US embassy cable - 04GUATEMALA1124

UNCLAS SECTION 01 OF 04 GUATEMALA 001124 
 
SIPDIS 
 
SENSITIVE 
 
DEPARTMENT OF STATE FOR DRL/IL, WHA/CEN AND WHA/PPC 
DEPARTMENT OF LABOR FOR ILAB 
USTR FOR BUD CLATANOFF 
 
E.O. 12958: N/A 
TAGS: ELAB, ETRD, KCRM, PHUM, GT 
SUBJECT: GUATEMALA LABOR/TIP UPDATE #3-2004 
 
 
Note:  this message has been re-sent and includes revisions 
of paras 3 and 6.  End Note. 
 
1.  (SBU) The following is an update of significant recent 
developments in the labor sector and trafficking in persons 
(TIP).  Topics include: 
 
-- Labor:  100 Days in Labor (paras 1-2) 
 
-- Labor:  Apparel Sector Plans Mediation Center (3) 
 
-- Labor:  Uncertainty at NB Maquila (4) 
 
-- Labor:  Prosecutions and Personnel Changes (5) 
 
-- Labor:  Finca Maria Lourdes Arrests (6) 
 
-- Labor:  Reforms Stalled (7) 
 
-- TIP: DHS Trains 376 Officials (8) 
 
-- TIP: New Enforcement Efforts (9) 
 
-- TIP: Solicitor General to Combat TIP (10) 
 
-- TIP: Legislation Update (11-12) 
 
-- TIP: AID Proposes Prevention and Victims Assistance (13) 
 
Labor:  100 Days 
---------------- 
 
2.  (SBU) An internal report (really a matrix with 
indicators) on the accomplishment of Berger Administration 
100-day goals shared by the Labor Ministry with the Embassy 
includes mention of the pending labor code reforms, and takes 
credit for completion of rules implementing the Law of 
Integrated Protection of Children and Adolescents, conducting 
workshops on the law with Labor Ministry employees, 
strengthening of the special child labor inspection unit, 
monitoring of ILO-supported child labor projects, and 
beginning to unify criteria to resolve labor problems in the 
maquila sector.  In addition, the matrix includes other 
efforts such as restructuring the Inspectorate General to 
create a notification section, implementing effective 
mechanism to control corruption, and developing training and 
statistical systems, institutional and administrative reforms 
and job creation initiatives.  In an event marking his 
government's first 100 days, President Berger also 
congratulated his Education Minister for providing 8-month 
contracts to 11,000 of 13,000 new teachers permanently hired 
by outgoing President Portillo.  Portillo's action had been 
struck down by the Constitutional Court for procedural 
illegalities and 2,000 of those named were found to lack 
basic qualifications. 
 
3.  (U) Unions used the traditional May Day march to burn 
President Berger in effigy, denounce the government's 
policies as pro-business, call for the release of labor 
leaders Rigoberto Duenas (jailed since June 2003 for alleged 
involvement in a corruption scheme at the Social Security 
Institute) and Victoriano Zacarias (jailed with other 
protesting trucker union members since February 25 for 
endangering the public) from preventive detention, and to 
reject CAFTA as anti-worker.  President Portillo's final 
minimum wage increase was ruled unconstitutional by the 
Constitutional Court in January; a new round of minimum wage 
negotiations have begun.  In February, President Berger named 
prominent labor union leader Jose Pinzon of the major labor 
federation (UGT), campesino leaders and other civil society 
leaders to the Commission to Implement the Peace Accords. 
The Commission provided input to another GOG commission 
designing a major fiscal reform package to help close a 
yawning budget deficit inherited from the previous 
government.  Unions and other civil groups submitted their 
own proposals, and another major labor federation (UASP) 
announced its opposition to the proposed fiscal reforms on 
May 5.  The GOG will receive an ILO Direct Contacts Mission 
May 17-22. 
 
Labor:  New Mediation Center Project 
------------------------------------ 
 
4.  (U) On March 25, the Apparel Export Association (VESTEX) 
publicly unveiled a mediation/alternative dispute resolution 
project supported by AID through the Central American 
Economic Integration Secretariat (SIECA).  VESTEX labor 
advisor Rolando Figueroa said the Center for Alternative 
Resolution of Labor Conflicts would be available to VESTEX's 
260 member companies (224 apparel and 36 textile) and their 
141,638 employees.  Among its goals, the Center will seek to 
improve trust between employers and workers, resolve 
conflicts in their early stages, and improve the image of 
participating firms.  After preparatory work and training of 
mediators, the Center will open in September 2004. 
Labor:  Maquila Workers Worried about Closure 
--------------------------------------------- 
 
5.  (U) US-based labor rights NGO US/LEAP, the AFL-CIO 
Solidarity Center, and union leaders at the unionized and 
Korean-owned apparel export plant Nobland International 
expressed concern to LabAtt on April 28 about the rumored 
closing of the plant.  Subsequent discussions with Labor 
Minister Gallardo, Labor Inspector General Celeste Ayala, the 
Korean Embassy, the GAP labor monitor and with VESTEX 
officials clarified that NB has named a new plant manager and 
reduced its production somewhat due to a decline in orders. 
VESTEX convoked a meeting among the new manager, factory 
union leaders, and the FESTRAS labor confederation for May 4, 
which LabAtt will attend as an observer.  Until recently, NB 
management had been participating in good faith in weekly 
negotiating sessions of the company's first collective 
bargaining agreement with the union, hosted by a Ministry's 
labor inspector.  According to the Korean Embassy, 
productivity at the NB plant here has been slipping and fewer 
contracts have been received from company agents in Korea. 
NB has another plant in Vietnam but is also sensitive to the 
concerns of U.S. buyers that the unionized factory here not 
be closed. 
 
Labor:  New Special Prosecutor, Progress 
---------------------------------------- 
 
6.  (U) Attorney General Florido recently named a new Special 
Prosecutor for Crimes Against Journalists and Trade 
Unionists, Mario Estuardo Castaneda.  LabAtt met with the new 
Special Prosecutor on May 5.  Castaneda said he hoped to 
continue to make progress in priority cases, including the 
prosecution of Mario Roberto Ortiz Barranco, accused of the 
murder of trucking union leader Oswaldo Monzon Lima in June 
2000, who was released on bail (approx. $6,250) in April. 
The Special Prosecutor has appealed the local court's bail 
decision and is awaiting an audience before the appeals 
court.  Castaneda estimated that the trial of Ortiz would 
begin in August.  Castaneda said progress on another murder 
case, of Baldomero de Jesus Ramirez in June 1999, which could 
lead to a request for an arrest warrant against the former 
mayor of Santa Lucia Cotzumalguapa, Escuintla. 
 
Labor:  Finca Maria Lourdes 
--------------------------- 
 
7.  (SBU) At the request of the Agrarian Platform, a 
coalition of campesino, land rights groups and NGOs, an 
inter-sectoral "Negotiation Table" was established to resolve 
several land/labor conflicts in Quetzaltenango, including the 
Finca Maria Lourdes case, on February 23, 2004.  The Finca 
Maria Lourdes dispute stems from illegal firings of union 
members dating to 1995, and is featured in GSP petitions 
under current review.  Since the firings the plantation has 
changed hands and is reportedly now owned by a relative of 
First Lady Wendy de Berger.  Participants in the Mesa include 
representatives of the workers and owners of Finca Maria 
Lourdes, the UN (MINUGUA), the Human Rights Ombudsman's 
Office, CONTIERRA and FONTIERRA (the Government's land 
dispute resolution commission and land bank, respectively), 
Congressional deputy Alfredo de Leon and the provincial 
government of Quetzaltenango.  On April 19, two Maria Lourdes 
worker representatives and Agrarian Platform members, Juan 
Jose Mota and Humberto Lopez, were reportedly detained by 
police under charges of "usurpation" stemming from their 
illegal occupation of plantation land.  The Platform 
protested the detention and also called for suspension of 
outstanding arrest warrants against other Finca workers under 
similar charges;  members of the Platform claims President 
Berger agreed not to enforce those warrants during 
negotiations.  On April 21, Vice Minister of Labor Castillo 
told LabAtt that it appears that law enforcement authorities 
are not coordinating their actions well with the GOG 
institutions involved in the Mesa, and pledged to try to 
encourage that coordination.  Mota and Lopez were released on 
bail on April 22. 
 
Labor:  Legislative Reforms 
--------------------------- 
8.  (U) Labor Code reforms pending before the last Congress 
were sent to the Congressional Labor Commission for review 
where they remain pending.  The Commission has met with 
unions, business (CACIF), FRG Congressional deputies, members 
of the labor judiciary, and women's groups, among others. 
Vice Minister of Labor Castillo told LabAtt on April 22 that 
he believes Congress will eventually pass the reforms without 
change, with the possible exceptions of sexual harassment and 
universal severance initiatives.  Labor Minister Gallardo 
told LabAtt April 29 that he would submit the reforms for 
further discussion in the tripartite labor commission he 
chairs. 
 
TIP:  DHS Provides Anti-TIP Training 
------------------------------------ 
9.  (U) During the week of March 22-26 DHS provided 10 
half-day anti-TIP seminars to a total of 376 representatives 
from the National Civilian Police, Civil Aviation 
Directorate, Office of the Prosecutor for Crimes Against 
Women, Police Information Service, Solicitor General's 
Office, Foreign Ministry, Judicial Unit for Children and 
Adolescents, Immigration Directorate, and airport security. 
The seminar provided information distinguishing TIP from 
alien smuggling, on victim recognition, and how to combat TIP 
while protecting victims.  MFA sources also tell us the GOG 
is developing its own training program for a special PNC task 
force to deal specifically with TIP cases. 
 
TIP:  Recent Enforcement Efforts 
-------------------------------- 
 
10.  (U) With varying degrees of success, the GOG is starting 
to take actions against TIP and to work in coordinated law 
enforcement actions.  Casa Alianza representatives have been 
attending anti-TIP raids at the invitation of authorities, to 
help identify and provide services to TIP victims. 
 
-- Immigration, Public Ministry prosecutors and 150 PNC had 
conducted a coordinated operation targeting gang members near 
the Mexican border in Tecun Uman, and San Marcos province on 
March 5.  A total of 31 illegal migrants (20 Honduran, 10 
Salvadorans, and 1 Mexican) were arrested; 8 reportedly fit 
the profile of gang members, but no TIP victims were 
discovered. 
 
-- On March 10, the Minors Section of the National Civilian 
Police's (PNC) Criminal Investigative Service (SIC) arrested 
Oscar Emerito Cabeza Garcia, a 24 year-old Salvadoran running 
the "Cocoloco International" club in Zone 19 of the capital, 
and rescued three Salvadoran minors being held for 
prostitution and 5 Salvadoran adult prostitutes.  The adults 
were deported, and the minors were turned over to the courts. 
-- On April 13 police arrested the manager of a Villa Nueva 
massage parlor and rescued three 16-year-old minors (one 
Guatemalan and two Hondurans) from that establishment.  The 
22-year-old manager was charged with migration violations and 
TIP. 
 
-- Press reported on April 14 the return to Nicaragua of a 
17-year-old Nicaraguan who had reportedly been prostituted 
and sequestered in a bar in Antigua.  The girl's name was not 
reported (in an article reprinted here with a byline from AFP 
in Managua), and authorities claim no knowledge of the case. 
 
-- Coordinated raids were conducted in Peten province on 
April 17, leading to deportations of adult sex workers but 
did not find victims of TIP. 
 
TIP:  Solicitor General to Combat TIP 
------------------------------------- 
 
11.  (U) On April 18, the Solicitor General Ricardo Rosales 
announced a new agreement with Guatemala City Mayor Arzu to 
develop a plan to rescue street kids (and possible TIP 
victims) from exploitation by panhandling rings. 
 
TIP:  Legislation Update 
------------------------ 
 
12.  (U) On May 5 the GOG published in the daily register 
Guatemala's Instrument of Adhesion to the Protocols of the UN 
Convention Against Transnational Organized Crime.  The 
protocols, "Against the Smuggling of Migrants" and "To 
Prevent, Suppress and Punish Trafficking in Persons," were 
approved by Congress on August 19, 2003; the Instrument was 
signed by President Portillo on February 4, 2004 and 
deposited with the Secretary General of the UN on April 1, 
2004.  The Protocols entered into force on May 1, 2004. 
 
13.  (SBU) There are several different reforms proposed to 
the Guatemalan Penal Code to bring it into conformity with 
the TIP Protocol mentioned above.  The ILO's proposal, which 
includes increased penalties for TIP and TIP-related crimes 
is awaiting approval by different ministries in the Security 
Cabinet before being signed by the President and sent to 
Congress.  Meanwhile, other reform proposals on the same 
subject are already pending before Congress.  The 
Congressional Legislative Secretariat will send competing 
proposals to the Family and Minors Committee, which may 
choose among them or integrate them before emitting an 
opinion. 
TIP:  AID Prevention and Victims Project 
---------------------------------------- 
 
14.  (U) AID has recently proposed a $1.2 million 3-year 
project to prevent and protect victims of TIP in Guatemala. 
The purpose of the project would be to support the 
development of regional, national, and local networks to 
prevent trafficking in persons, and to protect and 
reintegrate trafficking victims.  It would also seek to 
prevent victims from being re-trafficked, and facilitate the 
development and implementation of policies and laws related 
to trafficking in persons.  This approach is designed to 
create a sustainable response to TIP by fortifying existing 
institutions and to step up the response to trafficking in 
persons in Central America and Mexico. 
HAMILTON