VZCZCXYZ0001
RR RUEHWEB

DE RUEHGT #0501/01 1472011
ZNR UUUUU ZZH
R 272011Z MAY 09
FM AMEMBASSY GUATEMALA
TO RUEHC/SECSTATE WASHDC 7537
INFO RUEHC/DEPT OF LABOR WASHDC

UNCLAS GUATEMALA 000501 
 
SENSITIVE 
SIPDIS 
 
DOL FOR OTLA 
DEPT FOR WHA/CEN, WHA/EPSC, EEB/BTA, AND DRL/ILCSR 
DEPT PLEASE PASS TO USTR CARLOS ROMERO AND LAURA BUFFO 
 
E.O. 12958: N/A 
TAGS: ELAB ECON ETRD PGOV PHUM KDEM PREL KJUS GT
SUBJECT: GOG UPDATES USG ON CAFTA-DR LABOR SUBMISSION 
 
REF: A. GUATEMALA 169 
     ¶B. GUATEMALA 145 
     ¶C. 08 GUATEMALA 1479 
     ¶D. 07 GUATEMALA 115 
     ¶E. 07 GUATEMALA 2172 
 
¶1. (U) Summary:  On May 13, Embassy hosted a DVC with the GOG 
and USG inter-agency to discuss progress on the CAFTA-DR 
Labor Submission Report and to follow up on a November 2008 
DVC (ref C) and demarches delivered by the Ambassador and 
Embassy pol/econ officers in February 2009 (refs A, B). 
Senior GOG officials provided updates on the five cases 
highlighted in the submission, reporting notable progress in 
the Pedro Zamora murder case and Avandia case.  DOL Deputy 
Under Secretary for International Affairs Sandra Polaski 
encouraged the GOG to take further steps to resolve the cases 
in the complaint and also to address underlying systemic 
issues.  She urged the GOG officials to use their authority 
to develop systemic measures to induce greater employer 
compliance with labor laws.  End Summary. 
 
¶2. (U) On May 13, Embassy hosted a DVC with the GOG and USG 
to discuss progress on the CAFTA-DR Labor Submission Report. 
Participants included DOL Deputy Under Secretary Polaski, DCM 
David Lindwall, Guatemalan Ambassador Francisco Villagran, 
Minister of Economy Ruben Morales, Vice Foreign Minister Lars 
Pira, Vice Labor Minister Mario Illescas, Labor Inspector 
General Giovanni Soto, Ministry of Government Special Advisor 
Alma Luz Guerrero, and representatives of the Guatemalan 
Social Security Institute. 
 
¶3. (U) DUS Polaski began by thanking the GOG for its April 27 
written update on the five cases highlighted in the CAFTA-DR 
Labor Submission, and expressing satisfaction that one of the 
two suspects in the January 2007 murder of port union leader 
Pedro Zamora (ref D) had been arrested and formally charged. 
A GOG inter-agency committee provided further updates on the 
five cases.  Noe Moya, Chief Prosecutor in the Public 
Ministry's Unit for Crimes Against Journalists and Unionists, 
reported that the Court of First Criminal Instance in 
Escuintla would hold a preliminary hearing in the Zamora case 
the following day, and that they were still looking for the 
other suspect.  He noted that he had not shared this 
information with leaders of the port union due to legal 
restrictions on sharing information on ongoing investigations 
with the public, but offered to share the results of the 
hearing with DUS Polaski and Embassy. 
 
¶4. (U) Ministry of Government Special Advisor Guerrero said 
the Ministry has maintained regular communication with the 
Banana Workers' Union of Izabal (SITRABI) and is continuing 
to investigate the September 2007 murder of SITRABI leader 
Marco Tulio Ramirez Portela (ref E).  The Ministry has asked 
the Supreme Electoral Tribunal for the names of the 
individuals who were working at the voting table on the day 
that Ramirez was allegedly threatened at the polling center, 
but they have not yet received the information.  Regarding 
security, Guerrero confirmed that the Ministry of Government 
has authorized perimeter security of the banana farm but not 
personal security for SITRABI members. 
 
¶5. (U) Labor Inspector General Soto stated that Avandia had 
offered its workers two options:  reinstatement with full 
back pay, or no reinstatement with severance pay.  He 
reported that all of the dismissed workers in question had 
been reinstated with back pay and that the vice president of 
Avandia had apologized publicly.  DUS Polaski characterized 
this as "a very positive development," but noted that the USG 
Qthis as "a very positive development," but noted that the USG 
will maintain oversight of the workers to ensure that they 
are not subjected to reprisals and that lines of 
communication between the employer and workers remain open. 
Soto assured her that the Ministry of Labor regularly 
monitors not only Avandia but other maquilas as well.  With 
regard to Fribo, Soto said he had confirmed a meeting for the 
following week with Modas Dae Hang, which operates the Fribo 
factory.  With regard to Alimentos Sumar, he said he did not 
have any information. 
 
¶6. (U) Vice Minister of Labor Mario Illescas reported 
advances in the overall labor environment, citing recent 
official statistics.  He stated that 27 collective bargaining 
agreements were signed in 2008 and 16 so far in 2009.  The 
Ministry authorized 53 new labor unions in 2008 and 26 unions 
so far in 2009.  In addition, from January to April of this 
year, the Ministry registered a total of 295 labor complaints 
filed by individuals, 33 group complaints representing a 
total of 908 workers, 485 labor court hearings, and 55 
labor-management settlements, representing a total of 
Q572,741.73 (approx. USD 71,593) in worker benefits. 
 
¶7. (U) DUS Polaski stressed that the new administration takes 
very seriously labor rights in our trade agreements and that 
this is the first case brought under CAFTA-DR.  She urged the 
GOG to take further steps to resolve the cases in the 
complaint as well as to address underlying systemic issues, 
including employer non-compliance with labor laws.  She urged 
the GOG to utilize powers accorded it by law to effect 
systemic improvements that will induce greater compliance by 
employers.  She expressed concern over violence against 
unionists and noted that the USG will continue to closely 
watch the two murder cases.  She welcomed establishment of a 
Special Prosecutor's Office in the Public Ministry to focus 
on crimes against unionists, and encouraged proactive, 
preventive efforts to safeguard vulnerable union leaders. 
Regarding next steps, DUS Polaski stated that DOL plans to 
conduct a final assessment of progress to date on June 30 to 
determine by July 15 (the end of the stipulated 180-day 
review period) whether further action, including Cooperative 
Labor Consultations under CAFTA-DR, is warranted. 
 
¶8. (SBU) Comment:  While there has been notable progress in 
the Avandia and the port union cases, it is not likely that 
the GOG will be able to resolve the systemic issues prior to 
the end of the 180-day review period.  In a country where 
violence has become the norm, nt the exception, and where 
impunity and corruption are rampant, improving labor 
compliance is a serious challenge that requires not only 
political will, inter-agency cooperation and international 
pressure, but a significant change in attitude among local 
employers, an effort that may take years. 
McFarland