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### Viewing cable 10SANJOSE110, COSTA RICA: LABOR UNIONS SQUARE OFF AGAINST THE GOVERNMENT

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
10SANJOSE110 | 2010-01-27 19:07 | 2011-03-21 16:04 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy San Jose

`

    VZCZCXYZ0016
    RR RUEHWEB

    DE RUEHSJ #0110 0271948
    ZNR UUUUU ZZH
    R 271947Z JAN 10
    FM AMEMBASSY SAN JOSE
    TO RUEHC/SECSTATE WASHDC 0284
    INFO WHA CENTRAL AMERICAN COLLECTIVE
    RUEHC/DEPT OF LABOR WASHINGTON DC

` `

    UNCLAS SAN JOSE 000110

    SENSITIVE
    SIPDIS
    SIPDIS
    DEPT FOR WHA/CEN
    DRL

    E.O. 12958: N/A
    TAGS: PGOV ELAB PHUM ECON CS
    SUBJECT: COSTA RICA: LABOR UNIONS SQUARE OFF AGAINST THE GOVERNMENT

    ¶1. (U) Summary: Union leaders from Costa Rica's largest ports ended
    a five-day sit-in at the Ministry of Labor (MOL) headquarters on
    January 25 without coming to an agreement over what they see as
    government interference in union activities in the potential
    concession of the ports.  The union, which is being supported by
    the major labor confederations in Costa Rica, has told us that they
    are now planning to hold a strike at the Limon/Moin ports, though
    they have yet to determine when it will begin or if other public
    sector unions will go on strike as well.  End Summary.

    ¶2. (U) The union and the government have long wrangled over the
    concession of the poorly-run ports, which union leaders firmly
    oppose for fear of the potential layoffs.  The government has
    offered union members up to $7200 per year for twenty years in
    order to agree to the concession, however union leaders have
    refused to hold a vote on the subject since February 2009.   A
    group of 377 of the roughly 1300 union workers voted on the
    government buy-out at an independent meeting held on January 15 and
    94% voted in favor of the plan.  However, the union is protesting
    this meeting as illegal as it was not organized by the union (and
    in fact union leaders allege it was convened by a government
    representative), sets a precedent for government involvement in
    union activities, and also only involved roughly a quarter of union
    members.

    ¶3. (U) On January 20th roughly fifty members of the ports union and
    other union confederations began protesting in front of the
    Ministry of Labor to call on the Ministry to void the results of
    the non-union vote.  When the government refused to discount the
    vote (stating it had yet to receive a report of it, and would not
    rule on it until it had actually reviewed the facts of the vote),
    roughly twenty union leaders began a sit-in in the Minster of
    Labor's office which continued until January 25.  Union leaders
    have told us that though they have given up their protest at the
    MOL, they now plan to organize a strike at the Limon/Moin ports and
    will consider the feasibility of organizing supporting strikes at
    other "principle organizations within the country."  The union also
    says that it is now ready to hold a full assembly of its members to
    vote on the concession.

    ¶4.  (U) In general, the USG views favorably the prospect of a
    Limon/Moin ports concession as the port complex has historically
    underperformed compared to other ports in the region.  Eighty
    percent of the country's exports go through these very inefficient
    ports which have an average wait time of 42 hours.  The two ports
    have only one functioning crane and little other equipment.  The
    ratio of workers to tons of container cargo is significantly lower
    than other successful ports in Latin America.  The Caribbean ports
    desperately need modernization.  Few private companies will be
    interested in the port concession without a severance agreement
    between the port workers and GOCR.

     ¶5. (SBU) Comment:  The union leadership is dealing with a
    fracturing of its membership, and has used every method available
    to delay a vote on the concession.  President Arias and his
    administration are intent on pushing through a ports deal, and have
    been frustrated by the union's attempts to block the concession.
    Thus the government encouraged the non-union vote (even if they
    stopped short of actually organizing it, as the unions allege),
    hoping that it would be enough to move forward with the concession.
    We expect the government to continue to look for ways to push
    through a deal, but it will ultimately respect the confines of what
    labor law dictates.  In addition to striking, the union could also
    challenge the government's actions in the courts-a move which would
    undoubtedly delay any possible concession even further.
    ANDREW

`