LABOR STRUGGLES AMID THE BOLIVARIAN REVOLUTION

C O N F I D E N T I A L CARACAS 003164

SIPDIS


NSC FOR CBARTON
USCINCSO ALSO FOR POLAD
STATE PASS USAID FOR DCHA/OTI

E.O. 12958: DECL: 10/13/2014
TAGS: PGOV ELAB PHUM VE KEDEM
SUBJECT: LABOR STRUGGLES AMID THE BOLIVARIAN REVOLUTION

Classified By: Abelardo A. Arias, Political Counselor,
for reason 1.4(b).

--------------
Summary
--------------


1. (C) The assimilation of organized labor into the
Bolivarian Revolution continues to elude supporters of
President Hugo Chavez. Two rival labor confederations -- the
anti-Chavez Venezuela Workers Confederation (CTV) and the
pro-Chavez National Workers Union (UNT) -- plan to hold
elections in early 2005. The CTV wants to get fresh
leadership and dispel the cloud left by current
president-in-exile Carlos Ortega. UNT has hobbled along
since 2003 with 21 national coordinators who have digressed
into factionalism. The two electoral processes could shed
light on which labor camp is strongest in Venezuela, though
the "revolutionary" Chavistas ru a high risk of revealing
their lack of support mong the working class. End summary.

--------------
A Tale of Two Labor Conederations
--------------

2. (U) After the pro-Chavez Bolivarian Workers Forc (FBT)
lost the elections for the Venezuelan Worers Confederation
(CTV) in October 2001, Presidet Hugo Chavez continued to
battle the CTV and heped create a parallel labor
confederation. Dissdent CTV leaders and ndependents
founded in Apri 2003 the National Workers Union (UNT) with
the ope of supplanting the CTV as Venezuela's largest rade
union group. Since then, the CTV and UNT hve competed for
union membership along pro-Chave/anti-Chavez lines, and it
is now unclear how man workers each confederation
represents. Both grups face the possibility of elections
for top pots next year that could help bring the labor
picture to sharp relief.

--------------
CTV: Elections A Chance For A New Mandate
--------------


3. (U) CTV President Carlos Ortega (currently in exile/hiding
and facing criminal charges related to the national strike)
and Secretary General Manuel Cova (now the CTV's de facto
leader) received four-year terms in what was the first direct
election of confederation leaders in CTV history. Ortega and
Cova were backed by a coalition of opposition parties, most
notably Accion Democratica (AD). The FBT charged fraud, and
the GOV did not recognize the current CTV leadership. At the
same time, federations and individual unions affiliated with
CTV were elected to three-year terms, which expire at the end
of October 2004. By law, unions have three months to hold
new elections after the end of the term. Rather than operate
one more year with a president-in-exile, some CTV leaders
(including Cova) are pressing to hold CTV elections at the
same time as federation and union elections. Voter turnout
is also a factor, with workers more likely to vote for local
union leaders than for national labor leaders.

--------------
UNT: Plagued By Factionalism
--------------


4. (C) In the wake of the national strike, dissident CTV
officials and pro-Chavez labor leaders formed the UNT, naming
a board of 21 "national coordinators" representing diverse
groups. Some national coordinators have ties to pro-Chavez
political parties Patria Para Todos (PPT),Podemos, and
Movimiento Quinta Republica (MVR). Others have ideological
ties, such as to the Socialist League or Trotskyites. Some
are "independents" from the Christian Democrats (COPEI),
though critics refer to them as "opportunists." National
Coordinator Orlando Chirino, a Trotskyite former regional CTV
chief in Carabobo State, told poloff September 8 the concept
of UNT was to practice "collective leadership" and thereby
break from traditional Venezuelan union models. The
collective arrangement proved inadequate to manage a national
labor movement, however, said Marcela Maspero, a former CTV
executive council member from COPEI. Maspero told poloff the
full board of coordinators stopped meeting after only a few
months, dwindling down into factions. Maspero said the time
had come for labor central to elect a president, which UNT


leaders hope could take in February 2005, if electoral rules
can be adopted in time.


5. (C) There are two principal factions within UNT. Maspero
and Chirino lead one sect that is reported to have close
contacts with Minister of Labor Maria Cristina Iglesias. A
member of the PPT party, Iglesias' support is crucial for
registering new UNT-affiliated unions, and unions with ties
to Maspero and Chirino reportedly fare better with Iglesias
than do other UNT factions. Maspero demurred when poloff
asked in the presence of Chirino which of them would be their
faction's candidate for UNT president. It will be decided
later, Maspero responded.


6. (C) The second principal faction is formed by Ramon
Machuca, leader of the union at the GOV-owned steel plant,
SIDOR, in Bolivar State. Machuca was a founder of UNT and
had hoped to be named its first president; when the
collective model was adopted, Machuca's interest in UNT
cooled. Earlier this year, Machuca lead a successful strike
at SIDOR. If the UNT holds elections, Muchaca is likely to
be a candidate. He is supported by fellow national
coordinators Franklin Rondon, who leads the large pro-Chavez
public worker federation, and Francisco Torrealba, the former
head of the Caracas Metro union. Torrealba told poloff
September 28 his faction has poor relations with the Minister
of Labor, who clashed publicly with the metro union in
September over its collective bargaining agreement with the
GOV. Both faction agreed that other groups exist within UNT
that, if motivated by the elections, could field serious
candidates as well.

--------------
The CNE Wrinkle
--------------


7. (C) Venezuelan labor analyst Rolando Diaz told poloff
September 22 that elections for both confederations will be a
measure of their respective strengths. Workers affiliated
with each central will vote -- confederations draw up their
own voter rolls -- and thus give an indication of overall
membership of each. Another factor in the elections is the
role of the National Electoral Council (CNE),which was
empowered by the 1999 Constitution to oversee union internal
elections. Both the CTV and UNT oppose this provision, which
they view as a violation of International Labor Organization
(ILO) conventions on the freedoms of association and to
organize. There are widespread concerns as well that the
CNE, which routinely cows to GOV interests, will give
disparate treatment to the CTV, whose 2001 elections the CNE
has yet to recognize. Torrealba expressed concern that the
CNE will be biased in favor of the UNT faction competing
against his. He said his faction might seek a Supreme Court
injunction to void the CNE's authority to intervene in union
elections. Diaz was confident that in a fair contest the UNT
would be shown to have fewer workers than the CTV.

--------------
Comment
--------------


8. (C) President Hugo Chavez has been unable to capture wide
support among organized labor and has instead caused its
fragmentation. He can only count on nominal support from the
UNT leaders, who are united more by their disgust for the CTV
than for their affection for Chavez. The CTV and UNT
elections could overlap next year, creating some potential
pitfalls for Chavez. A relatively big turnout for CTV over
UNT would signal low Chavez support in the formal economy
working class. Involving the rarely impartial CNE could open
the institution to further erosion of its credibility, which
Chavez needs to preserve for next year's legislative
elections. Taken in the context of high
unemployment/underemployment and flagging worker salaries and
benefits, labor politics will at least present a major
headache for Chavez in the coming year.

Brownfield


NNNN
2004CARACA03164 - CONFIDENTIAL