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FM AMEMBASSY TEGUCIGALPA
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INFO RUEHWH/WESTERN HEMISPHERIC AFFAIRS DIPL POSTS
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHC/DEPT OF LABOR WASHDC
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RUEAIIA/CIA WASHDC
RHMFISS/COMSOCSOUTH
RUEIDN/DNI WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUEKJCS/SECDEF WASHDC
RUMIAAA/USSOUTHCOM MIAMI FL

UNCLAS SECTION 01 OF 02 TEGUCIGALPA 000164 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV ELAB ECON PHUM PREL HO
SUBJECT: AMBASSADOR'S MEETING WITH MINISTER OF LABOR 
 
¶1. (SBU)  Summary:  Secretary of State of Labor and Social 
Security Felicito Avila told the Ambassador during a February 
22 courtesy call that the Lobo government needs to have a 
holistic view of the labor situation that provides assurances 
to both workers and businessmen.  Avila said his role is to 
ensure that the labor law is applied and cited addressing the 
country's unemployment and attracting investment as key 
goals.  The Ambassador told Avila that the United States is 
concerned about child labor in Honduras.  Avila responded 
that this is a very important issue and that he would 
coordinate with the rest of the government to ensure that the 
law prohibiting child labor is enforced.  End Summary. 
 
¶2. (SBU) The Ambassador, accompanied by the Political and 
Economic Counselors and the Director of USAID's Democracy and 
Governance Office, paid a February 22 courtesy call on 
Secretary of State of Labor and Social Security Felicito 
Avila.  Avila said a change in Hondurans' attitude is needed, 
but that this will take time to accomplish.  Avila said that 
the government needs to take a holistic view of the labor 
situation that provides assurances to both workers and 
businessmen.  Avila said his role is to ensure that labor law 
is applied.  Avila said he seeks to eliminate having his 
ministry viewed as just the arbiter of labor disputes and 
wants to become an institution that builds confidence between 
business and labor.  Avila cited as an example a program 
called "My First Job" that provides employment opportunities 
to 16 and 17 year olds to give them self-assurance about 
their ability to enter the workforce.  Avila noted that his 
Ministry is engaged in discussions with the Colombian Embassy 
to determine how they can cooperate on capacity building. 
Avila informed the Ambassador that his ministry is in the 
process of creating a tripartite technical commission that 
will advise the business community and workers' 
organizations.  He told the Ambassador that addressing the 
country's unemployment problem is important.  Avila said 
small and medium businesses are unable to bear the cost of 
the minimum wage and an exemption will have to be carved out 
for them while larger enterprises will have to comply with 
the law.  (Note: The administration of former President Jose 
Manuel "Mel" Zelaya raised the minimum wage by sixty percent 
in early 2009.  End Note.)  Avila stated that social 
conditions need to be addressed to guarantee the buying power 
of workers' salaries. 
 
¶3. (SBU) Avila cited attracting investment as another key 
goal.  The Ambassador said the Honduran investment climate 
has a high degree of uncertainty, due to an ineffective 
judicial system, weak property rights protection, corruption, 
and unskilled labor.  In this uncertain environment, 
investors will seek a higher rate of return for every dollar 
of investment, and will be less willing to provide good 
long-term benefits to employees.  The Ambassador told Avila 
that if the risk of investing in Honduras were decreased, 
investors would be willing to put more money into the country 
at a lower rate of return, and be that much more generous in 
terms of benefits for their workers.  The Ambassador told 
Avila that the U.S. was very pleased to hear of the November 
2009 agreement between workers and Fruit of the Loom's 
Russell Corporation over the closure of the "Jerzees de 
Honduras" factory in Choloma and noted that he would be 
attending the reopening of the factory on March 3.  The 
Ambassador added that it will send a positive signal about 
investment in the region.  Avila responded that he would like 
that agreement to serve as an example for the future. 
 
¶4. (SBU) The Ambassador told Avila that the United States is 
particularly concerned about exploitative and forced child 
labor in Honduras.  Avila responded that this is a very 
important issue and that the Honduran law prohibiting child 
labor must be enforced.  Avila told the Ambassador that he 
will coordinate with the rest of the government to ensure 
this is done.  Avila said it is important to carry out 
inspections to ensure companies are not utilizing child labor 
and also to take measures to ensure that children stay in 
school. 
 
¶5. (SBU) Biographic Information: Felicito Avila was the 
presidential candidate of the Christian Democratic Party in 
the 2009 general election and came in fourth in a field of 
 
TEGUCIGALP 00000164  002 OF 002 
 
 
five candidates, earning 1.8 percent of the vote.  Avila ran 
on a platform that advocated public order, respect for the 
law, and combating corruption.  He promised to ensure health 
care and education for all Hondurans.  He planned to develop 
agro-industry and small and medium enterprises.  Avila is 
widely liked and viewed as an honest and hardworking man.  He 
is well-known mainly due to his work in the labor movement. 
Avila has held positions including: General Center of Workers 
representative to the Honduran Institute of Social Security, 
delegation member of the Central American Free Trade 
Agreement-Dominican Republic (CAFTA-DR) negotiations, Civil 
Society Representative in the Consultative Group for Central 
American in Washington, D.C. and Stockholm, Sweden, and 
representative for the Latin American Workers Committee 
(CLAT), a group representing more than 20 million organized 
laborers.  After he left primary school at age 15 to enter 
the workforce, Avila participated in a variety of 
international labor courses in Europe and Latin America.  In 
addition to his tenure in the labor movement, Avila also 
worked as a teacher.  Avila was born on February 21, 1949 in 
the Department of Valle.  He is Catholic, married, and has 
five children.  His English level is unknown. 
 
LLORENS