VZCZCXRO9931
RR RUEHHM RUEHJO RUEHPOD
DE RUEHSN #0156/01 0401851
ZNR UUUUU ZZH
R 091849Z FEB 10
FM AMEMBASSY SAN SALVADOR
TO RUEHC/SECSTATE WASHDC 0347
INFO LABOR COLLECTIVE
WHA CENTRAL AMERICAN COLLECTIVE
RUEHC/DEPT OF LABOR WASHINGTON DC

UNCLAS SECTION 01 OF 05 SAN SALVADOR 000156 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ELAB ECON AID ES
SUBJECT: LABOR MONITORING AND ENGAGEMENT WITH EL SALVADOR 
 
REF: 09 STATE 129631; 10 SAN SALVADOR 45 
 
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Summary 
 
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¶1.  (U) Labor rights in El Salvador are generally respected but 
suffer from inadequate enforcement, and labor discrimination and 
violations of worker's rights do occur.  However, El Salvador's new 
FMLN government has favored greater enforcement of labor rights 
than have prior administrations, and has taken steps to improve its 
labor inspection system as well as enforcement of labor laws. 
USAID sponsors a number of regional programs for CAFTA-DR 
countries, including El Salvador.  The U.S. Department of Labor 
(DOL) and the Department of State fund other labor-related 
programs, including programs in conjunction with the International 
Labor Organization (ILO).  Future programs should focus on 
strengthening the rule of law in the labor area, migrant worker 
issues, and expediting the labor justice system.  End summary. 
 
 
 
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Labor Environment 
 
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¶2.  (U) El Salvador's labor force of approximately 1.72 million is 
perceived as hard working and receptive to training and advanced 
study. The general educational level is low, and the skilled labor 
pool is shallow, which may pose problems for investors needing 
skilled, educated labor. According to many large employers, there 
is a lack of middle management-level talent, which sometimes 
results in foreigners being brought in to perform such tasks. 
Employers have expressed concern with more aggressive government 
efforts to expand unionization inside the private sector.  In 
addition, business leaders have been affected by inefficient 
government processing of applications to export machinery, which 
are required by the Ministry of Labor to ensure that wages owed to 
workers are paid by companies before they downsize or leave the 
marketplace. 
 
 
 
¶3.  (U) In March 2009, voters elected Carlos Mauricio Funes 
Cartagena of the (left-leaning) Farabundo Marti National Liberation 
Front (FMLN) as president for a five-year term in generally free 
and fair elections.  The FMLN government has historically had 
strong ties to many of the country's labor organizations, and the 
Ministry of Labor under the Funes administration has made important 
steps to strengthen labor rights, including facilitating the 
registration of unions, and allowing government workers to 
unionize. 
 
 
 
¶4.  (U) Although hard-line elements of the FMLN aspire to establish 
Chavista-style socialism, President Funes has maintained a 
commitment to economic development through a free-market system. 
Minister of Labor Victoria Marina Vel????squez de Avil????s and Vice 
Minister Calixto Mejia Hern????ndez have emphasized their support for 
rule of law in labor disputes.  They have also embraced the themes 
of corporate social responsibility and social dialogue, following 
the ILO's tripartite framework and its "White Book" 
recommendations.  The Salvadoran government (GOES) and the Ministry 
of Labor (MOL) have stated their desire to work cooperatively with 
the private sector to encourage economic growth. 
 
 
 
¶5.  (U) The U.S.-Central America-Dominican Republic Free Trade 
Agreement (CAFTA-DR), implemented between El Salvador and the 
United States on March 1, 2006, provides El Salvador preferential 
access to U.S. markets.  Information on CAFTA-DR and other labor 
programs can be found in paragraphs 16 through 18. 
 
 
 
¶6.  (U) In 2006, the Government of El Salvador and the Millennium 
 
SAN SALVAD 00000156  002 OF 005 
 
 
Challenge Corporation (MCC) signed a five-year, $461 million 
anti-poverty Compact to stimulate economic growth and reduce 
poverty in the country's northern region through investments in 
education, public services, enterprise development, and 
transportation infrastructure. 
 
 
 
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Labor Rights 
 
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¶7.  (U) The constitution permits public and private sector workers 
to form unions.  The only restriction on forming unions affects the 
public sector and specifically the police force, the army and the 
members of the judiciary, as well as all high-level public 
officials.  While the law prohibits anti-union discrimination, 
discrimination does occur.  Employers are free to hire union or 
non-union labor. Closed shops are illegal.  The constitution 
recognizes the right to strike, which is freely practiced by labor 
unions, despite cumbersome regulatory requirements which are 
ignored in practice. 
 
 
 
¶8.  (U) There have historically been problems with employers who 
illegally retain workers' social security and pension benefits, 
violate labor safety conditions, practice labor discrimination, and 
commit violations against the freedom of association and the right 
to strike.  Although the law prohibits discrimination on the basis 
of race, gender, disability, language, or social status, in 
practice the government does not effectively enforce these 
prohibitions. There is discrimination against women, persons with 
disabilities, gay and lesbian persons, and indigenous people. 
Gender-based wage disparity also remains a problem.  There have 
been allegations of corruption among labor inspectors in the 
apparel assembly industry. 
 
 
 
¶9.  (U) The law prohibits forced or compulsory labor, as well as 
the employment of children under the age of 14, but child labor 
remains a serious and widespread problem.  There have been 
allegations of trafficking of persons for forced commercial sexual 
exploitation and apparel assembly labor. 
 
 
 
¶10.  (U) The MOL is responsible for setting workplace safety 
standards, and the law on occupational health and safety standards 
establishes a tripartite committee to review the standards.  The 
MOL has 159 labor inspectors distributed nationwide.  The 
government passed a new occupational health and safety law in 
January. 
 
 
 
¶11.  (U) The MOL enforces minimum wage laws, which are set by 
executive decree, based on recommendations from a tripartite 
committee comprising representatives from labor, government, and 
business. There is no national minimum wage; the minimum wage is 
determined by sector.  The minimum daily wage in 2009 was $6.92 for 
retail and service employees, $6.77 for industrial laborers, and 
$5.79 for apparel assembly workers. The agricultural minimum wage 
was $3.24.  The minimum wage did not provide a sufficient standard 
of living for a worker and family.  Although during 2009 basic 
subsistence costs for food were $169.34 per month, the highest 
monthly minimum wage nationally was $207.60.  The MOL recently said 
it would like to raise the minimum wage in the textile sector. 
 
 
 
¶12.  (U) The law sets a maximum normal workweek of 44 hours, 
limited to no more than six days, and requires bonus pay for 
overtime.  The law mandates that full-time employees be paid for an 
eight-hour day of rest in addition to the 44-hour normal workweek. 
The law prohibits compulsory overtime.  The government's gender and 
labor discrimination unit reported that assembly plants generally 
respect the laws on overtime.  However, most of these plants 
require workers to work extra days in order to meet production 
goals, with a promise of incentive pay in addition to overtime. 
 
SAN SALVAD 00000156  003 OF 005 
 
 
¶13.  (U) Sources: 
 
 
 
-- Country Reports on Human Rights Practices: 
http://www.state.gov/g/drl/rls/hrrpt/ 
 
 
 
-- El Salvador Post Report: ( 
http://mmsweb.a.state.gov/asp/postreport/view /pr_view.asp?CntryID=4 
8 
 ) 
 
 
 
-- Background Note: El Salvador (September 2009): ( 
http://www.state.gov/r/pa/ei/bgn/2033.htm 
 ) 
 
 
 
-- 2009 Investment Climate Statement - El Salvador: 
http://www.state.gov/e/eeb/rls/othr/ics/2009/ 117666.htm 
 
 
 
 
-- Labor regulations, Ministry of Labor: http://www.mtps.gob.sv 
 
 
 
 
¶14.  (U) Key Organizations involved in labor rights issues: 
 
 
 
-- Ministry of Labor and Social Provision 
 
-- International Labor Organization (ILO) 
 
-- National Council for Disabled Persons (CONAIPD) 
 
-- Survivors Network (Disability advocacy NGO) 
 
-- The Salvadoran Institute for the Development of Women (ISDEMU) 
 
-- The Salvadoran Network Against Trafficking, made up of the ILO, 
Catholic Relief Services, Save the Children, the Anglican Church of 
El Salvador, CARECEN International, Caritas, and the Salvadoran 
National Women's Commission. 
 
 
 
¶15.  (U) Point of contact for FTA labor matters in the host 
country's labor ministry: Michelle Garc????a, Legal Advisor on Free 
Trade Labor Agreements.  Tel. 2209-3734. 
 
 
 
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Current Programs 
 
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¶16.  (U) USAID estimates that there are approximately 87 labor 
programs operating in the CAFTA-DR countries. The most salient of 
those affecting El Salvador are listed below. 
 
 
 
¶17.  (U) USAID Programs:  USAID's current labor justice programs 
are regional programs, and the areas of assistance listed below 
generally apply to all the CAFTA-DR countries: 
 
 
 
-- Strengthening Labor Justice Program for CAFTA-DR aims at 
transparent and efficient labor justice through the use of 
electronic case tracking and management systems in all CAFTA-DR 
countries, the raising of professional standards in the judiciary 
and labor-related sectors, and the use of alternative dispute 
 
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resolution in labor justice cases. 
 
 
 
-- Citizens' Access to Labor Justice Program for CAFTA-DR works 
with civil society organizations to increase access to labor 
justice.  The components of the program are: strengthening public 
defense (free legal aid), civil society monitoring of labor 
justice, training of the ombudsman's offices in labor 
discrimination, and interest-based bargaining for labor conflicts. 
 
 
 
-- Modernization of Labor Ministries Program for CAFTA-DR supported 
the use of information communication technology (ICT) by Ministries 
of Labor throughout the region in order to deliver services to 
workers and employers, as well as to the ministries' civil 
servants.  The project assisted the Labor Ministries to upgrade 
antiquated systems, hire and train professional personnel, 
reorganize to better utilize management information, and identify 
dedicated financing needed for sustainability.  The project ended 
in December 2009. 
 
 
 
-- More information on USAID programs is available at 
http://www.usaid.gov/sv/development.html. 
 
 
 
¶18.  (U) Other programs of note include the following: 
 
 
 
-- The GOES, in conjunction with the ILO, operated child labor 
awareness programs supported by the Department of Labor to 
encourage school attendance, and developed a "Road Map" in 
conjunction with the ILO for the elimination of child labor in its 
worst forms by 2015 and in its totality by 2020.  The private 
sector also provides support for efforts to combat child labor. 
 
 
 
-- Cumple y Gana, a Department of Labor (DOL)-funded NGO, recently 
completed a training program for MOL inspectors, assisting in the 
building of more effective and reliable Labor Ministry Inspection 
Systems to enforce labor laws. 
 
 
 
-- Solidarity, an AFL-CIO outreach organization funded in part by 
DRL, also works with local NGO Centro de Estudios y Apoyo Laboral 
(Center for Labor Studies and Support, abbreviated CEAL) to train 
labor organizations about basic labor law and international labor 
instruments that protect the rights of workers. 
 
 
 
-- Business for Social Responsibility (BSR) - in partnership with 
the Center for Latin American Competitiveness and Sustainable 
Development (CLACDS) at the INCAE business school - conducts a 
Responsible Competitiveness program that targets companies, 
executives, and investors throughout the region to promote 
corporate social responsibility (CSR). 
 
 
 
-- Improving Employer Compliance with Social Security Laws, a 
Department of Labor project implemented through Alexius 
International, is creating a communications platform that will 
allow the GOES to forward social security payment receipt 
notifications to workers to allow them to notify the Social 
Security Institute in case of an anomaly, e.g., nonpayment of 
benefits by an employer. 
 
 
 
-- In January, Department of Labor (DOL) Deputy Undersecretary for 
International Affairs Sandra Polaski met with GOES officials to 
promote the Better Work Program and to initiate discussions on a 
new child labor program (ref B).  The DOL plans further meetings 
with GOES officials to implement these programs. 
 
 
 
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Recommendations 
 
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¶19.  (U) El Salvador's foremost co-operation needs at this time are 
guidance in the rule of law regarding the administration of labor 
law, contract enforcement, and mediation.  Post's recommendations 
and suggestions for further cooperation assistance for El Salvador 
are the following: 
 
 
 
-- Improvement of labor sentences enforcement (including design and 
implementation of preventive measures); 
 
 
 
-- Linkage of administrative (Ministry of Labor) and judicial 
(labor court) labor processes, including enforcement of 
administrative decisions, and rules of evidence; 
 
 
 
-- Restructuring and strengthening bar associations; 
 
 
 
-- Legal reforms, including reforms to the procedural labor code 
and occupational safety requirements. 
 
 
 
-- Studies on migratory workers and working conditions for migrants 
in El Salvador. 
 
 
 
¶20.  (U) POC for USAID Labor Programs in El Salvador is Regional 
Labor Justice Programs Manager Ivan Seassal.  Contact: 
iseassal@usaid.gov; phone:(503) 2501-3382. 
 
 
 
¶21.  (U) Embassy POC is Labor Officer Michael Roth.  Contact: 
rothmr@state.gov; phone: (503) 2501-2050. 
McGEE