US embassy cable - 05GUATEMALA297

C O N F I D E N T I A L SECTION 01 OF 03 GUATEMALA 000297 
 
SIPDIS 
 
E.O. 12958: DECL: 02/02/2015 
TAGS: ELAB, PHUM, KCRM, EAID, GT 
SUBJECT: ALLEGED VIOLENCE AT GUATEMALAN MAQUILA 
 
 
Classified By: Ambassador John Hamilton, reasons 1.4 (B,D) 
 
1. (SBU) Summary:  The Korean manager of a Guatemalan maquila 
allegedly punched a female union leader in the face during a 
January 20 altercation at the factory.  Both sides filed 
claims with the prosecutor's office and the Ministry of 
Labor.  The case demonstrates the weakness of Guatemala's 
ability to enforce labor standards and the ability of 
management teams to manipulate their workforces and the legal 
system to create a climate of intimidation.  Ironically, the 
incident took place at factory in which working conditions 
compare favorably with any factories in the world, including 
those in the United States.  Despite the altercation, 
negotiations for a collective bargaining agreement at the 
factory are nearing completion.  End summary. 
 
Leading to an altercation 
------------------------- 
 
2. (U) The General Manager of a Guatemalan apparel factory, 
NB Guatemala, allegedly struck a member of the Union's 
Executive Committee during an altercation on January 20.  The 
Executive Committee member, a 47 year old woman, filed 
reports with the Ministry of Labor's Inspectorate and the 
Attorney General's Special Prosecutor for Crimes against 
Trade Unionists.  The General Manager filed counter-claims at 
both of those offices, as did a rival group of workforce 
employees loyal to the General Manager.  (Note:  NB 
Guatemala, a wholly-owned subsidiary of Korea-based Nobland 
International, is one of only three maquilas in Guatemala 
that have registered unions.  End note.) 
 
3. (U) Nine employees had been fired in early January on the 
grounds that they were not permanent employees and did not 
enjoy job protection benefits.  The Union of NB Employees, 
which represents 20% of the factory's approximately 500 
workers, and the federation of unions (FESTRAS) to which the 
Union belongs protested the process of the workers dismissal 
and the workers' status as non-permanent employees.  In 
consultation with the Union, NB management agreed to 
reinstate the nine workers on January 19.  According to both 
Union and management sources, on the morning of January 20, 
General Manager Yong Ha-Kim (a Korean national resident in 
Guatemala) was directing the nine workers to new workspaces 
removed from the main factory floor when Union Secretary 
General Vidalia Garcia Hernandez and Union Organizational 
Secretary Maria Rosa Lopez Flores confronted Kim to insist 
 
SIPDIS 
that the reinstated workers return to their old positions. 
 
The Union's version... 
---------------------- 
 
4. (U) In a January 21 meeting, the Union leaders told us 
that at this point Kim struck Lopez in the face with a closed 
fist, knocking her to the ground.  Dozens of nearby workers 
left their workstations to assist Lopez, who was dazed and 
crying.  They told us that Kim then left the area, and the 
company's Chief of Personnel, Alfonso Cuzal, helped Lopez to 
her feet and apologized profusely on behalf of Kim.  At this 
point, Laura Garcia, a member of a group of pro-management 
employees, began shouting accusations that Lopez had started 
the encounter.  When Garcia Hernandez protested this version 
of the events, Laura Garcia slapped her across the face. 
 
5. (U) Lopez and Garcia Hernandez then left the factory, 
followed by dozens of workers.  When Cuzal followed them to 
the parking lot and ordered the workers to return to their 
workstations, Lopez and Garcia Hernandez left the premises to 
file charges against Kim and Laura Garcia at the Ministry of 
Labor and the Public Ministry (the Attorney General's Office). 
 
Management's version... 
----------------------- 
 
6. (U) When we visited NB on January 27, Kim told us that he 
had ordered the two Union leaders to return to their own 
workplaces, informing them that work assignments were under 
the purview of management.  Kim said that Lopez began 
screaming at him and trying "to make contact" with him.  He 
said that Cuzal had to intervene to keep Lopez from attacking 
Kim.  The screaming attracted a crowd of workers, causing Kim 
to leave the scene.  According to Cuzal, Lopez and Garcia 
Hernandez went to the parking lot followed by several of the 
workers who had left their workstations.  Cuzal told us that 
Garcia Hernandez began telling workers that Kim had struck 
Lopez.  The two Union officers then left the factory.  Kim 
denies ever striking Lopez. 
 
7. (C) Later that morning, Kim filed a counterclaim at the 
Ministry of Labor, explaining his side of the story and 
requesting that the Ministry order Lopez and Garcia Hernandez 
to refrain from involving themselves in situations in which 
they have no legal position, such as the assignments of 
workers within the factory.  On January 26, Kim and Cuzal 
jointly filed a similar counterclaim with the Public 
Ministry. 
 
And a third set of actors... 
---------------------------- 
 
8. (U) Following the events of January 20, a group of 
pro-management employees arrived at the Ministry of Labor in 
a rented bus during working hours to file a claim supporting 
the views expressed by Kim and Cuzal.  Kim told us that the 
group rented the bus themselves but would not confirm whether 
they had permission to leave work. 
 
The Government's response 
------------------------- 
 
9. (C) Vice Minister of Labor Cesar Castillo told us that he 
had summoned Kim to his office on January 20 to discuss the 
matter when Kim visited the Ministry of Labor to file his 
claim.  On January 26, Castillo told us that his inspector 
would visit NB the following day to interview workers and 
management in regard to the issue.  The inspector did indeed 
visit NB, but his report did not contain any new information, 
nor did it draw any conclusions.  Castillo told us that he 
impressed upon Kim the importance of labor rights and how 
troubling the allegations were from the Ministry's 
perspective. 
 
10. (C) At the Public Ministry, the Office of the Special 
Prosecutor for Crimes against Journalists and Trade Unionists 
received and filed the claims from the Union members and 
management but has not visited NB.  The two claims filed in 
this case make a total of ten filed in the Special 
Prosecutor's Office related to NB.  The head of the office, 
Mario Castaneda, told us that claims from NB always come in 
pairs.  The Union's claims of threats are always matched by 
counterclaims from a rival group of employees, which 
complicates investigations.  A member of the rival group 
filed the only previous claim of injury against Lopez and 
Garcia Hernandez.  Castaneda told us that his office has no 
jurisdiction between rival groups of employees.  The incident 
of January 20 marks the first claim directly filed against 
management, which is in the purview of the Special 
Prosecutor's Office. 
 
Comment 
------- 
 
11. (C) The irony of this case is that January 20 should have 
been marked as a day of success for the Union.  The use of 
negotiation based upon agreed processes to bring about the 
reinstatement of improperly fired workers was a significant 
accomplishment, now marred by the alleged violence.  The 
Union claims that the rival group is materially supported by 
NB's management and thus should not be considered an 
alternative voice of the labor force.  We think that this is 
probably the case, and that management is actively 
encouraging, and very possibly directly funding the 
activities of this group.  We believe that Castaneda's 
description of paired claims reflects a manipulation of the 
legal system to prevent government action against systemic 
intimidation. 
 
12. (C) Management claims that the Union is being duped by 
FESTRAS and foreign labor activists, including those 
representing US/LEAP and the Solidarity Center, and that the 
vast majority of NB's workers are happy and proud to work 
there.  While we consider the charge that these groups have 
"duped" the Union to be a gross exaggeration, the 
confrontational nature of these groups has increased the 
tensions at NB.  As negotiations for a collective bargaining 
pact are nearing completion, we stressed to the Union not to 
allow this incident to derail the process.  We stressed to 
the Union that achieving only the third collective bargaining 
agreement in Guatemala's entire maquila sector must be the 
Union's most important goal. 
 
13. (U) This case demonstrates the obstacles which hamper the 
administration's efforts to enforce labor standards.  The 
pressure from the Vice Minister of Labor was welcome, but 
does not resolve a case where a management team could 
manipulate the system to cover up acts of intimidation and 
assault, as we believe occurred at NB.  Additionally, 
incidents such as these are an important factor in regard to 
the lack of worker solidarity and help explain why many of 
NB's workers are disinclined to join the Union.  Currently, 
only 20% of the workforce are members.  The fact that 80% of 
the workers have not joined the union may be an indicator of 
worker satisfaction.  We found the factory to be clean and 
well-maintained.  Indeed, the working conditions were rather 
better than those we have seen elsewhere in Guatemala and in 
other countries, including in the United States. 
HAMILTON