VZCZCXYZ0000
RR RUEHWEB

DE RUEHWN #0625/01 2811710
ZNR UUUUU ZZH
R 081710Z OCT 09
FM AMEMBASSY BRIDGETOWN
TO RUEHC/SECSTATE WASHDC 7844
INFO RUEAIIA/CIA WASHDC
RUEHC/DEPT OF LABOR WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS BRIDGETOWN 000625 
 
SIPDIS 
SENSITIVE 
 
PASS TO WHA/CAR, DOL/ILAB - CHANTENIA GAY, DRL/ILCR - 
GABRIELLA RIGG 
 
E.O. 12958: N/A 
TAGS: OECS ELAB ECON XL
SUBJECT: LABOUR UNIONS STRUGGLING IN GRENADA AS RECESSION 
HITS WORKERS HARD 
 
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SUMMARY 
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¶1. (U) Labor unions are struggling in Grenada as the global 
recession is deeply affecting their members.  Unemployment is 
estimated by the government at over 30 percent, but so far, 
large scale layoffs have been averted.  Labor, the government 
and the business community are engaged in negotiating a 
formal social partnership protocol similar to the successful 
social partnership arrangement that has been in place in 
Barbados for the last two decades.  The Ministry of Labor and 
the unions are eager to host an OSHA workshop in Grenada, 
following on the successful OSHA workshop just concluded in 
Barbados.  The Ministry of Labor would also like assistance 
in setting up a labor statistics collection project.  End 
summary. 
 
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TAWU's Long, Militant History in Grenada 
---------------------------------------- 
 
¶2. (U) Senator Chester Humphreys, President of the Trade and 
Allied Workers Union and General Secretary of the umbrella 
Trade Union Congress, provided Emboff with a broad overview 
of the state of the labor movement in Grenada during meetings 
on September 21.  Grenada has the highest percentage of 
unionized workers in the region, with more than 60 percent of 
workers in the formal sector belonging to a union.  Given the 
widespread unemployment and the dramatic rise in the informal 
sector, he said, fewer workers are working in the formal 
economy so total union membership is closer to 40 percent of 
all workers.  TAWU and the other eight formal unions have a 
long history of militancy dating back to their founding in 
the 1920s.  During the height of their influence in the 1970s 
they completely dominated the port and the agricultural 
business sector.  Since then Humphreys noted they have lost 
influence with the decline of the agricultural sector and the 
gradual liberalization of trade.  They have also become more 
pragmatic in recent years and have lost their militant zeal, 
he confessed. 
 
--------------------------------- 
Private Sector Unions Grumble,... 
--------------------------------- 
 
¶3. The TAWU is concerned about meeting the needs of its 
members, many of whom have been suffering with rising 
unemployment in Grenada and the collapse of the social safety 
net. TAWU is negotiating with the government and the Grenada 
Employees Federation to form a social partnership protocol 
similar to the successful social partnership in Barbados. 
Negotiations have reached a stalemate, but Humphreys said he 
is hopeful that an agreement will be reached eventually.  The 
major stumbling blocks are the union's desire to set up a 
public bus system to replace the current private bus system, 
reforms to the health care system, and revamping of the VAT 
which is finally due to be implemented in February, 2010. 
 
¶4. (U) The President of the Bank and General Workers Union, 
Justine Campbell, echoed many of Humpreys' points in separate 
meetings on September 21.  He pointed out that many of the 
smaller shops in town pay less than minimum wage to 
employees.  He said that most companies in town are taking a 
progressive attitude towards layoffs and that there have been 
few large scale layoffs.  He noted that his union is 
stretched pretty thin with requests for financial assistance, 
particularly regarding health care costs. 
 
¶5. (U) The head of the Grenada Seamen and Waterfront Union, 
Lyle Samuel, complained that, due to the slow economy, there 
is less work for their members.  He also complained that 
younger workers in Grenada don't seem to have a good work 
ethic.  He mentioned that many of the traditional 
male-dominated jobs in Grenada are now being filled with 
young women who have a much better work ethic than their male 
counterparts. 
 
--------------------------------------- 
...And Public Sector Union Commiserates 
--------------------------------------- 
 
¶6. (U) President of the Public Workers Union, Madonna 
Hartford, represents 6,000 workers out of the total 70,000 
workers in Grenada -- a significantly smaller public sector 
than in the other islands of the Eastern Caribbean.  All 
 
government workers are assessed dues, she said, but only half 
are members of the union.  The union nevertheless provides 
services to all public sector employees regardless of union 
membership.  The union offers a pension scheme and health 
insurance to its membership, and most members join the union 
to access these benefits.   The PWU shares many of the 
concerns of TAWU regarding the social partnership 
negotiations.  They are more flexible on the issue of setting 
up a public bus system.  They would be willing to accept 
reactivating the Public Bus Commission to impose some 
regulations over the highly unregulated bus system.  Their 
bottom line is to increase bus service at night and to rural 
areas.  Many workers are stranded at night if they miss the 
last bus.  This is particularly a problem in the hotel 
industry where shift work is common.  The other major concern 
of the PWU is concluding a contract with the government.  The 
current contract lapsed in 2008.  They expect to negotiate a 
new contract by the end of the year. 
 
------------------------- 
No Labor Stats in Grenada 
------------------------- 
 
¶7. (U) Minister of Labor Karl Hood told Emboff that one of 
his priorities is to set up a statistical unit within the 
Ministry.  Grenada has never kept labor statistics and so 
estimates of unemployment are just that -- estimates. 
Grenada has no formal labor market statistics so it is 
impossible for the Ministry to do any long-term planning. 
Improving Occupational and Health standards is another one of 
the Minister's priorities.  Currently labor inspectors look 
at health and safety violations as part of their overall 
labor inspections as there are no dedicated health and safety 
inspectors.  Most private companies are simply not focused on 
health and safety issues. 
 
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Comment 
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¶8. (U) The unions are eager to shed their image of militancy 
and have embraced a more pragmatic approach in coping with 
the difficult economic times.  The labor union leaders all 
welcome increased engagement with the USG and are interested 
in having OSHA do a workshop in the region.  The Labor 
Ministry is additionally interested in receiving assistance 
from the U.S. Bureau of Labor statistics, a request we 
promised to pass along.  Many of the labor leaders have been 
to the U.S. on IVLP grants, and they are eager to continue 
working with the USG. 
HARDT