VZCZCXRO6743
RR RUEHLMC
DE RUEHTG #0085 0402245
ZNR UUUUU ZZH
R 092245Z FEB 09
FM AMEMBASSY TEGUCIGALPA
TO RUEHC/SECSTATE WASHDC 9215
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUMIAAA/CDR USSOUTHCOM MIAMI FL//CINC/POLAD//
RUMIAAA/CDR USSOUTHCOM MIAMI FL//J32//
RUEAHND/CDRJTFB SOTO CANO HO
RUEAIIA/CIA WASHDC
RUEHC/DEPT OF LABOR WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RHEFDIA/DIA WASHINGTON DC
RHMFIUU/DIRJIATF SOUTH
RUMIAAA/HQ USSOUTHCOM J5 MIAMI FL
RUEKJCS/JOINT STAFF WASHDC
RUEHLMC/MILLENNIUM CHALLENGE CORP WASHINGTON DC 0891
RUEIDN/DNI WASHINGTON DC
RHEHNSC/NSC WASHDC
RUEKJCS/SECDEF WASHDC
RUMIAAA/USSOUTHCOM MIAMI FL

UNCLAS TEGUCIGALPA 000085 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ELAB EAGR EIND ETRD PGOV PHUM SOCI EFIN HO
SUBJECT: HONDURAN UNION LEADERS DISCUSS GLOBAL ECONOMIC 
CRISIS 
 
REF: A. A. TEGUCIGALPA 00069 
     ¶B. B. TEGUCIGALPA 00056 
     ¶C. 08 TEGUCIGALPA 1161 
 
¶1.  (SBU) SUMMARY: The Ambassador met with leading union 
leaders in Honduras to discuss the current state of labor in 
Honduras, on February 3.  The Ambassador took the opportunity 
to convey U.S. support for human rights and labor rights.  He 
shared his view of the U.S-Central American Free Trade 
Agreement (U.S.-CAFTA) as an important tool vital to both 
countries to generate more two-way trade and investment flows 
and generate more jobs.  In addition, the Ambassador 
encouraged the labor leaders to work with the GOH and the 
private sector in addressing the economic problems caused by 
the global financial crisis.  END SUMMARY. 
 
¶2.  (SBU) The Secretary Generals of the three main labor 
confederations that bring together almost all organized labor 
in the country attended the meeting:  Israel Salinas of the 
Confederacion Hondurena de Trabajadores de Honduras (CUTH), 
Hilario Espinoza of the Confederacion Hondurena de 
Trabajadores (CTH), and Daniel Duron of the Central General 
de Trabajadores (CGT).  The three leaders agreed that the 
situation for organized labor in Honduras was difficult, 
arguing that the government at times had colluded with 
business to discourage labor unions.  They said that a number 
of factors were to blame, including undue private sector 
influence over the Ministry of Labor. 
 
¶3. (SBU) All three union leaders spoke positively about the 
recent Supreme Court election (reftel B), especially the 
participation of civil society in the process, and expressed 
optimism that the new court would improve labor rights in 
Honduras.  They were also positive about the recent increase 
in the minimum wage (reftel C), and said that the Honduran 
public overwhelmingly supported this decision taken by 
President Zelaya.  The leaders expressed certain concerns 
about the benefits of CAFTA and said that Honduras, trade 
deficit with the U.S. had grown tremendously since CAFTA came 
into effect.  The Ambassador said that CAFTA represented a 
great opportunity to generate increased two-way flows of 
trade and investment, as well as create more growth and jobs 
in both economies. 
 
¶4. (SBU) The labor leaders expressed concern on the effects 
on Honduras of the global economic downturn.  The Ambassador 
encouraged the three union leaders to work with the 
government of President Manuel "Mel" Zelaya and the business 
community to come up with effective policies to mitigate the 
effects of the international financial crisis on Honduras. 
The Ambassador also  pointed out that in order for Honduras 
to minimize the effects of the downturn, it needed to 
consider all possibilities, including seeking support from 
the emergency funding from the World Bank and International 
Monetary Fund.  Finally, the Ambassador stressed our strong 
support for human and labor rights and conveyed our continued 
concern about efforts to break-up labor unions, as well as 
threats against individual labor leaders.  The Ambassador and 
the labor leaders agreed to stay in close touch and work 
issues of common interest. 
 
¶5. (SBU) COMMENT: Honduras labor's already uphill battle has 
been made worse by the economic crisis as union members seek 
space for labor at a time when business is suffering the 
negative consequences of the international situation. 
Nevertheless, the labor leaders are mindful of the need to 
adopt prudent policies needed to maintain macroeconomic 
stability in Honduras and minimize the impact of the crisis 
on workers. 
LLORENS