US embassy cable - 03GUATEMALA1541

UNCLAS SECTION 01 OF 02 GUATEMALA 001541 
 
SIPDIS 
 
SENSITIVE 
 
DEPARTMENT OF STATE FOR DRL/IL, WHA/CEN, WHA/PPC, 
CA/VO and G/TIP 
DEPARTMENT OF LABOR FOR ILAB: ROBERT WHOLEY 
USTR FOR CHRIS WILSON 
GENEVA FOR ROBERT HAGEN 
PLEASE PASS TO OPIC: GREG MAGGIO 
 
E.O. 12958: N/A 
TAGS: ELAB, KCRM, KWMN, ETRD, CVIS, GT 
SUBJECT: GUATEMALA LABOR AND TIP UPDATE #4 
 
 
1.  The following is an update of significant recent 
developments in the labor sector.  Topics include: 
 
-- Bilateral Labor Group Convoked for Early July (para 
2) 
 
-- Union Leader Arrested in Social Security Scandal 
(3) 
 
-- Choi Shin/Cimatextiles in the GOG's Crosshairs (4) 
 
-- American Data Processing "Maquila" Conflict 
Unresolved (5) 
 
-- GOG Wants to Facilitate H2B Program (6) 
 
-- Penal Code Reform Stiffens Penalties for 
Trafficking in Persons (7) 
 
Bilateral Labor Group Convoked for Early July 
--------------------------------------------- 
 
2.  (SBU) On June 11 LabAtt requested MFA convoke 
another meeting of the GOG's Labor Working Group for 
the first week of July.  Sara Solis, MFA Director for 
Bilateral Affairs, agreed to do so, and said the 
inter-ministerial GOG Working Group had met recently 
and would soon be formally constituted by government 
decree.  The Embassy hopes to use this meeting to 
maintain momentum on labor issues raised in the first 
meeting (prosecution of violent crimes against union 
leaders, need to streamline the labor justice system, 
and the need to reinstate workers illegally fired for 
unionization activity) on May 13 with participation 
from USTR, USDOL and Department officials.  The 
Embassy will represent the USG in this meeting, and 
would welcome Department's guidance on the status of 
GSP petitions against Guatemala. 
 
Union Leader Arrested 
--------------------- 
 
3.  (SBU) Rigoberto Duenas, Adjunct Secretary General 
of the Central General Union of Guatemalan Workers 
(CGTG), was arrested on June 8 for his participation 
as a member of the Board of Directors of the National 
Social Security Institute (IGSS) in a major financial 
scandal involving the misuse of public funds by that 
institution.  Duenas was the first member of the board 
arrested, and unions have protested his innocence and 
accused the government of seeking a "scapegoat" for 
the scandal.  The scandal involved a housing 
construction scheme using IGSS funds, which was 
authorized by the board but implemented fraudulently 
by IGSS managers (Guatemala 1388 and 1465).  The 
Ambassador expressed concern over the arrest to 
Attorney General De Leon on June 11.  LabAtt and Pol 
Section Intern met with the CGTG executive board and 
Mrs. Duenas on June 12.  The union requested Embassy 
assistance to guarantee the safety of Duenas in 
custody.  LabAtt requested such assistance from the 
Attorney General's Private Secretary on June 12 and 
was assured that the Director of Prisons had already 
beefed up the security in the hospital of the 
Preventive Detention Center, where Duenas and one 
other IGSS board member is being held. 
Choi Shin/Cimatextiles in the Crosshairs 
---------------------------------------- 
 
4.  (U) The GOG has given the management of the Choi 
Shin/Cimatextiles maquila plants until June 27 to 
respond to pending labor rights complaints by workers 
or lose its permission to export from Guatemala.  NGO 
sources report that Minister of Labor Victor Moreira 
(currently in Geneva for ILO meetings) intends to 
compel Choi Shin/Cimatextiles management to engage in 
collective bargaining with the only existing unions in 
the maquila sector.  Those unions were established 
after anti-union violence provoked GOG intervention in 
July 2001.  Press reports about the GOG's action 
against these factories provoked concern among union 
members about possible new violence from non-union 
workers.  LabAtt called Choi Shin management on June 3 
to express concern about possible violence and was 
assured by management that the plant was calm.  The 
Embassy and concerned U.S. NGOs are monitoring this 
situation closely, and have encouraged management to 
continue dialogue with the unions. 
American Data Processing "Maquila" Conflict Unresolved 
--------------------------------------------- --------- 
5. (SBU) The U.S. data processing subsidiary ACS-BPS 
of Guatemala has entered into negotiations with seven 
employees who prefer to resign than to accept new data 
processing tasks under an internal reorganization. 
The seven have filed labor complaints with the labor 
courts and want management to provide a severance 
package including lawyers fees not required under 
labor law. 
 
GOG Wants to Facilitate H2B Program 
----------------------------------- 
 
6. (U) ConGen, NIV Chief and LabAtt met with Vice 
Minister of Labor Sandra Mendez de Garrido June 11 to 
discuss the Ministry's interest in facilitating the 
flow of H2B temporary work visa applicants.  NIV Chief 
provided feedback from U.S. employers concerned by the 
registry and deposit requirements of the Guatemalan 
Labor Code (article 34), which date to the early 
1950's and, if implemented, would probably drive U.S. 
recruiters elsewhere.  The Vice Minister said that her 
intent is not to enforce these parts of the Code, but 
to reform them, if necessary, to protect and expand 
the flow of H2B workers.  The Ministry would like to 
contact U.S. employers to offer its employment service 
as an alternative to Guatemalan recruiters, many of 
whom are corrupt.  ConGen asked the Vice Minister to 
provide an email address to which the Embassy can 
refer interested U.S. employers, and suggested the 
Vice Minister consider visiting the U.S. to witness 
working conditions of Guatemalan workers and meet with 
USDOL counterparts.  We are exploring possible USG 
support for such a visit under the Voluntary Visitor 
Program. 
 
Reforms Would Stiffen Penalties for TIP 
--------------------------------------- 
 
7.  (U) On June 10 The Congressional Commissions on 
Women and Legislation approved reforms to the Criminal 
Code which would increase the penalty for trafficking 
in persons from two to five years in prison.  The 
reforms would also increase the fine penalties for 
pimping from two to ten thousand Quetzales (approx. 
$1,282). 
 
Hamilton