ALLEGED VIOLENCE AT GUATEMALAN MAQUILA

C O N F I D E N T I A L SECTION 01 OF 03 GUATEMALA 000297

SIPDIS

E.O. 12958: DECL: 02/02/2015
TAGS: ELAB PHUM KCRM EAID GT
SUBJECT: ALLEGED VIOLENCE AT GUATEMALAN MAQUILA


Classified By: Ambassador John Hamilton, reasons 1.4 (B,D)


1. (SBU) Summary: The Korean manager of a Guatemalan maquila
allegedly punched a female union leader in the face during a
January 20 altercation at the factory. Both sides filed
claims with the prosecutor's office and the Ministry of
Labor. The case demonstrates the weakness of Guatemala's
ability to enforce labor standards and the ability of
management teams to manipulate their workforces and the legal
system to create a climate of intimidation. Ironically, the
incident took place at factory in which working conditions
compare favorably with any factories in the world, including
those in the United States. Despite the altercation,
negotiations for a collective bargaining agreement at the
factory are nearing completion. End summary.

Leading to an altercation
--------------


2. (U) The General Manager of a Guatemalan apparel factory,
NB Guatemala, allegedly struck a member of the Union's
Executive Committee during an altercation on January 20. The
Executive Committee member, a 47 year old woman, filed
reports with the Ministry of Labor's Inspectorate and the
Attorney General's Special Prosecutor for Crimes against
Trade Unionists. The General Manager filed counter-claims at
both of those offices, as did a rival group of workforce
employees loyal to the General Manager. (Note: NB
Guatemala, a wholly-owned subsidiary of Korea-based Nobland
International, is one of only three maquilas in Guatemala
that have registered unions. End note.)


3. (U) Nine employees had been fired in early January on the
grounds that they were not permanent employees and did not
enjoy job protection benefits. The Union of NB Employees,
which represents 20% of the factory's approximately 500
workers, and the federation of unions (FESTRAS) to which the
Union belongs protested the process of the workers dismissal
and the workers' status as non-permanent employees. In
consultation with the Union, NB management agreed to
reinstate the nine workers on January 19. According to both
Union and management sources, on the morning of January 20,
General Manager Yong Ha-Kim (a Korean national resident in
Guatemala) was directing the nine workers to new workspaces
removed from the main factory floor when Union Secretary
General Vidalia Garcia Hernandez and Union Organizational
Secretary Maria Rosa Lopez Flores confronted Kim to insist

SIPDIS
that the reinstated workers return to their old positions.

The Union's version...
--------------


4. (U) In a January 21 meeting, the Union leaders told us
that at this point Kim struck Lopez in the face with a closed
fist, knocking her to the ground. Dozens of nearby workers
left their workstations to assist Lopez, who was dazed and
crying. They told us that Kim then left the area, and the
company's Chief of Personnel, Alfonso Cuzal, helped Lopez to
her feet and apologized profusely on behalf of Kim. At this
point, Laura Garcia, a member of a group of pro-management
employees, began shouting accusations that Lopez had started
the encounter. When Garcia Hernandez protested this version
of the events, Laura Garcia slapped her across the face.


5. (U) Lopez and Garcia Hernandez then left the factory,
followed by dozens of workers. When Cuzal followed them to
the parking lot and ordered the workers to return to their
workstations, Lopez and Garcia Hernandez left the premises to
file charges against Kim and Laura Garcia at the Ministry of
Labor and the Public Ministry (the Attorney General's Office).

Management's version...
--------------


6. (U) When we visited NB on January 27, Kim told us that he
had ordered the two Union leaders to return to their own
workplaces, informing them that work assignments were under
the purview of management. Kim said that Lopez began
screaming at him and trying "to make contact" with him. He
said that Cuzal had to intervene to keep Lopez from attacking
Kim. The screaming attracted a crowd of workers, causing Kim
to leave the scene. According to Cuzal, Lopez and Garcia
Hernandez went to the parking lot followed by several of the
workers who had left their workstations. Cuzal told us that
Garcia Hernandez began telling workers that Kim had struck
Lopez. The two Union officers then left the factory. Kim
denies ever striking Lopez.


7. (C) Later that morning, Kim filed a counterclaim at the
Ministry of Labor, explaining his side of the story and
requesting that the Ministry order Lopez and Garcia Hernandez
to refrain from involving themselves in situations in which
they have no legal position, such as the assignments of
workers within the factory. On January 26, Kim and Cuzal
jointly filed a similar counterclaim with the Public
Ministry.

And a third set of actors...
--------------


8. (U) Following the events of January 20, a group of
pro-management employees arrived at the Ministry of Labor in
a rented bus during working hours to file a claim supporting
the views expressed by Kim and Cuzal. Kim told us that the
group rented the bus themselves but would not confirm whether
they had permission to leave work.

The Government's response
--------------


9. (C) Vice Minister of Labor Cesar Castillo told us that he
had summoned Kim to his office on January 20 to discuss the
matter when Kim visited the Ministry of Labor to file his
claim. On January 26, Castillo told us that his inspector
would visit NB the following day to interview workers and
management in regard to the issue. The inspector did indeed
visit NB, but his report did not contain any new information,
nor did it draw any conclusions. Castillo told us that he
impressed upon Kim the importance of labor rights and how
troubling the allegations were from the Ministry's
perspective.


10. (C) At the Public Ministry, the Office of the Special
Prosecutor for Crimes against Journalists and Trade Unionists
received and filed the claims from the Union members and
management but has not visited NB. The two claims filed in
this case make a total of ten filed in the Special
Prosecutor's Office related to NB. The head of the office,
Mario Castaneda, told us that claims from NB always come in
pairs. The Union's claims of threats are always matched by
counterclaims from a rival group of employees, which
complicates investigations. A member of the rival group
filed the only previous claim of injury against Lopez and
Garcia Hernandez. Castaneda told us that his office has no
jurisdiction between rival groups of employees. The incident
of January 20 marks the first claim directly filed against
management, which is in the purview of the Special
Prosecutor's Office.

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


11. (C) The irony of this case is that January 20 should have
been marked as a day of success for the Union. The use of
negotiation based upon agreed processes to bring about the
reinstatement of improperly fired workers was a significant
accomplishment, now marred by the alleged violence. The
Union claims that the rival group is materially supported by
NB's management and thus should not be considered an
alternative voice of the labor force. We think that this is
probably the case, and that management is actively
encouraging, and very possibly directly funding the
activities of this group. We believe that Castaneda's
description of paired claims reflects a manipulation of the
legal system to prevent government action against systemic
intimidation.


12. (C) Management claims that the Union is being duped by
FESTRAS and foreign labor activists, including those
representing US/LEAP and the Solidarity Center, and that the
vast majority of NB's workers are happy and proud to work
there. While we consider the charge that these groups have
"duped" the Union to be a gross exaggeration, the
confrontational nature of these groups has increased the
tensions at NB. As negotiations for a collective bargaining
pact are nearing completion, we stressed to the Union not to
allow this incident to derail the process. We stressed to
the Union that achieving only the third collective bargaining
agreement in Guatemala's entire maquila sector must be the
Union's most important goal.


13. (U) This case demonstrates the obstacles which hamper the
administration's efforts to enforce labor standards. The
pressure from the Vice Minister of Labor was welcome, but
does not resolve a case where a management team could
manipulate the system to cover up acts of intimidation and
assault, as we believe occurred at NB. Additionally,
incidents such as these are an important factor in regard to
the lack of worker solidarity and help explain why many of
NB's workers are disinclined to join the Union. Currently,
only 20% of the workforce are members. The fact that 80% of
the workers have not joined the union may be an indicator of
worker satisfaction. We found the factory to be clean and
well-maintained. Indeed, the working conditions were rather
better than those we have seen elsewhere in Guatemala and in
other countries, including in the United States.
HAMILTON