VZCZCXYZ0001
RR RUEHWEB

DE RUEHPE #1572/01 1172100
ZNR UUUUU ZZH
R 272100Z APR 07
FM AMEMBASSY LIMA
TO RUEHC/SECSTATE WASHDC 5234
INFO RUEHBO/AMEMBASSY BOGOTA 4605
RUEHBR/AMEMBASSY BRASILIA 7308
RUEHCV/AMEMBASSY CARACAS 0335
RUEHGT/AMEMBASSY GUATEMALA 1014
RUEHLP/AMEMBASSY LA PAZ APR QUITO 1173
RUEHSG/AMEMBASSY SANTIAGO 1244
RUEHC/DEPT OF LABOR WASHINGTON DC
RHMFIUU/CDR USSOUTHCOM MIAMI FL
RUEAIIA/CIA WASHDC

UNCLAS LIMA 001572 
 
SIPDIS 
 
SIPDIS 
 
STATE PASS TO USDOL FOR CARLOS ROMERO AND THERESA ESQUIBEL 
DEPARTMENT FOR DRL/ILCSR GABRIELLA RIGG AND WHA/PPC MIKE 
PUCCETTI 
 
E.O. 12958: N/A 
TAGS: ECIN ECON ELAB ETRD EAID PE
SUBJECT: PERU: REQUEST FOR UPDATED INFORMATION FOR DOL 
LABOR RIGHTS REPORT 
 
REF: ESQUIBEL E-MAIL 3/22/2007 
 
¶1.  Per e-mail reference, post has contacted host government 
officials to collect updated information for the Department 
of Labor's Labor Rights Report.  In most cases, the Ministry 
of Labor and Employment Promotion (MTPE) was the most 
appropriate point of contact, although in some cases the data 
requested was not available.  Responses are keyed to the 
e-mail reference cited above. 
 
Inspection Reform 
 
¶2.  Status of the Labor Inspections Law. 
 
The General Inspections Act, Law 28806--dated July 22, 
2006--has been in force since October 16, 2006.  The GOP 
approved the bylaws of the Inspections Act through Supreme 
Decree 019-2006-TR.  On January 13, 2007, President Garcia 
and Minister of Labor Pinella met with 216 labor inspectors 
from the MTPE to determine how the Labor Inspectorate could 
be strengthened.  As a result of that meeting, the government 
approved, through Supreme Decree 002-2007-TR--dated January 
17, 2007--complementary measures to increase the authority of 
labor inspectors.  In specific, the Supreme Decree requires 
businesses to allow access within 10 minutes after an 
inspection team arrives; transfers 10 vehicles from the 
Government Palace to the MTPE for the purpose of conducting 
inspections; establishes one hour per day of state radio 
broadcasting to describe labor inspection activities; and 
permits the public to access internet information on 
companies and individuals found guilty of labor rights 
violations. 
 
On December 31, 2006 Supreme Decree 220-2006-EF established a 
higher pay scale for labor inspectors.  On March 20, 2007 
President Garcia swore-in 100 new inspectors at the 
Presidential Palace under the newly created salary provisions 
provided by the Decree. 
 
¶3.  Process of Labor Inspections 
 
Article 12 of Law 28806 details when an inspector can expand 
the scope of an inspection: "By the initiative of labor 
inspectors, when performing inspections in compliance with an 
inspection order, when they learn of facts related to the 
original order or when they are aware that current legal 
norms could be infringed." 
 
Article 5, Paragraph 1 of Law 28806 establishes the following 
authority for inspectors: "To enter at any time of the day or 
night, without previous notification, in any workplace, 
facility or location subject to an inspection and remain in 
that place...."  The only exception is for workplaces located 
in private homes, which are protected under the Constitution 
from unannounced searches. 
 
Articles 1 and 2 of Supreme Decree 002-2007-TR obligate 
police and other administrative authorities to cooperate and 
protect labor inspectors when performing their duties and to 
facilitate their entry into workplaces. 
 
These changes represent a significant expansion of authority 
for labor inspectors and address concerns raised by the 
International Labor Organization (ILO).  Under previous 
legislation (Legislative Decree 910), labor inspectors could 
not change on-site the purpose of an inspection order issued 
by the Labor Administrative Authority, could not expand the 
area of inspection, and could only inspect items specifically 
listed on the inspection order. 
 
¶4.  Ratification of ILO Convention 178 (Seafarers Convention) 
 
The National Bureau of Labor Inspections plans to inspect the 
living and working conditions of seafarers, in accordance 
with ILO Convention 178, semiannually, in June and December. 
Additional inspections will be conducted whenever complaints 
are received or when the MTPE becomes aware of conditions 
that may violate the convention. 
 
 
¶5.  MTPE annual budget 
 
The annual budget for the MTPE in 2004 was 271,878,977 soles 
(US dollars 87,702); in 2005, 302,255,621 soles (US dollars 
97,501,000); and in 2006, 272,625,234 soles (US dollars 
84,513,750).  The annual budget for the Labor Inspectorate 
for 2004 was 7,811,902 soles (US dollars 2,519,968); for 
2005, 7,497,901 soles (US dollars 2,418,000); and for 2006, 
8,464,880 soles (US dollars 2,678, 000). 
 
The number of labor inspectors for 2004 was 220; for 2005, 
208; and for 2006, 235.  By August 2007, thirty inspectors 
will be assigned full-time to investigate violations of 
fundamental labor rights, and 30 inspectors will focus 
primarily on safety and health issues at work. 
 
The MTPE expects to hire an additional 250 inspectors by the 
end of 2007. 
 
The National Bureau of Inspections Work plan will be 
forwarded to DOL via hard copy.  The plan contains a general 
schedule for labor inspections, with specific goals, themes, 
and deadlines. 
 
¶5.  ILO Recommendations at the International Labor Conference 
 
 
A)  Sanctions against acts of employer interference in trade 
unions 
 
The bylaws of the General Law on Labor Inspections ban "Any 
actions that impede the worker's free exercise of the right 
to strike....Any actions that impede the free affiliation (of 
a worker) with a union," and any discrimination suffered by a 
worker "as a result of the free exercise of his union 
activities." 
 
Labor inspectors have the right to sanction (through fines) 
employers that engage in interference in union activity; in 
the past, the only recourse for union workers suffering 
discrimination was to file an appeal with the judiciary. 
 
B)  Measures to expedite cases of anti-union discrimination 
 
Article 29 of the Law of Labor Productivity and Competition 
prohibits arbitrary acts of dismissal designed to affect 
union membership and considers any dismissal carried out to 
affect union affiliation or participation "null and void." 
Article 168 of the Criminal Codes states that any threats or 
acts of violence that prevent a worker from joining a union 
constitute a crime to be sanctioned with a maximum penalty of 
a two-year jail sentence. 
 
The National Bureau of Inspections (NBI) is developing 
procedures to streamline the administrative process for 
punishing acts of union interference.  Specifically, the NBI 
will begin in May, 2007 training for labor inspectors and 
union officials on the expanded authority provided to the 
Labor Inspectorate by new legislation, with the goal of 
reducing the amount of time needed to initiate an inspection 
order. 
 
C)  Actions to allow public servant federations 
 
Article 19 of Supreme Decree 0003-82-PCM states, "public 
worker unions, may only be formed out of public worker 
federations and these may only be formed out of public worker 
confederations.  Public worker confederations may not be a 
part of other confederations." 
 
This article has not been changed. 
 
D)  Sanctions for employers who fail to provide high-risk 
insurance 
 
Supreme Decree 00398-TR declares fishing a hazardous activity 
and stipulates that employers must insure their workers. 
 
Employers who fail to provide adequate insurance coverage 
must assume the total health costs of the worker and are 
subject to a fine.  Employers who purchase but fail to use 
work insurance are also subject to a fine and are liable for 
repaying the cost of health care to the insurer. 
 
Administration of Labor Law 
 
¶7.  Number of labor justice cases 
 
The MTPE is continuing to work with the President of the 
Supreme Court to determine the total number of labor law 
cases filed at each level of the labor justice system 
(assistance was requested through official letter, 
396-2007-MTPE/9.1).  The judiciary has already indicated that 
the records system does not indicate the specific type of 
case filed. 
 
¶8.   Information regarding EPZs 
 
No specific legislation exists regulating labor activities in 
export processing zones (EPZs).  In labor matters related to 
exports, the hiring of workers is regulated through Law 
Decree 22482, which allows the temporary hiring of workers to 
comply with a specific export order. 
 
Freedom of Association 
 
¶9.  Worker complaints filed with the MTPE 
 
Article 8 of the Constitution recognizes the right of workers 
to join unions, to take part in collective bargaining, and to 
strike.  Peru has ratified the eight fundamental ILO 
conventions, including Conventions 87 and 98, regarding union 
membership and collective bargaining. 
 
Law 27711, the Law of the Ministry of Labor and Employment 
Promotion, created the National Council on Labor and 
Employment Promotion, designed to promote dialogue and 
resolve labor issues among representatives of organized 
labor, business, and the MTPE. 
 
As a result of inspections made in accordance with Law 28806, 
10 cases claiming acts of union interference have been 
submitted at the national level.  None of these cases has 
been resolved. 
 
¶10.  Newly registered unions 
 
In 2006, 95 labor organizations registered with the MTPE, 86 
unions, eight federations, and one confederation. 
 
¶11.  Active number of registered trade unions 
 
The total number of registered labor organizations in Peru is 
403 unions, 15 federations, and four confederations. 
 
¶12.  Number of union members 
 
After a union registers with the MTPE, Peruvian law does not 
require the union to notify the government of the total 
number of members, and the MTPE does not track this 
information.  The MTPE is currently drafting a plan to survey 
labor organizations to determine total union membership in 
Peru. 
 
¶13.  Total number of strikes 
 
In 2004, there were 107 declared intentions to strike; 104 
were found to be illegal.  In 2005, 63 out of 65 declared 
intentions to strike were illegal; in 2006, 65 out of 67 were 
illegal. 
 
Right to organize and bargain collectively 
 
¶14.  Number of collective bargaining agreements 
 
In 2004, 384 collective bargaining agreements were signed, 
 
three in the ports sector; in 2005, 390 collective agreements 
were signed, two in the ports sector; and in 2006, 451 
collective agreements were signed, three in the ports sector. 
 
¶15.  MTPE assistance for negotiated collective bargaining 
agreements 
 
The MTPE is continuing to compile information for the number 
of cases where conciliation, mediation, or arbitration was 
offered during negotiations for collective bargaining 
agreements.  President Garcia and the MTPE have publicly 
committed themselves to supporting the use of arbitration in 
disputes of all kinds as an alternative to the inefficient 
judiciary system.  Post will forward the information as soon 
as it is available. 
 
Acceptable Conditions of Work 
 
¶16.  Number of labor inspections 
 
As of March 31, 2007, there were 235 labor inspectors in 
Peru.  In 2006, 15,320 labor inspections were conducted and 
4,647 fines were levied for a total of 44,946,548 soles (US 
dollars 14,498,000). 
 
¶17.  Number of random inspections 
 
In 2006, 15,320 inspections took place: 14,784 were 
unannounced, and 536 were requested. 
 
¶18.  Number of work-related accidents 
 
The MTPE is continuing to compile information on the number 
of work-related accidents in 2006.  Post will forward the 
information as soon as it is available. 
 
¶19.  Source information for all documents cited will provided 
by the MTPE and mailed via expedited delivery to Theresa 
Equible, USDOL. 
STRUBLE