PHILIPPINE GOVERNMENT RESPONSIVE ON GSP DEMARCHE

UNCLAS MANILA 000667 SIPDIS ASSOCIATION OF SOUTHEAST ASIAN NATIONS IMMEDIATE CDRUSPACOM HONOLULU HI IMMEDIATE SENSITIVE SIPDIS STATE FOR DRL/ILCSR, EAP/MTS, EAP/RSP LABOR FOR ILAB STATE PASS TO USAID STATE PASS TO USTR (KARL EHLERS) E.O. 12958:N/A TAGS: ELAB PGOV ECON ETRD PHUM PREL RP SUBJECT: PHILIPPINE GOVERNMENT RESPONSIVE ON GSP DEMARCHE REF: STATE 10273 ¶1. (SBU) SUMMARY: As requested by the U.S. interagency committee reviewing the Generalized System of Preferences (GSP) benefits for the Philippines, the Ambassador and key mission officers raised with an array of senior Philippine officials USG concerns about the protection of labor rights for Philippine workers and possible extra-judicial killings and abductions of labor leaders and activists. The Ambassador discussed USG concerns directly with Labor Secretary Arturo Brion, who voiced appreciation for U.S. views and agreed to give the recommendations full and careful consideration. Other senior mission officers discussed the GSP demarche in detail with officials from the Departments of Foreign Affairs, Interior and Local Government, Justice, Labor and Employment, and Trade and Investment. Comments from Philippine police and justice officials indicated a willingness to expand the mandates of police and prosecutorial task forces investigating extra-judicial killings to include labor activists. END SUMMARY. LABOR PLEDGES CAREFUL CONSIDERATION -------------- ¶2. (SBU) The Ambassador raised USG concerns about labor rights protection and the alleged extrajudicial killings of labor leaders directly with Secretary of Labor and Employment Arturo Brion on February 7. Noting the importance of GSP benefits to Philippine workers and industry alike, the Ambassador highlighted for Secretary Brion the key points of the U.S. interagency demarche, stressing the importance of resolving concerns about possible extrajudicial killings and the importance of expanding labor rights for Philippine workers. Secretary Brion, well aware of the ongoing GSP review in Washington, noted his commitment to resolving the matter and voiced appreciation for the USG's views. ¶3. (U) In a February 13 meeting with Polcouns, Department of Labor and Employment (DOLE) Undersecretary for Trade Relations Romeo Lagman expressed strong appreciation for the trade benefits enjoyed by the Philippines and said that DOLE would work closely with the USG to clarify concerns over labor practices in the Philippines. He stressed the Philippine government's commitment to International Labor Organization (ILO) standards and underscored his Department's strong support for Philippine workers and its close cooperation with mainstream labor unions. He pledged that DOLE would provide the Embassy with necessary labor statistics to help present a full picture of the labor situation in the Philippines. Contrary to the perception that the right to organize is not observed in special economic zones, Lagman noted the presence of 33 registered unions currently operating in the zones. ¶4. (SBU) Regarding the Labor Secretary's assumption of jurisdiction in labor disputes, Lagman stressed that the Philippine government's interpretation of "essential services" is in full compliance with the ILO standards. He noted that the ILO regulations provided latitude in defining "essential services." He added that a strict definition of essential services would require an amendment to the Labor Code, which would take time, given the slow pace of the legislative process. Lagman argued that the Department of Labor had not abused its discretion in assuming jurisdiction over essential services disputes and added that, in many instances, both labor and management requested DOLE's intervention in these cases. He expressed some frustration that the international community listened to the militant groups without hearing the government's side of the issue. ¶5. (SBU) While acknowledging USG concerns about contract employees, Lagman noted that, under Philippine law, regulated subcontracting is allowed for non-core functions, including seasonal workers in certain industries. He also added that DOLE plans to conduct an "inspection blitzkrieg" on firms that employ large numbers of contract laborers. The inspections would begin within the next few months in three regions, including Metro Manila. ¶6. (SBU) Lagman said that the ILO's offer to send a technical mission to visit the Philippines to review workers' rights protections is under consideration, noting that the matter is ultimately for President Arroyo's decision. He said he would relay to DOLE Secretary Brion the USG's support for an ILO technical mission. ¶7. (U) While noting that the issue of extra-judicial killings did not fall under the purview of the Labor Department, Lagman said that he would convey to Labor Secretary Arturo Brion the USG's recommendation that the mandates of both Task Force USIG and the Justice Department's prosecutorial task force be expanded to include the disappearance or death of labor leaders and activists. POLICE TO REVIEW TASK FORCE USIG MANDATE -------------- ¶8. (U) Marius Corpus, Undersecretary for Public Safety at the Department of Interior and Local Government, which oversees the Philippine National Police, reiterated the government's commitment to investigating extra-judicial killings, including those of labor activists. He pledged that his department would continue its efforts to investigate charges of extra-judicial killing. General Jefferson Soriano, the head of Philippine National Police (PNP) Task Force Usig charged with investigating extra-judicial killings and disappearances, stressed to PolCouns on February 11 that he would support expanding the mandate of Task Force Usig to include investigating the killings or disappearances of labor leaders and labor activists. Soriano said that although labor killings do not fall within the current mandate of his task force, he had instructed PNP regional offices in January to begin compiling statistics on labor killings and submit a report not later than February 15. He expressed hope that he could provide the Embassy with a consolidated report after the Easter holiday. ¶9. (U) General Soriano said he was also open to including labor killings in the official mandate of the task force and had instructed his staff to prepare for PNP Director Razon's approval a position paper expanding the task force's scope of work to cover labor leaders and activists. In the meantime, Soriano assured PolCouns that the PNP would pursue labor killings with the same persistence as the other EJKs. JUSTICE TO WEIGH EXPANDED PROSECUTORIAL MANDATE -------------- -- ¶10. (U) The Justice Department official in charge of the special prosecutors investigating extra-judicial killings also expressed support for expanding the prosecutorial task force's mandate to include cases involving labor leaders and activists. Undersecretary Ricardo Blancaflor said that he has the authority to expand the mandate of the DOJ Task Force on Human Rights and Extrajudicial Killings, currently composed of 12 prosecutors, and said he would weigh the issue carefully and inform the Embassy as soon as possible on his decision. Blancaflor fully recognized the level of concern of the international community over the question of extra-judicial killings, while stating that not all the deaths and disappearances cited by militant labor and political groups could be attributed to government security forces. Most of these incidents resulted from personal and political disputes among activists and the Philippines' several insurgent groups, especially the communist New People's Army, which had carried on a violent, decades' long fight with the government. TRADE AND INVESTMENT, FOREIGN AFFAIRS -------------- ¶11. (U) In a discussion with the Economic and Political Counselors on February 13, Department of Trade and Investment (DTI) Senior Undersecretary Thomas Aquino made clear that he fully understood the gravity of the GSP review and the potential economic impact for Philippine workers and the economy. While noting that DTI did not have any direct responsibility for labor issues or extra-judicial killings, he promised to draft a letter to his DOLE counterpart outlining the trade ramifications of the GSP review and urging the closest possible cooperation with the USG. ¶12. (U) PolCouns also informed the Department of Foreign Affairs (DFA) about the GSP review, noting the potential impact on a wide array of bilateral ties. Undersecretary for Special Concerns Rafael Seguis had been briefed by the Philippine Embassy in Washington on the issue and recognized the importance of the review. He said DFA would reach out to other concerned departments to discuss the Philippine government's response. COMMENT -------------- ¶13. (SBU) The Ambassador and senior Mission officers will continue to raise USG concerns about extrajudicial killings and labor rights with Philippine government officials and will underscore the importance of concrete government actions to ensure continued GSP eligibility. While the government's willingness to review the mandates of its police and prosecutors task forces on extrajudicial killings is a positive step, Post remains concerned about the Department of Labor and Employment's interpretation of "essential services" on cases for assumption of jurisdiction and will continue to press DOLE to review these policies. Visit Embassy Manila's Classified SIPRNET website: http://www.state.sgov.gov/p/eap/manila/index. cfm You can also access this site through the State Department's Classified SIPRNET website: http://www.state.sgov.gov KENNEY