US embassy cable - 04COLOMBO1624

UNCLAS SECTION 01 OF 02 COLOMBO 001624 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR SA/INS, DRL:TFAULKNER 
LABOR FOR ILAB:SHALEY, MMITTELHAUSER 
 
E.O. 12958: N/A 
TAGS: ECON, ELAB, MV, PREL, Maldives, Human Rights 
SUBJECT: MALDIVES CONSIDERS MAJOR LABOR REFORMS 
 
REF: A. COLOMBO 1587 
 
     B. COLOMBO 1582 
 
1. (U) Summary: After years of inaction, 
the Maldives government is set to embrace 
far-reaching labor reforms which appear 
to be linked to President Gayoom's overall 
political reform program. The Minister of 
Employment and Labor seeks US assistance. 
End Summary. 
 
2. (U) In a September 21 meeting with 
Econoff, Minister of Employment and Labor, 
Abdul Rasheed Hussain, described an 
ambitious program of action that would 
bring the nation into compliance with 
international core labor standards and 
address the pressing problem of youth 
unemployment.  (Note: In 1995, the USG 
suspended the GoRM's eligibility under 
the GSP system because of its lack of 
protection for labor rights.  The law 
does not recognize workers' rights to 
form or join unions, or to strike.  End 
note.) 
 
3. (U) Projects Hussain described include: 
1) a new ILO-consistent labor law, with 
plans to ratify ILO core labor conventions; 
2) a plan for seminars leading from island 
level up to regional level, culminating in 
a national seminar to identify demand for 
labor and labor capacity; 3) a National 
Action Plan; 4) establishment of a fund 
to support a joint government-private 
sector skills development program for 
youth; 5) development of regulations and 
guidelines for occupational health and 
safety; 6) establishment of labor tribunals; 
and 7) a monitoring and inspection system for 
the country's many foreign workers. 
 
4. (U) Hussain noted that pressure from high 
youth unemployment and the relatively large 
number of foreign workers (40% of the labor 
force), have led the GoRM to seriously address 
labor issues.  (During a previous visit by 
Econoff in early 2004, Attorney General Hassan 
Saeed mentioned a new labor law as part of a 
slate of laws to be enacted in the GoRM reform 
program.)  Hussain mentioned that it was 
drafted by an ILO expert, and was expected to 
go before Parliament late this year or in the 
first 2005 session.  He assured Econoff that 
ratification of ILO conventions would follow. 
ILO membership is a goal but, Hussain said, he 
recognized that the government must put labor 
protections in place first. 
 
Requests for USG Assistance 
---------------------------- 
5. (U) The Minister asked for USG assistance, 
specifically in the following areas: exchanges 
and training opportunities, information 
(especially on OSHA issues and training), 
International Visitor (IV) slots, visits by 
USG officials and assistance from the 
Solidarity Center.   Post has already 
proposed supporting a National Seminar on the 
Labor Law described by the Attorney General 
through a DRL grant.  Econoff promised to 
pursue avenues for assistance.  Following are 
descriptions of the major efforts planned 
by the Ministry: 
 
Occupational Safety and Health 
------------------------------ 
6. (U) At present, there are no national laws 
and few regulations, standards or reporting 
requirements to protect workers.  Hussain said 
he would be eager to get information on 
establishing such protections, storing and 
disseminating the information, and adding a 
reporting requirement for employers. 
 
National Seminar 
---------------- 
7. (U) Starting from the island level, and 
working up through atoll, regional and finally 
on the national level, seminars will be held 
to identify labor opportunities and needs. 
The intent is to address difficulties in 
creating employment.  Hussain disagreed with 
the oft-repeated belief that Maldivians do not 
want to do the work that is available.  He 
claimed there are many opportunities created 
by new infrastructure and resort development 
projects.  Through these seminars, the Ministry 
would learn about the youth skills available 
and the employers' demands for labor.  At least 
one person per 1,000 citizens would attend 
these seminars, which began this week.  The 
national seminar, to be held in August 2005, 
would result in an action plan to address 
the mismatch between skills and demands. 
 
National Fund for Skills Training 
--------------------------------- 
8. (U) The Ministry has agreed with employers 
on a shared cost training program.  The 
Ministry will pay for academic instruction 
of unemployed youths, and the employers will 
hire them as apprentices for two years, which 
hopefully will lead to full-time job offers. 
The GoRM is also reviewing the 50/50 scheme, 
currently requiring employers to hire one 
Maldivian for each foreign worker.  In reality, 
the Minister said, this means that the Maldivians 
work on the boats or as room attendants, and the 
foreigners work in management.  With this new 
training plan, they hope to prepare Maldivians 
to take some of the positions with higher 
responsibility.  A 60/40 plan is also being 
considered. 
 
Foreign Worker Protection 
------------------------- 
9. (U) There is little government oversight of 
foreign workers, 40% of the labor force, beyond 
registration.  There have been allegations of 
abuse (poor working conditions, nonpayment of 
wages, restricted freedom of workers) and new 
efforts will begin to address this.  Officials 
will inspect places that employ foreign workers, 
and, as of January 1, 2005, workers, rather than 
employers, will hold their worker's permit cards. 
 
Expiration of MultiFiber Arrangement(MFA) 
----------------------------------------- 
10. (U) The Minister said that, though the 
factories that will depart Maldives on expiration 
of the MFA are staffed overwhelmingly by 
foreigners, the move will have an impact on 
Maldivian workers.  Jobs in nearby shops, 
food and supplies provision, and transport 
will be lost, along with revenue from the 
property leases. 
 
Comment 
------- 
11. (SBU) While these proposals are welcome, and 
Post recommends USG support, they must also be 
viewed in the broader context of President Gayoom's 
ambitious but stalled political reform in Maldives. 
These labor reforms would garner wide international 
attention and support, but the GoRM needs to move 
ahead simultaneously on broader political reform 
and general improvement in the human rights arena 
as well. 
LUNSTEAD