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### Viewing cable 05SANJOSE1712, COSTA RICAN LABOR UNIONS LOOK FOR WAYS TO COMBAT

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
05SANJOSE1712 | 2005-07-28 21:09 | 2011-03-03 16:04 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy San Jose

Appears in these articles:
http://www.nacion.com/2011-03-03/Investigacion/NotasDestacadas/Investigacion2697430.aspx
http://www.nacion.com/2011-03-03/Investigacion/NotaPrincipal/Investigacion2697496.aspx
http://www.nacion.com/2011-03-03/Investigacion/NotasSecundarias/Investigacion2697489.aspx
http://www.nacion.com/2011-03-03/Investigacion/NotasSecundarias/Investigacion2697532.aspx
http://www.nacion.com/2011-03-03/Investigacion/NotasSecundarias/Investigacion2697535.aspx
http://www.nacion.com/2011-03-03/Investigacion/NotasSecundarias/Investigacion2701964.aspx
http://www.nacion.com/2011-03-03/Investigacion/Relacionados/Investigacion2701965.aspx

`

    This record is a partial extract of the original cable. The full text of the original cable is not available.

` `

    UNCLAS SECTION 01 OF 02 SAN JOSE 001712

    SIPDIS

    SENSITIVE

    DEPT FOR WHA/CEN BBOYNTON

    E.O. 12958: N/A
    TAGS: ELAB ETRD CS
    SUBJECT: COSTA RICAN LABOR UNIONS LOOK FOR WAYS TO COMBAT
    CAFTA-DR

    REF: A. 04 SAN JOSE 2628

         ¶B. SAN JOSE 1153
         ¶C. SAN JOSE 944

    ¶1. (SBU) Summary: Costa Rica's labor unions, flush from their
    earlier successes in intimidating President Abel Pacheco,
    recently fell back to earth when planned demonstrations
    against the Central American-U.S.-Dominican Republic Free
    Trade Agreement (CAFTA-DR) fizzled.  Now, with possible
    adoption and implementation of the trade agreement looming,
    the somewhat-humbled unions are joining with their regional
    counterparts to redefine their message and mission.  While
    not abandoning their vehement opposition to CAFTA-DR and free
    trade agreements in general, there are some indications that
    the unions are gradually coming to terms with the inevitable
    adoption of multiple free trade agreements, and are shaping
    their upcoming agenda to regain a legitimate, participatory
    role in determining Costa Rica's free trade policy.  End
    Summary.

    --------------------------------------------- ----------
    FROM LIMELIGHT TO SEARCHLIGHT: LOOKING FOR LABOR'S ROLE
    --------------------------------------------- ----------

    ¶2. (SBU) During President Abel Pacheco's term of office, none
    of his political adversaries have been more opportunistic or
    more successful at intimidating the President than the
    country's public sector labor unions.  On numerous occasions,
    Pacheco has caved in to union demands in the face of large
    strikes, even in cases where courts had ruled the strikes
    illegal.  With each political victory, union leaders felt
    their power increasing, and became bolder in their opposition
    to Pacheco's policies (Reftel A).  Thanks to his charismatic
    leadership and constant media exposure, Albino Vargas,
    president of the National Association of Public and Private
    Employees (ANEP), became a minor celebrity.  Thus, from the
    moment of its introduction, Vargas and other union leaders
    brashly denounced CAFTA-DR, contending that it would result
    in high unemployment, deterioration of public services,
    inflation and massive industry shifts, and would further
    exacerbate perceived labor abuses.

    ¶3. (SBU) Despite acceptance of CAFTA-DR by the general
    public, labor leaders confidently promised Pacheco that they
    would muster thousands to protest should he present the
    agreement to the Legislative Assembly for debate.  True to
    his history, and despite his initial support for the
    agreement, Pacheco immediately began to waver.  Afraid of
    widespread strikes and mass demonstrations, Pacheco has for
    the past year looked for any opportunity to postpone sending
    CAFTA-DR to the legislative assembly for approval.

    ¶4. (SBU) In April 2005, however, labor leaders went too far
    by targeting Oscar Arias, front-runner for president in next
    year's elections and an ardent CAFTA-DR supporter.  In their
    anti-CAFTA-DR zeal, labor leaders stated that they would not
    recognize an Arias victory at the polls (Reftel B).  This
    message did not resonate well a population proud of its
    democratic traditions, and ultimately backfired.  The
    unionists latest attempt (in May) to flood the streets with
    angry marchers failed, with small, disheartened groups that
    disappeared at the first sign of rain (Reftel C).  Recent
    polls show a majority of Costa Ricans support CAFTA-DR, and
    events have shown that those who don't support the deal have
    not been able to make good on their threats to "take it to
    the streets."

    ¶5. (SBU) With U.S. Congressional approval of CAFTA-DR and
    increasing pressure on President Abel Pacheco to present the
    treaty for Costa Rican legislative consideration, Costa
    Rica's labor organizations are struggling to find a role to
    play in the debate.  While the unions have never wavered in
    their opposition to CAFTA-DR, and continue to rail against it
    with every opportunity, the only person who appears to be
    really taking them seriously is President Pacheco.  It is
    difficult to say whether declining opposition to CAFTA-DR is
    due to an on-going backlash at the demagoguery of certain
    labor leaders, media fatigue, or to a growing understanding
    of globalization and a desire not to be left behind.
    Whatever the reason, as their audience dwindles, the labor
    organizations are struggling to regain their hold on the
    public's attention.

    --------------------------------------------- ------
    MISERY LOVES COMPANY: CA LABOR UNIONS MEET, REFOCUS
    --------------------------------------------- ------

    ¶5. (SBU) Given the context in which it was convened, many
    expected grand statements of solidarity to emerge from the
    July 12-13 conference of Central American labor leaders,
    organized by the Central American Common Labor Platform
    (PSCC) and held in San Jose.  However, the only sign that
    such a meeting even occurred was a single article in national
    daily newspaper "Prensa Libre," which detailed plans for a
    Central American Labor Summit in October, with others to
    follow through the end of the year.  Puzzled by the lack of
    public statements to emerge from the conference, Poloff
    contacted Edgar Morales, deputy secretary general of ANEP.
    According to Morales, the chief purpose of the July
    conference was simply to lay the groundwork for the October
    summit.  He stated that the October meeting would include not
    just regional labor leaders, but industry and political
    invitees as well.  While CAFTA-DR is an intended topic of
    discussion, Morales stated that the principal theme will be
    twenty years of unfair labor practices in all the Central
    American countries.  Also on the agenda are free trade
    policies in general, workers' rights, and International Labor
    Organization (ILO) conventions and their implementation.

    ¶6. (SBU) Predictably, union leaders have responded to U.S.
    Congressional approval of CAFTA-DR with dismay and promises
    to continue fighting the good fight.  In a conversation with
    Poloff, Rodrigo Aguilar, president of one of Costa Rica's
    largest labor organizations, the Rerum Novarum Workers'
    Confederation, expressed his hope that President Pacheco's
    "Commission of Eminent Persons" will recommend against
    implementation of CAFTA-DR.  Aguilar believes that Pacheco
    will resist pressure to send the treaty to the legislature
    until after the commission has rendered a decision; Aguilar
    concedes, however, that no one has yet been able to
    accurately predict what Pacheco will do.  According to
    Aguilar, leaders of all Costa Rica's major labor
    organizations will be convening on Tuesday, August 2, to
    discuss strategy, and will release details to the public
    sometime after August 3.  Albino Vargas, head of ANEP, told
    the press that regardless of Congressional approval of
    CAFTA-DR, his organization would continue its fight against
    the treaty.  Both Vargas and Aguilar reiterated their
    commitment to organize large demonstrations upon the
    agreement's presentation to the Legislative Assembly.

    -------
    COMMENT
    -------

    ¶7. (SBU) Now that the U.S. Congress has blessed CAFTA-DR,
    President Pacheco will be under increasing pressure to
    present it to the Legislative Assembly.  Even if Pacheco
    decides not to act, the February 2006 elections will serve as
    a public referendum on CAFTA-DR, in which case the unions'
    successful intimidation of Pacheco could backfire on them.
    Oscar Arias has already signaled his intention to fight for
    adoption of CAFTA-DR, and if he wins convincingly, he will
    certainly follow through with his plan to present the treaty
    for legislative approval.  With adoption and implementation
    growing more likely, the unions have to make a decision:
    continue to kick against the tide of globalization and free
    trade, or work constructively with the government to have a
    hand in equitable implementation.
    KAPLAN

`