VZCZCXYZ0000
OO RUEHWEB

DE RUEHML #0667/01 0740922
ZNR UUUUU ZZH
O 140922Z MAR 08
FM AMEMBASSY MANILA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0151
INFO RUEHC/DEPT OF LABOR WASHDC IMMEDIATE

UNCLAS MANILA 000667 
 
SIPDIS 
 
ASSOCIATION OF SOUTHEAST ASIAN NATIONS IMMEDIATE 
CDRUSPACOM HONOLULU HI IMMEDIATE 
 
SENSITIVE 
SIPDIS 
 
STATE FOR DRL/ILCSR, EAP/MTS, EAP/RSP 
LABOR FOR ILAB 
STATE PASS TO USAID 
STATE PASS TO USTR (KARL EHLERS) 
 
E.O. 12958:N/A 
TAGS: ELAB PGOV ECON ETRD PHUM PREL RP
SUBJECT:  PHILIPPINE GOVERNMENT RESPONSIVE ON GSP DEMARCHE 
 
REF: STATE 10273 
 
¶1. (SBU) SUMMARY: As requested by the U.S. interagency committee 
reviewing the Generalized System of Preferences (GSP) benefits for 
the Philippines, the Ambassador and key mission officers raised with 
an array of senior Philippine officials USG concerns about the 
protection of labor rights for Philippine workers and possible 
extra-judicial killings and abductions of labor leaders and 
activists.  The Ambassador discussed USG concerns directly with 
Labor Secretary Arturo Brion, who voiced appreciation for U.S. views 
and agreed to give the recommendations full and careful 
consideration.  Other senior mission officers discussed the GSP 
demarche in detail with officials from the Departments of Foreign 
Affairs, Interior and Local Government, Justice, Labor and 
Employment, and Trade and Investment.  Comments from Philippine 
police and justice officials indicated a willingness to expand the 
mandates of police and prosecutorial task forces investigating 
extra-judicial killings to include labor activists.  END SUMMARY. 
 
LABOR PLEDGES CAREFUL CONSIDERATION 
----------------------------------- 
 
¶2. (SBU) The Ambassador raised USG concerns about labor rights 
protection and the alleged extrajudicial killings of labor leaders 
directly with Secretary of Labor and Employment Arturo Brion on 
February 7.  Noting the importance of GSP benefits to Philippine 
workers and industry alike, the Ambassador highlighted for Secretary 
Brion the key points of the U.S. interagency demarche, stressing the 
importance of resolving concerns about possible extrajudicial 
killings and the importance of expanding labor rights for Philippine 
workers.  Secretary Brion, well aware of the ongoing GSP review in 
Washington, noted his commitment to resolving the matter and voiced 
appreciation for the USG's views. 
 
¶3. (U) In a February 13 meeting with Polcouns, Department of Labor 
and Employment (DOLE) Undersecretary for Trade Relations Romeo 
Lagman expressed strong appreciation for the trade benefits enjoyed 
by the Philippines and said that DOLE would work closely with the 
USG to clarify concerns over labor practices in the Philippines.  He 
stressed the Philippine government's commitment to International 
Labor Organization (ILO) standards and underscored his Department's 
strong support for Philippine workers and its close cooperation with 
mainstream labor unions.  He pledged that DOLE would provide the 
Embassy with necessary labor statistics to help present a full 
picture of the labor situation in the Philippines.  Contrary to the 
perception that the right to organize is not observed in special 
economic zones, Lagman noted the presence of 33 registered unions 
currently operating in the zones. 
 
¶4. (SBU) Regarding the Labor Secretary's assumption of jurisdiction 
in labor disputes, Lagman stressed that the Philippine government's 
interpretation of "essential services" is in full compliance with 
the ILO standards.  He noted that the ILO regulations provided 
latitude in defining "essential services."  He added that a strict 
definition of essential services would require an amendment to the 
Labor Code, which would take time, given the slow pace of the 
legislative process.  Lagman argued that the Department of Labor had 
not abused its discretion in assuming jurisdiction over essential 
services disputes and added that, in many instances, both labor and 
management requested DOLE's intervention in these cases.  He 
expressed some frustration that the international community listened 
to the militant groups without hearing the government's side of the 
issue. 
 
¶5. (SBU) While acknowledging USG concerns about contract employees, 
Lagman noted that, under Philippine law, regulated subcontracting is 
allowed for non-core functions, including seasonal workers in 
certain industries.  He also added that DOLE plans to conduct an 
"inspection blitzkrieg" on firms that employ large numbers of 
contract laborers.  The inspections would begin within the next few 
months in three regions, including Metro Manila. 
 
¶6. (SBU) Lagman said that the ILO's offer to send a technical 
mission to visit the Philippines to review workers' rights 
protections is under consideration, noting that the matter is 
ultimately for President Arroyo's decision.  He said he would relay 
to DOLE Secretary Brion the USG's support for an ILO technical 
mission. 
 
¶7. (U) While noting that the issue of extra-judicial killings did 
not fall under the purview of the Labor Department, Lagman said that 
he would convey to Labor Secretary Arturo Brion the USG's 
recommendation that the mandates of both Task Force USIG and the 
Justice Department's prosecutorial task force be expanded to include 
the disappearance or death of labor leaders and activists. 
 
POLICE TO REVIEW TASK FORCE USIG MANDATE 
---------------------------------------- 
 
¶8. (U) Marius Corpus, Undersecretary for Public Safety at the 
Department of Interior and Local Government, which oversees the 
Philippine National Police, reiterated the government's commitment 
to investigating extra-judicial killings, including those of labor 
activists.  He pledged that his department would continue its 
efforts to investigate charges of extra-judicial killing.  General 
Jefferson Soriano, the head of Philippine National Police (PNP) Task 
Force Usig charged with investigating extra-judicial killings and 
disappearances, stressed to PolCouns on February 11 that he would 
support expanding the mandate of Task Force Usig to include 
investigating the killings or disappearances of labor leaders and 
labor activists.  Soriano said that although labor killings do not 
fall within the current mandate of his task force, he had instructed 
PNP regional offices in January to begin compiling statistics on 
labor killings and submit a report not later than February 15.  He 
expressed hope that he could provide the Embassy with a consolidated 
report after the Easter holiday. 
 
¶9. (U) General Soriano said he was also open to including labor 
killings in the official mandate of the task force and had 
instructed his staff to prepare for PNP Director Razon's approval a 
position paper expanding the task force's scope of work to cover 
labor leaders and activists.  In the meantime, Soriano assured 
PolCouns that the PNP would pursue labor killings with the same 
persistence as the other EJKs. 
 
JUSTICE TO WEIGH EXPANDED PROSECUTORIAL MANDATE 
--------------------------------------------- -- 
 
¶10. (U) The Justice Department official in charge of the special 
prosecutors investigating extra-judicial killings also expressed 
support for expanding the prosecutorial task force's mandate to 
include cases involving labor leaders and activists.  Undersecretary 
Ricardo Blancaflor said that he has the authority to expand the 
mandate of the DOJ Task Force on Human Rights and Extrajudicial 
Killings, currently composed of 12 prosecutors, and said he would 
weigh the issue carefully and inform the Embassy as soon as possible 
on his decision.  Blancaflor fully recognized the level of concern 
of the international community over the question of extra-judicial 
killings, while stating that not all the deaths and disappearances 
cited by militant labor and political groups could be attributed to 
government security forces.  Most of these incidents resulted from 
personal and political disputes among activists and the Philippines' 
several insurgent groups, especially the communist New People's 
Army, which had carried on a violent, decades' long fight with the 
government. 
 
TRADE AND INVESTMENT, FOREIGN AFFAIRS 
------------------------------------- 
 
¶11. (U) In a discussion with the Economic and Political Counselors 
on February 13, Department of Trade and Investment (DTI) Senior 
Undersecretary Thomas Aquino made clear that he fully understood the 
gravity of the GSP review and the potential economic impact for 
Philippine workers and the economy.  While noting that DTI did not 
have any direct responsibility for labor issues or extra-judicial 
killings, he promised to draft a letter to his DOLE counterpart 
outlining the trade ramifications of the GSP review and urging the 
closest possible cooperation with the USG. 
 
¶12. (U) PolCouns also informed the Department of Foreign Affairs 
(DFA) about the GSP review, noting the potential impact on a wide 
array of bilateral ties.  Undersecretary for Special Concerns Rafael 
Seguis had been briefed by the Philippine Embassy in Washington on 
the issue and recognized the importance of the review.  He said DFA 
would reach out to other concerned departments to discuss the 
Philippine government's response. 
 
COMMENT 
------- 
 
¶13. (SBU) The Ambassador and senior Mission officers will continue 
to raise USG concerns about extrajudicial killings and labor rights 
with Philippine government officials and will underscore the 
importance of concrete government actions to ensure continued GSP 
eligibility.  While the government's willingness to review the 
mandates of its police and prosecutors task forces on extrajudicial 
killings is a positive step, Post remains concerned about the 
Department of Labor and Employment's interpretation of "essential 
services" on cases for assumption of jurisdiction and will continue 
to press DOLE to review these policies. 
 
Visit Embassy Manila's Classified SIPRNET website: 
http://www.state.sgov.gov/p/eap/manila/index. cfm 
 
You can also access this site through the State Department's 
Classified SIPRNET website: http://www.state.sgov.gov 
 
KENNEY