Identifier
Created
Classification
Origin
03GUATEMALA1541
2003-06-16 17:19:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Guatemala
Cable title:  

GUATEMALA LABOR AND TIP UPDATE #4

Tags:  ELAB KCRM KWMN ETRD CVIS GT 
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UNCLAS SECTION 01 OF 02 GUATEMALA 001541 

SIPDIS

SENSITIVE

DEPARTMENT OF STATE FOR DRL/IL, WHA/CEN, WHA/PPC,
CA/VO and G/TIP
DEPARTMENT OF LABOR FOR ILAB: ROBERT WHOLEY
USTR FOR CHRIS WILSON
GENEVA FOR ROBERT HAGEN
PLEASE PASS TO OPIC: GREG MAGGIO

E.O. 12958: N/A
TAGS: ELAB KCRM KWMN ETRD CVIS GT
SUBJECT: GUATEMALA LABOR AND TIP UPDATE #4


UNCLAS SECTION 01 OF 02 GUATEMALA 001541

SIPDIS

SENSITIVE

DEPARTMENT OF STATE FOR DRL/IL, WHA/CEN, WHA/PPC,
CA/VO and G/TIP
DEPARTMENT OF LABOR FOR ILAB: ROBERT WHOLEY
USTR FOR CHRIS WILSON
GENEVA FOR ROBERT HAGEN
PLEASE PASS TO OPIC: GREG MAGGIO

E.O. 12958: N/A
TAGS: ELAB KCRM KWMN ETRD CVIS GT
SUBJECT: GUATEMALA LABOR AND TIP UPDATE #4



1. The following is an update of significant recent
developments in the labor sector. Topics include:

-- Bilateral Labor Group Convoked for Early July (para
2)

-- Union Leader Arrested in Social Security Scandal
(3)

-- Choi Shin/Cimatextiles in the GOG's Crosshairs (4)

-- American Data Processing "Maquila" Conflict
Unresolved (5)

-- GOG Wants to Facilitate H2B Program (6)

-- Penal Code Reform Stiffens Penalties for
Trafficking in Persons (7)

Bilateral Labor Group Convoked for Early July
--------------


2. (SBU) On June 11 LabAtt requested MFA convoke
another meeting of the GOG's Labor Working Group for
the first week of July. Sara Solis, MFA Director for
Bilateral Affairs, agreed to do so, and said the
inter-ministerial GOG Working Group had met recently
and would soon be formally constituted by government
decree. The Embassy hopes to use this meeting to
maintain momentum on labor issues raised in the first
meeting (prosecution of violent crimes against union
leaders, need to streamline the labor justice system,
and the need to reinstate workers illegally fired for
unionization activity) on May 13 with participation
from USTR, USDOL and Department officials. The
Embassy will represent the USG in this meeting, and
would welcome Department's guidance on the status of
GSP petitions against Guatemala.

Union Leader Arrested
--------------


3. (SBU) Rigoberto Duenas, Adjunct Secretary General
of the Central General Union of Guatemalan Workers
(CGTG),was arrested on June 8 for his participation
as a member of the Board of Directors of the National
Social Security Institute (IGSS) in a major financial
scandal involving the misuse of public funds by that
institution. Duenas was the first member of the board
arrested, and unions have protested his innocence and
accused the government of seeking a "scapegoat" for
the scandal. The scandal involved a housing
construction scheme using IGSS funds, which was
authorized by the board but implemented fraudulently

by IGSS managers (Guatemala 1388 and 1465). The
Ambassador expressed concern over the arrest to
Attorney General De Leon on June 11. LabAtt and Pol
Section Intern met with the CGTG executive board and
Mrs. Duenas on June 12. The union requested Embassy
assistance to guarantee the safety of Duenas in
custody. LabAtt requested such assistance from the
Attorney General's Private Secretary on June 12 and
was assured that the Director of Prisons had already
beefed up the security in the hospital of the
Preventive Detention Center, where Duenas and one
other IGSS board member is being held.
Choi Shin/Cimatextiles in the Crosshairs
--------------


4. (U) The GOG has given the management of the Choi
Shin/Cimatextiles maquila plants until June 27 to
respond to pending labor rights complaints by workers
or lose its permission to export from Guatemala. NGO
sources report that Minister of Labor Victor Moreira
(currently in Geneva for ILO meetings) intends to
compel Choi Shin/Cimatextiles management to engage in
collective bargaining with the only existing unions in
the maquila sector. Those unions were established
after anti-union violence provoked GOG intervention in
July 2001. Press reports about the GOG's action
against these factories provoked concern among union
members about possible new violence from non-union
workers. LabAtt called Choi Shin management on June 3
to express concern about possible violence and was
assured by management that the plant was calm. The
Embassy and concerned U.S. NGOs are monitoring this
situation closely, and have encouraged management to
continue dialogue with the unions.
American Data Processing "Maquila" Conflict Unresolved
-------------- --------------

5. (SBU) The U.S. data processing subsidiary ACS-BPS
of Guatemala has entered into negotiations with seven
employees who prefer to resign than to accept new data
processing tasks under an internal reorganization.
The seven have filed labor complaints with the labor
courts and want management to provide a severance
package including lawyers fees not required under
labor law.

GOG Wants to Facilitate H2B Program
--------------


6. (U) ConGen, NIV Chief and LabAtt met with Vice
Minister of Labor Sandra Mendez de Garrido June 11 to
discuss the Ministry's interest in facilitating the
flow of H2B temporary work visa applicants. NIV Chief
provided feedback from U.S. employers concerned by the
registry and deposit requirements of the Guatemalan
Labor Code (article 34),which date to the early
1950's and, if implemented, would probably drive U.S.
recruiters elsewhere. The Vice Minister said that her
intent is not to enforce these parts of the Code, but
to reform them, if necessary, to protect and expand
the flow of H2B workers. The Ministry would like to
contact U.S. employers to offer its employment service
as an alternative to Guatemalan recruiters, many of
whom are corrupt. ConGen asked the Vice Minister to
provide an email address to which the Embassy can
refer interested U.S. employers, and suggested the
Vice Minister consider visiting the U.S. to witness
working conditions of Guatemalan workers and meet with
USDOL counterparts. We are exploring possible USG
support for such a visit under the Voluntary Visitor
Program.

Reforms Would Stiffen Penalties for TIP
--------------


7. (U) On June 10 The Congressional Commissions on
Women and Legislation approved reforms to the Criminal
Code which would increase the penalty for trafficking
in persons from two to five years in prison. The
reforms would also increase the fine penalties for
pimping from two to ten thousand Quetzales (approx.
$1,282).

Hamilton