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RR RUEHAO RUEHCD RUEHGA RUEHGD RUEHGR RUEHHA RUEHHO RUEHMC RUEHNG
RUEHNL RUEHQU RUEHRD RUEHRG RUEHRS RUEHTM RUEHVC
DE RUEHDG #0884/01 1561512
ZNR UUUUU ZZH
R 041512Z JUN 08
FM AMEMBASSY SANTO DOMINGO
TO RUEHC/DEPT OF LABOR WASHDC
RUEHC/SECSTATE WASHDC 0851
INFO RUEHWH/WESTERN HEMISPHERIC AFFAIRS DIPL POSTS
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

UNCLAS SECTION 01 OF 04 SANTO DOMINGO 000884 
 
SIPDIS 
 
STATE FOR WHA/CAR, 
 
E.O. 12958: N/A 
TAGS: ELAB EIND ETRD PHUM SOCI DR
SUBJECT: ASSESSING LABOR AFTER ONE YEAR OF CAFTA-DR: 
IMPLEMENTION AND COMPLIANCE OF KEY LABOR LAWS 
 
REF: A. SANTO DOMINGO 151 
     ¶B. 07 SANTO DOMINGO 2006 
     ¶C. 07 SANTO DOMINGO 1119 
 
¶1. Summary: In a series of meetings with labor unions, NGOs 
and officials from the Ministry of Labor (SET), our contacts 
highlighted some of the successes and continuing problems in 
labor rights since the entry-into-force of CAFTA-DR in the 
Dominican Republic in March 2007.  Positive improvements 
include some mitigation of instances of child labor, progress 
in collective bargaining negotiations with a major textile 
firm, and the near completion of a key regional project. 
Despite this progress, more needs to be done in areas such as 
written labor contracts, salary equity and pay deductions, 
improving workplace health and safety, eliminating child 
labor, reducing gender and discrimination issues, promoting 
and encouraging freedom of association, and improving the 
quality of work inspections. 
 
------------- 
Progress made 
------------- 
 
¶2. The ongoing implementation of two programs to combat child 
labor has been an important success since the 
entry-into-force of CAFTA-DR.  In January 2008, the U.S. 
Department of Labor launched the second phase of a 
public-private partnership project to combat child labor 
through education, known as "Spaces to Grow." (Ref A)  The 
project aims to remove from exploitive labor conditions, or 
prevent from entering the child labor force, 10,000 children 
in four regions of the Dominican Republic.  The first phase 
successfully removed and/or prevented 27,000 children from 
entering the child labor force.  The International Labor 
Organization ) International Program on the Elimination of 
Child Labor (ILO-IPEC), in partnership with World Vision, 
also launched the second phase of their child labor 
eradication program.  This project, which focuses on the 
southern regions of Azua, San Juan, Bahoruco, Barahona, and 
Independencia, aims to remove and prevent 25,200 children 
from working and entering the child labor force. 
 
¶3. Progress has also been made in resolving a thorny labor 
dispute within the textile industry over the past year. 
After months of acrimony between labor and management at TOS 
Dominicana, a factory owned by Hanesbrands (Ref B), the SET 
stepped in -- encouraged by Embassy advocacy -- and sent a 
special commission to determine whether the union had a 
majority.  The Commission declared that the United Union of 
TOS Dominicana workers met all the requirements to enter into 
collective bargaining.  Hanesbrands initially challenged the 
SET decision, but later entered into collective bargaining 
with the union and the two sides have made significant 
progress toward a contract.  Negotiations resumed in April to 
address the remaining issues of pay periods, contracts, and 
overtime pay.  Though Cathy Feingold of the Solidarity Center 
was confident that the union and Hanesbrands would come to an 
agreement soon, she is concerned about general issues that 
underscore the limitations of collective bargaining in the 
country. (See paragraph 15 below.) 
 
¶4. A third achievement in labor affairs has been "Comply and 
Win," a regional CAFTA-DR program promoting worker rights 
education; strengthening inspection, compliance, and 
alternative conflict resolution; and promoting and protecting 
labor rights for women.  The project is now close to being 
fully implemented.  During a recent region-wide conference, 
as well as in a meeting with PolOff, "Comply and Win" 
director Rodolfo Piza highlighted the dissemination of 
worker's rights information.  This is done via three 
channels: The website www.leylaboral.com, flyers and 
pamphlets, and public service announcements by radio.  Each 
channel targets specific audiences depending on their role 
and experience in labor, access to communication channels, 
and education and literacy level.  Piza also added that 
"Comply and Win" has assisted in training SET labor 
inspectors and mediators.  He emphasized that the number of 
inspections in the DR is the highest of any CAFTA-DR country. 
 During the inspection process, Piza noted that inspectors 
investigating labor code violations may also informally 
arbitrate and mediate to rectify the labor violation. 
"Comply and Win" promotes labor rights for women by giving 
workshops on gender issues and discrimination. 
 
¶5. In addition to "Spaces to Grow" and "Comply and Win," 
there are several other USG-funded labor rights projects 
underway in the Dominican Republic, including a labor rights 
information dissemination program in specific sectors in 
 
SANTO DOMI 00000884  002 OF 004 
 
 
agriculture in Mao Valverde, and a labor and legal rights 
center in Santiago with a target audience of, though not 
exclusive to, domestic, migrant, and free trade zone workers. 
 Since these programs were initiated only recently, they will 
be discussed in future Embassy reporting. 
 
 
--------------------- 
Areas for improvement 
--------------------- 
 
¶6. Despite the progress made in several areas of the labor 
sector since the entry-into-force of CAFTA-DR, other more 
problematic issues point to the long-term nature of improving 
labor rights in the Dominican Republic. 
 
--Contracts, salary equity and deductions 
 
¶7. The Dominican Labor Code allows for both written and 
verbal contracts with a provision that "either party can 
demand that a verbal contract be formally put into writing." 
NGOs allege that the lack of written work contracts make 
workers more vulnerable to exploitation; for example, paid 
less, and classified as day laborers (Ref C).  Poloff spoke 
with Fernando Ferran, the director of Institutional Relations 
for the Sugar Consortium of Industrial Companies (CAEI), 
owned by the Vicini family.  Ferran emphasized that although 
sugar cane workers for CAEI do not have written contracts, 
the Dominican labor code allows them full protection of their 
rights after three months of employment. CAEI sugar cane 
workers may use their pay stubs to prove that they have been 
employed for the required amount of time.  NGOs also allege 
that employers in construction do not provide written 
contracts.  Washington Gonzalez, General Director of Labor of 
the SET, acknowledged that most workers in agriculture and 
construction rarely get written work contracts; however, he 
also noted that a verbal contract usually allows a worker to 
still file claims for labor violations.  Anina Del Castillo, 
a Vice-Minister at SET, added that any worker, even 
undocumented immigrants, may file a claim.  She also stated 
that those with an outstanding and open claim cannot be 
deported.  When informed of Del Castillo's statements on this 
issue, Cathy Feingold of the Solidarity Center seemed 
genuinely surprised, adding that the Solidarity Center plans 
to verify the veracity of the SET's statements. 
 
¶8. Payroll deductions continue to be an issue with most 
workers.  According to the Dominican labor code, employers 
are allowed to make deductions for, among other things, 
worker contributions to a pension plan (Ref C).  However, 
NGOs allege that most migrant workers, especially those with 
no documentation, almost never receive their benefits. 
CEDAIL, an NGO, is in the process of assisting sugar cane 
workers to claim pension benefits they contributed via social 
security deductions.  During a site visit by EmbOffs, CAEI 
officials showed a pay stub that indicated deductions for 
social security and stated that workers who paid into the 
system should be able to claim pension benefits; however, 
CAEI officials did not comment on NGO allegations of workers 
not being able to access social security pension benefits. 
 
 
--Workplace health and safety 
 
¶9. Gonzalez told PolOff that although labor inspectors check 
for health and safety violations, there are limited health 
and safety measures implemented in the workplace and 
employers often were unaware of proper standards in this 
area. Gonzalez stated employers in construction were often 
reluctant to provide safety gear such as hard hats, 
harnesses, or safety warning signs as it would increase their 
costs.  In several construction sites throughout the country, 
PolOff observed many construction workers at work without 
hard-hats, reflective clothing, harnesses or adequate 
protective gear.  Reports indicate that workers in 
agriculture also lack appropriate safety equipment, proper 
bathroom facilities, and proper information on handling of 
hazardous materials. 
 
--Child Labor 
 
¶10. Although Gonzalez told PolOff on several occasions that 
child labor no longer exists in the sugar industry, as 
confirmed by regular SET labor inspections, Del Castillo 
mentioned that child labor remains an issue in garlic, 
tomato, and coffee production in Constanza, Azua, and San 
Jose de Ocoa, respectively (Septel).  Ferran unequivocally 
told PolOff that there is no longer any child labor in CAEI 
 
SANTO DOMI 00000884  003 OF 004 
 
 
facilities.  However, NGOs and certain individuals close to 
the issue deny that child labor has been completely 
eliminated in the sugar industry.  Gonzalez stated that while 
there are labor inspection programs throughout the country, 
including in Azua and Constanza, he reported that these 
efforts have been insufficient in discouraging producers from 
using child labor. 
 
 
--Discrimination 
 
¶11. Although the SET, through the "Comply and Win' program, 
has a program educating employers on gender discrimination, 
issues of gender discrimination, including salary inequity 
and pregnancy exams, are still widespread in various sectors. 
 While the practice of requiring a medical exam is allowed, 
often the exams would include a pregnancy test that employers 
sometimes used to exclude women.  (Note: The Dominican labor 
code provides for no less than 12 weeks of pre and post natal 
care. End Note) 
 
¶12. The SET has an Office of Gender Issues; however, it does 
not have an office that addresses discrimination based on 
national origin, race or age.  According to Del Castillo, 
there is no discrimination in the country, mirroring the 
official position of the GODR which is believed by few.  Del 
Castillo argued that issues perceived by others to be 
"discrimination" against migrant workers are simply issues of 
health, safety, and salary inequity. 
 
¶13. Although there are many supporters for a guest-worker 
plan that would regularize the status of migrant workers, 
strong opposition from nationalist politicians has stymied 
progress.  Regularizing the status of migrant workers would 
improve their access to legal protections and facilitate 
union organization, among other benefits.  Gonzalez publicly 
called for the regularization of the status of undocumented 
workers during a conference for "Comply and Win."  He also 
told PolOff privately that regularization is also supported 
by other officials such as the Minister of Health.  Ferran 
also mentioned to PolOff that CAEI's official position is 
some form of amnesty to regularize the status of undocumented 
migrant Haitian workers in the country. 
 
 
--Labor inspections 
 
¶14. NGOs continue to allege incidents where employers 
facilitate deporting workers, especially in construction, on 
payday so that salaries do not have to be paid.  Juan Tomas 
Hernandez, the president of the Union of Engineers, 
Architects, and Surveyors (CODIA), stated that although it 
was not improbable that certain employers or construction 
firms engage in this practice, he does not know any 
construction firms who are members of CODIA who engage in 
this practice.  Although Gonzalez stated that more labor 
inspectors and diffusion of worker's rights have resulted in 
reducing the occurrence of this practice last year, NGOs 
allege that this practice continues unabated.  (Note: When 
asked about specific examples of this type of labor 
violation, NGOs were unable to provide specific details. End 
Note).  Gonzalez affirmed that labor code violation cases 
brought against employers, especially in construction, have 
risen in the past year.  In most of these cases, Gonzalez 
mentioned the SET often rules in favor of the workers.  He 
claimed that he is even beginning to hear complaints from 
employers complaining of the increase Q worker claims 
against them. 
 
 
--Freedom of Association 
 
¶15. Feingold stated that while there were gains in promoting 
freedom of association, the process to unionize and or pursue 
collective bargaining is fraught with onerous bureaucratic 
and economic hurdles that often discourage workers from 
organizing and pursuing collective bargaining.  In the case 
of TOS Dominicana, Feingold stated that Hanesbrands tactics 
belied their bona fide interest in allowing the union to 
reach an agreement.  One example, she argued, is Hanesbrands 
challenging the SET's decision verifying the union has met 
minimum requirements for collective bargaining.  In addition, 
the union workers often had to bear operational expenses to 
pursue collective bargaining.  Feingold's examples included: 
Hanesbrands would not pay union workers when they were 
engaged in collective bargaining during their scheduled 
workday; union workers also had to pay for transportation to 
and from collective bargaining sites and other incidental 
 
SANTO DOMI 00000884  004 OF 004 
 
 
fees; and union workers had to pay legal fees up front (labor 
lawyers, often poorly remunerated, cannot afford to take 
cases without upfront compensation).  Often these incidental 
and bureaucratic costs were prohibitive for workers to pursue 
unionizing or collective bargaining. 
 
¶16.  Feingold believes programs such as "Comply and Win" have 
done their fair share in educating workers of their rights 
and of the law.  In addition, the increase of SET inspections 
has slowly started promoting a culture of compliance. 
However, Feingold believes that to further improve labor 
conditions in the country, especially in freedom of 
association and collective bargaining, regional legal or 
labor centers staffed with lawyers or labor advocates 
designed to assist workers on managing the bureaucracy of the 
SET should be established. 
 
FANNIN