VZCZCXYZ0023
RR RUEHWEB

DE RUEHSN #0636/01 0672038
ZNR UUUUU ZZH
R 082038Z MAR 06
FM AMEMBASSY SAN SALVADOR
TO RUEHC/SECSTATE WASHDC 1401
INFO RUEHGT/AMEMBASSY GUATEMALA 4189
RUEHMU/AMEMBASSY MANAGUA 1943
RUEHSJ/AMEMBASSY SAN JOSE 3379
RUEHDG/AMEMBASSY SANTO DOMINGO 0577
RUEHTG/AMEMBASSY TEGUCIGALPA 0514

UNCLAS SAN SALVADOR 000636 
 
SIPDIS 
 
SIPDIS 
 
DEPT OF LABOR FOR JRICHARDS 
USAID/LAC/RSD FOR BMACDONALD 
STATE FOR WHA/PPC - MIKE PUCCETTI; DRL/IL - PATT DEL VECCIO 
 
E.O. 12958: N/A 
TAGS: EAID ETRD LAB SENV ES CAFTA
SUBJECT: CORRECTED COPY - EL SALVADOR PRIORITIES FOR LABOR 
PROJECTS THAT SUPPORT CAFTA-DR IMPLEMENTATION 
 
REF: SECSTATE 26123 
 
¶1.   Summary:  Per reftel, this cable provides Post 
priorities for CAFTA-DR labor-related trade capacity 
building (TCB) activities for FY 2006.  The proposals 
described here build upon a consultative process that began 
almost six months ago and reflect a consensus view on El 
Salvador's key labor needs.  They are: 
-- Strengthening the Public Defender's Office in El 
Salvador: $900,000. 
-- Strengthening Labor Justice in El Salvador: $600,000. 
-- Strengthening Labor Justice in CAFTA-DR countries: 
$7,900,000. 
-- Strengthening Private Labor Standards and Alternative 
Dispute Resolution: $4,000,000. 
-- Strengthening Ministry of Labor Functions in CAFTA-DR 
countries: $4,000,000. 
A separate cable contains post's summary of CAFTA-DR 
environment needs. See concluding comment para 61.  End 
Summary. 
 
¶2.   Nearly six months ago, Post began a consultative 
process to identify key labor trade capacity needs in El 
Salvador for FY 2006 and beyond. This process consisted of 
consultations with governments, regional integration 
institutions, and the private sector identified several 
priority needs.  Post also relied heavily on the recently 
completed USAID assessment on labor justice in CAFTA-DR 
countries. 
 
¶3.   The proposals presented here represent a consensus view 
among these parties of key USG projects that will help El 
Salvador and other countries in the region meet the 
requirements of CAFTA-DR labor provisions.  Post recognizes 
that El Salvador is, in many ways, in a unique position vis- 
a-vis other CAFTA-DR countries in its efforts to implement 
CAFTA-DR and its relationship with the United States.  El 
Salvador led the fight within the region for ratification by 
Central American signatories.  El Salvador was the first 
country for which the treaty entered into force with the 
U.S. (on March 1, 2006).  Also, the U.S. Mission in El 
Salvador has a strong regional presence and serves as the 
base for regional offices of USG agencies such as Department 
of Commerce and USAID. As a result, the proposals presented 
here include both some that focus exclusively on El Salvador 
and some that recognize the benefits of working regionally 
to address labor issues of concern to El Salvador and its 
neighbors. 
 
--------------------------------------------- ------------- 
¶4.   TITLE:  Strengthening the Public Defender's Office in 
El Salvador 
--------------------------------------------- ------------- 
 
¶5.   PURPOSE: This activity identifies priorities for 
strengthening the Public Defender's Office in El Salvador, 
enabling it to provide effective representation in labor 
cases, and provide labor mediation services throughout the 
country. 
 
¶6.   DESCRIPTION AND JUSTIFICATION:  The Public Defender's 
Office in El Salvador (Procuraduria General de la Republica) 
is an independent governmental institution that has the 
constitutional mandate to provide legal assistance to 
persons who cannot afford representation of their legal 
rights, including labor rights.  The PGR enjoys high regard 
in the country and is perceived as neutral, despite funding 
and infrastructure limitations plaguing all public entities. 
 
¶7.   USAID has worked with the Public Defender's Office to 
strengthen its criminal defense division, and there is 
potential for using this as a building block for 
strengthening its legal support division in labor law.  The 
institution's Unit for the Defense of Workers' Rights has a 
National Coordination Office, 15 paralegals, and 49 Labor 
Public Defenders in 15 regional offices throughout the 
country.  Once requested, workers can receive representation 
during both the administrative and judicial process; 
however, the time to actually assign an attorney to a worker 
can take up to 25 days which can be prejudicial to time- 
sensitive cases.  There is a need to strengthen the legal 
teams' expertise with labor law and jurisprudence, as well 
as improve administrative management. 
 
 
¶8.   The Public Defender's Office is a leader in the 
Alternative Dispute Resolution (ADR) field in El Salvador 
and has incorporated mediation into all of its regional 
offices, mostly to help resolve family and community 
disputes.  Labor cases are rarely referred to the Mediation 
Centers, in part because there has never been an effort to 
hire and train labor mediators.  With its regional offices 
and two mobile mediation units, a new labor mediation 
function offers the opportunity to increase access to labor 
mediation in the country. 
 
¶9.   Expected Results: 
 
-- Increased capacity in the PGR to represent clients on 
labor issues. 
-- Strong labor mediation function established in the PGR's 
regional and mobile offices. 
 
¶10.  Specific Activities: 
 
-- Provide labor law training to the PGR.  With training, 
the PGR has the potential to extend its successful support 
for criminal cases to the labor area.  In addition USAID 
will also provide technical support to improve operations, 
so that the PGR can more rapidly respond to requests for 
legal assistance. 
 
-- Establish a strong labor mediation function in the PGR's 
regional operations.  USAID assistance will contribute to 
the creation of a dedicated and trained cadre of 
professionals that can quickly identify the nature of 
conflicts, recognize the issues and find remedies.  USAID 
will support staff training on best management practices 
such as: developing procedure manuals, operating formats, 
profiles for mediators and conciliators, oversight 
mechanisms, how the unit functions, quality registries, 
record-keeping, utilization of statistics and indicators for 
planning, follow-up and evaluation of mediation programs. 
Support will also examine legal/regulatory barriers to 
effective alternative dispute resolution, and possible 
remedies. 
 
¶11.  U.S. POLICY OBJECTIVES:  Concern about the ability of 
CAFTA-DR countries to guarantee internationally-recognized 
labor rights was a significant concern during the passage of 
the agreement.  In a side agreement to the treaty, the 
signatories committed to improve labor conditions and 
increase compliance with labor laws.  This program supports 
El Salvador's efforts to achieve this critical foreign 
policy goal. 
 
¶12.  NEW/PREVIOUS WORK:  USAID has focused its efforts on 
improving transparency, efficiency and timely responses in 
certain judicial system functions by promoting the use of 
alternative dispute resolution (ADR) mechanisms - in 
particular mediation.  This support has been directed mostly 
at the PGR and has included strategic planning with 
implementing entities, implementation and construction of 
the ADR Centers, and extensive training of mediators.  In 
the past experience, these efforts have dealt with civil 
cases that do not include labor grievances.  Taking 
advantage of this successful platform, USAID proposes to 
extend its successful partnership with the PGR to labor law 
and mediation. 
 
¶13.  COST: $900,000 of FY 2006 funds. 
 
¶14.  LOCAL BUY-IN:  The National Commission for the 
Coordination of the Justice Sector, a coordinating body 
among the Supreme Court, the Attorney General, the Public 
Defender, the Minister of Governance, and the National 
Council of the Judiciary, has identified the promotion of 
ADR as one of their main priorities for the next five years 
and formally designated the Public Defender's Office as the 
responsible government entity.  The Public Defender's 
mediation program is supported by the National Mediation 
Coordination Unit which offers guidance and oversight to its 
regional offices.  The Public Defender's Office has 
expressed an interest in strengthening its labor-related 
functions. 
 
¶15.  PUBLIC DIPLOMACY STRATEGIES:  Given the opportunity to 
strengthen an organization with a proven record of success, 
the activities described represent an important partnership 
 
between the US Government and El Salvador.  They demonstrate 
that government commitments made during the CAFTA-DR process 
to improve labor conditions and have available working 
mechanisms for speedy and successful resolution of labor 
conflicts are serious.  For public diplomacy, therefore, 
these activities will support US credibility in El Salvador. 
 
--------------------------------------------- --------- 
¶16.  TITLE:  Strengthening Labor Justice in El Salvador 
--------------------------------------------- --------- 
 
¶17.  PURPOSE: This activity identifies priorities for 
strengthening key judiciary functions related to labor 
justice in El Salvador. 
 
¶18.  DESCRIPTION AND JUSTIFICATION:  As in other countries 
throughout the region, compliance with labor law in El 
Salvador is deficient.  The judiciary lacks adequate 
technical capacity in conciliation, oral proceedings, and 
handling small claims; needs upgraded literacy in labor law 
and jurisprudence; and suffers from administrative 
mismanagement and allegations of corruption. 
 
¶19.  There are several obstacles to effective administration 
of labor justice specific to the judiciary in El Salvador. 
The key problem is the lack of training in labor law of 
labor judges and judges of mixed competency located in 
judicial districts isolated from urban centers.  Moreover, a 
variety of legal process protections for workers are ignored 
in practice, improperly disallowing oral proceedings, 
skipping the conciliation stage of labor cases, and 
dismissing labor complaints on technicalities. 
 
¶20.  Expected Results: 
 
-- Key judiciary functions reformed, including conciliation 
and oral proceedings. 
-- Professional qualification requirements established and 
judicial system operators trained in labor law and labor 
justice system operations. 
-- Electronic case management, trial management, and 
jurisprudence systems implemented, enabling the judiciary to 
resolve labor cases faster and more effectively, and 
providing information needed for other reforms. 
-- Strengthened judicial capacity in judicial districts 
outside of urban centers. 
 
¶21.  Specific Activities: 
 
-- This activity will strengthen judiciary procedures, 
increase staff qualifications, and implement electronic case 
management in El Salvador.  This effort will complement the 
proposed regional activity (Paragraph 27) and focus 
additional USG assistance on reform of judicial 
institutions, capacity building, and information 
communication technology.  It will also build on El 
Salvador's limited but growing expertise in alternative 
dispute resolution, and provide assistance for further 
training and institutional development. 
-- Strengthen capacity in judicial districts outside of 
urban centers.  Outside of urban centers, judges hear a 
variety of legal matters (civil, penal, family, labor) and 
need additional tools. USAID will provide additional 
training in managing oral hearings, conciliation techniques, 
and international treaties to judges of mixed competency. 
In addition and on a pilot basis, the program will support 
creation of a mobile court facility to provide outreach to 
remote areas of the country. 
 
¶22.  U.S. POLICY OBJECTIVES: Concern about the ability of 
CAFTA-DR countries to guarantee internationally-recognized 
labor rights was a significant concern during the passage of 
the agreement.  In a side agreement to the treaty, the 
signatories committed to improve labor conditions and 
increase compliance with labor laws.  This program supports 
El Salvador's efforts to achieve this US foreign policy 
goal. 
 
¶23.  NEW/PREVIOUS WORK: Reform of judicial institutions will 
extend USAID's efforts in human rights and criminal cases to 
the labor justice area. The case management component will 
build on the successful USAID and US Department of Labor 
experiences with electronic case management systems in 
Ministries of Labor in the region, as well as USAID's 
 
experience implementing case management for the Guatemalan 
criminal court.  USAID successfully piloted the creation of 
a mobile court facility to serve rural regions in Guatemala, 
which holds promise for a similar institution in El 
Salvador. 
 
¶24.  COST:  $600,000 is needed in FY 2006 to strengthen 
courts of mixed competency and pilot a mobile court 
facility.  It is also anticipated that El Salvador will 
receive approximately $900,000 from the region-wide program 
for strengthening labor justice in CAFTA-DR Countries, (see 
paragraph 27) for case management, technical assistance, 
training, and commodity support. 
 
¶25.  LOCAL BUY-IN:  Interviews with Supreme Court and other 
court officials and administrators, judicial school and 
university professors and administrators, Labor Ministries, 
industry associations, labor unions, human rights 
organizations and independent labor experts in all six CAFTA- 
DR countries generated the recommendations described here, 
compiled in a recent USAID assessment.  This program is also 
reflective of priorities in the labor White Paper. 
 
¶26.  PUBLIC DIPLOMACY STRATEGIES:  Activities described 
extend the commitment to improving access to labor justice 
and increasing compliance with the law beyond more developed 
urban centers.  Making good on these commitments in 
partnership with the Government of El Salvador strengthens 
the credibility of the US among historically underserved 
populations. 
 
--------------------------------------------- ------- 
¶27.  TITLE:  Strengthening Labor Justice in CAFTA-DR 
Countries 
--------------------------------------------- ------- 
 
¶28.  PURPOSE: This activity will help governments in the 
CAFTA-DR countries strengthen the labor justice function 
through institutional reform, training, and implementation 
of effective case management in the judicial branch. 
 
¶29.  DESCRIPTION AND JUSTIFICATION:  While labor laws on the 
books in the CAFTA-DR countries are generally adequate, 
labor protection provisions are often violated, and it is 
difficult for workers to get relief in a timely and 
equitable manner through the justice system.  The judiciary 
lacks technical capacity in conciliation, oral proceedings, 
and handling small claims; needs to better understand labor 
law and jurisprudence; and suffers from administrative 
mismanagement and allegations of corruption. 
 
¶30.  USAID will support institutional change in judiciary 
institutions across the region. Strengthening conciliation 
and oral proceedings will increase access to justice and 
expedite settlements.  To professionalize the judiciary, 
USAID will support personnel system reforms that establish 
minimum standards for legal literacy in labor law for 
different job categories.  This will create incentives for 
staff and other participants in the labor justice system to 
participate in training. USAID will strengthen training 
institutions to sustain this effort. 
 
¶31.  In looking at judicial reform it is difficult to know 
where the real bottlenecks are since there is no systematic 
way of tracking labor cases.  As a first step, USAID will 
support improved case management systems and a strengthened 
court clerk function as essential prerequisites for ensuring 
that the judicial system is able to enforce labor laws 
effectively.  These systems will introduce transparency and 
facilitate efficient administrative management. 
 
¶32.  Expected Results: 
-- Electronic case management, trial management, and 
jurisprudence systems implemented in all CAFTA-DR countries, 
enabling the judiciary to resolve labor cases faster and 
more effectively, and providing information needed for other 
reforms. 
-- Key judiciary functions reformed, including conciliation 
and oral proceedings. 
-- Professional qualification requirements established and 
judicial system operators trained in labor law and labor 
justice system operations. 
 
¶33.  Specific Activities: 
 
 
-- Design/implement electronic case management for the 
judiciary.  This component will integrate case management 
into Information Communication Technology (ICT) systems, 
providing hardware, software, networks, and other 
infrastructure to the judiciary, establish judiciary ICT 
support offices, and provide technical training for users of 
the system.  Case management, trial management, and 
jurisprudence systems will be introduced, and the judiciary 
and Labor Ministry case tracking systems will be linked to 
ensure cases are followed throughout the entire process. 
 
-- Strengthen the judiciary's use of conciliation and oral 
proceedings.  To improve the conciliation function, USAID 
will support changing court procedures, training judges and 
clerks on conciliation techniques, and renovating office 
space to create privacy for sensitive discussions. Similar 
assistance will address oral proceedings/small claims. 
 
-- Establishing professional qualification requirements in 
the judiciary.  Judges and clerks, Ministry of Labor staff 
will seek training to upgrade their labor law.  USAID will 
support creation of labor law training capacity in the 
Judicial Schools (national bodies that train court 
personnel), as well as other institutions like law schools. 
 
¶34.  U.S. POLICY OBJECTIVES:  Concern about the ability of 
CAFTA-DR countries to guarantee internationally-recognized 
labor rights was a significant concern during the passage of 
the agreement. In a side agreement to the treaty, the 
signatories committed to improve labor conditions and 
increase compliance with labor laws.  This program supports 
the CAFTA-DR countries' efforts to achieve this critical US 
foreign policy goal. 
 
¶35.  NEW/PREVIOUS WORK:  Reform of judicial institutions 
will extend USAID's judicial reform efforts in human rights 
and criminal cases to the labor justice area.  The case 
management component can build on the successful USAID and 
US Department of Labor experiences with electronic case 
management systems in Ministries of Labor across the region, 
as well as USAID's experience implementing case management 
for the Guatemalan criminal court. 
 
¶36.  COST:  $7.9 million of FY 2006 funding is required for 
this effort. Of this sum, an estimated $900,000 each would 
be allocated for Costa Rica, Dominican Republic, El 
Salvador, Guatemala, Honduras, and Nicaragua to support 
implementation of case management systems, although amounts 
could be reallocated depending on country needs and 
absorptive capacity.  The remainder would support the other 
elements of this activity. 
 
¶37.  LOCAL BUY-IN:  Interviews with Supreme Court and other 
court officials and administrators, judicial school and 
university professors and administrators, Labor Ministries, 
industry associations, labor unions, human rights 
organizations and independent labor experts in all six CAFTA- 
DR countries generated the recommendations described here, 
compiled in a recent USAID assessment.  Local buy-in also 
has been ensured through ongoing relationships at USAID 
Missions throughout the region.  This program is reflective 
of priorities in the White Paper. 
 
¶38.  PUBLIC DIPLOMACY STRATEGIES:  Activities described 
represent a high profile partnership between the US 
Government and the governments of the region in modernizing 
their systems, improving access to labor justice, and 
increasing compliance with the law.  They demonstrate that 
government commitments made during the CAFTA-DR process to 
improve labor conditions in the region are serious.  For 
public diplomacy, therefore, these activities should 
generate a big win for US credibility in the region. 
 
--------------------------------------------- ---------- 
¶39.   TITLE:  Strengthening Private Labor Standards and 
Alternative Dispute Resolution 
--------------------------------------------- ---------- 
 
¶40.  PURPOSE:  This activity will work through a public- 
private alliance to expand the use of and compliance with 
private labor standards and strengthen non-governmental 
dispute resolution centers, leveraging public funds with 
private sector resources. 
 
 
¶41.  DESCRIPTION AND JUSTIFICATION:  With China poised to 
dominate world apparel markets, many multinational retailers 
are anxious to ensure that CAFTA-DR countries offer a 
competitive alternative source of supply.  Labor 
productivity and quality assurance are keys to the region's 
competitiveness, and are a direct result of existing labor 
relations and workplace conditions.  Moreover, multinational 
companies have strong incentives to address poor labor 
practices by their suppliers in Central America that 
threaten the international reputation of their brands.  For 
these reasons, the private sector has sought to raise labor 
standards in the region, supporting a range of company- 
specific and industry-wide standards, bolstered by large 
investments in private labor inspection and monitoring. 
 
¶42.  In many cases, multinationals have greater leverage on 
labor standard compliance than state regulators.  The 
"carrot" of multimillion dollar sales contracts dwarfs the 
"stick" of administrative fines imposed by governments. 
Also, corporate buyers' labor standards are uniform across 
the region whereas government regulators are hamstrung by 
the ability of manufacturers to shift production across the 
border to avoid stricter standards and enforcement in any 
one country.  USAID support of alliances of multinational 
buyers, locally-based suppliers, business associations, 
labor unions, human rights groups, and government to 
strengthen private sector labor standards offers a way to 
expand impact and build a culture of compliance beyond 
support to government institutions and leverage resources 
while doing so. 
 
¶43.  Similarly, private institutions offer speedier, less 
costly alternatives to the courts for individual and 
collective dispute resolution.  Integrating these functions 
into company human resource management offers opportunities 
as well.  Continued US Government assistance could broaden 
the impact of these private sector efforts and make them 
sustainable. 
 
 
¶44.  Expected Results 
 
-- Increased compliance with private labor standards by 
apparel manufacturers. 
-- Labor standard alliances established and compliance 
increased in other industries. 
-- Strengthened non-governmental institutions participating 
in compliance monitoring, dispute resolution, and training. 
-- Labor Ministries understand private sector labor 
standards and utilize opportunities to promote adherence and 
more effectively use limited government inspection 
resources. 
 
¶45.  Specific Activities: 
 
-- Work with standard setting alliances to help supplier 
factories develop systems for continuous improvement in 
labor standards and compliance.  USAID has been piloting 
work with a public-private alliance (see New/Previous Work, 
below) to train workers and managers on their rights and 
obligations and to implement preventive conflict resolution 
in the workplace.  Companies are also counseled on 
integrating labor concerns into human resource management 
systems. USAID, in partnership with alliance members, will 
expand this work, roll it out across the region, and 
introduce it into other industry sectors. 
 
-- Provide technical assistance, training, and grants to non- 
governmental organizations (NGOs) that provide services 
related to compliance monitoring, dispute resolution, and 
training.  A broad variety of universities, technical 
institutes, student law clinics, community mediation 
centers, NGOs, industry and labor groups, and other 
organizations have grown up to support conciliation, 
mediation, labor audit and inspection, specialized services 
related to gender issues in the workplace, training on labor 
standards and labor law, and other labor standard compliance 
services.  USAID will support civil society organizations 
with technical assistance on service expansion, financial 
management, and other management functions to ensure 
sustainability, as well as limited grant support. 
 
-- Promote constructive social dialogue to build a culture 
of compliance.  In a region where frictions over labor 
 
conditions have underlayed not only company-union disputes 
but violent civil conflict, social dialogue to promote a 
shared commitment to labor standard compliance and dispute 
resolution is essential.  USAID will roll out and expand on 
pilot efforts to work with multinational buyers, in-country 
manufacturers, standard-setting organizations, labor unions, 
government, and others to build a shared commitment to 
raising labor standards, based on a shared interest in 
competitiveness in order to increase exports and create or 
preserve jobs. 
 
¶46.  U.S. POLICY OBJECTIVES:  Concern about the ability of 
CAFTA-DR countries to guarantee internationally-recognized 
labor rights was of particular interest during the passage 
of the agreement. In a side agreement to the treaty, the 
signatories committed to improve labor conditions and 
increase compliance with labor laws.  This program supports 
the CAFTA-DR countries' efforts to achieve this critical US 
foreign policy goal. 
 
¶47.  NEW/PREVIOUS WORK:  This program will build on the work 
supported by a USAID regional pilot program that has been 
working in alliance with the private sector and labor to 
improve working conditions in the Central American apparel 
and textile industry.  The Continuous Improvement in the 
Central American Workplace (CIMCAW) Alliance works 
throughout the CAFTA-DR region, with partners including Gap 
Inc., the International Federation of Textile Workers, 
Social Accountability International, and Development 
Alternatives, Inc.  The program trains managers and workers 
to improve social responsibility compliance while improving 
competitiveness in quality and productivity, including 
collaboration with the Corporacion de Zonas Francas in 
Nicaragua, ADOZONA in the Dominican Republic, and the 
Association of Honduran Maquilas.  Another Alliance, with 
Caribbean-Central American Action, works to communicate the 
benefits of CAFTA-DR for local businesses and workers. 
 
¶48.  COST:  $4,000,000 in FY 2006 funding is needed for this 
activitiy.  Of this amount $250,000 each would be allocated 
to Costa Rica, the Dominican Republic, El Salvador, 
Guatemala, Honduras, and Nicaragua for technical assistance, 
training, and grants to NGOs, although amounts could be 
reallocated based on country need and absorptive capacity. 
The remainder would support the public-private alliance, 
leveraged by additional private sector contributions. 
 
¶49.  LOCAL BUY-IN:  Private dispute resolution was 
identified as the top priority for improving labor justice 
in interviews with Supreme Court and high and other court 
officials and administrators, judicial school and university 
professors and administrators, Labor Ministries, industry 
associations, labor unions, human rights organizations and 
independent labor experts in all six CAFTA-DR countries, 
conducted by a recent USAID assessment team.  Local buy-in 
has also been ensured through relationships at USAID 
Missions in the region, as well as through existing 
Alliances.  This program is reflective of priorities in the 
labor White Paper. 
 
¶50.  PUBLIC DIPLOMACY STRATEGY:  US Government support for 
an alliance of high-profile multinationals together with 
labor unions and other partners to improve compliance with 
labor standards is likely to attract substantial public 
attention.  It puts the spotlight on corporate social 
responsibility and ways that government, business, and civil 
society can work together to improve working conditions and 
competitiveness.  Promoting the benefits of free trade, for 
workers as well as for business, is in the US national 
interest. 
 
--------------------------------------------- ------------ 
¶51.  TITLE:  Strengthening Ministry of Labor functions in 
CAFTA-DR countries. 
--------------------------------------------- ------------ 
 
¶52.  PURPOSE: This activity identifies priorities for 
strengthening key Ministry of Labor functions in CAFTA-DR 
countries through implementation of Information 
Communications Technology systems. 
 
¶53.  DESCRIPTION AND JUSTIFICATION:  As stated in the 
Ministers of Trade and Labor White Paper, an efficient, 
transparent and broadly credible Ministry of Labor is a 
 
prerequisite for the effective application of labor laws. 
One of the priorities identified by the ministers as a 
solution to these deficiencies is the improvement of 
information technology communications.  Working in concert 
with the US Department of Labor's Cumple y Gana program and 
other donor support to the Labor Ministries, USAID will 
provide the Information Communications Technology (ICT) and 
in-house expertise as the backbone upon which the Labor 
Ministries can reorganize operational workflows enabling 
them to focus and manage key priorities such as case 
tracking, statistics, planning, budgeting and financial 
management, thus enhancing the authority and credibility of 
the labor ministries.  To ensure sustainability, transfer of 
computer equipment will be dependent on the counterparts' 
demonstrated commitment to finance maintenance costs and 
implement management reforms. 
 
¶54.  Expected Results: 
 
-- Information communications technology implemented in all 
CAFTA-DR countries and linked to locations outside the 
capital cities, enabling Labor Ministries to have access to 
statistics on labor cases faster and more effectively. 
-- Labor Ministry staff trained to support a professional 
ICT Department assuring sustainability and in-house 
maintenance of the system. 
-- Operations outside capital cities strengthened including 
support of timely historical data and company registrations 
for mobile inspection teams. 
-- Improved utilization of key institutional statistics 
acquired through case tracking for planning and budgeting 
restructuring, thereby improving inspection effectiveness 
and overall efficiency. 
 
¶55.  Specific Activities: 
 
 
-- Design/implement information communications technology 
(ICT) systems for Labor Ministries.  USAID will provide 
hardware, software, networks, and other infrastructure to 
Ministries of Labor, assistance to develop Ministry ICT 
support offices, and extensive technical training for all 
users of the system.  Assistance will also be provided to 
Labor Ministries to expand to regions beyond capital cities, 
equipping and training mobile inspection units with systems 
linked to central ICT systems. 
 
-- Improve Ministry of Labor statistics for planning, 
budgeting, and financial management functions using 
information generated from ICT systems.  USAID will support 
technical assistance and training to enable Ministries to 
strengthen key functions by using information generated from 
ICT systems.  For example, assistance will be provided to 
train Ministry managers to use case tracking statistics to 
allocate staff and financial resources more efficiently, and 
monitor results more effectively.  This will enhance the 
Ministries' ability to carry out inspections effectively and 
efficiently. 
 
¶56.  U.S. POLICY OBJECTIVES:  Concern about the ability of 
CAFTA-DR countries to guarantee internationally-recognized 
labor rights was a significant concern during passage of the 
agreement.  In a side agreement to the treaty, the 
signatories committed to improve labor conditions and 
increase compliance with labor laws.  This program will 
assist CAFTA-DR countries to achieve this critical US 
foreign policy goal. 
 
¶57.  NEW/PREVIOUS WORK:  USAID's efforts to implement an 
information communications technology system and an 
Information Technology support office for the Guatemalan 
Ministry of Labor have been highly successful.  Online 
services now receive more than 800,000 hits per month, among 
the highest of any government institution.  With the 
proposed activity, USAID will expand the initiative 
throughout the CAFTA-DR region strengthening ministries' 
information systems for improved labor compliance.  USAID 
will take advantage of these platforms and the US Department 
of Labor's efforts, to better integrate information 
technology throughout the Labor Ministries. 
 
¶58.  COST:  $4,000,000 of FY 2006 funding is required for 
this activity. 
 
¶59.  LOCAL BUY-IN:  Interviews with Supreme Court and other 
 
court officials andadministrators, judicial school and 
university pofessors and administrators, Labor Ministries, 
industry associations, labor unions, human rights 
organizations and independent labor experts in all six CAFTA- 
DR countries generated the recommendations described here, 
as compiled in a recent USAID assessment.  Local buy-in also 
has been ensured through ongoing relationships at USAID 
Missions throughout the region.  This program is reflective 
of priorities in the White Paper. 
 
¶60.  PUBLIC DIPLOMACY STRATEGIES:  Activities described 
represent a high profile partnership between the US 
Government and the governments of the region in modernizing 
their systems, giving Ministries of Labor the tools to 
improve access to labor justice and increase compliance with 
the law.  They demonstrate that government commitments made 
during the CAFTA-DR process to improve labor conditions in 
the region are serious.  These activities, therefore, will 
boost US credibility in the region significantly. 
 
¶61.  Comment. Post appreciates the opportunity to provide 
input into the identification of labor assistance 
priorities.   Regional buy-in to the process is of vital 
importance, and we believe the activities above will bring 
about the maximum benefit and compliance with the CAFTA-DR 
agreement.  We understand that the interagency group is 
working to obligate the funding for FY2006 as equitably and 
as rapidly as possible.  Post hopes that future project 
requests will provide as much time as possible to work with 
the CAFTA-DR governments, business and NGO communities to 
develop these project ideas.  We also wish to ensure that 
projects have the ability to access follow-on funding in 
future years to make sure that commitments negotiated within 
CAFTA-DR are met.  Overall compliance with the letter and 
the spirit of the FTA are our goals, and some projects will 
require a several year commitment to see them through to 
conclusion.  We look forward to the backing of the 
interagency group. End Comment. 
 
 
 
Barclay