US embassy cable - 04TEGUCIGALPA1109

UNCLAS TEGUCIGALPA 001109 
 
SIPDIS 
 
STATE FOR DRL/IL, WHA/CEN, AND WHA/PPC 
 
TAGS: ELAB, PHUM, PGOV, EAGR, HO 
SUBJECT: 50TH ANNIVERSARY OF HISTORIC BANANA STRIKE IN HONDURAS 
 
1. Summary: A series of events sponsored by the Ministry of Labor 
and the International Labor Organization (ILO) took place from 
May 3-5 in Tegucigalpa to commemorate the 50th anniversary of the 
historic May 1954 banana strike in Honduras.  President Ricardo 
Maduro, President of the National Congress Pepe Lobo, Minister of 
Labor German Leitzelar Vidaurreta, DCM, AID Director, and LabAtt 
attended the opening commemoration, along with several 1954 
banana strikers, as well as leaders from labor unions and the 
private sector.  End Summary. 
 
---------- 
Background 
---------- 
 
2. The 1954 strike began at United Fruit Company (Tela Railroad 
Company/Chiquita) and quickly spread to Standard Fruit Company 
(Dole) and then across the country before being resolved in July 
1954.  It would mark the beginning of a labor union movement and 
organized working class in Honduras.  On May 1, 1954, workers 
from United Fruit went on strike after demanding double pay for 
working holidays.  Two days later, 7,000 workers went on strike 
at installations in El Progreso, Yoro.  The strike continued 
among banana companies, a tobacco plant, a mining company, and 
some textile factories. 
 
3. Rafael Alberty, a teacher who went to work for United Fruit as 
office manager of the machinery department, became one of the 
negotiators in the strike on behalf of workers.  He and Ventura 
Ramos, among others, had received orientation on strike movements 
in Guatemala during the Jacobo Arbenz government and allegations 
of outside influence were circulating. (Comment: A Guatemalan 
group that entered Guatemala from Honduras overthrew the Arbenz 
government in June 1954.  End Comment.) 
 
4. Before any mediation was able to take place, some 2,000 
workers extended the movement to Cortes.  Shortly thereafter, the 
numbers of workers on strike reached 12,000.  In response, 
Standard Fruit, unlike United Fruit, negotiated with workers 
under governmental arbitration.  These negotiations would be the 
first of its kind in Honduran history.  After 67 days on strike, 
the workers, the government, and United Fruit reached an 
agreement that ended the strike in early July. 
 
5. As a result of the banana strike, the Letter for Worker 
Guarantees of 1955 established the application of the Labor Law, 
the creation of the Ministry of Labor, the establishment of the 
Honduran Institute for Social Security (IHSS), and the Agrarian 
Reform Law.  In addition, on August 28, 1954, the Tela Railroad 
Company Workers Union (SITRATERCO) was formed, one of the most 
powerful and influential unions of the past 50 years.  Today, it 
is down to approximately 2,000 members and is part of the United 
Confederation of Honduran Workers (CUTH) led by Israel Salinas. 
 
------------------------------ 
50th Anniversary Commemoration 
------------------------------ 
 
6. On May 3, 2004, the commemoration began with opening remarks 
from President Ricardo Maduro, Minister of Labor German 
Leitzelar, a representative of ILO, as well as Honduran Workers 
Federation (CTH) Secretary General Dinora Aceituno.  Following 
these remarks, recognition was awarded to several aging leaders 
of the 1954 banana strike.  A forum followed that mainly 
addressed the need to reform certain aspects of Honduran labor 
law.  In addition to this forum, a number of conferences were 
held during the week to address international norms, social 
responsibility, child labor, and the U.S.-Central America Free 
Trade Agreement (CAFTA). 
 
7. During the forum, the Minister of Labor Leitzelar expounded 
his views on modernizing Honduran labor law in certain areas. 
Leitzelar also spoke of the need to effectively enforce existing 
laws.  Supreme Court Justice Lidia Cardona argued that instead of 
using the courts to settle labor concerns, mediation should be 
utilized as a mechanism for conciliation.  President of the 
Honduran Manufacturing Association (Honduran Maquila Association) 
Jesus Canahuati and President of the National Congress Pepe Lobo 
reiterated Leitzelar's concerns about the inefficiency of current 
labor law.  In response, workers complained about the constraints 
to the effective freedom of association and collective 
bargaining. 
 
Pierce