US embassy cable - 05QUITO2747

UNCLAS SECTION 01 OF 02 QUITO 002747 
 
SIPDIS 
 
DEPT FOR WHA/AND, WHA/PPC, EB, AND DRL/IL. USDOL FOR CARLOS 
ROMERO. GENEVA FOR JOHN CHAMBERLIN. PLEASE PASS USTR FOR V. 
LOPEZ AND B. HARMON. 
 
E.O. 12958: N/A 
TAGS: ELAB, PGOV, EC, Labor 
SUBJECT: ECUADOR LABOR UPDATE 
 
REF: QUITO 2386 
 
1.  Summary:  Following are recent labor-related developments 
of interest: 
 
-- ILO Advisors to Ecuador Named (para. 2) 
-- Ambassador Highlights Labor Concerns (3) 
-- Additional Child Labor Inspectors Hired (4) 
-- Newspapers Highlight Child Labor (5) 
-- Banana Labor Dispute Update (6) 
-- Number of Maquilas Decreasing (9) 
 
ILO Advisors to Ecuador Named 
----------------------------- 
 
2.  Acting Minister of Labor Jose Serrano told LabOff on 
November 25 that the ILO had named two consultants to assist 
Ecuador in the formulation of a new labor code:  Adolfo 
Ciudad of the ILO's Lima office and Ana Maria Garcia, a 
Spaniard.  The Ministry of Labor had submitted a request to 
the ILO for technical assistance on the matter.  The date of 
their travel to Ecuador has not yet been determined. 
 
Ambassador Highlights Labor Concerns 
------------------------------------ 
 
3.  During an October 20 trip to Cuenca, the Ambassador 
highlighted labor issues as a possible obstacle to the 
conclusion of a free trade agreement and the need for labor 
code reform.  The comments, which were widely covered in the 
press, came during a speech to the AmCham of Cuenca. 
 
Additional Child Labor Inspectors Hired 
--------------------------------------- 
 
4.  Serrano told LabOff on November 25 that the Ministry of 
Labor had hired additional child labor inspectors and 
currently employed a total of 23 inspectors.  The Ministry of 
Economy had approved converting their status to permanent 
government employees, not contractual employees, starting in 
January 2006. 
 
Newspapers Highlight Child Labor 
-------------------------------- 
 
5.  Between October 13 and November 21, a spate of articles 
(at least 10) explaining Ecuador's child labor issues 
appeared in prominent Ecuadorian newspapers including leading 
daily "El Comercio."  The articles highlighted child labor in 
gold mining, domestic work (press reported up to 247,000 
children and adolescents aged 12-17 working in this sector), 
carpentry, agriculture (press reported 198,534 children and 
adolescents between 5-17 working in this sector), 
brickmaking, and trash rummaging. 
 
Banana Labor Dispute Update 
--------------------------- 
 
6.  The striking workers at El Zapote banana plantation 
(RefTel) were removed from the premises on the night of 
October 21 by police.  A labor judge had issued a preliminary 
ruling in favor of the laborers, but this ruling was later 
voided by a civil judge, who cited evidence that some of the 
laborers had forged documents.  The MOL labor inspectorate of 
the town of Quevedo in Los Rios province formally rejected 
the complaint on November 18. 
 
7.  In protest of the MOL's rejection of the complaint, 
banana workers physically occupied the coastal Subsecretary 
of Labor's offices on November 24, accusing MOL employees of 
corruption.  FENACLE banana union leaders met with the acting 
Minister of Labor Jose Serrano on November 28 asking that 
Serrano designate a high level commission to analyze the El 
Zapote conflict.  Labor leaders also asked for administrative 
investigations into two labor inspectors involved in the 
conflict. 
 
8.  Guayaquil CG and PolOff met with Dole manager Mario 
Padilla and Dole legal advisor Luis Vernaza on October 27 to 
express concern about the case, which involves suppliers to 
Dole.  The Dole representatives said they had been urging the 
plantation owners to settle the dispute.  Vernaza said that 
the workers protesting were not part of the plantation's 
permanent staff, but rather were short-term contractors hired 
to work during peak season.  (FENACLE denies this.)  Padilla 
said that Dole had not been buying fruit from the plantation, 
not because of the labor issue, but because the fruit quality 
had fallen during the strike and did not meet their standards. 
Number of Maquilas Decreasing 
----------------------------- 
 
9.  According to press, the number of "maquilas" or assembly 
plants of imported component parts for re-export, in the 
country has decreased from 150 to 43 due to bureaucratic 
hassles related to the frequently changing staff of the 
Ecuadorian Customs Corporation and constantly changing 
interpretations of Customs Law.  A 2003 reform to the Customs 
Law added extra requirements for customs transactions.  Many 
of the maquila workers are hired under temporary contracts. 
Nationwide 65 percent of maquilas are in Quito and Cuenca. 
In Cuenca, the main activity is jewelry production. 
BROWN