VZCZCXYZ0020
PP RUEHWEB

DE RUEHBO #4125/01 3182243
ZNR UUUUU ZZH
P 132243Z NOV 08
FM AMEMBASSY BOGOTA
TO RUEHC/SECSTATE WASHDC PRIORITY 5585
INFO RUEHBR/AMEMBASSY BRASILIA PRIORITY 8500
RUEHCV/AMEMBASSY CARACAS PRIORITY 1325
RUEHLP/AMEMBASSY LA PAZ NOV 9769
RUEHPE/AMEMBASSY LIMA PRIORITY 6741
RUEHZP/AMEMBASSY PANAMA PRIORITY 2662
RUEHQT/AMEMBASSY QUITO PRIORITY 7436
RUEHGL/AMCONSUL GUAYAQUIL PRIORITY 4685

UNCLAS BOGOTA 004125 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PTER PGOV PREL ECON SOCI CO
SUBJECT: PORT STRIKE IN BUENAVENTURA AVOIDED FOR NOW 
 
REF: BOGOTA 2173 
 
SUMMARY 
-------- 
¶1.  (SBU) After a strike threat by Buenaventura port 
employees in early October, the Social Protection Ministry 
quickly established a dialogue with workers and port 
authority officials, and also initiated a 30-day plan to 
review workers' complaints.  The unions want to negotiate 
directly with the private company operating the port instead 
of working through cooperatives; obtain regular hours, wages, 
and sick leave; and receive a commitment by the private Port 
Authority to invest more in the community.  A municipal 
official told us that due to the city's estimated 65% 
unemployment rate, a strike remains unlikely.  Buenaventura 
is Colombia's largest port--70% of the country's bulk trade 
passes through the city.  End Summary. 
 
Workers Demand Better Pay, Social Investment 
-------------------------------------------- 
¶2.  (SBU) In early October, over 3000 Buenaventura port 
workers threatened to strike.  Port workers union 
(SINTRAMARITIMO) President Harold Alegria told us the unions 
want to negotiate directly with the Port Authority; abolish 
cooperatives in favor of direct-hire jobs; obtain regular 
hours, wages, and sick leave; and receive a commitment from 
the Port Authority--which was privatized in 1991--to invest 
more in the community.  Alegria said workers were frustrated 
because the port made large profits, while the port's 
residents lacked clean water or electricity.  Port Authority 
President Domingo Chinea said the firm supported some social 
programs, but conceded most profits went to shareholders. 
Buenaventura is Colombia's largest port--70% of all bulk 
trade passes through the city. 
 
¶3.  (SBU)  Buenaventura Social Protection Ministry (MPS) 
inspector Ana Hurtado told us that cooperatives exploited 
high unemployment rates by hiring workers for only a few days 
per month so they were "desperate enough" to accept low 
wages.  Most workers averaged only 4-8 days of work per month 
with salaries of 20-40 USD per day.  The Colombian minimum 
wage per month is about $200.  Celso Castro, President of one 
of the four smaller port unions, said cooperatives often paid 
salaries late, thereby requiring workers to take out 
cooperative-provided 10% per day interest loans.  Alegria 
said workers wanted pay parity--currently every cooperative 
offers a different wage per tonnage of cargo unloaded.  An 
MPS inspector told us that the Cooperatives Law passed in 
June gave inspectors the tools they needed to punish 
cooperatives that used sub-contracting or evaded social 
security payments. 
 
GOC Response Delays Strike 
----------------------- 
¶4.  (U)  Social Protection Minister Diego Palacio responded 
to the threatened port strike by setting up a special labor 
inspection office at the port on October 2.  He later met 
with representatives of the Port Authority, cooperatives, 
workers, unions, and the city to begin a formal dialogue.  On 
November 10, MPS employees met with the same group and 
established a 30-day plan to review the workers' concerns. 
MPS Inspector Hurtado said that even though cooperative 
members could not formally register as unionists under 
Colombia's labor code (due to workers' status as co-owners, 
not employees), the MPS had decided to negotiate with the 
unions in good faith.  The MPS also agreed to expedite the 
inspection of all 151 port cooperatives with five temporary 
duty inspectors sent from Bogota.  Regional Inspector General 
Julio Medina told us the GOC was determined to avoid a 
strike, especially after the devastating trucker strike in 
June 2008 (see reftel). 
 
Port Authority Acknowledged Abuses, Denied Responsibility 
--------------------------------------------- ----------- 
¶5.  (SBU) Chinea agreed that cooperatives were committing 
abuses, but said the only long-term solution was legislation 
that established minimum payments per ton of cargo, much like 
ports in Costa Rica and Chile.  He sent a proposal to the MPS 
in this regard, underscoring the Port Authority's interest in 
avoiding costly labor conflicts.  He said the GOC needed to 
monitor more closely what the cooperatives were doing; the 
privately-owned Port Authority is not responsible, as they do 
not hire the workers.  Port-based Labor Inspector Esquivel 
said a September 28, 2008 Ministry of Transportation 
resolution required the Port Authority to take a more direct 
role in managing port operations--including labor relations. 
 
Strike Unlikely 
--------------- 
¶6.  (SBU)  Buenaventura Deputy Mayor Orlando Valencia told us 
that due to Buenaventura's estimated 65% unemployment rate, a 
strike would be unlikely due to workers' fear of being 
replaced.  He said the port is the largest employer in the 
city, with 3,000-8,000 highly-desirable jobs.  Chinea 
acknowledged that the dire economic situation contributed to 
the historic absence of strikes, but added that the lack of a 
culture of social protest on the Pacific coast was another 
factor.  He contrasted this with the inland areas of Valle de 
Cauca and Cauca where social protests, evidenced by the 
recent indigenous and sugar cane cutters' protests, were 
commonplace.  Valencia noted that the strike threat would 
likely be defused by cooperatives' concessions on wages and 
hours, as well as increased social investment by the Port 
Authority. 
BROWNFIELD