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### Viewing cable 05PANAMA810, PANAMA'S SUNTRACS: UNION OR POLITICAL PROTEST

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
05PANAMA810 | 2005-04-11 21:13 | 2011-05-31 00:00 | CONFIDENTIAL | Embassy Panama

`

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

` `

    C O N F I D E N T I A L SECTION 01 OF 04 PANAMA 000810

    SIPDIS

    STATE FOR WHA/CEN
    SOUTHCOM ALSO FOR POLAD

    E.O. 12958: DECL: 04/11/2015
    TAGS: PGOV PREL ELAB PINR SOCI PM CU VE LABOR HUMAN RIGHTSPOLMIL
    SUBJECT: PANAMA'S SUNTRACS: UNION OR POLITICAL PROTEST
    MOVEMENT?

    REF: A. 03 PANAMA 02416
         ¶B. 03 PANAMA 02308
         ¶C. 03 PANAMA 02321
         ¶D. PANAMA 00628
         ¶E. 04 PANAMA 02661
         ¶F. 04 PANAMA 00892

    Classified By: DCM CHRIS MCMULLEN FOR REASONS 1.4 (B) AND (D)

    SUMMARY
    -------

    ¶1. (C)  Recalling the September 2003 street violence sparked
    by the firing of Social Security (CSS) director Juan Jovane
    (reftels A, B, C), Panama is collectively holding its breath
    as the GOP prepares to release its proposed CSS reforms.  The
    SUNTRACS construction union and its labor confederation
    CONUSI are at the center of past, present, and future CSS
    protest (reftels B, D).  By their own self-evaluation,
    SUNTRACS and CONUSI aspire to revive a nationalistic,
    class-conscious union movement, guided by Marxist theory and
    rejecting "neoliberalism."  SUNTRACS and CONUSI officials
    played down their radical, rabble-rouser reputations at
    recent separate discussions with PolOff.  Instead, they cast
    themselves as pragmatic political organizers with a
    well-thought-out, concrete, and reasonable program of ideas
    on CSS reform and on the proper role of the Panamanian labor
    movement.  SUNTRACS's advantageous collective bargaining
    agreement with construction firms gives it financial and
    political independence (especially from the ruling PRD party)
    that sets it apart from other labor unions in Panama.  At the
    same time, the SUNTRACS and CONUSI leadership are
    ideologically attuned to Cuba and Venezuela, although rumors
    about Cuban and/or Venezuelan financial support are harder to
    pin down.  SUNTRACS's penchant for violence makes it a target
    of widespread public criticism.  End Summary.

    $6,000,000 STRIKE FUND
    ----------------------

    ¶2.  (SBU)  SUNTRACS Secretary General Genaro Lopez, CONUSI
    Secretary General Gabriel Castillo, and Minister of Labor
    Reynaldo Rivera all told PolOff in recent weeks that
    SUNTRACS's strength comes from its advantageous collective
    bargaining agreement with the Panamanian Chamber of
    Construction (CAPAC).  The agreement permits SUNTRACS (Sole
    National Union for Construction and Related Industry) to
    collect 2% of workers' wages from construction firms under
    the agreement.  In recent years that has totaled $500,000
    annually, according to Lopez, as employers pay dues under the
    agreement for 5,000 SUNTRACS members.  (Note: SUNTRACS has
    38,000 members, some of whom are unemployed, but the
    collective bargaining agreement covers only 5,000 of its
    employed members.  End Note.)  As a result, Minister Rivera
    asserts, SUNTRACS wields a $6 million strike fund.

    OF NATIONALISM AND NEOLIBERALISM
    --------------------------------

    ¶3.  (SBU)  In a country that only recovered control of the
    Canal Zone in 1999, SUNTRACS frames its class-conscious
    arguments as a nationalist fight for sovereignty.  Lopez told
    PolOff that he rejects "neoliberalism" because GOP
    privatization of state-owned companies has caused a loss of
    sovereignty (as foreign firms have entered the market as
    investors), a loss of jobs, and an export of profits.
    Privatizations, he asserted, increased prices but decreased
    services.  (Note: In October 2004, a combination of firings,
    price increases, and electrical power outages helped touch
    off violent SUNTRACS-backed protests in Bocas del Toro.  See
    Reftel E.)

    CLASS-CONSCIOUS REVIVAL
    -----------------------

    ¶4.  (SBU)  SUNTRACS's motto -- recalling the radical
    syndicalism of the Industrial Workers of the World (or IWW)
    -- is one "grand, class-conscious, combative, and
    revolutionary" union.  A 1999 SUNTRACS publication, still
    posted on its website, outlines its "Class-Conscious Project
    of the Panamanian Union Movement."  The document argues that
    General Omar Torrijos (President Martin Torrijos's deceased
    father) destroyed class-based unionism in Panama thirty years
    ago by coopting the union leadership, leaving it docile,
    disorganized, undemocratic, and corrupt.  (According to one
    scholar, General Torrijos brought pro-Moscow union leaders
    into his government who would play ball, while persecuting
    others.)

    ¶5.  (SBU)  SUNTRACS's "Class-Conscious Project" concludes
    with a Marxist ideological flourish stressing that the
    highest aspirations of the working class cannot be achieved
    in a capitalist society but only through "radical
    transformation of unjust structures in the present
    exploitative system and construction of a free and just
    society" without private property or exploitation.

    CONUSI: TO STRENGTHEN THE MOVEMENT
    ----------------------------------

    ¶6.  (SBU)  In 1998, SUNTRACS formed the labor confederation
    CONUSI (Confederation of Independent Labor Unions) in an
    attempt to return the Panamanian union movement to its
    class-conscious roots by:

    -  ending union cooptation and corruption;

    -  using "combative" methods (like street closures) in
    addition to negotiation;

    -  uniting with democratic, patriotic, and popular sectors
    against neoliberalism; and

    - creating a nationalist, working-class consciousness.

    ¶7.  (SBU)  CONUSI has some 60,000 members from 26 unions and
    4 federations and is one of eight members of Panama's
    principal union umbrella organization, the National Council
    of Organized Workers of Panama (CONATO).  According to
    Castillo, CONUSI members include electrical engineers, canal
    mechanics, and communications, airline, supermarket, and
    banana plantation workers.  SUNTRACS provides financial and
    technical assistance to CONUSI.

    PRAGMATIC UNION ORGANIZERS?
    ---------------------------

    ¶8.  (SBU)  Despite the "New Left" rhetoric in SUNTRACS's and
    CONUSI's publications, Castillo and Lopez are hardly
    ideological anachronisms.  They came across to PolOff as
    pragmatic, politically savvy organizers.  Lopez described
    SUNTRACS as a union whose social movement lies in its
    influence within CONUSI.  Sizing up the forces at his
    disposal, Lopez emphasized that SUNTRACS and CONUSI serve as
    political counterweights to the private sector that (he
    hopes) will prevent the government from backing private
    sector interests wholesale.

    APART FROM COMMUNIST SYMPATHIES...
    ----------------------------------

    ¶9.  (SBU)  The media has occasionally linked Lopez and
    SUNTRACS officials to communist and Cuban influence.  In a
    1998 press article, Lopez allegedly admitted to being a
    communist.  Lopez was reluctant to characterize his ideology
    to PolOff, saying only that he "can't deny that he aspires to
    a more just society."  His words echoed his August 1999
    preface to the "Class-Conscious Project" where he wrote that
    "the important thing is that we continue fighting for the
    construction of a more just society, socialism."

    ...AND ALLEGED CUBAN TIES...
    ----------------------------

    ¶10.  (SBU)  In early May 2001, Panamanian media published a
    partially obscured photo of Lopez supposedly handing out
    leaflets with Cuban Embassy official Felix Luna Menderos at a
    protest against a GOP plan to raise bus fares.  Both the
    Cuban Embassy and SUNTRACS denied any attempt to collude to
    overthrow Panama's constitutional order and Luna denied
    funding SUNTRACS (though Luna has never denied meeting with
    Lopez).  The media later identified the man in the photo with
    Lopez as a Panamanian.  SUNTRACS Secretary General Saul
    Mendez accused the Moscoso administration of trying to
    discredit SUNTRACS at the time, but also admitted to having
    traveled to Cuba to attend a Congress of a Cuban union on May
    1, 2001.  Nonetheless, many Panamanians believe that Cuba
    provides financial support and/or tactical advice to
    SUNTRACS.

    INDEPENDENCE FROM PANAMANIAN POLITICAL PARTIES STANDS OUT
    --------------------------------------------- ------------

    ¶11.  (SBU)  Reacting to rumors pointing to Cuban financing
    (reftels B, E, F), Lopez insisted to PolOff that since 1990
    (after Operation Just Cause unseated the military government
    that nourished it) SUNTRACS has maintained its independence
    from political parties, foreign governments, and
    international organizations.  He denounced allegations of
    Cuban financing as "GOP lies."  Lopez acknowledged that prior
    to 1990 (SUNTRACS was formed in 1972), SUNTRACS received
    support from Panama's military regime.  Lopez assumed
    responsibility for SUNTRACS in 1990.

    ¶12.  (C) Corroborating Lopez's claims, MOJG Security Advisor
    Severino Mejia told PolOff that SUNTRACS is a purely domestic
    and internal group with no links to foreign nations or
    international terrorist organizations.  Similarly, Labor
    Minister Rivera denied any foreign influence in SUNTRACS or
    CONUSI.

    ¶13.  (SBU)  Lopez contrasted SUNTRACS's financial and
    political independence, made possible by its collective
    bargaining agreement with CONATO's union confederations.  He
    then rattled off each group's affiliation, all of which he
    asserted receive financing from the governing PRD party,
    except the Group Confederation of Workers (CGT) (Panamenista
    Party) and the General Worker's Central of Panama (CGTP)
    (Democratic Change Party).  Lopez underscored the PRD's hold
    over the union movement, pointing out that Minister of
    Government and Justice Hector Aleman had been General
    Secretary of the government employees' umbrella organization,
    FENASEP.  (Note: FENASEP's current Secretary General is
    Leandro Avila, a PRD legislator elected in May 2004).

    VIOLENT TACTICS ALIENATE PANAMANIAN PUBLIC
    ------------------------------------------

    ¶14.  (C)  The Moscoso administration often accused SUNTRACS
    of trying to destabilize Panama, citing its pro-Cuba marches
    during the 2000 Ibero-American summit, its anti-bus-fare hike
    demonstrations in 2001, and its pro-Juan Jovane demos in
    ¶2003.  The union's trademark tactics include attempting to
    block and occupy busy thoroughfares at the height of rush
    hour and prepositioning rocks, bricks, and Molotov cocktails
    along demonstration routes.  The 2004 dustup in Bocas del
    Toro that ended with dozens of injured featured SUNTRACS
    demonstrators wielding iron bars.  SUNTRACS and CONUSI both
    favor use of a general strike to attain their objectives, as
    they attempted unsuccessfully in 2001 and 2003 and are
    discussing for 2005.

    COMMENT
    -------

    ¶15.  (C)  SUNTRACS is a leading member of a "rejectionist
    front" of unions, NGOs, and student groups that plan to
    stridently oppose whatever method of CSS reform that the
    Torrijos government offers.  This group of "antis" seems to
    have allied informally with agricultural special interests
    eager to block the bilateral Free Trade Agreement.  The
    extent of SUNTRACS coordination with those groups or with
    deposed CSS leader Jovane is unknown.  SUNTRACS leader Lopez
    is an astute and effective political operator.  In January
    2005 SUNTRACS organized in Panama City's financial district a
    high-profile anti-fiscal-reform protest (non-violent, as it
    turned out), that won cheers from white collar financial
    workers, who stood to lose financially from the new fiscal
    reform law.  That protest was a clever attempt to broaden
    SUNTRACS's base of support among people who ordinarily would
    not count themselves as members of any "working class"
    movement.

    ¶16.  (C)  Despite the disavowals, SUNTRACS is a natural
    ideological ally of Chavez and Castro, even though stories of
    Cuban financial subsidies may be tough to prove.  (Note: The
    Cuban Ambassador departed Panama in August 2004, protesting
    the Moscoso government's pardon of four anti-Castro Cubans
    who had been jailed in an alleged plot to assassinate Fidel
    Castro in November 2000.  While Cuba and Panama have restored
    consular relations, they still do not have full diplomatic
    relations.  End Note.)  Even if its multi-million-dollar
    strike fund means that SUNTRACS doesn't need Cuban money, its
    political independence, organizational skills, influence in
    CONUSI, and demonstrated willingness to use violence to
    achieve its ends all make SUNTRACS a dangerous wildcard in
    the current CSS debate.

    WATT

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