Identifier | Created | Classification | Origin |
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03TEGUCIGALPA1548 | 2003-07-01 23:11:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Tegucigalpa |
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 TEGUCIGALPA 001548 |
1. (SBU) Summary: Standard Fruit (Dole) and its union maintain good relations, with both sides saying that the two have worked closely together since Hurricane Mitch in 1998. In fact, Dole has announced an expansion of its investment in Honduras. While the union has declined in numbers and strength, it remains a key player in Honduran labor, and is the base of the important FESITRANH federation which in turn controls the CTH confederation. It is ironic that Standard Fruit, long criticized for its actions in this former "banana republic," now is an excellent example of harmonious labor/management relations and the benefits foreign investment can bring to Honduras when both sides bring a constructive attitude to the table. End Summary. Dole Management: No Problems with Labor Unions -------------------------- - 2. (U) Ambassador, Econ Counselor, AID Director, and LabAtt met with Gerald Brunelle, General Manager, and other top officials Dole's Honduran subsidiary Standard Fruit of Honduras and toured Dole's pineapple plantations, processing plants, and laboratories in La Ceiba May 15. Dole officials said the Maya Division, which includes both Honduras and Guatemala, employed 5,500 workers who belonged to five different unions (the main union being SUTRASFCO). Dole had approximately 769 salaried personnel and also contracted with independent producers. Dole's Maya Division produces 10 million boxes of bananas per year and independent banana producers 4-5 million boxes per year for Dole. Dole also produces four million boxes of pineapples per year. Pineapple workers were mainly contract labor (in the past they had been unionized). Dole recently announced an important expansion of investment in Honduras. 3. (U) Dole officials said the company had excellent relations with its unions, especially SUTRASFCO, and noted that Hurricane Mitch had brought management and labor closer and had led to improved productivity at the company. Unionized workers receive some of the best pay and benefits for workers in Honduras (housing, medical care, etc.); non-unionized pineapple workers made considerably less (some only approximately USD 1/day). Labor Union Praises Dole and Calls for More Investment -------------------------- -------------------------- 4. (U) LabAtt met May 15 with the main Standard Fruit Company Workers' Union (SUTRASFCO), led by President Carlos Lopez. SUTRASFCO is a key union in the Federation of Workers' Unions of Honduras (FESITRANH), the base of power for Confederation of Workers of Honduras (CTH) Secretary General Dinora Aceituno. (Note: The CTH is one of three Honduran labor confederations and is affiliated with the International Confederation of Free Trade Unions (ICFTU). End Note.) SUTRASFCO leadership confirmed that the union had had good relations with Dole ever since Hurricane Mitch in 1998, with the two sides working together to improve the company and labor/management relations. The union, which has an upcoming election, is currently negotiating a new three-year collective bargaining agreement. The contract will cover 1,300 permanent workers, and for the first time will cover some temporary workers. Like Chiquita's union (ref A), Dole's union leaders bemoaned the slow but steady decline in jobs at Dole, which in turn led to the relative decline of the union. From 18,000 members in 1954 to 5,000 workers in 1975 (when the railroad and the port in La Ceiba were nationalized), the union continued to decline, and lost 550 jobs after the devastation of Hurricane Mitch. 5. (U) While there are of course minor problems, union officials said they had no major problems with Dole. The major problem was a lack of any other job opportunities in the La Ceiba area besides Dole. With only a couple of maquilas in the area, union officials gave an impassioned pitch for increased private investment. Pesticide Court Case Continues to Block Settlement -------------------------- -------------------------- 6. (U) Over the past two presidential administrations, the GOH has been coordinating tripartite negotiations for an out of court settlement of workers and ex-workers affected by DibromoChoropropane, or Nemagon, a pesticide used on Dole banana plantations in the 1960s and 1970s (ref B). In a 1997 judgment against Shell Oil Company, Dow Chemical, and Occidental Chemical Corporation, a U.S. court charged Nemagon producers USD 41.5 million for damages due to sterility of a few hundred Honduran workers, and another 25,000 workers in 11 countries worldwide. Most of the Honduran plaintiffs have already received payments as a result of this settlement. However, a larger number of Honduran workers suffering a wider array of claimed side-effects have been clamoring for some form of workers' compensation from Dole. A class action suit against Dole remains in the U.S. courts and has impeded any national resolution. Despite efforts by a government-sponsored commission of management, labor, and government officials from the Ministries of Justice, Labor, and Health, and a desire by Dole to settle the lawsuit, the class action suit in U.S. courts has yet to be dropped by the workers. This has impeded Dole from proceeding with an out of court settlement in Honduras. SUTRASFCO officials said they understood Dole's position and hoped that a settlement could be reached. Standard Fruit a Positive Example -------------------------- 7. (SBU) Comment. It is somewhat ironic that it Standard Fruit, long criticized for its actions in this former "banana republic," is now an excellent example of harmonious labor/management relations and the benefits foreign investment can bring to Honduras when both sides bring a constructive attitude to the table. Not unique in their devastation from Hurricane Mitch, Dole and Chiquita both have invested to rebuild their Honduran operations in contrast to several Honduran banana companies that did not. If workers drop their U.S. lawsuit, an out of court settlement of the pesticide case would then solve the only outstanding labor issue. End Comment. Palmer |