U.S. LABOR OFFICIALS VISIT GUATEMALA TO INITIATE REVIEW OF

UNCLAS GUATEMALA 000974 SENSITIVE SIPDIS DEPT FOR DRL/ILCSR DEPT FOR USTR DOL FOR CROMERO AND PCHURCH DEPT PLEASE PASS TO WHA CENTRAL AMERICAN COLLECTIVE E.O. 12958: N/A TAGS: ELAB ETRD KDEM PGOV PHUM KJUS KCRM GT SUBJECT: U.S. LABOR OFFICIALS VISIT GUATEMALA TO INITIATE REVIEW OF AFL-CIO CAFTA SUBMISSION REF: A. 07 GUATEMALA 115 ¶B. 07 GUATEMALA 2172 ¶1. (U) U.S. Department of Labor (DOL) officials visited Guatemala July 20-25 to initiate review of a submission filed by the AFL-CIO, in collaboration with six local unions, under CAFTA labor provisions. The submission alleges labor violations in five cases, including the 2007 murder of two union leaders (refs A, B) that garnered international media attention. DOL received the submission on April 23 and accepted it for review on June 12. ¶2. (U) During the week-long visit, DOL Office of Trade and Labor Affairs (OTLA) Deputy Director Carlos Romero and International Relations Officer Paula Church met with senior GOG officials, labor inspectors, employers, union leaders and members, industry associations, labor federations, including the AFL-CIO Solidarity Center, and representatives of the Office of the UN High Commissioner for Human Rights (UNHCHR) and the International Commission Against Impunity in Guatemala (CICIG). ¶3. (U) Romero explained that the visit was the first phase in a 180-day process (that began June 12) that will culminate in a public report of findings and recommendations. He stressed that the labor submission is not a formal complaint and that the process is a "review process," not a judicial investigation. Their role, he said, is to gather and review information from all parties and to prepare a public report, not to "investigate," question judicial decisions, reform labor laws, or otherwise intervene in Guatemala's sovereignty or duplicate the efforts of ILO. Romero, who participated in the CAFTA negotiations, also underscored the historic significance of the submission -- the first ever filed under CAFTA - and hence the extra scrutiny by the United States. ¶4. (SBU) Vice Minister of Foreign Affairs Lars Pira assured the DOL team that the GOG is committed to cooperating fully with the USG throughout the process and resolving the issues in accordance with its international obligations. He noted that a high-level inter-agency commission meets once a month to discuss human rights, and that the GOG will form a working group to focus on labor rights. He stressed that communication, in particular collaboration with the Ministry of Government and the Public Ministry, is key for ensuring follow-up during the process. Vice Ministers of Economy and Labor agreed that labor rights is an important issue that needs to be discussed along with job creation and foreign investment. They highlighted CAFTA as an important instrument for strengthening bilateral relations not only for trade but also for labor, and underscored the need for technical assistance to help prosecutors and labor inspectors fulfill their obligations under the trade agreement. ¶5. (SBU) Labor union leaders and former employees of companies named in the submission shared their experiences as they related to the allegations in the report, stressing themes of impunity and intimidation. Three of the five employers named in the complaint expressed their willingness to cooperate in the process and appreciated the opportunity to provide their points of view. The Labor Commission of the Guatemalan Chamber of Industry and Commerce (CACIF) also expressed its commitment to collaborate. The Guatemalan Apparel and Textile Industry Commission (VESTEX) provided context for the labor situation in Guatemala, noting the financial difficulties confronting the maquila sector and pointing out that Qdifficulties confronting the maquila sector and pointing out that many maquila companies, most of which export to the U.S., had to close operations or lay off workers over the past year due to lack of business. UNHCHR officials provided detailed information based on their own investigations. ¶6. (SBU) Comment: With the exception of two employers named in the submission, the level of access accorded the DOL team, which it characterized as "unprecedented," exceeded expectations and provided a balanced perspective to the allegations of labor rights violations made in the submission. Their access was critical, particularly given the sensitivity of the process and the complexity of the cases, and sends a positive message for a possible return visit. Embassy will continue to facilitate information requests from DOL and to work closely with all parties to ensure a balanced, comprehensive, and accurate final report and appropriate resolution to the issues raised by the submission. ¶7. (U) This cable was cleared by DOL Romero and Church.