TECHNICAL ASSISTANCE ON LABOR ISSUES

UNCLAS SECTION 01 OF 04 GUATEMALA 000759

SIPDIS

DEPARTMENT FOR WHA/PPCP, WHA/EPSC AND DRL/IL
DEPARTMENT OF LABOR FOR ILAB: ROBERT WHOLEY

E.O. 12958: N/A
TAGS: ELAB EAID KSUM ECON SOCI GT
SUBJECT: TECHNICAL ASSISTANCE ON LABOR ISSUES

REF: A. SECSTATE 43119

B. 02 GUATEMALA 3003


1. Ref A requests information about current or recently
completed technical cooperation activities in the labor
field. That information was included in Ref B and is
included in Paras 2-9 below. Information about USAID
bilateral projects in the labor sector is included in Paras
10-11, and USAID regional labor programs in Paras 12-13. We
hope this information is useful to the Department in the
context of CAFTA and FTAA negotiations.


2. Project Sponsor: ILO
Project Title: RELACENTRO (union rights, negotiation, and
labor relations in Central America)
--project goal: to improve union rights and labor relations
in the years 2001-2002, run by the Labor Ministry of
Guatemala, Central Unions, and the umbrella chamber of
business chambers (CACIF). Has received 1.5 million US
dollars from US Dept. of Labor.
Project Title: IPEC (International Program for the
Elimination of Child Labor in Latin America)
--project goal: to eliminate the worst cases of child labor,
run by the Labor Ministry of Guatemala, Central Unions, and
CACIF. Funded by the US Dept. of Labor and Spain.
Title: PRODIAC
--project goal: promotion of tripartite ideals, social
dialogue, and strengthening of democracy, in the years of
2001-2002, run by the Labor Ministry of Guatemala, Central
Unions, and CACIF. Has received $1.75 mil from Norway.
Title: Legal Empowerment of Indigenous Peoples of the
Central American Isthmus
--project goal: to strengthen the legal abilities of the
indigenous villages, helping to preserve indigenous identity
and protect their rights, in the years of 1999-2002, run by
the justice system and indigenous organizations. Has
received 1.5 million US dollars from UNFIP.
Title: MATAC (Modernization of the labor administrations in
Central America, Panama, and the Dominican Republic)
--project goal: To modernize the labor administrations of
these countries in years of 1997-2002. Has received $2.93
million from Spain. (Comment: MOL contacts tell us that
there has been little or no MATAC activity in Guatemala. End
Comment.)
Title: Education about Labor and Internalization of Peace in
Guatemala
--project goal: to educated university students about labor
rights since 1999. Funded by OIT and EPAZT.


3. Project Sponsor: UNDP
Project Title: International Labor Organization
Representation
--project goals: representation of ILO, to advise the
resident coordinators of the UN and of UNDP about labor
topics. Run by the Guatemalan Ministry of Labor, other
participating groups include: union organizations, the
business sector, and universities.
Title: Labor Justice
--Project goals: to advise and facilitate reform of labor
judicial processes.


4. Sponsor: MINUGUA
Title: Labor Justice
--project goals: research and workshops to come up with
ideas to improve the administration of justice from June 2000
to December 2001, run by The Judicial Organism and the
Ministry of Labor of Guatemala. Other participating groups
include: Unions, CACIF, Universities, Guatemalan Institute
of Labor rights
Title: Academic Training
--project goals: to offer conferences, publication
opportunities and a documentation center starting in June
2000 (until present),run by USAC and IDHUSAC. Other
participating groups include: The University of Rafael
Landivar, and the University of Mariano Galvez.


5. Sponsor: The Friedrich Ebert Foundation
Title: Empowerment
--project goals: offer conferences to increase institutional
knowledge and the ability to articulate interest starting in
2001, run by union organizations.
Increasing female participation in union life through
educational conferences starting in 2001, run by union
organizations.


6. Sponsor: UNICEF
Title: Children,s Rights, Citizen Participation,
Transformation of knowledge and values
--project goals: to protect children from labor and sexual
exploitation. From 2002-2006. Run by Ministry of Labor and
Ministry of Education of Guatemala. Other participating
groups: Civil society, NGO,s.


7. Sponsor: International Organization for Migration (IOM)
Title: Monitoring Migrant workers and the emigration of
Guatemalans to the south of Mexico
--project goals: to identify and register the workers,
2002-2003, run by the Ministry of Labor and the Ministry of
Foreign Relations. Other participating groups include:
workers, migrant worker recruiters.
Title: Investigation of the coffee crisis and its impact on
employment. Run by the Guatemalan Ministry of Labor in
2001-2002.
Title: Improvement of worker qualifications, run by SEPAZ
and INTECAP in 2001-2002.


8. Sponsor: Danish Central American Human Rights Program
(PRODECA)
Title: Labor justice and academic formation
--project goals: promotion of projects and publications.
Run by the Guatemalan Ministry of Labor and the Judicial Body
in 2000-2001, other participants include: universities and
unions.
Title: Labor justice
--project goals: improvement of the ability of the defense
and promotion of labor rights, legal assistance, judicial
investigation. Run by unions and NGO,s in 1999-2003.
Title: Project INTRAPAZ
--project goals: improvement and promotion of dialogue
techniques and alternative conflict solutions. Run by the
Guatemalan Ministry of Labor, NGO,s, unions CACIF, and the
University of Rafael Landivar in 2001-2002.


9. Sponsor: The Danish Council
Title: Union training to promote unity, strengthen
organizations, and promote strategic formulation of union
projects. Run by unions: CTC, CUSG, FESTRAS, IUTE,
ANTRASPG, and UNSITRAGUA in 1999-2002.
Title: The promotion of women,s participation in unions and
the education of union leaders. Run by unions in 1997-2002.

USAID Bilateral Programs
--------------


10. As part of an ongoing effort to support the Labor
Ministry, USAID/Guatemala engaged the services of IRM through
a buy-in to the Interagency Agreement between USAID and the
U.S. General Services Administration. The modest
project--$200,000--helps establish an information technology
unit within the Labor Ministry and pilot projects (e.g.,
direct communications between regional offices and the
ministry, labor inspection via palm pilots, and systems
administration).


11. During 2001 USAID provided $70,000 to the Institute for
Transforming Conflicts for the Construction of Peace in
Guatemala (INTRAPAZ) through a cooperative agreement with
Rafael Landivar University to provide in-country training in
successful dialogue, relationship-building and
labor/management conflict-resolution techniques. Target
groups included individuals from management, labor, the
Ministry of Labor, and a corps of future trainers and
mediators.

USAID Regional Programs: PROALCA II Labor Component
-------------- --------------

12. Project budget: $6.3 m.
Project duration: July 20, 2002 ) September 30, 2007
Participants: Ministries of Labor of Central America,
Panama, Belize and the Dominican Republic, Ministers, Vice
Ministers, other labor officials, union organizations, civil
society, among others.
Implementing Unit: Secretariat for Central American Economic
Integration (SIECA)

Project Goal: Supporting efforts to improve the functioning
of regional labor markets while strengthening the protection
of core labor standards.

Justification: Enhanced competitiveness in global markets
requires that Central America improve the functioning of its
labor markets while also strengthening the protection of core
labor standards. Improved labor-management relations are
essential to achieve the total quality production required by
a global marketplace. Moreover, satisfactory protection of
core labor standards is necessary to maintain access to
important markets. In addition, for Central America to take
maximum advantage of the increased opportunities presented by
more integrated regional and global markets, its labor force
must be better trained and more productive and its labor laws
and regulations must be harmonized. Also, rigidities in the
region%s labor market must be addressed by allowing for
flexibility and sufficient labor mobility to permit the
timely and voluntary reallocation of workers to newer and
more competitive economic activities. To achieve this
result, the following interventions will be promoted: (a)
labor ministries capacity enhanced, (b) competitiveness of
the region's labor force increased, and (c) harmonization of
labor laws and regulations in the region.

At the end of the strategy period, the following achievements
are expected:

-- More active and effective leadership of labor ministries
in economic policy-making relative to labor.
-- Better functioning of labor markets in specific areas
addressed by PROALCA II.
-- Establishment of one or more Alternative Dispute
Resolution Mechanisms in the region.
-- The development of a corps of trained technical staffs in
the labor ministries of Central America.
-- Shift from public occupational training in public-private
skills-based training.
-- Harmonization of skills standards and standards of methods
of certification.
-- Initiation of skills certification program throughout
region.
-- Increased voluntary mobility of workers inside their
countries.
-- Changes in labor codes to incorporate policies that
increase labor flexibility without weakening protection of
core labor rights.
-- Region wide respect for core labor rights.
-- Changes in national legislation to conform to regional
norms.
-- Increased convergence of labor laws in the region.

USAID Regional Programs: PROALCA I Results
--------------


13. Our regional Program in Support of Central American
Participation in the Free Trade Area of the Americas (PROALCA
I) Labor Component ran from 1995-2002 and had its objective
"More Equitable and Better Functioning Labor Markets." The
labor component expended $ 5.0 million. This was
accomplished through programs designed to support Central
American efforts to strengthen the protection of
internationally recognized core labor standards, improve
labor-management relations, and modernize labor markets. The
activity also helped improve workplace conditions and better
enable workers to receive their fair share of gains generated
by trade expansion and productivity increases.

PROALCA supported the Ministries of Labor of Central America,
Belize and the Dominican Republic. The program provided
assistance for policy reform and for effective policy
implementation, as needed. The types of assistance provided
included specialized technical assistance, horizontal
(inter-ministerial) cooperation programs, short-term training
programs, observational trips and support for regional
seminars, workshops and fora.

USAID-IDB-SIECA Labor Modernization Project: This program
was designed to assist Central American efforts to modernize
labor markets by supporting regional and national dialogue on
topics related to labor markets and hemispheric integration,
globalization and trade policy, among others. The project
also provided opportunities for the region,s countries to
participate in pilot activities in methods of alternative
dispute resolution and occupational safety standards.

The program financed technical assistance and consulting
services for the eight Ministries of Labor in the formulation
of national and regional policies, and the modernization of
labor markets. Thirty-six national seminars and workshops
were developed in the region. 1,631 persons (478 women and
1,153 men) from the public and private sector, trade unions
and NGOs were trained on subjects related to social dialogue,
information systems, alternative methods of dispute
resolution, occupational health and safety, and modernization
of the labor market.

This subcomponent supported the development of a web-based
labor information system. This system facilitates the
research of statistics on occupation, income and wages,
vulnerable groups, labor legislation, agreements and
ministerial meetings, international legislation, social
dialogue, trade union information, economic and demographic
data, and social standards, and provides a virtual library on
labor topics. Training on the use of the system and the
necessary computer equipment and software were also provided
to the ministries. This component finished on September 30,
2001 (although a no-cost extension was approved for an
additional year and activities continue with IDB financing).

Labor Advisor: This consulting service provided the Ministers
of Labor with advice on the status of the hemispheric
economic and social integration process, and how labor issues
are incorporated into that process, as well as advice on
ministerial modernization processes. It also helped the
Ministers define appropriate social, economic and labor
policies.

This subcomponent facilitated the exchange of technical
assistance, training, and best practices among the Central
American Ministries of Labor and between Central America and
those from outside the region through a horizontal
cooperation program and site visits. A total of 82 labor
officials participated in the hemispheric cooperation program
in areas such as: modernization of labor markets, automation
of labor information, labor relations, labor inspection, and
certification of labor skills. Five extraordinary
ministerial meetings were supported as well as the XVI
Council of Ministries of Labor of Central America. Under
this contract, a total of 866 (652 men and 214 women) Labor
officials participated in 18 seminars and workshops on
employment policies, productivity, and modernization of the
labor markets.

With the support of this subcomponent, the Secretary of Labor
and Social Welfare of Mexico and the Ministers of Labor of
the region signed an operational agreement on November 23,

2001. This agreement will allow the transference, at a
minimum cost, of successful experiences that were accumulated
by the participation of Mexico in the North American Free
Trade Agreement (NAFTA) in aspects such as labor skills
certification programs and systems for the establishment of
norms, among others. Probably the most significant
achievements of this subcomponent, however, have been the
creation of an ad-hoc secretariat of the Central American
Ministers of Labor and the successful garnering of assistance
from other donors for the labor sector in Central America.

Strengthening Labor Management Relations: This program
concluded in November 2000 and was developed through a US
$1.6 million cooperative agreement awarded to FUNPADEM. Its
purpose was to support the modernization of the labor
inspection departments in each ministry, and to strengthen
ministerial abilities to resolve labor conflicts and enhance
labor-management relations.

This assistance included the design of a modern management
system to enhance the inspection process through improved
monitoring and quality control of inspections and
establishing a database on businesses, workers, payrolls,
frequency and geographic locations of violations.

Training activities on inspection, ministerial operations,
and labor issues in the context of economic globalization and
hemispheric integration surpassed expectations. 1,230 (923
men and 307 women) representatives from the labor ministries,
unions and management participated in six workshops, fourteen
courses, six seminars and six video conferences

Child Labor Program: The Child Labor Eradication Program
funded by USAID was successfully completed in September 2001.
FUNPADEM provided sub grants to and monitored the national
NGOs, which implemented the pilot projects in each Central
American country according to the selected high-risk areas
identified by the Ministers of Labor (Guatemala-quick lime
production).

NGOs were provided with the equipment and furniture required
to implement activities. The program developed regional
workshops, reinforcement school courses, seminars,
socio-economic diagnosis, and provided technical assistance
to encourage more than one thousand children (586 girls and
624 boys),adolescents, families and teachers to participate
in educational and training activities. A total of 547
children will stop working to study, 147 will not study, and
the rest will combine both activities. NGOs obtained 193
scholarships, 100 from the IPEC-ILO project and the rest from
the private sector and municipalities.
HAMILTON