Identifier
Created
Classification
Origin
08BRIDGETOWN349
2008-05-29 20:33:00
UNCLASSIFIED
Embassy Bridgetown
Cable title:  

ST VINCENT LABOR UNIONS PRAGMATIC ON ECONOMIC

Tags:  ELAB ECON PGOV PREL BB XL 
pdf how-to read a cable
VZCZCXRO6334
RR RUEHGR
DE RUEHWN #0349/01 1502033
ZNR UUUUU ZZH
R 292033Z MAY 08
FM AMEMBASSY BRIDGETOWN
TO RUEHC/SECSTATE WASHDC 6507
INFO RUCNCOM/EC CARICOM COLLECTIVE
RUEHC/DEPT OF LABOR WASHDC
UNCLAS SECTION 01 OF 02 BRIDGETOWN 000349 

SIPDIS

STATE FOR WHA/CAR AND DRL
USDOL FOR ILAB

E.O. 12958: N/A
TAGS: ELAB ECON PGOV PREL BB XL
SUBJECT: ST VINCENT LABOR UNIONS PRAGMATIC ON ECONOMIC
OUTLOOK

UNCLAS SECTION 01 OF 02 BRIDGETOWN 000349

SIPDIS

STATE FOR WHA/CAR AND DRL
USDOL FOR ILAB

E.O. 12958: N/A
TAGS: ELAB ECON PGOV PREL BB XL
SUBJECT: ST VINCENT LABOR UNIONS PRAGMATIC ON ECONOMIC
OUTLOOK


1. (u) Summary: St. Vincent's labor commissioner, public
service union general secretary and the national workers
movement general secretary were all upbeat in recent
meetings, in contrast to the general downbeat assessment of
the labor scene they portrayed six months earlier. The
labor movement has started turning around and recovering
some momentum and energy, particularly the National Workers
Movement, which has signed new members. Labor leaders are
sensitive to the conflict between securing higher wages for
members and the impact on overall employment in a weak
private sector, and expressed interest in additional
training through U.S.-sponsored programs. End Summary

Meeting with Labor Commissioner


2. (u) Laboff met with the Labor Commissioner, Patrice
Roberts, to go over current projects and priorities of the
Department of Labor (DOL) during an April 13-18 visit to
St. Vincent and the Grenadines (SVG). DOL is working on
revising and updating occupational, safety and health (OSH)
standards and is reviewing the CARICOM model OSH
legislation in order to overhaul local OSH standards, which
have not been updated to meet current needs. DOL partners
with the National Insurance Service, the National
Development Fund and the Center for Enterprise Development
Unit. DOL is also working with the ILO on a Labor Marketing
Program, which should commence mid May. Laboff mentioned
that US OSHA is considering holding a regional workshop on
OSHA standards, and the Commissioner welcomed the idea.


3. (u) Mrs. Roberts also noted that the DOL works with the
Ministry of Social Development on skills training and
career guidance. The US DOL has donated computers which
they use in the school system in the area of career
development. Speaking on the current labor situation, Mrs.
Roberts noted that the Government employs about 60 percent
of the workforce. She lamented the fact that there is no
real private sector development and that there was no real
Industrial activity in Campden Park, which is an industrial park
designed to bring manufacturing to the island. It has not been that
successful. She also noted that development of the private sector

is essential for the future development of SVG.

Meeting with National Workers Movement General Secretary


4. (u) Noel Jackson, SecGen of the National Workers
Movement, was relatively upbeat compared to last fall. He
disclosed that there are currently over 700 members, which
is a considerable increase in membership. The membership
now includes the Stevedores, East Caribbean Metals, the
Pilots Association, Insect Vector Control, the national
Lotteries, the Irrigation Management Unit and the Friendly
Societies (credit associations). Given the present economic
situation, the union is looking for a 15 percent pay
increase. However, Mr. Jackson lamented the rapid increase
in food prices and foresees a regional backlash protesting
loss in earnings, insufficient increases in wages and
raising food prices and cost of living. He does not believe
that the cancellation of the Common External Tariff (CET)
was the best solution at this time.


5. (u) Jackson noted that new members are joining with
high expectations which add stress to the union movement.
He added that increased wages may subsequently mean job
cuts and decreased benefits, which he is trying to avoid.
He commented that the union is in a difficult bind - trying
to get increased wages for their members, which are urgently
needed given the inflation rate, but at the same time, the
private sector is stressed and may not be able to
accommodate a large increase in wages. He said that there
has to be renewed focus on agriculture, organic farming and
diversification.

Meeting with Public Service Union (PSU) President


6. (u) Laboff met with Aubrey Burgion, President of the
PSU, and his key deputies. The PSU possesses around 3500
members, about 25 percent of the workforce. The PSU pointed
out that unemployment is about 25 to 35 percent of the
population in St Vincent mainland, and much lower in the
Grenadines. Burgion noted that the rural areas have a
higher rate of unemployment; farmers are frustrated and
many have left formal agriculture and moved into marijuana
production, which is booming. Moreover, the informal sector
is mushrooming with the weakening of the private sector and
the agricultural sector. Kingston city, for example, is
filled with street vendors of all sorts, particularly near the public
market area. Anecdotal evidence indicates

BRIDGETOWN 00000349 002 OF 002


that many rural people have migrated to Kingston, which now
has a fairly large illegal shanty town district.

COMMENT


7. (u) The private sector unions reflect the relative
weakness of the private sector in SVG. It is encouraging,
though, that the union is adding members, and appears to be
pragmatic regarding how far they can go in requesting wage
increases given the worsening economic conditions caused by
rapid inflation which is negatively affecting average
workers in SVG. Union officials stressed that they would
welcome training by the AFL-CIO, which used to provide
regular training programs. The Caribbean Congress of Labour
provided training at one time but this has become
infrequent. They would welcome the possibility of hosting a
one week seminar, with trainers coming down from USDOL and
the AFL-CIO. End comment.

HOWARD