POPULAR BLOCK AND TEACHERS DEMONSTRATE VIOLENTLY

C O N F I D E N T I A L SECTION 01 OF 02 TEGUCIGALPA 002987

SIPDIS

DEPT. FOR WHA/CEN, DRL/IL, DS/OP/WHA, AND S/CT
STATE PASS USTR
STATE PASS AID FOR LAC/CEN
DOL FOR ILAB

E.O. 12958: DECL: 10/29/2012
TAGS: PGOV PREL ELAB ETRD PHUM PTER SOCI ASEC HO
SUBJECT: POPULAR BLOCK AND TEACHERS DEMONSTRATE VIOLENTLY
AGAINST GOH; MADURO WORRIED BUT PLEDGES TO STAND FIRM

REF: A. TRIVELLI/PIERCE E-MAIL 10/25


B. TEGUCIGALPA 2928

C. TEGUCIGALPA 1342

D. TEGUCIGALPA 1298

Classified By: Political Chief Francisco Palmieri;
Reasons 1.5 (b) and (d).


1. (U) On October 24-25 several thousand demonstrators that
included the loose political alliance known as the Popular
Block, the labor union SITRASANAA, secondary teachers
(COPEMH),and three Democratic Unification Party (UD)
congressmen clashed with police in violent demonstrations
that included the reported use of Molotov cocktails. The
demonstrators protested against a number of issues, including
the pay packages for teachers and other workers, the possible
purchase of GOH housing bonds by teachers' pension funds, the
installation of fences outside the entrances to Congress, and
opposition to proposed GOH policies on municipal water,
forests, and education as well as proposed regional free
trade agreements.


2. (U) Demonstrators threw rocks at police vehicles, ripped
down the Congressional fences, and damaged vehicles and
private businesses, including a Pizza Hut restaurant. Police
were forced to use tear gas, fire hoses, and rubber bullets
against the demonstrators outside of Congress, and several
policemen, demonstrators, and journalists were injured. Only
two protesters were arrested. Embassy security company
Inter-Con confirmed that gang members were also among the
demonstrators. It is not known if their presence was
organized or opportunistic.


3. (U) The demonstrations came on the heels of the October 23
approval by a divided Congress to revise the teachers'
statute to codify the May accords between primary school
teachers and the GOH. The May agreement provides for a 12
percent salary increase and delinks teacher salaries from the
minimum wage, thereby ending a key but controversial
provision in a 1997 law which generously indexed teachers'
pay to five times the minimum wage (refs C and D). President
Ricardo Maduro's National Party supported the bill, which was
opposed by the Liberal Party, Party of Innovation and
National Unity (PINU),and UD. Secondary school teachers
continue to demand the 40 percent increase provided under the
original 1997 statute. In September the Supreme Court ruled
that the part of the teachers' statute that linked teacher
salaries to minimum wage was unconstitutional, which
observers had thought would set the stage for wrapping up the
strike. The secondary school teachers pledge to continue
their protests and to strike until their demands are met.


4. (U) The demonstrations followed an October 11
demonstration outside the Embassy (ref B),and a string of
false bomb threats in the country, including one on October
23 at the Congress. There are reports of another possible
Popular Block demonstration October 30 against the IMF and
proposed GOH privatization policies.


5. (U) Minister of the Presidency Luis Cosenza termed the
protesters actions "vandalism" and Minister of Public
Security Oscar Alvarez said that the GOH would maintain a
"firm hand" against violent demonstrators. President Maduro,
in a speech to the nation October 28, pledged that the GOH
would not back down in the face of violent protests. Maduro
specifically defended the GOH's decision to provide up to
30,000 lempiras (USD 1,818) in subsidies for a low income
family to buy a house. While open to dialogue, Maduro said
that this openness should not be confused with weakness nor
fear.


6. (C) COMMENT: Unlike the tame October 11 demonstration,
the GOH has reason to be worried about this violent turn of
events. Notwithstanding their public belief and private
comments that these protests are being orchestrated to
undermine the Maduro government, many leading GOH officials
acknowledge that there are even tougher times ahead. A
pending agreement to negotiate with the IMF, approval of the
2003 austerity budget, the next round of minimum wage
negotiations - all could serve to spark further public unrest.


7. (C) COMMENT CONTINUED: President Maduro called WHA/CEN
Director Trivelli October 25 and told him that the
demonstrations were disturbing and that the protesters' use
of Molotov cocktails was a particularly bad sign. Maduro said
he suspected Liberal Party agitation was behind the
demonstrations, citing in particular Jorge Arturo Reina, who
was quoted in the press calling the teachers' law a "blow" to
the constitution. Maduro's advisors also acknowledge that
elements of their own party are fomenting some of the unrest.
Post believes that there remains a larger untapped sentiment
of discontent in the country. However, historically the
Honduran public has been lethargic and apathetic about
demanding public policy changes. The Maduro government
should be able to manage the situation if it continues to act
decisively and to demonstrate its engagement. END COMMENT.
PIERCE