PRESIDENT SIGNS SUBCONTRACTING DECREE

UNCLAS QUITO 002690 SIPDIS SECSTATE PLEASE PASS TO USTR FOR BUD CLATANOFF. USDOL FOR JORGE PEREZ-LOPEZ. E.O. 12958: N/A TAGS: ELAB PGOV EC SUBJECT: PRESIDENT SIGNS SUBCONTRACTING DECREE ¶1. Minister of Labor Raul Izurieta informed LabOff on October 5 that the President had signed the long-promised subcontracting decree (Executive Decree #2166) late on October 4. The decree will be published in the official register next week, he said. After the decree is published, the GoE will hold a press conference to publicize it. ¶2. Minister Izurieta provided the Embassy a copy of the decree, which we have faxed to WHA/AND, WHA/PPC, DRL/IL, USDOL/ILAB and USTR. The decree regulates the use of three kinds of third-party contractors: subcontractors for temporary services, subcontractors for complimentary services and subcontractors who provide primary services indefinitely. For the last category, the number of subcontracted workers cannot exceed 75% of the company's total employees. The decree guarantees subcontracted workers' right to collective bargaining and states that subcontracted workers will receive the same benefits (including profit sharing and social security) and salaries as directly hired workers, in partial fulfillment of commitments made to the USG under ATPDEA. KENNEY