Identifier
Created
Classification
Origin
04TEGUCIGALPA2313
2004-10-15 14:10:00
UNCLASSIFIED
Embassy Tegucigalpa
Cable title:  

"Cumple y Gana" Labor Project Advances CAFTA

Tags:  ETRD ELAB EINV PGOV HO 
pdf how-to read a cable
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 002313 

SIPDIS

STATE FOR WHA, WHA/CEN, WHA/EPSC, DRL/IL, AND EB
STATE PASS AID FOR LAC/CAM
STATE PASS USTR
DOL FOR ILAB

E.O. 12958: N/A
TAGS: ETRD ELAB EINV PGOV HO
SUBJECT: "Cumple y Gana" Labor Project Advances CAFTA
Understanding with Private Sector


UNCLAS SECTION 01 OF 02 TEGUCIGALPA 002313

SIPDIS

STATE FOR WHA, WHA/CEN, WHA/EPSC, DRL/IL, AND EB
STATE PASS AID FOR LAC/CAM
STATE PASS USTR
DOL FOR ILAB

E.O. 12958: N/A
TAGS: ETRD ELAB EINV PGOV HO
SUBJECT: "Cumple y Gana" Labor Project Advances CAFTA
Understanding with Private Sector



1. Summary: The U.S. Department of Labor-funded "Cumple y
Gana" project held two recent public outreach events in
Honduras, aimed at informing the private sector as to the
contents and implications of CAFTA-DR with regards to
protection of labor rights and enforcement of labor laws.
EconOffs participated in the program, along with Honduran
Minister of Labor and private sector representatives.
Turnout was good, press coverage was positive, and overall
the events marked a strong first step in the important
effort of educating the Honduran public about CAFTA-DR, and
correcting the many misperceptions that persist. End
summary.


2. The "Cumple y Gana" project held two recent public
outreach events in Honduras: in Tegucigalpa on September 29
and in San Pedro Sula on September 30. The project, whose
full title is "Strengthening Labor Systems in Central
America: Cumple y Gana (Comply and Win)", is funded by the
U.S. Department of Labor, and being carried out in Central
America by the Costa Rican NGO FUNPADEM (Foundation for
Peace and Democracy) and by Abt Associates. Within
Honduras, FUNPADEM is partnering with the private sector
umbrella organization COHEP (Honduran Private Enterprise
Council). The launch of the project in March was attended
by President Maduro and Ambassador Palmer.


3. While the Cumple y Gana project has various objectives,
including providing training to strengthen Ministry of Labor
inspection services and strengthening alternative dispute
resolution mechanisms, the September events were focused on
increasing public awareness of the labor provisions
contained in CAFTA-DR. Each event was attended by roughly
75 people from the private sector - not CEOs and company
presidents, but rather personnel officers and people closely
involved with the day-to-day management of labor issues.
(FUNPADEM plans to hold additional outreach events aimed at
workers and labor unions in the future.)


4. The two key presentations at the event were delivered by
Armando Urtecho, a lawyer for COHEP who explained the labor
chapter of CAFTA-DR, and by EconOffs, who explained the

dispute settlement mechanisms outlined in the agreement.
Given the low level of knowledge that prevails among the
private sector as to exactly what the CAFTA-DR agreement
says regarding the enforcement of labor laws, these two
presentations were very positively received. The average
Honduran businessman seems to have only a vague sense that
CAFTA-DR will reduce Honduran sovereignty by giving the
United States the right to ultimately impose "fines" of USD
15 million at will if Honduras fails to meet first-world
labor standards. EconOffs took pains to dispel the myths
and correct the many misperceptions inherent in this view.
Specifically, EconOffs emphasized that CAFTA-DR requires
only the enforcement of member countries' own labor
legislation; requires the protection of fundamental,
internationally recognized, labor rights which are contained
in the core conventions of the ILO (International Labor
Organization); establishes a dispute-settlement process that
focuses on consultation and cooperation, and can assess
monetary contributions only as a last resort.


5. At the Tegucigalpa event, other speakers included
Executive Director of FUNPADEM Dr. Rodolfo Piza, President
of COHEP Jose Maria Agurcia, and Honduran Minster of Labor
German Leitzelar. Leitzelar took pains to counteract the
perception that CAFTA-DR represents a loss of Honduran
sovereignty, by pointing out that under Honduran law,
international treaties do not supersede the Honduran
constitution, but rather become incorporated into the
constitution. As he often does, Leitzelar also emphasized
that Honduras' labor legislation already protects the
fundamental labor rights which CAFTA-DR covers, and that
Honduras has ratified all eight of the core ILO conventions
(he pointedly stressed that the United States has ratified
only two). But he urged participants to place a greater
emphasis upon enforcement, not because of CAFTA-DR, rather
because it is necessary for the economic transformation of
Honduras, to ensure that the benefits of economic growth are
shared by all. "The treaty is not important", he concluded,
"what is important is our conduct and our commitment, with
or without CAFTA."


6. At the event in San Pedro Sula the following day,
EconChief represented the embassy, and Minister Leitzelar
was not present, leaving significant time for audience
participation. The question and answer session was
generally polite, but exposed a number of private sector
concerns. Many questions were technical in nature, and were
fielded by Urtecho of COHEP. In addition, audience members
inquired about the "fines" that could be imposed, in
response to which EconChief stressed the numerous other
options for settlement of a dispute, the fact that any
compensation levied would be as a last resort, and the fact
that all funds would be directed to programs within the
country to address the enforcement problem. EconChief also
highlighted that the U.S. interest is in promoting regional
integration, supporting stable, prosperous neighbors, and
improving the enforcement of labor laws, not in somehow
"punishing" its neighbors.


7. Asked how a developing country could afford to enforce
"these new laws", EconChief reiterated that CAFTA-DR imposes
no new laws, but only the requirement that Honduras enforce
its own laws. These are standards that Honduras has already
decided are important and therefore passed into law - now it
is up to Honduras to adequately enforce them. That said,
the USG has historically been eager to support such efforts
in our partners, and can likely be counted on to continue
doing so under CAFTA-DR. Again, EconChief noted, the goal
is to improve how the system works, not to point fingers.
In one of the best exchanges of the morning, one audience
member asked how CAFTA-DR would prevent corruption from
undermining the system. Urtecho turned it back on the
audience, in effect asking them how they will fight
corruption. As he listed the symptoms and societal costs of
corruption, and called the business community to action in
doing its part to combat corruption, heads throughout the
audience were nodding in assent. Following the event
EconChief was approached by audience members, and
interviewed by several reporters, providing an additional
opportunity to set the facts straight and to promote CAFTA-
DR as a strongly positive step for the region.


8. Comment: Nearly ten months after Honduras' part in the
CAFTA-DR negotiations concluded, the level of knowledge
among the business community, not to mention the general
public, regarding the agreement remains very low. (EconOff
was interviewed by one television journalist who apparently
did not realize that CAFTA-DR is distinct from the FTAA.)
For many of those in attendance, the event was obviously the
first time they had received a clear description of the way
that the agreement sets out to protect and enforce
fundamental labor rights. Further outreach of this nature,
including future events aimed at workers and unions, will be
of great value in counteracting widespread misinformation
and building public support for CAFTA-DR, as the GOH
prepares for ratification. End comment.

Pierce