HONDURAN UNION LEADERS DISCUSS GLOBAL ECONOMIC

UNCLAS TEGUCIGALPA 000085 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: ELAB EAGR EIND ETRD PGOV PHUM SOCI EFIN HO SUBJECT: HONDURAN UNION LEADERS DISCUSS GLOBAL ECONOMIC CRISIS REF: A. A. TEGUCIGALPA 00069 ¶B. B. TEGUCIGALPA 00056 ¶C. 08 TEGUCIGALPA 1161 ¶1. (SBU) SUMMARY: The Ambassador met with leading union leaders in Honduras to discuss the current state of labor in Honduras, on February 3. The Ambassador took the opportunity to convey U.S. support for human rights and labor rights. He shared his view of the U.S-Central American Free Trade Agreement (U.S.-CAFTA) as an important tool vital to both countries to generate more two-way trade and investment flows and generate more jobs. In addition, the Ambassador encouraged the labor leaders to work with the GOH and the private sector in addressing the economic problems caused by the global financial crisis. END SUMMARY. ¶2. (SBU) The Secretary Generals of the three main labor confederations that bring together almost all organized labor in the country attended the meeting: Israel Salinas of the Confederacion Hondurena de Trabajadores de Honduras (CUTH), Hilario Espinoza of the Confederacion Hondurena de Trabajadores (CTH),and Daniel Duron of the Central General de Trabajadores (CGT). The three leaders agreed that the situation for organized labor in Honduras was difficult, arguing that the government at times had colluded with business to discourage labor unions. They said that a number of factors were to blame, including undue private sector influence over the Ministry of Labor. ¶3. (SBU) All three union leaders spoke positively about the recent Supreme Court election (reftel B),especially the participation of civil society in the process, and expressed optimism that the new court would improve labor rights in Honduras. They were also positive about the recent increase in the minimum wage (reftel C),and said that the Honduran public overwhelmingly supported this decision taken by President Zelaya. The leaders expressed certain concerns about the benefits of CAFTA and said that Honduras, trade deficit with the U.S. had grown tremendously since CAFTA came into effect. The Ambassador said that CAFTA represented a great opportunity to generate increased two-way flows of trade and investment, as well as create more growth and jobs in both economies. ¶4. (SBU) The labor leaders expressed concern on the effects on Honduras of the global economic downturn. The Ambassador encouraged the three union leaders to work with the government of President Manuel "Mel" Zelaya and the business community to come up with effective policies to mitigate the effects of the international financial crisis on Honduras. The Ambassador also pointed out that in order for Honduras to minimize the effects of the downturn, it needed to consider all possibilities, including seeking support from the emergency funding from the World Bank and International Monetary Fund. Finally, the Ambassador stressed our strong support for human and labor rights and conveyed our continued concern about efforts to break-up labor unions, as well as threats against individual labor leaders. The Ambassador and the labor leaders agreed to stay in close touch and work issues of common interest. ¶5. (SBU) COMMENT: Honduras labor's already uphill battle has been made worse by the economic crisis as union members seek space for labor at a time when business is suffering the negative consequences of the international situation. Nevertheless, the labor leaders are mindful of the need to adopt prudent policies needed to maintain macroeconomic stability in Honduras and minimize the impact of the crisis on workers. LLORENS