Identifier
Created
Classification
Origin
06LAPAZ2840
2006-10-20 15:33:00
CONFIDENTIAL
Embassy La Paz
Cable title:  

MAS SPLITS KEY UNION IN SANTA CRUZ

Tags:  ECON PGOV PREL BL 
pdf how-to read a cable
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RHEBAAA/DEPT OF ENERGY WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
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C O N F I D E N T I A L SECTION 01 OF 02 LA PAZ 002840 

SIPDIS

SIPDIS

E.O. 12958: DECL: 10/19/2016
TAGS: ECON PGOV PREL BL
SUBJECT: MAS SPLITS KEY UNION IN SANTA CRUZ


Classified By: ECOPOL Andrew Erickson for reasons 1.4 (b) and (d).

SUMMARY

C O N F I D E N T I A L SECTION 01 OF 02 LA PAZ 002840

SIPDIS

SIPDIS

E.O. 12958: DECL: 10/19/2016
TAGS: ECON PGOV PREL BL
SUBJECT: MAS SPLITS KEY UNION IN SANTA CRUZ


Classified By: ECOPOL Andrew Erickson for reasons 1.4 (b) and (d).

SUMMARY


1. (C) This is the third in a series of three cables
reporting on Emboff's meetings with Santa Cruz social
movements. On October 13 Emboff met with Edwin Fernandes,
leader of the Santa Cruz Departmental Labor Union, known by
its Spanish initials COD. Each of the country's nine
departments has a COD, which in turn is overseen by the
Bolivian Central Labor Union (COB). Despite being elected in
March, Secretary General Edwin Fernandez is not officially
recognized by the COB because the Movement Toward Socialism
(MAS) has set up a parallel organization. While relations
with Santa Cruz business owners are good, the COD leaders
feel the MAS wants to "liquidate" them and argue that they
have been "defrauded" by President Morales. The COD asked
for an extension of ATPDEA benefits and would support
"sincere FTA negotiations". End Summary.

BACKGROUND


2. (C) Emboff met October 13 with Edwin Fernandez
Espindola, Secretary General, and Osbaldo Torrico, Secretary
of International Relations, the Santa Cruz Departmental Labor
Union (COD) (Note: Both Fernandez and Torrico have
previously traveled to the U.S. through the International
Visitors Program). Each of Bolivia's nine departments has a
COD, which in turn is overseen by the Bolivian Central Labor
Union (COB). The CODs and the COB are theoretically
apolitical, and have the stated mission of improving the
working conditions of Bolivia's laborers. The Ministry of
Labor certifies the COB and the nine CODs as legitimate
unions and official bargaining units.

DUELING CODS


3. (C) In March the Santa Cruz COD held its departmental
conference where Edwin Fernandez was elected as the new
secretary general. The previous secretary general, Luis

SIPDIS
Bedia, of the MAS party, refused to accept the elections
result, arguing that if the MAS controls the national
government it should also control the COD. Bedia refused to
hand over control of the COD to Fernandez and continued to
occupy the COD headquarters until he and his supporters were

forcibly removed by the police on July 1. Since that date,
Fernandez and his supporters have been conducting a round the
clock vigil at the COD headquarters in Santa Cruz city, with
approximately twenty people living at the offices. Bedia in
the meantime, has set up his own office and is running a
parallel COD. Because of the controversy, the COB has not
officially recognized Fernandez as secretary general. The
COB has been trying to mediate between the two sides and in
June called for a new election to be held within ninety days.
Fernandez agreed to hold new elections but Bedia refused
(Fernandez claims because Bedia knows he would lose). The
ninety days have passed without any resolution in sight.
Emboff contacted the COB in La Paz and was told that the
probable next step would be that the COB would be forced to
organize the election itself to end this stalemate.

RELATIONS WITHIN SANTA CRUZ


4. (C) Fernandez said that he views the COD's role as
"defining what is good for the workers, not playing
politics". He said that the COD's relationship with company
owners is "friendly", although "we have our differences".
Fernandez said in Santa Cruz, and in much of eastern Bolivia,
the relationship between worker and owner is more one of
"associates" as opposed to the strict "master-serf"
relationship found in the highlands area. In Santa Cruz for
example, it is not uncommon for a company boss or owner to go
to a worker's birthday party or some other family event.

LA PAZ 00002840 002 OF 002


That being said, Fernandez added, "there is a big difference
between being a worker and a company owner". In the past,
"Santa Cruz social organizations were very elitist and run by
a close circle of people. Now we have started to see an
opening up and eagerness to become more inclusive. This is
especially true in the case of the Pro-Santa Cruz Committee".


DON'T CALL US OLIGARCHS


5. (C) Fernandez and Torrico expressed frustration and deep
concern with the Morales government. "Morales and his
ministers call us oligarchs", said Fernandez, "we are not
oligarchs in any sense of the word, we are workers". Torrico
added "the MAS is trying to put us in the ultra-rightist camp
which is absurd. We are a workers union and by definition
are ourselves socialists". Fernandez told Emboff that many
COD members had voted for Morales and that the COD continues
to support many of Morales' policies, such as hydrocarbons
nationalization. Now however, according to Fernandez, "the
MAS wants to liquidate us and turn the COD into a MAS
organization. Our union members and leaders are being
threatened, corrupted and blackmailed by the MAS. The MAS
does not negotiate, it demands total submission. The COD
supports change in Bolivia, but not the domination and
imposition of an Aymaran system. The Aymaras are a segment
of Bolivian society, but only one of many ethnic and social
groups." Torrico complained that Morales "inflames racism
and cannot mask his blind hatred". "It is ironic", said
Fernandez, "so many of us campaigned for Morales. We were
defrauded".

ATPDEA and FTA


6. (C) Fernandez told Emboff that he wanted to take this
opportunity to ask that ATPDEA benefits be renewed (Note:
Emboff explained the Congressional renewal process).
Fernandez said "that our brothers in El Alto depend on
ATPDEA, and although we do not want to reward the Morales'
government, we don't want workers to suffer". "Morales is
concerned about ATPDEA because he needs El Alto support. El
Alto can make him fall". Torrico said that the Santa Cruz
COD was studying the possibility of organizing a joint
mission with the La Paz COD to go to Washington and lobby for
ATPDEA extension. When asked about the COD's position on an
FTA, Fernandez responded "Bolivia is not ready for an FTA,
but we do not want to be isolated. There are many areas
where Bolivia cannot compete, however, the COD would support
sincere negotiations".

COMMENT


7. (C) The Santa Cruz COD fight is the clearest example of
MAS efforts to assert hegemony over the unions we have seen
so far. Morales has lost the support of the elected COD's
leaders and created new enemies in what should be a natural
MAS constituency.. It is increasingly likely the COB will
have to step in to settle the situation. In the meantime,
heavy-handed MAS tactics alienate its natural base and push
former MAS supporters in the direction of the opposition.
End Comment.

GOLDBERG