AMBASSADOR'S MEETING WITH MINISTER OF LABOR

UNCLAS SECTION 01 OF 02 TEGUCIGALPA 000164 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: PGOV ELAB ECON PHUM PREL HO SUBJECT: AMBASSADOR'S MEETING WITH MINISTER OF LABOR ¶1. (SBU) Summary: Secretary of State of Labor and Social Security Felicito Avila told the Ambassador during a February 22 courtesy call that the Lobo government needs to have a holistic view of the labor situation that provides assurances to both workers and businessmen. Avila said his role is to ensure that the labor law is applied and cited addressing the country's unemployment and attracting investment as key goals. The Ambassador told Avila that the United States is concerned about child labor in Honduras. Avila responded that this is a very important issue and that he would coordinate with the rest of the government to ensure that the law prohibiting child labor is enforced. End Summary. ¶2. (SBU) The Ambassador, accompanied by the Political and Economic Counselors and the Director of USAID's Democracy and Governance Office, paid a February 22 courtesy call on Secretary of State of Labor and Social Security Felicito Avila. Avila said a change in Hondurans' attitude is needed, but that this will take time to accomplish. Avila said that the government needs to take a holistic view of the labor situation that provides assurances to both workers and businessmen. Avila said his role is to ensure that labor law is applied. Avila said he seeks to eliminate having his ministry viewed as just the arbiter of labor disputes and wants to become an institution that builds confidence between business and labor. Avila cited as an example a program called "My First Job" that provides employment opportunities to 16 and 17 year olds to give them self-assurance about their ability to enter the workforce. Avila noted that his Ministry is engaged in discussions with the Colombian Embassy to determine how they can cooperate on capacity building. Avila informed the Ambassador that his ministry is in the process of creating a tripartite technical commission that will advise the business community and workers' organizations. He told the Ambassador that addressing the country's unemployment problem is important. Avila said small and medium businesses are unable to bear the cost of the minimum wage and an exemption will have to be carved out for them while larger enterprises will have to comply with the law. (Note: The administration of former President Jose Manuel "Mel" Zelaya raised the minimum wage by sixty percent in early 2009. End Note.) Avila stated that social conditions need to be addressed to guarantee the buying power of workers' salaries. ¶3. (SBU) Avila cited attracting investment as another key goal. The Ambassador said the Honduran investment climate has a high degree of uncertainty, due to an ineffective judicial system, weak property rights protection, corruption, and unskilled labor. In this uncertain environment, investors will seek a higher rate of return for every dollar of investment, and will be less willing to provide good long-term benefits to employees. The Ambassador told Avila that if the risk of investing in Honduras were decreased, investors would be willing to put more money into the country at a lower rate of return, and be that much more generous in terms of benefits for their workers. The Ambassador told Avila that the U.S. was very pleased to hear of the November 2009 agreement between workers and Fruit of the Loom's Russell Corporation over the closure of the "Jerzees de Honduras" factory in Choloma and noted that he would be attending the reopening of the factory on March 3. The Ambassador added that it will send a positive signal about investment in the region. Avila responded that he would like that agreement to serve as an example for the future. ¶4. (SBU) The Ambassador told Avila that the United States is particularly concerned about exploitative and forced child labor in Honduras. Avila responded that this is a very important issue and that the Honduran law prohibiting child labor must be enforced. Avila told the Ambassador that he will coordinate with the rest of the government to ensure this is done. Avila said it is important to carry out inspections to ensure companies are not utilizing child labor and also to take measures to ensure that children stay in school. ¶5. (SBU) Biographic Information: Felicito Avila was the presidential candidate of the Christian Democratic Party in the 2009 general election and came in fourth in a field of TEGUCIGALP 00000164 002 OF 002 five candidates, earning 1.8 percent of the vote. Avila ran on a platform that advocated public order, respect for the law, and combating corruption. He promised to ensure health care and education for all Hondurans. He planned to develop agro-industry and small and medium enterprises. Avila is widely liked and viewed as an honest and hardworking man. He is well-known mainly due to his work in the labor movement. Avila has held positions including: General Center of Workers representative to the Honduran Institute of Social Security, delegation member of the Central American Free Trade Agreement-Dominican Republic (CAFTA-DR) negotiations, Civil Society Representative in the Consultative Group for Central American in Washington, D.C. and Stockholm, Sweden, and representative for the Latin American Workers Committee (CLAT),a group representing more than 20 million organized laborers. After he left primary school at age 15 to enter the workforce, Avila participated in a variety of international labor courses in Europe and Latin America. In addition to his tenure in the labor movement, Avila also worked as a teacher. Avila was born on February 21, 1949 in the Department of Valle. He is Catholic, married, and has five children. His English level is unknown. LLORENS