SUGAR-CANE BATEY CONDITIONS VARY GREATLY

UNCLAS SANTO DOMINGO 000865

SENSITIVE
SIPDIS

STATE FOR WHA/CAR,
STATE FOR DRL, PRM

E.O. 12958: N/A
TAGS: PGOV PHUM PREF ECON EAID DR
SUBJECT: SUGAR-CANE BATEY CONDITIONS VARY GREATLY

REF: A. SDO 297

B. 08 SDO 1110

C. SDO 236


1. (SBU) SUMMARY: This cable analyzes living conditions in
sugar-cane bateyes in the Dominican Republic that are owned
by Grupo Vicini, Centro Romana Corporation (CR),and the
GODR's State Sugar Council (CEA). During the last six
months, PolOffs visited several bateyes throughout the
country. Many residents of these bateyes live in substandard
or deplorable conditions, but many others have seen
significant improvements in housing and human services. Each
batey visited faces very similar over-arching challenges
(i.e., often inadequate education, health, electricity, or
other services). Moreover, many residents lack the
documentation they need (whether from Dominican or Haitian
authorities) to access health care and other services.
Overall, the private sugar refining companies are taking
positive steps in improving the lives of workers on their
bateyes. The CEA, however, remains relatively passive and
unresponsive to their workers' needs or concerns. END
SUMMARY.

BACKGROUND
--------------


2. (SBU) The state-owned sugar industry initially played a
major role in the Dominican economy. After the price of
sugar fell in the late 1980s, the sugar market collapsed.
The response by the GODR's State Sugar Council (CEA) was to
reduce production, sugar fields, and the number of Haitian
sugar laborers. Even with the reduction of labor and costs,
and an increase in privatization, the sugar industry has
never fully recovered. The sugar industry is now dominated
by two major private firms, the Grupo Vicini LTD (Vicini) and
Centro Romana Corporation. The CEA owns many sugar fields
where many of their "bateyes" (i.e., rural shantytowns or
sugarcane work camps) are found. The CEA has not, however,
produced sugar for over ten years, leaving their residents
with little or no source of income. Haitian migrants and
Dominican sugar laborers continue to live and work on private
and state-run bateyes. Whether privately owned or state
owned, bateyes in the Dominican Republic have similar
challenges and problems, namely deficient health, education,
water, and electricity services. The situation is made worse
by a lack of resources from the GODR and the bateyes'
isolation from the general population of the country.

VICINI BATEYES
--------------


3. (SBU) Poloffs traveled to bateyes owned by Grupo Vicini
LTD (Vicini) in the San Pedro de Macoris area both with
representatives from the Vicinis (reftel A) and separately
with NGO representatives. While conditions in the bateyes
currently range from poor to deplorable, the Vicinis are
implementing new development initiatives and making moderate
upgrades to their bateyes. The Vicini bateyes visited are
typical of bateyes found throughout the Dominican Republic.
Housing is provided for the workers, but not all have
electricity or running water. Medical facilities are
available to the residents, but the clinics in each batey
deal with only minor injuries. For serious medical
emergencies, workers must travel to the City of San Pedro
(several hours away in some cases). Workers are required to
cover their own medical costs due to their inability to show
documentation that might allow them to benefit from the
state-run health plan (reftel B).


4. (SBU) With respect to education, local primary and
secondary schools are usually located within about 3 to 5
miles, if not in a given batey. In more isolated bateyes,
children must walk along a dirt path through sugar-cane
fields to reach them. Batey residents reported to PolOff
that adolescent female students, on their way to or from
school, are sometimes raped by the same cane workers with
whom their parents work. Violators are not usually punished
mostly due to the transient nature of the work force and the
lack of oversight by the Vicini administration.


5. (SBU) The Vicinis have invested millions of dollars in the
construction of a larger, modern, and consolidated housing
project for their batey workers and families. Once the new
housing community, named "Nuevo Cayacoa," is complete, the
firm will demolish their existing bateyes (reftel A).
According to PolOff's estimates given the current
construction progress, completion of the project could be in
less than a year.

CENTRO ROMANA BATEYES
--------------


6. (SBU) The bateyes owned by Centro Romana (CR) are
noticeably better maintained than bateyes owned by CEA or the
Vicinis. Current housing is already comparable to the
quality and size of the Vicini housing project, "Nuevo
Cayacoa." Centro Romana provides both single family houses
and duplexes. However, nearly all homes lack electricity,
and communal bathrooms are located outside of the home and
shared by three or four households. Potable water is
available at a central location in each batey. Residents are
not allowed to make renovations or to paint their homes, and
the company places limits on house parties and general noise
after hours. Upon termination or retirement, workers must
vacate their housing, with most moving to live on CEA bateyes
or relocating to Santo Domingo. The company does pay a
severance package to their employees. Additionally, schools
and medical facilities are available in many Centro Romana
bateyes.

STATE-RUN BATEYES: STATE SUGAR COUNCIL (CEA)
--------------


7. (SBU) PolOffs visited several state-owned (CEA) bateyes in
the areas of La Romana, San Pedro de Macoris, and Barahona.
The CEA bateyes fall into two separate categories - those
which are still producing sugar and managed by the Guatemalan
firm Ingenio Barahona, and those which are no longer
producing sugar for an individual company. In the latter
case, rural sugar-cane workers sell what they manage to
harvest to middle-men who then sell that to any one of the
existing sugar refineries.


8. (SBU) People in the CEA bateyes that are not managed by
Ingenio Barahona (IB) live in the most deplorable conditions
of the bateyes inspected by Poloffs. Their houses are made
of whatever materials are available, including wood lath
covered with mud and scrap metal held together with wooden
sticks. Most of these bateyes lack running water (whether
potable or not) and sewage management is non-existent. Homes
that have electricity receive it from illegal connections to
nearby power lines. Schools are usually located in areas
near the bateyes, but hospitals are either sparse or
unstaffed, leaving the ill to travel tens of kilometers in
search of larger towns with medical facilities. The
residents are destitute and seek work from any available
source, including agriculture, begging, and prostitution.


9. (SBU) Residents in the CEA bateyes managed by Ingenio
Barahona, on the other hand, are in a much better situation.
While their original houses are still fashioned from
available materials (and many structures are on the verge of
collapse),several private donors have paid for the
construction of new homes for IB workers. PolOffs met with
representatives of the company who spoke of creating a
housing project similar to the Vicini's "Nuevo Cayacoa."
This would consolidate the sugar-cane workers' housing and
improve overall living conditions. (Note: Construction has
yet to commence, but IB officials claim to have selected a
location for their new housing project. End Note) The
company recently built a new, modern dining hall for all of
their workers, purchased school buses for transporting
workers to and from sugar fields, and now has an ambulance
to use for serious medical emergencies, with plans to
purchase another in the near future. Each batey also has its
own school, and families living in IB-managed bateyes can
access a pre-school program for younger children that is
organized by Futrazucar Barahona, the union operating in the
IB-managed bateyes. Generally, the bateyes run by the
Guatemalan firm are better than standard CEA bateyes, but
still are not on the same level as bateyes owned by Centro
Romana. They are, however, on par with some of the Vicini
bateyes.

USG PROGRAMS
--------------


10. (SBU) Notable positive developments are on the horizon
for the bateyes essentially abandoned by CEA, thanks only to
USG assistance. USAID has recently initiated a
batey-improvement project. This five million-dollar program
seeks to provide assistance to the state-owned and neglected
bateyes by building homes and schools, enhancing water and
sanitation systems, and providing some employment
opportunities in the immediate future and long-term.

ANALYSIS and COMMENT
--------------


11. (SBU) Bateyes still garner a significant amount of
interest from NGOs and outside organizations as the center of
abuse of Haitian migrants and/or their neglect in the
Dominican Republic. Bateyes have generally seen a recent
surge in renovations and improvements, possibly because of
more focused publicity on the issues of Haitians living and
working on bateyes. Attention now appears to be moving from
the plight of Haitian laborers in bateyes to their
exploitation in other sectors, e.g. the construction
industry.


12. (SBU) Although the sugar companies may justifiably be
blamed for conditions they allowed to persist for several
years, the private sector appears to be making some progress
in providing some support and resources for their bateyes.
Conditions in bateyes owned by Centro Romana Corporation
(CR) are exceptional: They are already on par with
improvements seen in several bateyes across the country.
Moreover, it appears CR did not allow the same deterioration
and abysmal conditions to emerge on their properties.
Indeed, the major complaint from CR residents was that
company rules and regulations (regarding noise, etc.) are
strictly enforced. According to the residents, the company
does not give workers sufficient freedom.


13. (SBU) A serious and widespread problem affecting many
residents of bateyes is a lack of proper documentation. The
GODR recently started a drive, run by the Central Electoral
Commission (JCE),to confiscate documentation from those they
feel may have received their documents through fraud or error
(reftel B). At the same time, the GODR has instituted
policies to reduce the number of undocumented persons in the
country (reftel C). Thus far, however, only the Ministry of
Migration has issued temporary work permits. The ultimate
results of these initiatives (and the Haitian Embassy's
efforts, if any) have yet to be seen. Concern exists,
however, that these seemingly contradictory moves by the
GODR, and a failure on the part of Haitian government
representatives in the DR to do much to help possible Haitian
citizens, will only compound the problems of some batey
residents and others of possible Haitian descent.


14. (SBU) Post is guardedly optimistic about the recent
efforts of sugar companies to improve living conditions for
their sugar-cane workers. Whether the GODR and the CEA will
make improvements soon is less certain, although the USAID
initiative offers some hope. Also uncertain, but of
potentially great importance, is the impact of bio-fuel
initiatives on the sugar-cane industry. Post will continue
monitoring the situation and report on any significant
developments.
BULLEN