VZCZCXYZ0001
RR RUEHWEB

DE RUEHGT #0845 1892223
ZNR UUUUU ZZH
R 072223Z JUL 08
FM AMEMBASSY GUATEMALA
TO RUEHC/SECSTATE WASHDC 5678
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUEHC/DEPT OF LABOR WASHDC

UNCLAS GUATEMALA 000845 
 
SIPDIS 
 
DEPT FOR DRL/ILCSR 
DOL FOR CROMERO, PCHURCH, LBUFFO 
 
E.O. 12958: N/A 
TAGS: ELAB EIND ETRD PHUM ECON KJUS KDEM GT
SUBJECT: GUATEMALAN LABOR MINISTRY HOSTS NATIONAL SEMINAR 
TO PROMOTE BUSINESS COMPETITIVENESS 
 
¶1. On July 1, the Ministry of Labor, in coordination with 
representative organizations of the Guatemalan labor movement 
and civil society, hosted the "First National Seminar to 
Promote Employment and Business Competitiveness through 
Compliance with Labor Laws in Guatemala."  Government 
officials, civil society leaders, labor leaders, and 
international representatives, including international brands 
in the apparel and textile industry, participated in the 
one-day seminar held in Guatemala City. 
 
¶2. The Ministry of Labor, USG-funded Global Fairness 
Initiative (GFI), Mario Lopez Larrave Foundation's Labor 
Training Center of Guatemala (FMLL-CCSG), and the Association 
for Research and Social Studies (ASIES) co-sponsored the 
seminar as part of President Colom's campaign pledge to 
create 700,000 new jobs over the next four years and to 
promote rural development.  The symposium examined the 
inter-related themes of job creation, competitiveness of 
national businesses, and compliance with labor laws as an 
instrument of global competitiveness.  Roundtable discussions 
focused on four areas:  social justice, health and work 
environment, corporate and union social responsibility, and 
employment generation. 
 
¶3. Vice President Espada inaugurated the event, highlighting 
the importance of corporate social responsibility, social 
investment, and fair trade.  He acknowledged the government's 
responsibility for economic development, but underscored the 
need for all sectors -- government, employers, and employees 
-- to work together to improve labor compliance.  The GOG, he 
said, has been mediating between employers and workers to 
improve compliance and t increase productivity.  While 
acknowledging tha Guatemala has had a difficult past, Espada 
expressed optimism about its future, citing the country's 
abundant resources -- its ideal geography, its fertile land 
and water supply, but most importantly, its people.  He 
acknowledged that insecurity is one of the biggest challenges 
to promoting investment and generating jobs, but asserted 
that Colom's campaign promise is attainable with collective 
effort and a larger budget for security forces. 
 
¶4. Minister of Labor Edgar Rodriguez noted that Guatemala's 
lack of security and weak infrastructure have limited foreign 
investment.  Many companies want to invest, but are concerned 
about the costs of investing in security measures and the 
lack of judicial certainty regarding labor rights.  He 
expressed the Ministry's commitment to improve compliance to 
create a business climate more attractive to investors. 
 
¶5. The Ambassador, who participated in the inauguration, 
commented that the U.S., among others in the international 
community, is helping reduce unemployment in Guatemala.  The 
USG is funding several projects in Guatemala and the region 
with CAFTA-DR labor capacity-building funds.  The United 
States also has a program for temporary unskilled workers, 
which last year enabled 4,412 Guatemalans to legally work in 
the U.S.  The Ambassador stressed, however, the need for 
Guatemala to create a legal framework to generate jobs and to 
improve local working conditions to deter the flow of 
migrants. 
 
¶6. Comment:  Labor Minister Rodriguez invested significant 
political capital in organizing this event after plans to 
hold it in the final months of the Berger Administration 
failed to secure the support of the Labor Ministry or the 
private sector.  The result was a high-profile event that 
successfully brought together business and labor 
Qsuccessfully brought together business and labor 
organizations, civil society, and government to discuss key 
labor issues, especially compliance, to position Guatemala as 
an attractive destination for foreign investment.  There was 
recognition that corporate social responsibility, a 
relatively new phenomenon, is still gaining legitimacy in 
Guatemala, but that progress is being made.  Participants all 
agreed on the need to strengthen the Ministry of Labor, 
particularly the Labor Inspectorate, and on the importance of 
creating space for constructive tripartite dialogue.  Labor 
unions recognized that they have shared responsibility for 
strengthening compliance, and committed themselves to 
demonstrating that they are credible partners who are part of 
the solution rather than part of the problem. 
Derham