also been trained and hope to begin 
imminently assessments of factories in the Qualifying Industrial 
Zones (QIZs).  The number of foreign and local workers in the QIZs 
has continued to decrease, as have the number of strikes.  A new 
minimum wage of 150JD ($212) went into effect January 1 but does not 
apply to QIZ or domestic workers.  Although additional amendments to 
the labor law have not yet moved forward to parliament, the lower 
house approved the anti-Trafficking in Persons (TIP) law, which now 
awaits Senate approval.  Source countries have decided to establish 
a formal mechanism to discuss labor issues and share information. 
End Summary. 
 
MOL Restructuring and Growing Inspection Force 
--------------------------------------------- - 
 
¶2.  (U) MOL hired 60 new inspectors in 2008, to make a total 
inspection force of 140.  MOL plans to hire an additional 25 
inspectors in 2009.  MoL currently has 23 labor offices in Jordan, 
of which 21 have an inspection function in addition to performing 
other employment and work permit services.  In 2009, MOL intends to 
consolidate the inspection function into seven to nine regional 
centers each with 10 to 30 inspectors who will cover a particular 
area.  The goal is to provide a critical inspection mass and 
strengthen management capacity. 
 
¶3.  (SBU) Now that Canada and Jordan are about to sign an FTA with 
its own labor provisions, MOL indicated that Canada has contributed 
funding to an ILO project to support the establishment of a joint 
labor inspector-police unit within the Jordanian government.  The 
project will also provide law enforcement and judicial staff 
training in forced labor and anti-trafficking.  A GOJ team will 
visit Italy at the end of January 2009 to learn from the joint 
Italian Carabinieri-inspector force. 
 
Better Work Jordan (BWJ) Program Gets Going 
------------------------------------------- 
 
¶4.  (SBU) After what many have viewed as a slow start, the 
International Labour Office's BWJ program began training its 
inspector force in November 2008, with the cooperation of the MOL 
and Ministry of Industry and Trade.  The ILO and the Jordan Garment, 
Accessories, and Textiles Exporters' Association (JGATE) are now 
planning a series of events in each of the QIZs to register 
factories in the program and begin independent inspections.  Jones 
NY Social Compliance Manager Kesava Murali told Econoff that once 
the BWJ program is fully functional, Jones will stop doing 
third-party inspections of factories.  Cammy Wu, General Manager at 
Richpine, confirmed on January 14 that U.S. buyers continue to do 
third-party inspections every two to three months, in addition to 
MOL inspections that are sometimes unannounced. 
 
Labor in QIZs: Smaller Workforce, Fewer Strikes 
--------------------------------------------- -- 
 
¶6.  (U) The Ministry of Labor reported that as of November 30, 2008, 
there were 43,385 workers in 90 factories in the QIZs, including 
10,697 Jordanians (of whom, 6,615 are women) and 32,688 foreign 
workers.  JGATE CEO Dana Bayyat noted that while factories were 
having problems in early 2008 bringing in foreign labor, more 
migrant workers are now available in the market because of factory 
closures and downsizing (ref A). 
 
¶7.  (U) Interlocutors in both the private and public sectors have 
noted that strikes in the QIZs have decreased significantly.  MOL 
estimated that there is about a strike a month, compared to five to 
six in late 2007 (ref D).  Some have speculated that in addition to 
improvements in working conditions, fewer labor problems may also be 
attributed to decreased orders reducing the pressure on factories to 
have employees work long hours and meet deadlines. 
 
New Minimum Wage Excludes Some Sectors 
-------------------------------------- 
 
¶8.  (U) Jordan increased the minimum wage from 110JD ($156) to 150JD 
($212) on January 1, 2009 (ref A).  According to MOL, this wage 
increase applies neither to domestic workers, nor to workers in the 
QIZs.  The private sector argued that most QIZ workers, particularly 
foreign workers, were subject to the provisions of three-year 
employment contracts that set their wages, and the garment industry 
could not afford the rise in wages for both foreign and Jordanian 
employees due to other increased costs of production (refs D, F). 
 
¶9.  (SBU) MOL and JGATE signed a non-binding MOU, however, that 
companies in the QIZs would provide a 40JD/month ($56) living 
allowance to Jordanian workers currently earning 110JD/month so that 
they are effectively getting the minimum wage.  The GOJ and 
factories have reasoned that the stipend puts Jordanians on a 
financially equal footing with many of the foreign workers who 
benefit from company-provided food and accommodation.  According to 
JGATE, factories have not yet actually begun to provide this 
allowance, although they are expected to start by the end of January 
¶2009. 
 
New Golden List Lags 
-------------------- 
 
¶10.  (SBU) Although new criteria for the MOL's Golden List were 
released in April 2008 (ref C), a MOL advisor indicated to Econoff 
on January 15 that only five companies had reapplied to be on the 
new list, and of those, only one qualified.  NOTE:  The Golden List 
exempts companies from paying a hefty bank guarantee.  To qualify, 
companies must abide by certain best practices regarding labor 
rights in line with international standards.  END NOTE.  To date, 
the new Golden List has not been fully implemented. 
 
Labor Law Still Pending but Anti-TIP Law Moves Forward 
--------------------------------------------- --------- 
 
¶11.  (SBU) In addition to the four amendments to the labor law that 
parliament approved in July 2008, the MOL had planned, but 
ultimately declined, to submit additional amendments to the labor 
law to parliament this session (ref B).  MOL officials indicated 
that in light of competing priorities, only a limited number of laws 
could be submitted to parliament in one session, and the GOJ decided 
to place a higher priority on getting the TIP Law approved.  The 
lower house approved the draft TIP Law on January 25, which now 
awaits senate approval. 
 
Recruitment Agency Regulations to Reform Hiring 
--------------------------------------------- -- 
 
¶12.  (SBU) According to the Recruitment Agency Association (RAA), 
Jordan currently has 96 recruitment agencies, many of which are 
small operations.  MOL has drafted new regulations regarding the 
requirements for licensing recruitment agencies, which are currently 
out for comment with the private sector.  New provisions stipulate a 
JD 100,000 ($141,242) bank guarantee (vice the current JD 50,000 
($70,621)), JD 30,000 ($42,372) capital requirement, at least five 
working staff, and suitable office space.  The GOJ hopes that the 
new regulations might force some of the smaller operations to merge 
or consolidate.  The RAA has stated that only ten of the recruitment 
agencies would be able to meet the new provisions, and believes that 
the new regulations will help a new recruitment agency, founded by 
the General Federation of Trade Unions and several women's group, 
monopolize the market.  The RAA has sued the Minister and Ministry 
of Labor in the Court of First Instance for unlawfully assisting the 
new agency (septel). 
 
Source Countries to Cooperate on Employer Database 
--------------------------------------------- ----- 
 
¶13.  (U) DCM hosted a January 15 lunch with representatives from the 
Philippine, Indonesian, Sri Lankan, and Bangladeshi embassies in 
Jordan to discuss labor issues with a focus on domestic workers. 
The Indonesian, Bangladeshi, and Filipino embassies have decided to 
establish a formal mechanism to discuss labor issues and share 
information, perhaps through establishment of a joint database that 
would track bad employers.  Participants agreed to expand this 
coordination to include the U.S. and other source country embassies. 
 
 
Visit Amman's Classified Website at: 
http://www.state.sgov.gov/p/nea/amman 
 
Beecroft