US embassy cable - 03GUATEMALA2254

UNCLAS SECTION 01 OF 04 GUATEMALA 002254 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR WHA/CEN, WHA/PPC:CHARLOTTE ROE, AND DRL/IL:ARLEN 
WILSON, AND G/TIP FOR GREG HOLLIDAY 
DEPARTMENT OF LABOR FOR ILAB:ROBERT WHOLEY, JANE RICHARDS, 
AND JORGE PEREZ LOPEZ 
USTR FOR VIONDETTE LOPEZ AND BUD CLATANOFF 
 
E.O. 12958: N/A 
TAGS: ELAB, ETRD, PGOV, PHUM, KCRM, GT 
SUBJECT: GUATEMALA LABOR UPDATE #5-2003 
 
 
This message contains an action request for USDOL/ILAB--see 
para 4. 
 
1.  (SBU) The following is an update of significant recent 
developments in the labor sector.  Topics include: 
 
-- Minister of Labor's Priorities for Levine Bilateral in 
Brazil (para 2) 
 
-- Minister of Labor Wants Changes to USAID Labor Regional 
Project (PROALCA II) (4) 
 
-- Ambassador Again Raises Rigoberto Duenas Case with AG (3) 
 
-- Combating Blacklisting - MOL Information Request (5) 
 
-- Talking CAFTA - Prof. Feinberg Sparks GOG Interest (6) 
 
-- GOG Formalizes Labor Working Group (7) 
 
-- More Maquilas on GOG "Hit List" for Labor Violations (8) 
 
-- Special Prosecutor Promises Results, Wants Resources (9) 
 
-- GOG Proposes 100% Increase to Labor Ministry Budget (10) 
 
-- Canadians Launch Temporary Worker Program (11) 
 
-- TIP: Warrant Against Immigration Union Leader for 
Corruption 
 
End Summary. 
 
Brazil Bilateral 
---------------- 
 
2.  (SBU) Labor Minister Victor Moreira confirmed to LabAtt 
on August 27 that he intends to attend the OAS Labor 
Ministers Meeting in Salvador, Brazil, October 24-26.  He 
gave LabAtt a copy of a declaration of Central American labor 
ministers, meeting in Managua on August 14-15, which, inter 
alia, thanks USDOL for its collaboration with the region 
through the ILO-RELACENTRO (labor relations), ILO-IPEC (child 
labor), and CERSSO (occupational safety and health) projects; 
and to USAID for its regional support through the PROALCA II 
project.  The declaration also: 
 
-- takes note of the importance of labor migration, the 
importance of job creation in free trade zones, and the 
importance of technical cooperation to strengthen 
institutional capacity of labor ministries throughout the 
region; 
 
-- approves the creation of a Regional Foundation of Support 
to Occupational Health and Safety Programs (FUNDAPROSSO); 
 
-- congratulates Minister Moreira for proposing that the 
Council of Labor Ministers create a joint webpage; 
 
-- thanks Mexican Labor Minister Abascal for attending the 
Managua meeting and sharing his country's experiences under 
NAFTA; 
 
-- proposes Mexico as President Pro-tempore of the 
Inter-American Labor Ministers Conference in 2005; 
 
-- notes that the next meeting of the Council of CA Labor 
Ministers will take place in Guatemala in October; and, 
 
-- pledges support for the upcoming Plan of Action of the 
13th Inter-American Labor Ministers Conference in Salvador de 
Bahia. 
 
Moreira said he would be pleased to participate in a 
bilateral meeting between U.S. DUS Arnold Levine and Central 
American Labor Ministers.  He suggested the U.S. contact the 
Honduran Minister, currently serving as President of the 
Central American Labor Ministers, to confirm such a meeting. 
Moreira said he would like to discuss the following issues 
with DUS Levine: 
 
A)  Migration:  Rights of Guatemala migrant workers in the 
U.S., including the right to carry a GOG-issued 
identification card, to facilitate access to lower 
transaction costs for remittances sent to Guatemala (from 22% 
to 13%).  Moreira said Guatemalan consulates have the 
facilities to issue cards, but most migrants are not aware of 
this service.  A statement from the USG on this issue, 
similar to the Chao-Abascal declaration of November 2002, and 
committing to mutual respect for the full labor protections 
of migrants, would be most welcome, he said. 
 
B)  CAFTA:  The labor obligations of the CAFTA agreement 
proposed by the U.S. imply significant new efforts by the 
GOG, and corresponding demands for resources.  To expand its 
services and coverage, the Labor Ministry will require new 
resources.  Among the Minister's priorities are programs to 
protect indigenous worker rights (by adding 25 new 
professionals, including one in every province), child labor, 
and women workers.  The GOG is already committed to more than 
double the Ministry's budget in 2004 to accomplish these new 
goals. 
 
C)  Cooperation (Assistance):  In addition to the new demands 
on labor ministries resulting from CAFTA, technical 
assistance is needed to help the GOG set policies to generate 
employment.  Worker training programs need to be re-focused 
and expanded.  Current job training is focused on the formal 
sector, which comprises only 25% of Guatemalan jobs. 
 
Labor Minster Comments on PROALCA II 
------------------------------------ 
 
3. (SBU) Despite the positive mention in the Managua 
declaration, Moreira expressed concerns about the PROALCA II 
labor capacity building program sponsored by USAID.  The 
consensus among the Central American labor ministers, he 
said, was that PROALCA II labor activities scheduled for the 
remainder of the year should be more focused on 
capacity-building more closely linked to the CAFTA 
negotiation.  (AID Comment:  This would require greater 
access by AID to the results of CAFTA labor negotiations. 
End Comment.) 
 
Ambassador Raises Imprisonment of Labor Leader with AG 
--------------------------------------------- --------- 
 
4.  (SBU) At the request of Jose Pinzon, Secretary General of 
the Confederation of Guatemalan Workers (CGTG), the 
Ambassador spoke with Attorney General Carlos de Leon Argueta 
on August 14 to express concern that the charges related to 
the Social Security Institute corruption scandal against 
labor leader Rigoberto Duenas be promptly investigated and to 
request that the Attorney General meet with labor leaders to 
discuss the case.  De Leon agreed to do so.  As of September 
2, the meeting had not taken place.  The next hearing for 
Duenas will be on September 8. 
 
Combating Blacklisting - MOL Information Request 
--------------------------------------------- --- 
 
5.  (SBU) LabAtt expressed concern to Minister Moreira and 
Vice Minister of Labor Antonio Monzon on August 27 that 
blacklisting of workers fired for unionization activity is 
common practice in Guatemala, citing the DYMEL case, where 
members of the union executive committee continue to suffer 
discrimination in hiring.  (Note:  ex-DYMEL union leaders 
told LabAtt on August 26 that they had been hired by 
contractors for a Duke Energy project, but fired several days 
later after their link to the DYMEL labor conflict was noted 
by the employer.  LabAtt raised this with visiting Duke 
Energy public relations official on August 27, who asked for 
details on the corporate entity which executed the hiring and 
promised to follow-up on allegations.  End Note.)  Both the 
Minister and Vice Minister concurred that anti-union 
discrimination is prevalent, and both cited personal 
examples.  LabAtt urged them to explore ways to prosecute 
hiring discrimination against ex-union members, women and the 
indigenous.  Vice Minister Monzon asked how the USG confronts 
the issue of blacklisting.  LabAtt promised to seek 
information. 
 
Action Request for USDOL/ILAB:  Please provide any 
information on how the US prevents and combats blacklisting 
of workers involved in labor disputes. 
 
Prof. Richard Feinberg Discusses CAFTA Labor Issues with GOG 
--------------------------------------------- --------------- 
 
6.  (SBU) Labor Minister Moreira and Economy Minister 
Patricia Ramirez told visiting Prof. Richard Feinberg, LabAtt 
and AID Trade Capacity Director Jim Stein on August 21 that 
the GOG was considering proposing to regional counterparts 
meeting in El Salvador August 26 that CAFTA members commit to 
a series of medium-term quantifiable and time-bound 
indicators derived from the eight fundamental ILO conventions 
(e.g. to halve child labor in 5-10 years, etc.).  Prof. 
Feinberg, noting he does not represent the USG, praised the 
ministers' plan but warned that to be credible in the U.S., 
such commitments must be accompanied by implementation plans 
and resources.  The USG and other international organizations 
might possibly support implementation, including the IADB and 
World Bank, he said.  Feinberg, visiting the region under 
AID's trade capacity building program, encouraged the GOG to 
view CAFTA talks as an opportunity to commit to medium-term 
labor enforcement capacity building in the region, with US 
and international donor support.  He also promoted private 
sector monitoring efforts and praised the GOG for its efforts 
to enforce labor laws in the maquila sector in collaboration 
with the Fair Labor Association (in the Choi Shin case). 
 
GOG Formalizes Labor Working Group, Almost 
------------------------------------------ 
 
7.  (U) The GOG issued a decree on August 13 formally 
establishing a "Multi-institutional Working Commission for 
Labor Relations in Guatemala," chaired by the Labor Minister 
and comprised of the Ministers of Economy and Foreign 
Relations, the President of the Supreme Court, President of 
Congress, the Attorney General, the Solicitor General, the 
head of the tax authority, and the general manager of the 
Social Security Institute (IGSS).  The group is charged with 
meeting at least once every four months as long as necessary 
to "guarantee adequate treatment of labor relations during 
the negotiation and implementation of free trade agreements, 
that include labor clauses requiring labor cooperation, 
respect and effective enforcement of labor rights."  The 
Commission's decree also forms a permanent subcommission on 
Work in the Export and Maquila Sector, to enforce labor 
conditions of export privileges and create a unified registry 
of maquilas.  The decree will take effect upon publication in 
the Central American daily, the Government newspaper.  (To 
date it has not been published.) 
 
More Maquilas on GOG "Hit List" for Labor Violations 
--------------------------------------------- ------- 
 
8.  (SBU) Labor Minister Moreira gave LabAtt a copy of a 
letter he sent to Economy Minister Ramirez, dated August 21, 
informing her of 69 labor violations at 17 maquilas, listed 
in priority order, and requesting the initiation of 
proceedings to withdraw tax privileges if the violations are 
not remedied in a period of 30 days.  The violations include 
a wide range of complaints, including non-payment of required 
benefits, overtime, and severance; registration with the 
Social Security Institute; denial of breast-feeding breaks; 
illegal suspension and firings; etc.  The letter also 
mentions 43 new violations at nine of these same plants, for 
which another report will be prepared.  Most of the factories 
are Korean-owned.  This initiative to enforce labor laws in 
the for-export maquila sector follows the GOG's successful 
effort to compel the Choi Shin/Cimatextiles company to 
rectify pending violations and negotiate a collective 
bargaining agreement with its unions.  Vice Minister Monzon 
said that the companies to be sanctioned will be notified 
during the week of August 24. 
 
Special Prosecutor Promises Results, Wants Resources 
--------------------------------------------- ------- 
 
9.  (SBU) LabAtt met with Special Prosecutor for Crimes 
Against Unionists and Journalists, Antonio Cortez Sis, on 
August 26, to review progress in investigations of these 
cases, and to express concern about the apparent lack of 
results.  Cortez responded defensively to public criticism 
from labor unions (CGTG) about lack of progress in the 
investigation of the murder of Oswaldo Monzon Lima, head of a 
trucking union, on June 22, 2000.  Cortez blamed Monzon 
Lima's son for not providing useful information to help 
charge Mario Ortiz Barranco, the owner of the trucking 
company, whom he suspects as the "intellectual author" of the 
crime.  However, he said, he will meet with a witness on 
August 30 who claims to have heard Ortiz threaten the life of 
Monzon Lima.  Cortez Sis said he would ask a judge to charge 
Ortiz with the crime if the witness' testimony is sufficient. 
 Meanwhile, Ortiz has filed a legal complaint of defamation 
against CGTG leader Jose Pinzon for publicly accusing him of 
being involved in the Monzon Lima murder.  Cortez Sis cited 
severe resource constraints hampering his office, comprised 
of 8 officials and staff, two working computers, and one 
dedicated vehicle.  His current caseload is 55 labor cases 
and 45 involving journalists.  LabAtt acknowledged Cortez 
Sis' letter to the Ambassador requesting material support, 
emphasizing the need for concrete progress in priority cases 
(such as the Monzon Lima murder).  (Comment:  We will give 
Cortez the benefit of the doubt for another week, but are 
disappointed by his results to date.  End Comment.) 
 
GOG Proposes 100% Increase to Labor Ministry Budget 
--------------------------------------------- ------ 
 
10.  (U) Labor Minister Moreira provided LabAtt with a copy 
of a letter dated August 22, 2003 from Finance Minister 
Eduardo Weymann pledging to set the Labor Ministry's 2004 
budget at 125 million quetzals (approx. $16 million). 
(Comment: If implemented by the next government, this would 
more than double the 2003 Labor Ministry budget.  End 
Comment.) 
 
Canadians Launch Guatemalan Guest Worker Program 
--------------------------------------------- --- 
 
11.  (U) The Canadian Embassy announced a new legal migrant 
worker program for 167 Guatemalan workers (136 men and 31 
women) to harvest fruit in Quebec for four months.  (Comment: 
 We will monitor this program's results and consider its 
implications for the U.S. H2B visa program.  End Comment.) 
 
Warrant Issued For Arrest of Immigration Union Leader 
--------------------------------------------- -------- 
 
12.  (SBU) Press reported on June 19 that a judge in Peten 
had issued an arrest warrant against Rodolfo Quinonez, the 
General Secretary of the Immigration Workers Union, for 
"passive co-action and illegal transit of persons."  Unnamed 
Immigration Directorate sources accuse Quinonez of corruption 
and acting as a leader of a band of alien-smuggling 
"coyotes."  Earlier in June, Zoila Ochaeta, the Immigration 
delegate in Peten, was detained by authorities under similar 
charges.  Questioned in January by journalists, Quinonez 
accused the Director of Immigration of anti-union repression 
after the union denounced the Director's involvement in 
smuggling Asians.  Comment:  The union and Director have 
traded counter-charges of corruption over the past two years, 
and union complaints were considered by the ILO.  Both sets 
of corruption charges appear plausible to us.  End Comment. 
HAMILTON