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RR RUEHWEB

DE RUEHAM #2254/01 2810704
ZNR UUUUU ZZH
R 080704Z OCT 09
FM AMEMBASSY AMMAN
TO RUEHC/DEPT OF LABOR WASHDC
RUEHC/SECSTATE WASHDC 6077
INFO RUEHGB/AMEMBASSY BAGHDAD 6298
RUEHLB/AMEMBASSY BEIRUT 3106
RUEHEG/AMEMBASSY CAIRO 4153
RUEHLM/AMEMBASSY COLOMBO 0228
RUEHDM/AMEMBASSY DAMASCUS 4251
RUEHKA/AMEMBASSY DHAKA 0201
RUEHHI/AMEMBASSY HANOI 0003
RUEHJA/AMEMBASSY JAKARTA 0154
RUEHKT/AMEMBASSY KATHMANDU 0074
RUEHML/AMEMBASSY MANILA 0161
RUEHNE/AMEMBASSY NEW DELHI 0336
RUEHRH/AMEMBASSY RIYADH 2214
RUEHTV/AMEMBASSY TEL AVIV 1889
RUEHJM/AMCONSUL JERUSALEM 5664

UNCLAS AMMAN 002254 
 
SIPDIS 
SENSITIVE 
 
STATE FOR USTR ROMERO; LABOR FOR ILAB CASTRO 
 
E.O. 12958: N/A 
TAGS: PGOV PHUM KTIP KWMN ELAB JO
SUBJECT: JORDAN: WIDE DISMAY OF "GARMENTS" INCLUSION ON 
TVPRA FORCED LABOR LIST 
 
REF: A. AMMAN 2074 
     ¶B. AMMAN 2073 
     ¶C. AMMAN 856 
     ¶D. AMMAN 459 
     ¶E. AMMAN 429 
     ¶F. AMMAN 242 
     ¶G. AMMAN 230 
     ¶H. 08 AMMAN 3388 
     ¶I. 08 AMMAN 3171 
     ¶J. 08 AMMAN 2822 
     ¶K. 08 AMMAN 2600 
     ¶L. 08 AMMAN 2206 
     ¶M. 08 AMMAN 1063 
 
¶1. (SBU) Summary: Contacts strongly and quickly voiced dismay 
and disapproval of "garments from Jordan" placement on the 
Trafficking Victims Protection Reauthorization Act (TVPRA) 
List of Goods Made with Forced Labor.  There is near 
unanimous agreement in Jordan that labeling the entire 
garment sector in such a manner is inaccurate and not 
helpful.  Due to concerted reform efforts, government and 
non-government contacts state that instances of forced labor 
are limited to a few factories that often have ongoing 
management problems or financial difficulties.  Contacts 
criticized the designation as it reprimands transparent 
governments like Jordan while not doing the same for more 
problematic countries, which make it difficult to ascertain 
true labor conditions in the sector and, as such, limits 
international attention to their problems.  A local official 
of the largest U.S. buyer, Jones NY, found the designation to 
be a slap in the company's face as they take great pride in 
their local partnerships to ensure labor rights and base 
their purchasing decisions on such factors.  Post believes 
that the focus of labor engagement should shift to 
legislative reform, such as the labor law, and the situation 
of other vulnerable workers, including domestic workers and 
Egyptian laborers.  End Summary. 
 
Vast Improvement Since 2006 
--------------------------- 
 
¶2. (SBU) The designation of "garments from Jordan" under the 
TVPRA List of Goods Made with Forced Labor was largely met 
with disbelief and frustration.  Government, civil society, 
private sector, and international organization contacts 
believe, and Post concurs, that it is currently unfair to 
label the entire garment sector in such a manner.  Most agree 
that such a label might have been applicable in 2006 but 
active government reform efforts, with assistance from 
donors, and improved oversight by buyers has resulted in a 
substantial and systemic reduction of forced labor in 
Qualifying Industrial Zones (QIZs).  Contacts again voiced 
their dismay at the designation throughout the October 5-9 
visit of a labor delegation comrpised of officials from USTR, 
Department of Labor, and the Department of State. 
 
¶3. (U) Contacts believe that instances of forced labor are 
now limited to a handful of factories and is primarily the 
result of poor management practices or financial difficulties 
as opposed to systemic use of forced labor for workforce 
enhancement. In 2009, there were reports of a few factories 
unable to make prompt salary and overtime payments or holding 
passports for long periods while attempting to renew work 
permits.  A few factories also reportedly held passports at 
the request of employees though many factories refused to do 
so.  Allegations of abusive line supervisors were also made 
in a few factories and the closure of a couple factories 
resulted in some workers having to wait for receivership to 
receive final compensation. Contacts widely agree that the 
above does not add up to a forced labor designation for the 
entire sector, especially considering the active work of the 
government and others to address problems. 
 
The Price of Being Open; Where is Egypt? 
---------------------------------------- 
 
¶4. (SBU) One of the first questions asked by contacts was 
whether Egypt or other countries in the region also appears 
on the list for the same good.  While the Ministry of Labor 
(MOL) and other government officials can often be sensitive 
to comparisons with neighboring countries, interlocutors 
knowledgeable about the garment sector in both countries 
assert that labor rights are better protected in Jordan. 
Kesava Murali, a Jones NY corporate responsibility official 
who works with factories in both countries, states that there 
is a much higher percentage of forced labor conditions in 
many other countries but believes that a relative lack of 
transparency, unlike what he sees in Jordan, has meant a 
limited spotlight on them, including Egypt. (Note: Some of 
the interlocutors making the comparisons between Jordan and 
Egypt are Jordanian, while a couple are not. For instance, 
Murali is Sri Lankan.  Embassy Amman is only reporting 
viewpoints of contacts in Jordan and not commenting on forced 
labor or labor rights inside Egypt. End Note) 
 
¶5. (SBU) Interlocutors want NGOs, like the New York-based 
National Labor Committee (NLC), to redirect their focus from 
Jordan to less transparent countries, where it is needed 
more.  Lejo Sibbel, USAID-funded Adviser in the MOL, and Phil 
Fishman, Director of the International Labor Organization's 
(ILO) Jordan Better Work Program, separately told Poloffs 
that placing countries like Jordan on such lists gives 
governments very little incentive to work openly with 
international and local NGOs and donors. Fishman, who has 
worked in the sector in numerous countries, believes there 
are many countries that should be placed on the list instead 
of Jordan but are not because a relative lack of openness 
diminishes the ability of outsiders to uncover true working 
conditions.  Fishman, Atef Al-Majali, Head of the Complaints 
Unit at the National Center for Human Rights, and others 
strongly state that Jordan should be commended for 
investigating all allegations of forced labor no matter the 
source and allowing open access to NGOs. 
 
Is The Sector Worth It? 
---------------------- 
 
¶6. (SBU) Even before the forced labor designation, grumblings 
within the MOL over whether the textile sector is even worth 
pursuing or supporting could be heard.  These grumblings have 
reportedly increased since the designation.  The Ministry of 
Labor has felt pressure from all sides over the state of the 
sector.  Garment producers and the textile union have 
criticized the government for not sufficiently supporting the 
sector during the world economic slowdown and point to 
governments like Egypt's, which reportedly provide free 
utilities, rent concessions, and export rebates.  Some 
factories, in fact, have left for Egypt to take advantage of 
these offers.  The NLC continues to make public allegations 
of forced labor, though now to a lesser degree.  As the MOL 
investigates and responds to each allegation and attempts to 
address portions of an allegation found to be true, the NLC 
continues to publish negative statements about Jordan.  There 
are also the criticisms and frustrations that relatively few 
Jordanians continue to be employed by the sector.  In short, 
ministry officials wonder whether the significant work and 
precious resources to support such a sector and address 
employer labor violations are worth the relatively few 
Jordanian jobs, estimated at 9,000, that it produces. 
 
Slap in the Face of U.S. Buyers 
------------------------------- 
 
¶7. (SBU) One U.S. buyer informed post that the forced labor 
designation was an unnecessary slap in the face of social 
conscience buyers that list the protection of labor rights 
 
and government transparency as major reasons for buying from 
Jordan.  Murali states that a major reason for the continued 
active presence of Jones NY in Jordan are the active steps 
taken by the GOJ to improve labor rights, investigate and 
resolve labor violations, and work openly with buyers. Such a 
designation, he feels, gives the impression that Jones NY and 
other buyers do not care about labor rights when, in fact, 
the opposite is true.  JC Penney is another example of a 
company that recently praised Jordan for its protection of 
labor rights and transparency stating those are strong 
factors in its decisions of where to purchase. 
 
Have We Not Done Enough? 
------------------------ 
 
¶8. (SBU) Contacts point to the significant number of 
initiatives, mechanisms, and safeguards in place to prevent 
forced labor and wonder what more could have been done. 
Factory managers tell Post that they are inspected and 
audited several times throughout the year.  In fact, factory 
owners spoke of "audit fatigue" when meeting with the USG 
labor delegation on October 7.  Inspections, which include 
checking for signs of forced labor, are routinely conducted 
by the GOJ's labor inspectorate on an unannounced and 
scheduled basis and complete audits are regularly conducted 
by buyers.  The MOL also devised a Golden List whereby 
companies are exempt from paying a hefty bank guarantee if 
they abide by certain best practices regarding labor rights. 
Factories participating in the ILO Better Work Program also 
undergo a complete and comprehensive inspection (Note: 
Fourteen factories, primarily the largest, currently 
participate in the Better Work Program. End Note) 
Additionally, the textile union, which actively represents 
both foreign and Jordanian workers, maintains offices in the 
QIZs and factories are open to source-country embassies and 
NGOs like the National Center for Human Rights, especially 
when there are any allegations of forced labor. 
 
¶9. (SBU) Comment: Over the past three years, Jordan has made 
a concerted effort to improve labor conditions in the QIZs 
and combat forced labor. Local contacts report that such 
efforts have resulted in a substantial decrease of forced 
labor in the QIZs but understand more needs to be done to 
improve labor rights; for instance, allowing foreign workers 
to join unions.  Our partners, however, did not welcome the 
forced labor designation and believe that it could even make 
their work more difficult.  Nonetheless, they continue to see 
Jordan as an open and willing partner.  Despite the wide 
criticism of the designation, Post will use the prospect of 
removal from the list as a tool to push for further reform. 
Post also believes that the focus of labor engagement must 
shift to legislative reform, such as the labor law, and the 
situation of other vulnerable workers, including domestic 
workers and Egyptian laborers, while continuing to support 
government efforts to continue to improve labor conditions in 
the QIZs.End Comment. 
Beecroft