US embassy cable - 05QUITO551

UNCLAS QUITO 000551 
 
SIPDIS 
 
SECSTATE PLEASE PASS TO US TRADE REPRESENTATIVE 
 
E.O. 12958: N/A 
TAGS: ELAB, PGOV, EC 
SUBJECT: ECUADOR: ILO ENGAGED ON LABOR REFORM 
 
 
1.  Summary:  After letting a GOE request languish for 
months, the ILO recently stepped up to offer to help the GOE 
make progress on labor law reform.  The ILO's regional 
director recently visited Quito and offered to contract an 
expert to help the GOE identify and address workers rights 
gaps in Ecuador's labor laws.  This would be the first step 
in a process to move forward tripartite dialogue to achieve 
labor code reform.  Minister of Labor Raul Izurieta welcomed 
to the idea, but has his own Ecuadorian and Colombian experts 
in mind.  We have made clear to the GOE our view that a 
non-Ecuadorian expert would be most credible.  Union leaders 
are open to the idea of an ILO consultant.  We continue to 
urge all sides to launch a dialogue soonest.  End Summary. 
 
2.  On March 2, PolChief, LabOff, and EconOff met with 
Ricardo Hernandez Pulido, Regional Director of the ILO based 
in Lima.  Hernandez was in Ecuador to offer the GOE the ILO's 
technical assistance to launch tripartite dialogue to achieve 
labor reform.  Hernandez said he gave Minister of Labor 
Izurieta a draft analysis of Ecuador's compliance with ILO 
conventions on March 1, including both legislative and 
non-legislative suggestions to remedy areas of 
non-compliance.  Hernandez also spoke with Izurieta about the 
possibility of hiring an international consultant, using ILO 
staff, or hiring an Ecuadorian facilitator to help move labor 
code reform forward.  The international consultant Hernandez 
recommended Alfredo Villavicencio, Peru's former 
Vice-Minister of Labor. 
 
3.  Hernandez said he had consulted with union leaders, who 
were receptive to the idea of using Villavicencio as a 
consultant.  Union leaders also requested that the ILO also 
contract an Ecuadorian legal consultant to help inform the 
dialogue process.  Hernandez also was concerned that the GOE 
not distort ILO recommendations when implementing them, as he 
believed happened with the subcontracting decree in 2004.  We 
offered Embassy support to prevent this from happening, and 
have made clear to the GOE that to be credible, any resulting 
reforms must be endorsed by the ILO. 
 
4.  On March 3, LabOff and EconOff met with Minister Izurieta 
to discuss the ILO's proposal.  Izurieta said he had two 
Ecuadorian experts in mind to analyze Ecuador's labor laws. 
LabOff and EconOff emphasized that it was important for the 
ILO consultant to be from another country so he would be more 
credible.  Izurieta said he was not opposed to using 
Villavicencio as a consultant.  Izurieta said he would be 
visiting Washington in the near future and hoped to meet with 
U.S. Congress members to respond to their concerns about 
Ecuador's labor situation. 
 
5.  Magne Svartbekk of the ILO told LabOff on March 8 that 
Izurieta was now suggesting the ILO contract an (unspecified) 
Colombian expert.  Hernandez is currently in Colombia and 
will be following up on this suggestion. 
 
Comment 
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6.  We are encouraged by the ILO's new engagement here and by 
its pragmatic approach toward launching a tripartite labor 
reform dialogue.  Once burned, the ILO is understandably 
skeptical about working with the GOE, but we can help smooth 
relations and build confidence.  We are emphasizing to all 
sectors the need to quickly engage in dialogue to explore 
avenues to strengthen worker rights protections here.  We are 
sanguine, however, about prospects for tripartite consensus 
on labor reform.  Relations are strained between this 
government and both labor and business.  Both have challenged 
the authority of the current Labor Minister.  Most recently, 
business leaders reacted strongly against the Ministers March 
8 unilateral increase to the minimum wage. 
KENNEY