VZCZCXRO8871
RR RUEHRG
DE RUEHSO #0601/01 2861757
ZNR UUUUU ZZH
R 131757Z OCT 09
FM AMCONSUL SAO PAULO
TO RUEHC/SECSTATE WASHDC 9680
INFO RUEHBR/AMEMBASSY BRASILIA 0812
RUEHRG/AMCONSUL RECIFE 4437
RUEHRI/AMCONSUL RIO DE JANEIRO 9278
RUEHBU/AMEMBASSY BUENOS AIRES 3663
RUEHAC/AMEMBASSY ASUNCION 0048
RUEHMN/AMEMBASSY MONTEVIDEO 2975
RUEHSG/AMEMBASSY SANTIAGO 0046
RUEHLP/AMEMBASSY LA PAZ 4155

UNCLAS SECTION 01 OF 02 SAO PAULO 000601 
 
SENSITIVE 
SIPDIS 
 
STATE FOR WHA/BSC, EEB/IFD/ODF, INR/IAA, INR/R/AA 
USAID FOR LAC/AA 
 
E.O. 12958: N/A 
TAGS: PGOV SOCI SCUL EFIN ECON PREL BR
 
SUBJECT: LABOR LEADERS' POSITIVE OUTLOOK 
 
REF: (A) BRASILIA 1201 (B) SAO PAULO 70 
 
¶1.  (SBU) Summary: In recent discussions, Sao Paulo labor leaders 
were positive on the voice of unions in Brazilian economic policy. 
Sector representatives praised U.S. Trade Representative (USTR) 
Kirk's September 16 visit, expressing gratitude for his interest in 
their views on trade but indicated their own interest in better 
understanding the U.S. trade agenda.  At the same time some 
expressed skepticism that any U.S. trade agreement with Brazil could 
advance in the closing year of the Lula Administration.  Beyond 
trade, the unionists also discussed their efforts to better organize 
Brazil's substantial informal sector and the challenges facing large 
employment sectors such as sugarcane cutting.  Finally, the trade 
representatives expressed interest in obtaining English language 
training for young leaders, a possibly promising area of future 
engagement.  End Summary. 
 
Deepening Contacts with Labor 
 
¶2.  (U) Over the last two months post has reached out to labor 
representatives in Sao Paulo, home to Brazil's major unions, to 
obtain a better understanding of organized labor's views on the 
economy, trade relations, and the 2010 elections.  On October 2, 
post hosted a lunch for visiting Brasilia Laboff Fred Kaplan and 
several of these new contacts.  In attendance were: Ivan Gonzalez, 
Political Coordinator, Trade Union Confederation of the 
Americas(TUCA); Braz Agostinho Albertini, President, Federation of 
Agricultural Workers of the State of Sao Paulo(FETAESP); Joao Carlos 
Goncalves Juruna, Secretary General,  Union Movement (FS); Ortelio 
Palacio Cuesta, International Affairs Secretary, Union Movement 
(FS); Lourenco Ferreira do Prado, President, General Union of 
Workers (UGT); Caninde Pegado, Secretary General, UGT; Silvia 
Portela, International Affairs Advisor, Sole Center of Workers 
(CUT); and Brian Finnegan, Country Programs Director, AFL-CIO 
Solidarity Center. 
 
THANKS FOR USTR VISIT BUT MORE DETAIL SOUGHT 
 
¶3.  (SBU) The contacts expressed considerable satisfaction at USTR 
Kirk's recent visit to Brazil, noting it was a good sign of the 
positive relationship between the U.S. and Brazil.  FS and CUT reps, 
who attended a September 16 roundtable with USTR Kirk hosted by the 
Consul General, appreciated the opportunity to engage Ambassador 
Kirk directly.  CUT's Silvia Portela applauded USTR Kirk's 
willingness to listen to labor concerns on trade issues, while UGT 
Vice President Lourenco Prado appreciated the opportunity to "debunk 
the misperception" that free trade automatically benefits all 
participants.  (Note: Brazil's labor leaders hold 
protectionist/pro-industrial policy views.  Nonetheless, they proved 
knowledgeable and eager to engage the USTR during his recent visit, 
a sign we see as positive.  End Note.)  The only negative was that 
several participants mentioned they would have liked to hear more 
detail from USTR on President Obama's trade agenda. 
 
PROSPECTS FOR REGIONAL TRADE AND MERCOSUL 
 
¶4.  (SBU) In various side conversations with Consulate officers, the 
union leaders expressed eagerness to learn more about President 
Obama's vision on trade.  UGT representative Lourenco said most 
unions in Brazil expected a Democratic administration in the United 
States to be more protectionist, but were optimistic the Obama 
Administration aimed to expand trade amidst the global economic 
crisis.  Nevertheless, CUT representative Portela suggested that a 
bilateral or regional trade agreement with the United States stood 
little chance of moving forward in the last year of the Lula 
Administration.  Meanwhile, Portela, who also serves as an 
international coordinator for unions in Mercosul trade bloc 
countries (Argentina, Brazil, Paraguay, and Uruguay) said she was 
confident Venezuela would become part of Mercosul in the very near 
future.  (Note: Countervailing this optimism, on October 1 the 
Brazilian Senate Foreign Relations Committee suspended for thirty 
days a vote on Venezuela's incorporation into Mercosul due to 
concerns over violations of democratic freedoms in Venezuela.  End 
Note.) 
 
ORGANIZING THE INFORMAL SECTOR 
 
¶5.  (U) Many of the unionists discussed efforts to better engage 
Brazilians who are either not unionized or who work in the informal 
sector.  For example, they cited outreach to the garment industry in 
 
SAO PAULO 00000601  002 OF 002 
 
 
Sao Paulo, which is a major pillar of the local informal economy. 
According to Ortelio Prado of FS, his union is reaching out to 
workers in the clothing and shoe industries and to independent 
seamstresses.  The CUT has enjoyed recent success in organizing 
overwhelmingly female domestic workers. 
 
THE EXTINCTION OF CANE CUTTERS AND OTHER AGRICULTURAL ISSUES 
 
¶6.  (SBU) Similarly, the sugar industry has very low rates of labor 
organization.  According to FETAESP's Braz Albertino, employers 
prefer to pay by the amount of cane cut rather than set a fixed 
hourly wage rate.  Consequently, workers who can cut more cane favor 
this system.  Agreements with sugar cane growers' associations and 
recent legislation in several states mandate the mechanization of 
cane cutting by 2014.  This will force many cane cutters, many of 
whom have low education levels and no other marketable skills, out 
of work and into cities in search of employment.  Albertini welcomed 
the long-term environmental benefits of mechanization, but deplored 
the lack of resources and programs provided so far to cane cutters 
to prepare them for this shift.  Voicing the frustration of some 
cutters, he complained "there are more laws governing the protection 
of farm animals than cane cutters." 
 
A REQUEST FOR HELP 
 
¶7.  (U) The Sao Paulo labor leaders have welcomed post outreach and 
requested the Consulate's help providing English language and 
exchange opportunities to deepen the international exposure of 
Brazilian union leaders.  Specifically, CUT representative Portela, 
a former International Visitor's Program (IVP) participant, inquired 
about the availability of Consulate-supported English language 
courses.  Similarly, FS showed keen interest in exchanges to send 
union youth to the United States for educational and work-related 
programs. 
 
COMMENT: IN THE LOOP 
 
¶8.  (U) Despite current global economic challenges and a round of 
recent strikes in the banking, automotive, and express delivery 
sectors, the sentiments expressed by labor union contacts to USTR 
Kirk and in recent Consulate follow-up underscore that under the 
Lula Administration organized labor feels their voice is being heard 
on social, political and economic issues.  As Brazil exits the 
economic crisis and moves toward the 2010 national elections, 
organized labor will have further opportunity to expand its 
influence. 
 
¶9.  (U) This cable was coordinated/cleared by Embassy Brasilia. 
 
WHITE