Search

 

Cablegate: Mol Promises Subcontracting Decree This Week

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

UNCLAS QUITO 002534

SIPDIS

SECSTATE FOR US TRADE REPRESENTATIVE
USTR FOR BUD CLATANOFF, USDOL FOR JORGE PEREZ-LOPEZ, DRL/IL
FOR GREG MAGGIO, EB FOR AMY HOLMAN

E.O. 12958: N/A
TAGS: ELAB PGOV EC
SUBJECT: MOL PROMISES SUBCONTRACTING DECREE THIS WEEK

REF: QUITO 2480

1. (SBU) Summary. At breakfast with the Ambassador
September 15, Minister of Labor Raul Izurieta said the
President would sign the oft delayed labor decree on
subcontracting by September 17. On September 14, union
leaders told PolOff they were worried the decree would not
sufficiently limit subcontracting abuses. End Summary.

Minister Says Decree A Done Deal
--------------------------------

2. (SBU) The Ambassador thanked Izurieta for his hospitality
during the recent labor delegation visit (reftel). The
Ambassador asked if there was any progress on the
long-delayed subcontracting decree. Izurieta said he would
need until September 21 to consult with unions again and make
additional changes. The Ambassador emphasized the need for
closure on this ATPDEA commitment by the GoE and suggested
the President consider signing the decree before planned
travel to Washington the week of September 20. Izurieta
agreed, and promised to recommend the President would sign
the decree by September 17.

3. (U) Izurieta also described his good relations with the
Labor Commission in Congress and its President, Andres Paez.
Izurieta said he is also working with the unions and business
to reach an agreement on hourly wages. Izurieta provided the
Ambassador a copy of the latest version of the subcontracting
decree, which adds a clause requiring companies to have a
maximum 75% of its employees hired through subcontractors.
The change reflects union concerns.

Unions Push For Subcontracting Limits
-------------------------------------

5. (SBU) On September 14, PolCouns and PolOff attended a
reception organized by Patricio Contreras of the Solidarity
Center (AFL-CIO) with Izurieta and a broad selection of
approximately 50 union leaders. Jaime Arciniegas, President
of the CEOSL union, told PolOff that he and other union
leaders had met with the President and Izurieta on September
8 to discuss the subcontracting decree. In the meeting,
union leaders asked for the decree to limit the number of
subcontractors to no more than 15% of employees. Arciniegas
said the unions would be willing to support a decree if it
limited the number of subcontractors to a maximum of 50%.
Union leaders were very concerned about the clause in the
decree stating subcontractors can be used "indefinitely,"
which they feared could further weaken unions.

Comment
-------

6. (SBU) The last-minute concession to labor unions in the
current version of the decree could provoke a legal challenge
by business groups or even further delay. Izurieta clearly
understands the need for labor reform in Ecuador and is
working with key stakeholders, including members of Congress,
to this effect. However, if the long-overdue subcontracting
decree is any indication, the process for achieving more
comprehensive labor reform will be tortuous.
KENNEY

© Scoop Media

 
 
 
World Headlines

 


Myanmar: UN Condemns Escalating Violence In Deadliest Day Of Protests So Far

In response to the killing of at least 18 protesters demonstrating against Myanmar’s military coup, the UN human rights office (OHCHR) on Sunday together with the UN chief, strongly condemned the “escalating violence” and called for an immediate end to the use of force... More>>

Syria: Economic Decline, Rising Hunger And Surging Humanitarian Needs

Syria’s fragile economy has “suffered multiple shocks” over the past 18 months, with its currency plummeting and joblessness swelling as people struggle to cover their basic needs, the UN Emergency Relief Coordinator told the Security Council ... More>>

OECD: Final Quarter Of 2020 Shows Continued Recovery In G20 International Merchandise Trade

G20 international merchandise trade continued to rebound in the fourth quarter of 2020 ( exports up 7.2% and imports up 6.8%), following the sharp falls seen in the first half of 2020, as lockdown measures affected trade globally. Although growth ... More>>


Focus On: UN SDGs


UNFCCC: Greater Climate Ambition Urged As Initial NDC Synthesis Report Is Published

UN Climate Change today published the Initial NDC Synthesis Report, showing nations must redouble efforts and submit stronger, more ambitious national climate action plans in 2021 if they’re to achieve the Paris Agreement goal of limiting global temperature rise by 2°C—ideally 1.5°C—by the end of the century... More>>


2021: Critical Year To ‘reset Our Relationship With Nature’ – UN Chief

During this time of “crisis and fragility”, the UN chief told the United Nations Environment Assembly on Monday that human well-being and prosperity can be vastly improved by prioritizing nature-based solutions. Painting a picture of the turmoil ... More>>


Paris Agreement: UN Secretary-General António Guterres To Mark U.S. Reentry With Envoy For Climate John Kerry

Watch live at webtv.un.org UN Secretary-General António Guterres will join U.S. Special Presidential Envoy for Climate John F. Kerry at an event marking the United States’ reentry into the Paris Agreement this Friday. The discussion with the Secretary-General ... More>>