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