US embassy cable - 03GUATEMALA759

UNCLAS SECTION 01 OF 04 GUATEMALA 000759 
 
SIPDIS 
 
DEPARTMENT FOR WHA/PPCP, WHA/EPSC AND DRL/IL 
DEPARTMENT OF LABOR FOR ILAB: ROBERT WHOLEY 
 
E.O. 12958: N/A 
TAGS: ELAB, EAID, KSUM, ECON, SOCI, GT 
SUBJECT: TECHNICAL ASSISTANCE ON LABOR ISSUES 
 
REF: A. SECSTATE 43119 
     B. 02 GUATEMALA 3003 
 
1.  Ref A requests information about current or recently 
completed technical cooperation activities in the labor 
field.  That information was included in Ref B and is 
included in Paras 2-9 below.  Information about USAID 
bilateral projects in the labor sector is included in Paras 
10-11, and USAID regional labor programs in Paras 12-13.  We 
hope this information is useful to the Department in the 
context of CAFTA and FTAA negotiations. 
 
2. Project Sponsor:  ILO 
Project Title:  RELACENTRO (union rights, negotiation, and 
labor relations in Central America) 
--project goal:  to improve union rights and labor relations 
in the years 2001-2002, run by the Labor Ministry of 
Guatemala, Central Unions, and the umbrella chamber of 
business chambers (CACIF).  Has received 1.5 million US 
dollars from US Dept. of Labor. 
Project Title:  IPEC (International Program for the 
Elimination of Child Labor in Latin America) 
--project goal:  to eliminate the worst cases of child labor, 
run by the Labor Ministry of Guatemala, Central Unions, and 
CACIF.  Funded by the US Dept. of Labor and Spain. 
Title:  PRODIAC 
--project goal:  promotion of tripartite ideals, social 
dialogue, and strengthening of democracy, in the years of 
2001-2002, run by the Labor Ministry of Guatemala, Central 
Unions, and CACIF.  Has received $1.75 mil from Norway. 
Title:  Legal Empowerment of Indigenous Peoples of the 
Central American Isthmus 
--project goal:  to strengthen the legal abilities of the 
indigenous villages, helping to preserve indigenous identity 
and protect their rights, in the years of 1999-2002, run by 
the justice system and indigenous organizations.  Has 
received 1.5 million US dollars from UNFIP. 
Title:  MATAC (Modernization of the labor administrations in 
Central America, Panama, and the Dominican Republic) 
--project goal:  To modernize the labor administrations of 
these countries in years of 1997-2002.  Has received $2.93 
million from Spain.  (Comment:  MOL contacts tell us that 
there has been little or no MATAC activity in Guatemala.  End 
Comment.) 
Title:  Education about Labor and Internalization of Peace in 
Guatemala 
--project goal:  to educated university students about labor 
rights since 1999.  Funded by OIT and EPAZT. 
 
3.  Project Sponsor: UNDP 
Project Title:  International Labor Organization 
Representation 
--project goals:  representation of ILO, to advise the 
resident coordinators of the UN and of UNDP about labor 
topics.  Run by the Guatemalan Ministry of Labor, other 
participating groups include:  union organizations, the 
business sector, and universities. 
Title:  Labor Justice 
--Project goals:  to advise and facilitate reform of labor 
judicial processes. 
 
4.  Sponsor: MINUGUA 
Title:  Labor Justice 
--project goals:  research and workshops to come up with 
ideas to improve the administration of justice from June 2000 
to December 2001, run by The Judicial Organism and the 
Ministry of Labor of Guatemala.  Other participating groups 
include:  Unions, CACIF, Universities, Guatemalan Institute 
of Labor rights 
Title:  Academic Training 
--project goals:  to offer conferences, publication 
opportunities and a documentation center starting in June 
2000 (until present), run by USAC and IDHUSAC.  Other 
participating groups include:  The University of Rafael 
Landivar, and the University of Mariano Galvez. 
 
5.  Sponsor:  The Friedrich Ebert Foundation 
Title: Empowerment 
--project goals:  offer conferences to increase institutional 
 knowledge and the ability to articulate interest starting in 
2001, run by union organizations. 
Increasing female participation in union life through 
educational conferences starting in 2001, run by union 
organizations. 
 
6.  Sponsor: UNICEF 
Title:  Children,s Rights, Citizen Participation, 
Transformation of knowledge and values 
--project goals:  to protect children from labor and sexual 
exploitation. From 2002-2006.  Run by Ministry of Labor and 
Ministry of Education of Guatemala.  Other participating 
groups:  Civil society, NGO,s. 
 
7.  Sponsor:  International Organization for Migration (IOM) 
Title:  Monitoring Migrant workers and the emigration of 
Guatemalans to the south of Mexico 
--project goals:  to identify and register the workers, 
2002-2003, run by the Ministry of Labor and the Ministry of 
Foreign Relations.  Other participating groups include: 
workers, migrant worker recruiters. 
Title:  Investigation of the coffee crisis and its impact on 
employment.  Run by the Guatemalan Ministry of Labor in 
2001-2002. 
Title:  Improvement of worker qualifications, run by SEPAZ 
and INTECAP in 2001-2002. 
 
8.  Sponsor: Danish Central American Human Rights Program 
(PRODECA) 
Title:  Labor justice and academic formation 
--project goals:  promotion of projects and publications. 
Run by the Guatemalan Ministry of Labor and the Judicial Body 
in 2000-2001, other participants include:  universities and 
unions. 
Title:  Labor justice 
--project goals:  improvement of the ability of the defense 
and promotion of labor rights, legal assistance, judicial 
investigation.  Run by unions and NGO,s in 1999-2003. 
Title:  Project INTRAPAZ 
--project goals:  improvement and promotion of dialogue 
techniques and alternative conflict solutions.  Run by the 
Guatemalan Ministry of Labor, NGO,s, unions CACIF, and the 
University of Rafael Landivar in 2001-2002. 
 
9.  Sponsor: The Danish Council 
Title:  Union training to promote unity, strengthen 
organizations, and promote strategic formulation of union 
projects.  Run by unions:  CTC, CUSG, FESTRAS, IUTE, 
ANTRASPG, and UNSITRAGUA in 1999-2002. 
Title:  The promotion of women,s participation in unions and 
the education of union leaders.  Run by unions in 1997-2002. 
 
USAID Bilateral Programs 
------------------------ 
 
10.  As part of an ongoing effort to support the Labor 
Ministry, USAID/Guatemala engaged the services of IRM through 
a buy-in to the Interagency Agreement between USAID and the 
U.S. General Services Administration.   The modest 
project--$200,000--helps establish an information technology 
unit within the Labor Ministry and pilot projects (e.g., 
direct communications between regional offices and the 
ministry, labor inspection via palm pilots, and systems 
administration). 
 
11.  During 2001 USAID provided $70,000 to the Institute for 
Transforming Conflicts for the Construction of Peace in 
Guatemala (INTRAPAZ) through a cooperative agreement with 
Rafael Landivar University to provide in-country training in 
successful dialogue, relationship-building and 
labor/management conflict-resolution techniques.  Target 
groups included individuals from management, labor, the 
Ministry of Labor, and a corps of future trainers and 
mediators. 
 
USAID Regional Programs: PROALCA II Labor Component 
--------------------------------------------- ------ 
12.  Project budget:  $6.3 m. 
Project duration:  July 20, 2002 ) September 30, 2007 
Participants:  Ministries of Labor of Central America, 
Panama, Belize and the Dominican Republic, Ministers, Vice 
Ministers, other labor officials, union organizations, civil 
society, among others. 
Implementing Unit:  Secretariat for Central American Economic 
Integration (SIECA) 
 
Project Goal: Supporting efforts to improve the functioning 
of regional labor markets while strengthening the protection 
of core labor standards. 
 
Justification:  Enhanced competitiveness in global markets 
requires that Central America improve the functioning of its 
labor markets while also strengthening the protection of core 
labor standards.  Improved labor-management relations are 
essential to achieve the total quality production required by 
a global marketplace.  Moreover, satisfactory protection of 
core labor standards is necessary to maintain access to 
important markets.  In addition, for Central America to take 
maximum advantage of the increased opportunities presented by 
more integrated regional and global markets, its labor force 
must be better trained and more productive and its labor laws 
and regulations must be harmonized.  Also, rigidities in the 
region%s labor market must be addressed by allowing for 
flexibility and sufficient labor mobility to permit the 
timely and voluntary reallocation of workers to newer and 
more competitive economic activities.  To achieve this 
result, the following interventions will be promoted: (a) 
labor ministries capacity enhanced, (b) competitiveness of 
the region's labor force increased, and (c) harmonization of 
labor laws and regulations in the region. 
 
At the end of the strategy period, the following achievements 
are expected: 
 
-- More active and effective leadership of labor ministries 
in economic policy-making relative to labor. 
-- Better functioning of labor markets in specific areas 
addressed by PROALCA II. 
-- Establishment of one or more Alternative Dispute 
Resolution Mechanisms in the region. 
-- The development of a corps of trained technical staffs in 
the labor ministries of Central America. 
-- Shift from public occupational training in public-private 
skills-based training. 
-- Harmonization of skills standards and standards of methods 
of certification. 
-- Initiation of skills certification program throughout 
region. 
-- Increased voluntary mobility of workers inside their 
countries. 
-- Changes in labor codes to incorporate policies that 
increase labor flexibility without weakening protection of 
core labor rights. 
-- Region wide respect for core labor rights. 
-- Changes in national legislation to conform to regional 
norms. 
-- Increased convergence of labor laws in the region. 
 
USAID Regional Programs: PROALCA I Results 
------------------------------------------ 
 
13.  Our regional Program in Support of Central American 
Participation in the Free Trade Area of the Americas (PROALCA 
I) Labor Component ran from 1995-2002 and had its objective 
"More Equitable and Better Functioning Labor Markets."  The 
labor component expended $ 5.0 million.  This was 
accomplished through programs designed to support Central 
American efforts to strengthen the protection of 
internationally recognized core labor standards, improve 
labor-management relations, and modernize labor markets.  The 
activity also helped improve workplace conditions and better 
enable workers to receive their fair share of gains generated 
by trade expansion and productivity increases. 
 
PROALCA supported the Ministries of Labor of Central America, 
Belize and the Dominican Republic.  The program provided 
assistance for policy reform and for effective policy 
implementation, as needed.  The types of assistance provided 
included specialized technical assistance, horizontal 
(inter-ministerial) cooperation programs, short-term training 
programs, observational trips and support for regional 
seminars, workshops and fora. 
 
USAID-IDB-SIECA Labor Modernization Project:  This program 
was designed to assist Central American efforts to modernize 
labor markets by supporting regional and national dialogue on 
topics related to labor markets and hemispheric integration, 
globalization and trade policy, among others.  The project 
also provided opportunities for the region,s countries to 
participate in pilot activities in methods of alternative 
dispute resolution and occupational safety standards. 
 
The program financed technical assistance and consulting 
services for the eight Ministries of Labor in the formulation 
of national and regional policies, and the modernization of 
labor markets.  Thirty-six national seminars and workshops 
were developed in the region.  1,631 persons (478 women and 
1,153 men) from the public and private sector, trade unions 
and NGOs were trained on subjects related to social dialogue, 
information systems, alternative methods of dispute 
resolution, occupational health and safety, and modernization 
of the labor market. 
 
This subcomponent supported the development of a web-based 
labor information system.  This system facilitates the 
research of statistics on occupation, income and wages, 
vulnerable groups, labor legislation, agreements and 
ministerial meetings, international legislation, social 
dialogue, trade union information, economic and demographic 
data, and social standards, and provides a virtual library on 
labor topics.   Training on the use of the system and the 
necessary computer equipment and software were also provided 
to the ministries. This component finished on September 30, 
2001 (although a no-cost extension was approved for an 
additional year and activities continue with IDB financing). 
 
Labor Advisor: This consulting service provided the Ministers 
of Labor with advice on the status of the hemispheric 
economic and social integration process, and how labor issues 
are incorporated into that process, as well as advice on 
ministerial modernization processes.  It also helped the 
Ministers define appropriate social, economic and labor 
policies. 
 
This subcomponent facilitated the exchange of technical 
assistance, training, and best practices among the Central 
American Ministries of Labor and between Central America and 
those from outside the region through a horizontal 
cooperation program and site visits. A total of 82 labor 
officials participated in the hemispheric cooperation program 
in areas such as: modernization of labor markets, automation 
of labor information, labor relations, labor inspection, and 
certification of labor skills.   Five extraordinary 
ministerial meetings were supported as well as the XVI 
Council of Ministries of Labor of Central America.  Under 
this contract, a total of 866 (652 men and 214 women) Labor 
officials participated in 18 seminars and workshops on 
employment policies, productivity, and modernization of the 
labor markets. 
 
With the support of this subcomponent, the Secretary of Labor 
and Social Welfare of Mexico and the Ministers of Labor of 
the region signed an operational agreement on November 23, 
2001.  This agreement will allow the transference, at a 
minimum cost, of successful experiences that were accumulated 
by the participation of Mexico in the North American Free 
Trade Agreement (NAFTA) in aspects such as labor skills 
certification programs and systems for the establishment of 
norms, among others.  Probably the most significant 
achievements of this subcomponent, however, have been the 
creation of an ad-hoc secretariat of the Central American 
Ministers of Labor and the successful garnering of assistance 
from other donors for the labor sector in Central America. 
 
Strengthening Labor Management Relations:  This program 
concluded in November 2000 and was developed through a US 
$1.6 million cooperative agreement awarded to FUNPADEM.  Its 
purpose was to support the modernization of the labor 
inspection departments in each ministry, and to strengthen 
ministerial abilities to resolve labor conflicts and enhance 
labor-management relations. 
 
This assistance included the design of a modern management 
system to enhance the inspection process through improved 
monitoring and quality control of inspections and 
establishing a database on businesses, workers, payrolls, 
frequency and geographic locations of violations. 
 
Training activities on inspection, ministerial operations, 
and labor issues in the context of economic globalization and 
hemispheric integration surpassed expectations.  1,230 (923 
men and 307 women) representatives from the labor ministries, 
unions and management participated in six workshops, fourteen 
courses, six seminars and six video conferences 
 
Child Labor Program: The Child Labor Eradication Program 
funded by USAID was successfully completed in September 2001. 
 FUNPADEM provided sub grants to and monitored the national 
NGOs, which implemented the pilot projects in each Central 
American country according to the selected high-risk areas 
identified by the Ministers of Labor (Guatemala-quick lime 
production). 
 
NGOs were provided with the equipment and furniture required 
to implement activities.  The program developed regional 
workshops, reinforcement school courses, seminars, 
socio-economic diagnosis, and provided technical assistance 
to encourage more than one thousand children (586 girls and 
624 boys), adolescents, families and teachers to participate 
in educational and training activities.  A total of 547 
children will stop working to study, 147 will not study, and 
the rest will combine both activities.  NGOs obtained 193 
scholarships, 100 from the IPEC-ILO project and the rest from 
the private sector and municipalities. 
HAMILTON