Identifier
Created
Classification
Origin
03SANTODOMINGO6580
2003-11-15 20:34:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Santo Domingo
Cable title:  

CAFTA LABOR TEAM VISITS DOMINICAN REPUBLIC

Tags:  ELAB ETRD KCRM PHUM DR 
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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 02 SANTO DOMINGO 006580 

SIPDIS

SENSITIVE

DEPT FOR WHA/CAR (MCISAAC),WHA/PPC (ROE) DRL/IL (WILSON)
DOL JORGE PEREZ-LOPEZ, DOL CARLOS ROMERO
STATE PASS USTR (CLATANOFF)

E.O. 12958: N/A
TAGS: ELAB ETRD KCRM PHUM DR
SUBJECT: CAFTA LABOR TEAM VISITS DOMINICAN REPUBLIC

REF: SANTO DOMINGO 4990

UNCLAS SECTION 01 OF 02 SANTO DOMINGO 006580

SIPDIS

SENSITIVE

DEPT FOR WHA/CAR (MCISAAC),WHA/PPC (ROE) DRL/IL (WILSON)
DOL JORGE PEREZ-LOPEZ, DOL CARLOS ROMERO
STATE PASS USTR (CLATANOFF)

E.O. 12958: N/A
TAGS: ELAB ETRD KCRM PHUM DR
SUBJECT: CAFTA LABOR TEAM VISITS DOMINICAN REPUBLIC

REF: SANTO DOMINGO 4990


1. (U) Summary. On November 5-7 an inter-agency team
discussed labor issues with the Dominican Republic in advance
of free trade negotiations. In meetings with the Minister of
Labor, leaders in Congress, civil society, employer
federations and emboffs, team leader Assistant USTR Clatanoff
stressed issues of freedom of association in free trade zones
and trafficking in persons (specifically child prostitution
and mistreatment of Haitian migrants). Delegation members
said the visit was useful and reassuring. Labor unions and
government reps told them a free trade agreement will
mutually benefit partners and bolster respect for workers
rights. End Summary.

CAFTA LABOR DELEGATION: FIRST VISIT TO DR


2. (U) Assistant USTR for Labor Affairs William "Bud"
Clatanoff led a USG inter-agency team to the Dominican
Republic November 5-7 to review labor issues in preparation
for negotiations on a free trade agreement. Other members
were Jorge Perez Lopez, Associate Deputy Under Secretary of
Labor; Charlotte Roe, Senior Labor Advisor (WHA/PPC),Arlen
Wilson, DRL/IL Deputy Director; and Carlos Romero, DOL
economist. In preliminary comments to the Ambassador and
emboffs, Clatanoff said that the text of the Dominican Labor
Code appeared to be acceptable but the team needed to know
more about standards of enforcement. The different minimum
wage structures in free trade zones and elsewhere in the
country were a point of investigation (a concern was
alleviated in later meetings -- see para 6).

CONGRESS: GLAD TO BE OF SERVICE


3. (U) House of Representatives Chairman Alfredo Pacheco and
Senate President Jesus Vasquez said in separate meetings that
they looked forward to close collaboration. Pacheco did
caution, however, that the free trade agreement would be
finalized before any changes to the existing Labor Code
(approved in 1992). He said the country needed more time to
fully implement it. As for allegations of worker rights
abuses in the free trade zones, Pacheco responded "this is an
old problem." He pointed to the success story of the Leon
Jimenez company, which in his opinion has paved the way in

developing top-notch worker benefit programs.


4. (U) Both congressional leaders commented that a free trade
agreement will promote increased respect for workers' rights.
Clatanoff stressed that the U.S. Congress is deeply
concerned issues of trafficking in persons and child
prostitution. Pacheco cited the recent passage of a
comprehensive law against trafficking in record time. Both
Pacheco and Vasquez spoke highly of Minister of Labor Milton
Ray Guevarra, especially regarding the Ministry's efforts to
eliminate the worst forms of child labor. Vasquez commented
that Ray Guevarra, having been a Senator, can appreciate the
approach of the U.S. Congress to evaluating a free trade
agreement. Pacheco summed up, saying he was "glad the U.S.
Government is so concerned with so points; the average
Dominican thinks that the U.S. does not care about them."

MINISTRY OF LABOR: A DEPENDABLE PARTNER


5. (U) Minister of Labor Milton Ray Guevarra, favorably known
to majority of the delegation, assembled top advisors to
brief the CAFTA labor team. These included his wife (a
candidate for the post of Ombudsman),an Assistant Secretary
for general matters, the Director General for Labor, the
Assistant Secretary in charge of child labor programs, the
Director of Inspections, the Director of Mediation and
Arbitration, and President Mejia's labor attache. The
Minister thanked the USG for its support, especially that of
DOL. He said his key objectives were eradicating child labor
and social security reform. Ray Guevarra cited the new law
against trafficking and the launch of the Time Bound Program
as tools to address commercial sexual exploitation of minors
(reftel). He emphasized that he and President Mejia strongly
believe that a free trade agreement will strengthen and
promote workers' rights.


6. (U) The delegation asked about Labor Code enforcement.
Minister Ray Guevarra informed the delegation that, like the
Central American countries, the GODR had asked the ILO to
study its labor laws and practices. He said the labor code
applies to all workers, Dominican citizens and foreign
nationals -- including illegal or undocumented residents.
The ministry thoroughly investigates any complaint. (Note:
Trade union leaders and NGO activists confirmed this in
separate meetings, but also pointed out that most Haitian
migrant workers do not make complaints because they fear
deportation. End Note). The minister acknowledged that
abuse of foreign workers does occur, but this could not be
attributed to a flawed labor code.


7. (U) Ray Guevarra noted that 92% of cases that reach labor
courts are decided in favor of workers. As for minimum wages
scales, these are determined by sector, profession and
locale, since the cost of living varies significantly among
the 31 provinces. To address current inflation --
approaching 35 percent annually -- the National Committee for
Salaries has approved an across the board 25% increase in
minimum wages to be fully implemented by all companies by
January 2004.

8. (U) The Director General for Labor said the Ministry of
Labor has been investigating allegations of abuses in the
free trade zones, particularly in a case involving a Grupo M
plant in Santiago. The Ministry works closely with the
National Council of Free Trade Zones on such allegations. In
two instances, company export licenses were suspended as
punishment. The Ministry pays for the services of more than
50 defense lawyers for a major trade union, FENATRAZONAS
(National Federation of Workers in Free Trade Zones). There
are 3,564 registered unions in the Dominican Republic, 160 of
them in free trade zones. The DG noted that a collective
bargaining agreement was signed in October in a free trade
zone in Bonao (Note: Details to follow in Human Rights
Report. End Note).

BUSINESS COMMUNITY: SLIGHTLY ON THE DEFENSIVE


9. (U) Jeannette Dominguez Aristy, President of the National
Council of Free Trade Zones, appeared defensive in answering
questions about freedom of association in the zones. She
called the labor code "very strong." Dominguez finds its
extremely biased in favor of workers, many of whom are
"misguided" by financial self-interest when they join unions
or bring complaints against employers. Regarding the Grupo M
plant in Santiago, Ms. Dominguez defended the firm as
"leading the movement to recognize workers rights in free
trade zones." She said that unions in Central American
countries are worse off than those in the Dominican Republic.
In her 15 years of experience with free trade zones,
Dominguez said, she has seen many positive changes,
particularly because workers are engaged and not left out of
the process.

COMMENT


10. (SBU) The CAFTA labor team said the visit was useful.
Their highest marks go to the Ministry of Labor for several
reasons: the request for an ILO study, the agreement of all
sectors that the Ministry does pursue complaints, and the
fact that the Mejia administration kept on board experienced
Ministry officials from the previous administration. Trade
unionists came across as credible activists with a permanent
presence in the labor process. Clatanoff commented that "the
rule of labor law is respected and functioning." Also to
note was the agreement across sectors about the prospective
benefits of a free trade agreement. Issues remain to be
explored, including particularly those of undocumented
Haitian workers, freedom of association in free trade zones,
and trade unionists' concerns with recent social security
legislation. The team found that the GODR had responded with
a willingness to address these and could use its positive
relations with unions to do so. End Comment.
HERTELL