VZCZCXYZ0002
PP RUEHWEB

DE RUEHTG #0073/01 0261827
ZNR UUUUU ZZH
P 261827Z JAN 10
FM AMEMBASSY TEGUCIGALPA
TO RUEHC/SECSTATE WASHDC PRIORITY 1528
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE PRIORITY
RUEHGV/USMISSION GENEVA PRIORITY 0001
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUEHC/DEPT OF LABOR WASHDC PRIORITY

UNCLAS TEGUCIGALPA 000073 
 
SENSITIVE 
SIPDIS 
 
USTR FOR CARLOS ROMERO AND DOL FOR TIMOTHY WEDDING 
 
E.O. 12958: N/A 
TAGS: ELAB ECON ETRD PGOV HO
SUBJECT: LABOR MONITORING AND ENGAGEMENT IN HONDURAS 
 
REF: A. 09 STATE 129631 
     ¶B. 09 STATE 69221 
     ¶C. 09 TEGUCIGALPA 1266 
     ¶D. 09 TEGUCIGALPA 1211 
     ¶E. 09 TEGUCIGALPA 542 
     ¶F. 09 TEGUCIGALPA 106 
     ¶G. 09 TEGUCIGALPA 158 
     ¶H. 08 TEGUCIGALPA 1161 
 
¶1. (U) Honduran President Jose Manuel "Mel" Zelaya was 
removed from power in a coup d'etat on June 28, 2009.  The 
United States does not recognize the de facto regime that 
subsequently took over.  As a result, it has not been 
possible for the Embassy to engage in high-level advocacy on 
labor issues since June 28.  A credible general election was 
held on November 29, 2009 and the president-elect, Porfirio 
"Pepe" Lobo, will take office on January 27, 2010. 
 
¶2. (U) Honduras is one of six signatories to the Dominican 
Republic-Central America-United States Free Trade Agreement 
(CAFTA-DR).  Honduras is the second poorest of the CAFTA-DR 
member nations and one of the poorest countries in the 
western hemisphere.  Historically dependent on exports of 
agricultural goods, the Honduran economy has diversified in 
recent decades and now has a strong export-processing 
("maquila") industry, primarily focused on assembling textile 
and apparel goods for re-export to the United States, as well 
as automotive wiring harnesses and similar products.  About 
one-third of the Honduran workforce was considered either 
unemployed or underemployed in 2009.  This does not include 
the roughly 1 million Hondurans who have migrated to the 
United States for lack of acceptable employment opportunities 
at home.  Remittances from Hondurans living abroad, 
particularly in the U.S., are equivalent to about one-fifth 
of Honduras' Gross Domestic Product (GDP).  The June 28 coup 
d,etat negatively impacted the labor sector, particularly 
due to lost productivity as a result of day-long curfews. 
There is not yet any reliable estimate on the loss of 
production and economic impact of the June coup. 
 
¶3. (U) According to Ministry of Labor (MOL) statistics 
available before the June coup, there were 519 unions 
representing approximately 8 percent of the work force, 
excluding the agriculture sector.  Approximately 13 percent 
of the 133,000 apparel assembly workforce was unionized.  The 
law provides for the right to strike, and workers exercise 
this right in practice.  The law prohibits strikes in a wide 
range of economic activities deemed essential services and 
any others that are deemed to affect individual rights to 
security, health, education, economic, or social life.  The 
law also provides for the right to organize and to bargain 
collectively, but the government generally does not protect 
this right. 
 
¶4. (U) The law provides for the right of workers to form and 
join unions of their choice, but in practice workers exercise 
this right with difficulty.  The three major union 
federations are Unitarian Workers Confederation (CUTH), 
General Workers Confederation (CGT), and Honduran 
Confederation of Workers (CTH).  Honduran labor law does not 
fully reflect internationally-recognized labor rights.  For 
example, Honduran law prohibits members of the armed forces 
and the police force from forming labor unions and also 
prohibits public service employees from presenting union 
organizing petitions or participating in collective 
bargaining.  The International Labor Organization (ILO) has 
criticized the law's denial of the right to strike in various 
sectors as a shortcoming of labor rights law in Honduras. 
The sectors in which the right to strike is not protected 
includes the petroleum sector and government workers other 
than employees of state-owned enterprises. 
 
¶5. (SBU) The issue of CAFTA-DR labor rights obligations does 
not appear in the campaign platform of president elect 
Porfirio "Pepe" Lobo or in the 28-year "Vision of the 
Country" strategy document approved by the National Congress 
on January 13, 2010.  However, one representative from each 
of the three major unions (CGT, CTH, and CUTH) was part of 
the National Plan Council that developed the "Vision of the 
Country" strategy document and labor unions indicated they 
are willing to engage President elect Lobo on the issue of 
labor rights. 
 
The Ministry of Labor 
--------------------- 
 
¶6. (SBU) The country's domestic enforcement of labor laws is 
lacking due to insufficient resources and a misalignment of 
resources given that the majority of labor investigators are 
in the capital of Tegucigalpa while many of the alleged labor 
violations occur in rural areas or in the maquila heavy 
region near the northern city of San Pedro Sula.  Thus, a 
significant challenge for workers' rights in Honduras is 
workers' access to justice, especially women, youth and other 
vulnerable populations.  The state of the Ministry of Labor 
(MOL) after the June coup is unknown and under the 
Department's no contact policy the Embassy has not had any 
contact with MOL officials since the June coup (ref B). 
Unitarian Workers Federation (CUTH) leader Israel Salinas 
told Poloff on January 11 that de facto Ministry of Labor had 
been inactive since June 28 and that CUTH knew of no 
investigations of labor violations carried out after the June 
coup. 
 
¶7. (SBU) ILO representatives told Poloff on January 14 that 
the MOL was still functioning and that the only change in 
personnel following the June coup was the departure of 
Minister of Labor Mayra Mejia and the appointment of Nicolas 
Garcia Zorto to that position by the de facto regime.  ILO 
representatives noted that, unlike in other government 
ministries, there were not widespread firings of supporters 
of President Manuel "Mel" Zelaya at the MOL.  According to 
the MOL website, the MOL hosted a workers rights information 
fair in the Central Park of Tegucigalpa on November 17 at 
which a reported 500 people received information on labor 
rights and the work of the MOL. 
 
Unions 
------ 
 
¶8. (U) Honduras has a relatively strong union movement, 
despite problems with enforcement of the Labor Code and the 
inadequacies of judicial relief for labor law violations.  In 
their broadest configuration, union confederations include a 
wide cross-section of Hondurans (women's groups, ethnic 
groups, neighborhood groups (patronatos), peasants, and 
others).  This helps to increase their numbers and thus their 
overall strength, which is a good thing, but also makes it 
more difficult for them to arrive at consensus on political 
positions.  In the labor sector, labor unions and civil 
society organizations are both important sources of help for 
workers to access the system that protects their labor rights. 
 
¶9. (U) Unions play a pivotal role in a yearly review of the 
minimum wage in Honduras.  At the end of every year, a 
tripartite commission of public, private, and labor sector 
representatives negotiate raising the minimum wage.  If this 
negotiation fails, the issue goes for decision to the 
country's president.  In previous years, this increase has 
been around 9 percent.  At the end of 2008, after business 
leaders declared an impasse, President Jose Manuel "Mel" 
Zelaya increased the minimum wage by more than 60 percent, a 
move widely condemned by the business community.  The 
increase in minimum wage did not apply to some sectors, 
including the export-processing ("maquila") industry. 
Business leaders and even mayors claimed that they were 
forced to lay off workers to be able to meet the new payroll 
(Ref C, E, F, H).  Recent media reports claim that 180,000 
jobs were lost in 2009 because of the combined effects of the 
global economic crisis, the steep wage hike, and the 
political crisis engendered by the June 28 coup.  According 
to the Tegucigalpa Chamber of Commerce and Industry, almost 
half of small and medium enterprises already fail to pay the 
minimum wage because they cannot afford to, or in some cases 
because they did not wish to pay the minimum wage. 
 
¶10. (SBU) The president of the Central Workers Federation 
(CGT), Daniel Duron, told Poloff on January 19 that CGT, 
along with the other two main unions, had completely severed 
ties with the MOL.  Duron said that prior to the June coup, 
CGT was involved in up to five cooperative events weekly at 
the MOL but that CGT decided to discontinue cooperation to 
demonstrate their disapproval of the June coup.  Duron 
expressed concern about rumors that the de facto regime had 
moved large amounts of money from the state-run retirement 
system in order to fund the de facto regime following the 
termination of  international aid.  Duron cited the funding 
issue and the complete breakdown of union relations with the 
MOL as the primary effects on the labor sector of the June 
coup.  Duron told Poloff that CGT had held talks with 
President-elect Porfirio "Pepe" Lobo and that they are ready 
to resume the dialogue with Lobo's government after it takes 
office on January 27 and welcomed any help from the USG in 
repairing the damage to labor rights since the June coup. 
 
Teachers 
-------- 
 
¶11. (SBU) Perhaps one of the most important challenges facing 
Honduras is the issue of teachers' unions.  Teachers' unions 
are considered the most powerful voice in the labor movement 
with an estimated 60,000 members.  Beginning in 2009, 
teachers are also the only public employees whose salaries 
are indexed to the minimum wage, rather than to the expected 
rate of inflation.  The teachers' strike for increased 
salaries every year is a now normal event and has devastating 
effects on education in Honduras.  Following the coup, 
teachers' unions were heavily involved in anti-coup marches 
and some local editorials decried the teachers' demands, 
noting that their request for an "excellence bonus" along 
with a wage hike is undeserved, since they worked less than 
100 days of the required 200 last year.  Jaime Rodriguez, the 
head of a middle school teachers' union representing 22,000 
teachers (COPEMH), told Poloff on January 13 that 3,500 
members of his union had not received any pay since February 
2008 and that all teachers have not been paid a special bonus 
they normally receive.  Rodriguez said that de facto regime 
Minister of Finance Gabriela Nunez told the teachers' unions 
that there was simply "no money" to pay the teachers. 
 
Threats to Labor Leaders 
------------------------ 
 
¶12. (U) Labor rights leaders and activists often face 
threats.  A notable case was the high profile murder in April 
2008 of Altagracia Fuentes, the secretary general of the 
Honduran Workers' Federation (CTH).  In April 2009, the 
Honduran prosecutor's office issued an arrest warrant for 11 
members of a car-theft gang in relation to the murder. 
Despite these arrests, labor rights groups continue to allege 
that organized crime or nefarious elements within the labor 
movement were responsible for the murder and cite 
circumstantial evidence as proof. 
 
--------------------- 
Freedom of Association 
---------------------- 
 
¶13. (U) Honduran labor law provides for the right of workers 
to form and join unions of their choice, but in practice 
workers exercise this right with difficulty.  The law 
provides coexistence of more than two trade unions at a 
single enterprise, requires 30 or more workers to constitute 
a trade union, prohibits foreign nationals from holding union 
offices, requires that union officials be employed in the 
economic activity of the business the union represents, and 
restricts unions in agricultural enterprises with fewer than 
10 employees. 
 
Right to Collective Bargaining 
------------------------------ 
 
¶14. (U) The law provides for the right to organize and to 
bargain collectively, but the government does not protect 
this right in practice.  Although the law requires that an 
employer begin collective bargaining once workers establish a 
union, employers often refuse with impunity to engage in 
bargaining. Although the law prohibits employer retribution 
for engaging in trade union activity, it is a common practice 
with employers threatening to close unionized companies and 
harassing or dismissing workers seeking to unionize. 
 
¶15. (U) In one notable case, Sitrazjerzees, a subsidiary of 
Fruit of the Loom and Russell Corporation (FOL/RC), closed 
its plant in Choloma, Cortes Department in January 2009 after 
the plant's union received its official registry from the 
Ministry of Labor in July 2008 (ref G); 1,800 workers lost 
their jobs from the closure.  The new union was in the midst 
of its first collective bargaining negotiations when 
management broke off the negotiations and declared that the 
plant would close within six months.  In March and April 
2009, SitraJerzees opened two "Displaced Employee Assistance" 
offices in San Pedro Sula and Choloma to assist the displaced 
workers obtain the skills needed to secure new employment. 
The case received widespread media attention in the U.S. and 
nearly thirty U.S. universities cancelled their apparel 
contracts with Fruit of the Loom to protest the factory 
closure.  FOLT/RC reached a negotiated settlement on November 
21 with worker representatives of the Sitrazjerzees plant in 
relation to the January closure of the Choloma plant (ref D). 
 The agreement will result in the re-opening of the factory 
in early 2010 and the rehiring of many of the displaced 
workers. 
 
¶16. (U) The MOL can reach administrative decisions and fine 
companies for unfair dismissal, but only a court can order 
the reinstatement of workers.  Despite the success in the 
FOLT/RC settlement, employers in Honduras often fail to 
comply with court orders requiring them to reinstate workers 
fired for engaging in union activity; failure to reinstate 
workers continues to be a serious problem in Honduras. 
 
Compulsory and Forced Labor 
--------------------------- 
 
¶17. (U) The law generally prohibits forced or compulsory 
labor, including by children; however, there were reports of 
trafficking in children for commercial sexual exploitation 
and of child prostitution.  The 2009 Department of Labor's 
"List of Goods Produced by Child Labor or Forced Labor" 
listed no products in Honduras as having been produced by 
forced labor. 
 
Child Labor 
----------- 
 
¶18. (SBU) Honduran law regulates that minors between the ages 
of 14 and 18 cannot work unless authorities determine that 
the work is indispensable for the family's income and will 
not conflict with schooling.  Prior to the June coup, the 
Ministry of Labor did not effectively enforce child labor 
laws outside the apparel assembly sector, and there were 
frequent violations of child labor laws.  Prior to the coup, 
one notable program by the Government of Honduras was the 
ongoing National Commission for the Gradual and Progressive 
Eradication of Child Labor and their "National Plan of Action 
II for the Eradication of Child Labor."  The program aimed to 
promote inter-institutional cooperation, justice, and 
assistance for children workers. The first national plan was 
issued in 2001 to run through 2005.  The second plan will 
cover 2008-2015 and first steps of the plan call for a budget 
and official legal recognition of the Commission by the 
government.  The activities of the de facto regime to fight 
child labor after the June coup are unknown.  However, the 
Special Prosecutor for Children Norma Urbina, whose staff are 
members of the child labor commission, told Poloff on January 
19 that the commission was intact and continued to work. 
 
¶19. (U) The National Institute of Statistics (INE) published 
the results of a national household survey in May 2009 that 
found 170,046 children aged 5-14 worked in some form or 
another.  As in the past, the INE survey showed that 140,088 
working children lived in rural areas compared to 29,957 
working children in urban areas.  The largest single coup 
(73,915) was 10-14 year olds working while attending schools 
in rural areas. The next largest group was children aged 
10-14 working and not attending school in rural areas.  In 
addition, the 2009 Department of Labor's "List of Goods 
Produced by Child Labor or Forced Labor" included the 
Honduran production of coffee, lobsters, and melons as being 
produced as a result of child labor. 
 
Discrimination 
-------------- 
 
¶20. (U) The law prohibits discrimination based on race, 
gender, disability, language, or social status; however, in 
practice it is not effectively enforced.  Women suffer social 
and economic discrimination in the workplace. 
 
Acceptable Conditions of Work 
----------------------------- 
 
¶21. (U) The law prescribes a maximum 44-hour workweek and at 
least one 24-hour rest period for every six days of work. 
The law requires overtime payment for hours in excess of the 
standard, and there are prohibitions on excessive compulsory 
overtime.  Employers frequently ignore these regulations due 
to the high level of unemployment and underemployment and the 
lack of effective enforcement by the MOL. 
 
¶22. (U) At the end of 2008, after business leaders declared 
an impasse, President Jose Manuel "Mel" Zelaya increased the 
minimum wage by more than 60 percent, a move widely condemned 
by the business community. Business leaders and even mayors 
claimed that they were forced to lay off workers to be able 
to meet the new payroll.  Negotiations are currently underway 
about the minimum wage raise for 2010. 
 
¶23. (U) The MOL is responsible for enforcing national 
occupational health and safety laws but does not do so 
consistently or effectively due to lack of resources.  Worker 
safety standards are enforced poorly, particularly in the 
construction industry, in the garment assembly sector, and in 
agriculture production activities. 
 
¶24. (U) The MOL has not investigated alleged violations of 
occupational health and safety laws and other labor rights 
problems relating to the approximately 3,000 lobster divers, 
many from indigenous and other ethnic minority groups in La 
Mosquitia, Gracias a Dios Department.  The Honduran Mosquitia 
Association of Disabled Divers (AMHBLI) told Poloff in early 
2009 they had documented the deaths of approximately 365 
lobster divers since 2003, and at least 2,000 additional 
divers were disabled due to the dangerous nature of their 
work.  Private security guards also reportedly experienced 
harsh working conditions, such as being required to work 
18-20 hour shifts, and a denial of benefits without 
intervention by the Ministry of Labor. 
 
--------------------- 
List of Key Contacts 
--------------------- 
 
¶25. (SBU) The following are contacts maintained by post with 
regard to labor rights issues in Honduras: 
 
-Ministry of Labor: under the Department's no contact policy, 
the Embassy does not maintain contact with any representative 
of the de facto Ministry of Labor.  Prior to the June coup, 
Embassy was in contact with Minister of Labor Mayra Mejia. 
 
-Child labor: Rosa Corea, International Labor Organization 
 
-Public Ministry: Special Prosecutor for Children Nora 
Urbina.  Urbina's office covers child labor cases. 
 
-Labor unions: 
 
a. Unitarian Workers Confederation (CUTH), director Israel 
Salinas 
 
b. General Workers Confederation (CGT), director Daniel Duron 
 
c. General Workers Confederation (CGT) in San Pedro Sula, 
director Evangelina Argueta 
 
d. Honduran Confederation of Workers (CTH) director Hilario 
Espinoza (replaced Altagracia Fuentes, who was murdered in 
April 2008). 
 
------------------------ 
Strategy Recommendations 
------------------------ 
 
¶26. (U) Chapter 16 of CAFTA-DR requires that Honduras "shall 
not fail to effectively enforce its labor laws, through a 
sustained or recurring course of action or inaction, in a 
manner affecting trade between the parties." Furthermore, the 
FTA states that "the parties understand that a party is in 
compliance with subparagraph a (the enforcement of its labor 
laws) where a course of action or inaction reflects a 
reasonable exercise of such discretion, or results from a 
bona fide decision regarding the allocation of resources." 
For the purposes of CAFTA-DR, "labor rights" are directly 
related to the following internationally recognized labor 
rights: right of association; right to organize and bargain 
collectively; a prohibition on the use of any form of forced 
or compulsory labor; a minimum age for the employment of 
children and the prohibition and elimination of the worst 
forms of child labor; and acceptable conditions of work with 
respect to minimum wages, hours of work, and occupational 
safety and health. 
 
¶27. (SBU) ILO national coordinator Rosa Corea told Poloff on 
January 14 that she believed that throughout 2009 there were 
no major setbacks in the protection of labor rights, in spite 
of the coup d'etat.  Corea stated she believed that Honduras 
has the legal framework in place to investigate allegations 
of labor rights violations, but that the challenge is the 
application of these laws. 
 
¶28. (U) Post submits the following actionable strategy 
recommendations for better implementation of labor rights 
obligations once the constitutional and democratic order has 
been restored in Honduras: 
 
¶I. Reform of labor inspectors office 
------------------------------------- 
 
¶29. (U) In a December 2009 internal report by the de facto 
Ministry of Labor provided to a local ILO representative, the 
office of labor inspectors reportedly had 127 inspectors of 
which only a handful held a university degree.  The internal 
report recommended the unification of all specialized 
inspectors to create a corps of labor inspectors able to 
carry out any type of labor investigation; a personnel 
evaluation of existing inspectors; and an evaluation of all 
temporary employees and their knowledge of labor law.  The 
MOL report also stated that a key limitation of the success 
of labor inspectors is that 95 per cent of the office's 
budget is used to pay staff salaries, which only leaves 5 
percent to actually fund investigations.  The report 
recommended an increase for the office's budget. 
 
¶30. (SBU) Post suggests supporting these efforts to fortify 
the office of inspectors, including better training regarding 
the resources available to them to fully enforce the labor 
code when a factory denies inspectors the right to enter a 
workplace.  Post also believes that the maximum fine of USD 
265 for workplace violations is inadequate and that the MOL 
should support rule changes to allow inspectors to impose 
economically significant fines.  Teresa Elaine Casertano, of 
the Solidarity Center, commented on January 19 to Poloff that 
in the Center's view the new Minister of Labor in El 
Salvador, Dr. Marina de Aviles, achieved progress in 
improving the inspection system and the correct application 
of labor law without any new funding but instead with demands 
for improved performance by inspectors.  Support for the 
sharing of best practices with neighboring MOLs is one way to 
fortify the work of labor inspectors and the MOL. 
 
II. Support Efforts for Unions to Function 
------------------------------------------ 
 
¶31. (U) Given the almost complete lack of confidence in the 
MOL on the part of unions following the June coup, post 
proposes supporting specific efforts to ensure that workers 
can organize unions and that unions can function.  Such 
support would allow workers to have a structure that is 
independent of the MOL to monitor their own work conditions 
and advocate for the protection of labor rights.  To help 
unions function better in Honduras, post suggests that direct 
technical support to the MOL be offered to expedite the union 
recognition process and revisions in the procedure to ensure 
that companies cannot unduly slow the process.  Support for 
unions could also be achieved through collaborative efforts 
by U.S. experts to help trade unions strengthen their 
capacity to engage in policy advocacy, particularly around 
labor law reform and the application of the labor rights 
framework. 
 
III. Encourage Attention on Issue by President-Elect 
--------------------------------------------- ------- 
 
¶32. (SBU) Post will elevate the profile of these issues with 
President-elect Porfirio "Pepe" Lobo.  The issue of CAFTA-DR 
labor rights obligations does not appear in Lobo's campaign 
platform or in the 28-year "Vision of the Country" strategy 
document.  Engaging with Lobo on these issues early on will 
encourage Lobo to think about them in the context of trade 
with the United States. 
 
IV. Encourage Cooperation Between government and Teachers 
--------------------------------------------- ----------- 
 
¶33. (SBU) Once again in 2009 it became clear that teachers' 
labor rights are the basis for many problems.   Critics argue 
that teachers unjustly demand raises yearly, which paralyze 
the educational system and has long term effects on the 
education of Honduran children and the development of 
Honduras.  Teachers' unions demand that the government often 
break contractual agreements about payment.  This problem was 
aggravated last year when teachers were active in the 
anti-coup resistance movement and did not, in many cases, 
teach classes following the June coup.  Post believes this 
issue should be at the center of any labor rights strategy we 
develop, as the issue of teachers' demands over back pay and 
benefits owed them by the government touches on the education 
and capacity building of Honduras' future generations.  We 
believe a full evaluation of the teacher salary system is 
necessary to fully understand the problem and address its 
roots. 
 
----------------- 
Cooperation Needs 
----------------- 
 
¶34. (U) Honduras faces challenges in adequately addressing 
all of the thirteen possible areas of cooperation and 
capacity building that are priorities listed in Annex 16.5 of 
CAFTA-DR.  (Note: the 13 areas are: fundamental rights and 
their effective application, worst forms of child labor, 
labor administration, labor inspectorates and inspection 
systems, alternative dispute resolution, labor relations, 
working conditions, migrant workers, social assistance 
programs, labor statistics, employment opportunities, gender, 
and technical issues.  End Note). 
 
¶35. (SBU) Due to the political crisis following the June 
coup, the USG terminated or significantly limited labor 
related programs on September 3 that assisted Honduras to 
meet its obligations with worker rights under CAFTA-DR. 
These programs included "Strengthening Labor Inspectorates," 
"Comply and Win," "Cultivate," and "Workers Rights Centers." 
USAID's USD 3.5 million labor justice support program, 
"Citizens Access to Labor Justice for CAFTA-DR," was also 
impacted due to limitations on TDY travel to Honduras.  A 
USAID-supported program through the Solidarity Center, 
"Global Trade Union Strengthening Program," was not 
terminated but was impacted under the policy and its 
operations severely limited.  Many of these programs were 
addressing the same fundamental needs outlined here, for 
example supporting workers rights centers and 
professionalization of the Ministry of Labor.  However, all 
these priorities should again be examined given the new 
political dynamic. 
 
¶36. (SBU) We are in a unique position to completely evaluate 
our assistance in Honduras to support better compliance of 
Honduras with its CAFTA-DR obligation to protect labor 
rights.  We believe such an evaluation could be carried out 
after there is a restoration of the democratic and 
constitutional order and we have a better understanding of 
the full impact on labor rights of the June coup and the 
international economic crisis.  We propose that this 
evaluation include a review of the coordination by the USG of 
that assistance.  However, based on our current analysis of 
the situation, we would highlight the following priority 
areas where cooperation should be started or increased when 
the political situation allows: 
 
LABOR RELATIONS 
--------------- 
 
¶37. (U) Union cooperation with labor investigators:  from 
post experience, there appears to be a lack of coordination 
between labor rights investigators of the Ministry of Labor 
and unions.  As outlined in Annex 16.5 of CAFTA-DR, 
signatories are asked to consider the views of its worker and 
employer representatives, as well as those of the public. 
Post believes better coordination between labor investigators 
and unions will lead to better communication about labor 
violations and more goodwill on two very important actors in 
Honduras that support and implement international labor 
standards. 
 
Labor Inspectorate and Inspection Systems 
----------------------------------------- 
 
¶38. (U) Support for labor investigators: The law largely 
provides for the protection of worker's rights, however the 
achievement of this protection is stalled by an inefficient 
inspection system, a low level of resources, and low 
confidence in the MOL as a trustworthy defender of workers 
rights.  Technical assistance programs aimed at fortifying 
labor investigators at the MOL are key to the basic 
protection of worker rights in Honduras and to support full 
compliance with CAFTA-DR by Honduras. 
 
Fundamental Rights and their Effective Application 
--------------------------------------------- ----- 
 
¶39. (U) Support for the operation of unions: The ability of 
unions to function in Honduras is critical to workers' 
ability to self-monitor their own rights, especially given a 
lackluster inspection regime under the MOL and decreased 
confidence in the MOL following the June coup.  Unions in 
Honduras have expressed to post a continued willingness to 
work on collaborative projects since the June coup and 
especially in light of the June coup. Worker union CGT, who 
worked closely with the Solidarity Center to achieve the 
agreement with Russell Athletic over the 2009 closure of a 
factory, expressed to post how this cooperation with a U.S. 
labor organization had positive impacts on their operations 
and would like to seek similar opportunities in the future. 
 
Alternative Dispute Resolution 
------------------------------ 
 
¶40. (U) Teacher pay: As mentioned in the strategy section 
above, teacher pay issues are one of the largest labor rights 
issues in Honduras.  There is great controversy over whether 
the government owes the teachers what they demand and whether 
teachers strike unlawfully.  Post proposes collaborative 
projects over the coming years to bring U.S. teacher unions 
to Honduras to exchange ideas with teacher unions on how to 
address their ongoing conflict with the government over 
salary; we believe local teachers' unions will be receptive 
to the sharing of best practices by teachers' unions in the 
United States. 
 
LLORENS