VZCZCXRO8844
PP RUEHAG RUEHDF RUEHIK RUEHLZ
DE RUEHMD #0324 0381803
ZNR UUUUU ZZH
P 071803Z FEB 06
FM AMEMBASSY MADRID
TO RUEHC/SECSTATE WASHDC PRIORITY 8849
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY
RUEHBO/AMEMBASSY BOGOTA PRIORITY 4915
RUEHBR/AMEMBASSY BRASILIA PRIORITY 0399
RUEHCV/AMEMBASSY CARACAS PRIORITY 0900

UNCLAS MADRID 000324 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL ELAB PGOV SP
SUBJECT: AMBASSADOR AND UNION LEADER DISCUSS VENEZUELA, 
LABOR ISSUES 
 
 
¶1. (U) During a February 6 courtesy call by the Ambassador, 
Worker's General Union (UGT) Secretary General Candido Mendez 
expressed concern that the USG decision to deny authorization 
to transfer U.S. components as part of Spain's deal to sell 
EADS CASA aircraft to Venezuela could cost Spain important 
jobs in the defense industry.  Mendez said the more important 
contract was for the construction of the naval vessels by 
shipbuilder "Navantia," but that the 12 EADS CASA aircraft 
still represented a valuable contract that could now be lost. 
 Mendez noted that the UGT, Spain's largest union and 
historically a close ally of the Socialist Party, was no 
friend of the Chavez government.  He said the UGT had taken a 
strong stand in defense of Venezuela's CVT labor union, 
leading Chavez to expel the UGT representative in Caracas. 
 
¶2. (SBU) The Ambassador explained that the USG decision was 
based on our growing concerns regarding the direction of the 
Venezuelan government and was not aimed at Spain.  He said 
the USG had laid out its concerns to the Spanish government 
in great detail over many months and was disappointed that 
Spain had concluded an agreement with Chavez nonetheless. 
The Ambassador noted that EADS CASA -- and the unions -- had 
more to gain commercially by pursuing contracts with the USG 
and other governments than through a relationship with the 
Chavez government.  Regarding the naval vessels, the 
Ambassador said the Spanish government had assured the USG 
that there would be no U.S. components involved.  However, if 
there did turn out to be U.S. components on the vessels, the 
USG would look very carefully at any associated technology 
transfer request. 
 
//SPAIN LABOR ISSUES// 
 
¶3. (U) Mendez outlined his three priorities as leader of the 
UGT: the prevalence of temporary employment contracts as 
opposed to permanent positions, high unemployment among 
youth, and a high unemployment rate among women.  Mendez said 
the issue of Spain's low population growth rate was being 
resolved through increased immigration, though he 
acknowledged that immigration was generating its own set of 
challenges.  He took credit for the Zapatero government's 
2005 amnesty of illegal immigrants, saying the UGT had 
quietly proposed the measure as the only way to resolve the 
abuses typical of employment in the informal sector.  Mendez 
said the UGT had borrowed directly from the recent strategy 
of the AFL-CIO in welcoming immigrant labor as a new source 
of members (NOTE: only 18 percent of the Spanish labor force 
is unionized.  END NOTE).  He said the UGT had conciously 
selected a North African immigrant woman to head its 
Immigrant Affairs office to send a message to potential new 
members. 
 
//COMMENT// 
 
¶4. (SBU) Mendez was friendly and gregarious in his meeting 
with the Ambassador and clearly wanted to establish a good 
relationship.  He did not raise the UGT's strong opposition 
to the war in Iraq or his organization of massive rallies 
against the war, even when the discussion turned to the 
danger posed by extremist veteran jihadists of that conflict 
returning to their homes in Europe.  Mendez seemed satisfied 
by the Ambassador's explanation on the EADS CASA aircraft 
issue, though he was obviously concerned by the possibility 
of delays in the execution of the ship deal.  Doubtless he 
recalled the violent strikes carried out by shipyard workers 
across Spain when the Navantia's predecessor, IZAR, was 
forced to trim jobs in response to a business slowdown.  For 
Mendez and other union leaders, the possibility of retaining 
hundreds of jobs in this failing industry overshadows any 
qualms  they may have about dealing with Chavez. 
AGUIRRE