CHILE'S NEW MINISTER OF LABOR HITS THE GROUND RUNNING

UNCLAS SANTIAGO 001144 SENSITIVE SIPDIS DOL FOR ILAB--CHANTENIA GAY STATE FOR DRL/ILCSR--RIGGS, WHA/BSC, INR/B E.O. 12958: N/A TAGS: PGOV ELAB SOCI ECON CI SUBJECT: CHILE'S NEW MINISTER OF LABOR HITS THE GROUND RUNNING REF: SANTIAGO 174 ¶1. Summary: Maintaining political equilibrium in her cabinet, President Bachelet chose Claudia Serrano, a Socialist (PS) from the "New Left" faction, as Chile's new Labor Minister. Former Minister Osvaldo Andrade stepped down on December 10 to pursue a parliamentary position in next year's elections. Serrano, who is not well known in labor circles, is seen as a competent technocrat more than an impassioned advocate for workers. End Summary. NEW LABOR MINISTER GETS TO WORK -------------- ¶2. (U) In a brief swearing-in ceremony for new Labor Minister Claudia Serrano on December 15, President Bachelet highlighted the challenges Serrano faces in the coming months, such as continued implementation of the pension reform and roll-out of the unemployment insurance law (Reftel),as well as initiatives to soften the potential impact of the worldwide economic crisis on Chile's workers. (Note: Septel will describe these challenges in greater detail. End Note.) Bachelet lauded outgoing Minister Andrade, who stepped down to become a parliamentary hopeful, as being a "fierce promoter of workers' rights and of new labor legislation." CIVIL SERVANTS CAUTIOUS ABOUT NEW MINISTER -------------- ¶3. (SBU) Darko Tapia, National President of the Association of Ministry of Labor Professionals (APU),told Poloff and Pol Specialist December 22 that Serrano's selection was a surprise, and that Serrano herself was not well known in labor circles. According to other observers, Serrano is seen as a competent technocrat rather than a passionate champion of the workers. ¶4. (SBU) Tapia seemed wary of Serrano, saying that her predecessor, Osvaldo Andrade, was an excellent minister who strongly defended workers and was renowned for his skill in negotiating with businesses and other government entities. Tapia stated that Serrano did not seem to be the best choice, particularly as there were other front runners for the job--including former Ministry of Labor officials Maria Ester Feres and Regina Clark--who seemed to have more experience. Press articles report fears that business interests will have Serrano's ear because of her close relationship with Finance Minister Andres Velasco. BIO DATA - CLAUDIA SERRANO -------------- ¶5. (U) Background: Minister of Labor Claudia Serrano (48),a Socialist (PS),describes herself as "progressive, pragmatic, and leftist." She hails from party President Camilo Escalona's New Left faction as does her predecessor Osvaldo Andrade. Serrano previously served as the Undersecretary for Regional Development, an office which falls under Deputy Minister of Interior authority (2006-present). She has worked as a consultant for the firm Advisors for Development (1998-present) and as a researcher for the centrist and economically oriented think tank, the Corporation for Economic Research in Latin America - CIEPLAN (1983-1990 and 1996-97). She also served as Director of the Program Department of the Solidarity and Social Investment Fund (FOSIS) (1994-1995). Prior to that, she was the General Director of Social and Cultural Policy for the Municipality of Santiago (1990-1994). ¶6. (U) Education: Serrano holds a Ph.D. in Sociology from the School for Advanced Social Science Studies in Paris and an undergraduate degree in Sociology from the Catholic University of Chile. Her academic experience includes having taught at both the University of Chile and the Catholic University of Chile. ¶7. (U) Personal: Serrano is married to Patricio Tapia, General Manager of the Chilean Postal Service. Her son, Miguel Crispi, is the President of the Catholic University Student Federation. (Note: Leadership in student federations at Chile's top universities is often a stepping stone to a political career. End Note.) Other family members in government positions include her two sisters: Veronica is the National Director for Architecture at the Ministry of Public Works and Alejandra is the Director of the Cultural Center at La Moneda Presidential Palace. URBAN