Identifier
Created
Classification
Origin
03GUATEMALA2254
2003-09-02 21:55:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Guatemala
Cable title:  

GUATEMALA LABOR UPDATE #5-2003

Tags:  ELAB ETRD PGOV PHUM KCRM GT 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 04 GUATEMALA 002254 

SIPDIS

SENSITIVE

STATE FOR WHA/CEN, WHA/PPC:CHARLOTTE ROE, AND DRL/IL:ARLEN
WILSON, AND G/TIP FOR GREG HOLLIDAY
DEPARTMENT OF LABOR FOR ILAB:ROBERT WHOLEY, JANE RICHARDS,
AND JORGE PEREZ LOPEZ
USTR FOR VIONDETTE LOPEZ AND BUD CLATANOFF

E.O. 12958: N/A
TAGS: ELAB ETRD PGOV PHUM KCRM GT
SUBJECT: GUATEMALA LABOR UPDATE #5-2003


This message contains an action request for USDOL/ILAB--see
para 4.

UNCLAS SECTION 01 OF 04 GUATEMALA 002254

SIPDIS

SENSITIVE

STATE FOR WHA/CEN, WHA/PPC:CHARLOTTE ROE, AND DRL/IL:ARLEN
WILSON, AND G/TIP FOR GREG HOLLIDAY
DEPARTMENT OF LABOR FOR ILAB:ROBERT WHOLEY, JANE RICHARDS,
AND JORGE PEREZ LOPEZ
USTR FOR VIONDETTE LOPEZ AND BUD CLATANOFF

E.O. 12958: N/A
TAGS: ELAB ETRD PGOV PHUM KCRM GT
SUBJECT: GUATEMALA LABOR UPDATE #5-2003


This message contains an action request for USDOL/ILAB--see
para 4.


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

-- Minister of Labor's Priorities for Levine Bilateral in
Brazil (para 2)

-- Minister of Labor Wants Changes to USAID Labor Regional
Project (PROALCA II) (4)

-- Ambassador Again Raises Rigoberto Duenas Case with AG (3)

-- Combating Blacklisting - MOL Information Request (5)

-- Talking CAFTA - Prof. Feinberg Sparks GOG Interest (6)

-- GOG Formalizes Labor Working Group (7)

-- More Maquilas on GOG "Hit List" for Labor Violations (8)

-- Special Prosecutor Promises Results, Wants Resources (9)

-- GOG Proposes 100% Increase to Labor Ministry Budget (10)

-- Canadians Launch Temporary Worker Program (11)

-- TIP: Warrant Against Immigration Union Leader for
Corruption

End Summary.

Brazil Bilateral
--------------


2. (SBU) Labor Minister Victor Moreira confirmed to LabAtt
on August 27 that he intends to attend the OAS Labor
Ministers Meeting in Salvador, Brazil, October 24-26. He
gave LabAtt a copy of a declaration of Central American labor
ministers, meeting in Managua on August 14-15, which, inter
alia, thanks USDOL for its collaboration with the region
through the ILO-RELACENTRO (labor relations),ILO-IPEC (child
labor),and CERSSO (occupational safety and health) projects;
and to USAID for its regional support through the PROALCA II
project. The declaration also:

-- takes note of the importance of labor migration, the
importance of job creation in free trade zones, and the
importance of technical cooperation to strengthen
institutional capacity of labor ministries throughout the
region;

-- approves the creation of a Regional Foundation of Support
to Occupational Health and Safety Programs (FUNDAPROSSO);

-- congratulates Minister Moreira for proposing that the
Council of Labor Ministers create a joint webpage;


-- thanks Mexican Labor Minister Abascal for attending the
Managua meeting and sharing his country's experiences under
NAFTA;

-- proposes Mexico as President Pro-tempore of the
Inter-American Labor Ministers Conference in 2005;

-- notes that the next meeting of the Council of CA Labor
Ministers will take place in Guatemala in October; and,

-- pledges support for the upcoming Plan of Action of the
13th Inter-American Labor Ministers Conference in Salvador de
Bahia.

Moreira said he would be pleased to participate in a
bilateral meeting between U.S. DUS Arnold Levine and Central
American Labor Ministers. He suggested the U.S. contact the
Honduran Minister, currently serving as President of the
Central American Labor Ministers, to confirm such a meeting.
Moreira said he would like to discuss the following issues
with DUS Levine:

A) Migration: Rights of Guatemala migrant workers in the
U.S., including the right to carry a GOG-issued
identification card, to facilitate access to lower
transaction costs for remittances sent to Guatemala (from 22%
to 13%). Moreira said Guatemalan consulates have the
facilities to issue cards, but most migrants are not aware of
this service. A statement from the USG on this issue,
similar to the Chao-Abascal declaration of November 2002, and
committing to mutual respect for the full labor protections
of migrants, would be most welcome, he said.

B) CAFTA: The labor obligations of the CAFTA agreement
proposed by the U.S. imply significant new efforts by the
GOG, and corresponding demands for resources. To expand its
services and coverage, the Labor Ministry will require new
resources. Among the Minister's priorities are programs to
protect indigenous worker rights (by adding 25 new
professionals, including one in every province),child labor,
and women workers. The GOG is already committed to more than
double the Ministry's budget in 2004 to accomplish these new
goals.

C) Cooperation (Assistance): In addition to the new demands
on labor ministries resulting from CAFTA, technical
assistance is needed to help the GOG set policies to generate
employment. Worker training programs need to be re-focused
and expanded. Current job training is focused on the formal
sector, which comprises only 25% of Guatemalan jobs.

Labor Minster Comments on PROALCA II
--------------


3. (SBU) Despite the positive mention in the Managua
declaration, Moreira expressed concerns about the PROALCA II
labor capacity building program sponsored by USAID. The
consensus among the Central American labor ministers, he
said, was that PROALCA II labor activities scheduled for the
remainder of the year should be more focused on
capacity-building more closely linked to the CAFTA
negotiation. (AID Comment: This would require greater
access by AID to the results of CAFTA labor negotiations.
End Comment.)

Ambassador Raises Imprisonment of Labor Leader with AG
-------------- --------------


4. (SBU) At the request of Jose Pinzon, Secretary General of
the Confederation of Guatemalan Workers (CGTG),the
Ambassador spoke with Attorney General Carlos de Leon Argueta
on August 14 to express concern that the charges related to
the Social Security Institute corruption scandal against
labor leader Rigoberto Duenas be promptly investigated and to
request that the Attorney General meet with labor leaders to
discuss the case. De Leon agreed to do so. As of September
2, the meeting had not taken place. The next hearing for
Duenas will be on September 8.

Combating Blacklisting - MOL Information Request
-------------- ---


5. (SBU) LabAtt expressed concern to Minister Moreira and
Vice Minister of Labor Antonio Monzon on August 27 that
blacklisting of workers fired for unionization activity is
common practice in Guatemala, citing the DYMEL case, where
members of the union executive committee continue to suffer
discrimination in hiring. (Note: ex-DYMEL union leaders
told LabAtt on August 26 that they had been hired by
contractors for a Duke Energy project, but fired several days
later after their link to the DYMEL labor conflict was noted
by the employer. LabAtt raised this with visiting Duke
Energy public relations official on August 27, who asked for
details on the corporate entity which executed the hiring and
promised to follow-up on allegations. End Note.) Both the
Minister and Vice Minister concurred that anti-union
discrimination is prevalent, and both cited personal
examples. LabAtt urged them to explore ways to prosecute
hiring discrimination against ex-union members, women and the
indigenous. Vice Minister Monzon asked how the USG confronts
the issue of blacklisting. LabAtt promised to seek
information.

Action Request for USDOL/ILAB: Please provide any
information on how the US prevents and combats blacklisting
of workers involved in labor disputes.

Prof. Richard Feinberg Discusses CAFTA Labor Issues with GOG
-------------- --------------


6. (SBU) Labor Minister Moreira and Economy Minister
Patricia Ramirez told visiting Prof. Richard Feinberg, LabAtt
and AID Trade Capacity Director Jim Stein on August 21 that
the GOG was considering proposing to regional counterparts
meeting in El Salvador August 26 that CAFTA members commit to
a series of medium-term quantifiable and time-bound
indicators derived from the eight fundamental ILO conventions
(e.g. to halve child labor in 5-10 years, etc.). Prof.
Feinberg, noting he does not represent the USG, praised the
ministers' plan but warned that to be credible in the U.S.,
such commitments must be accompanied by implementation plans
and resources. The USG and other international organizations
might possibly support implementation, including the IADB and
World Bank, he said. Feinberg, visiting the region under
AID's trade capacity building program, encouraged the GOG to
view CAFTA talks as an opportunity to commit to medium-term
labor enforcement capacity building in the region, with US
and international donor support. He also promoted private
sector monitoring efforts and praised the GOG for its efforts
to enforce labor laws in the maquila sector in collaboration
with the Fair Labor Association (in the Choi Shin case).

GOG Formalizes Labor Working Group, Almost
--------------


7. (U) The GOG issued a decree on August 13 formally
establishing a "Multi-institutional Working Commission for
Labor Relations in Guatemala," chaired by the Labor Minister
and comprised of the Ministers of Economy and Foreign
Relations, the President of the Supreme Court, President of
Congress, the Attorney General, the Solicitor General, the
head of the tax authority, and the general manager of the
Social Security Institute (IGSS). The group is charged with
meeting at least once every four months as long as necessary
to "guarantee adequate treatment of labor relations during
the negotiation and implementation of free trade agreements,
that include labor clauses requiring labor cooperation,
respect and effective enforcement of labor rights." The
Commission's decree also forms a permanent subcommission on
Work in the Export and Maquila Sector, to enforce labor
conditions of export privileges and create a unified registry
of maquilas. The decree will take effect upon publication in
the Central American daily, the Government newspaper. (To
date it has not been published.)

More Maquilas on GOG "Hit List" for Labor Violations
-------------- --------------


8. (SBU) Labor Minister Moreira gave LabAtt a copy of a
letter he sent to Economy Minister Ramirez, dated August 21,
informing her of 69 labor violations at 17 maquilas, listed
in priority order, and requesting the initiation of
proceedings to withdraw tax privileges if the violations are
not remedied in a period of 30 days. The violations include
a wide range of complaints, including non-payment of required
benefits, overtime, and severance; registration with the
Social Security Institute; denial of breast-feeding breaks;
illegal suspension and firings; etc. The letter also
mentions 43 new violations at nine of these same plants, for
which another report will be prepared. Most of the factories
are Korean-owned. This initiative to enforce labor laws in
the for-export maquila sector follows the GOG's successful
effort to compel the Choi Shin/Cimatextiles company to
rectify pending violations and negotiate a collective
bargaining agreement with its unions. Vice Minister Monzon
said that the companies to be sanctioned will be notified
during the week of August 24.

Special Prosecutor Promises Results, Wants Resources
-------------- --------------


9. (SBU) LabAtt met with Special Prosecutor for Crimes
Against Unionists and Journalists, Antonio Cortez Sis, on
August 26, to review progress in investigations of these
cases, and to express concern about the apparent lack of
results. Cortez responded defensively to public criticism
from labor unions (CGTG) about lack of progress in the
investigation of the murder of Oswaldo Monzon Lima, head of a
trucking union, on June 22, 2000. Cortez blamed Monzon
Lima's son for not providing useful information to help
charge Mario Ortiz Barranco, the owner of the trucking
company, whom he suspects as the "intellectual author" of the
crime. However, he said, he will meet with a witness on
August 30 who claims to have heard Ortiz threaten the life of
Monzon Lima. Cortez Sis said he would ask a judge to charge
Ortiz with the crime if the witness' testimony is sufficient.
Meanwhile, Ortiz has filed a legal complaint of defamation
against CGTG leader Jose Pinzon for publicly accusing him of
being involved in the Monzon Lima murder. Cortez Sis cited
severe resource constraints hampering his office, comprised
of 8 officials and staff, two working computers, and one
dedicated vehicle. His current caseload is 55 labor cases
and 45 involving journalists. LabAtt acknowledged Cortez
Sis' letter to the Ambassador requesting material support,
emphasizing the need for concrete progress in priority cases
(such as the Monzon Lima murder). (Comment: We will give
Cortez the benefit of the doubt for another week, but are
disappointed by his results to date. End Comment.)

GOG Proposes 100% Increase to Labor Ministry Budget
-------------- --------------


10. (U) Labor Minister Moreira provided LabAtt with a copy
of a letter dated August 22, 2003 from Finance Minister
Eduardo Weymann pledging to set the Labor Ministry's 2004
budget at 125 million quetzals (approx. $16 million).
(Comment: If implemented by the next government, this would
more than double the 2003 Labor Ministry budget. End
Comment.)

Canadians Launch Guatemalan Guest Worker Program
-------------- ---


11. (U) The Canadian Embassy announced a new legal migrant
worker program for 167 Guatemalan workers (136 men and 31
women) to harvest fruit in Quebec for four months. (Comment:
We will monitor this program's results and consider its
implications for the U.S. H2B visa program. End Comment.)

Warrant Issued For Arrest of Immigration Union Leader
-------------- --------------


12. (SBU) Press reported on June 19 that a judge in Peten
had issued an arrest warrant against Rodolfo Quinonez, the
General Secretary of the Immigration Workers Union, for
"passive co-action and illegal transit of persons." Unnamed
Immigration Directorate sources accuse Quinonez of corruption
and acting as a leader of a band of alien-smuggling
"coyotes." Earlier in June, Zoila Ochaeta, the Immigration
delegate in Peten, was detained by authorities under similar
charges. Questioned in January by journalists, Quinonez
accused the Director of Immigration of anti-union repression
after the union denounced the Director's involvement in
smuggling Asians. Comment: The union and Director have
traded counter-charges of corruption over the past two years,
and union complaints were considered by the ILO. Both sets
of corruption charges appear plausible to us. End Comment.
HAMILTON