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