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Viewing cable 07BOGOTA436, RECENT LABOR DEVELOPMENTS

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Reference ID Created Released Classification Origin
07BOGOTA436 2007-01-22 17:12 2011-08-25 00:00 UNCLASSIFIED Embassy Bogota
VZCZCXYZ0007
PP RUEHWEB

DE RUEHBO #0436/01 0221712
ZNR UUUUU ZZH
P 221712Z JAN 07
FM AMEMBASSY BOGOTA
TO SECSTATE WASHDC PRIORITY 2140
UNCLAS BOGOTA 000436 
 
SIPDIS 
 
SIPDIS 
 
DEPT. PLEASE PASS TO USTR FOR BENNETT HARMON AND LEWIS 
KARESH; PLEASE ALSO PASS TO DEPT. OF LABOR 
 
E.O. 12958: N/A 
TAGS: ELAB ETRD PGOV CO
SUBJECT: RECENT LABOR DEVELOPMENTS 
 
------- 
SUMMARY 
------- 
 
1. The GOC announced a 6.29 minimum wage increase on December 
27, from 192 USD (408,000 pesos) to 205 USD (433,700 pesos). 
On the same day, President Uribe issued a decree aimed at 
limiting the use of workers' cooperatives as a form of labor 
contracting and vowed to combat those temporary contracts 
used to undermine permanent employment.  The Constitutional 
Court also issued a ruling strengthening a workplace 
harassment law passed in January 2006.  Trade unionist 
homicides increased in 2006, but the GOC's Protection Program 
continues to provide protection measures for over 1,200 trade 
unionists.  In addition, the GOC recently dedicated almost 
100 prosecutory and investigative personnel to cases 
involving violence against trade unionists.  End Summary. 
 
------------------------------------------ 
GOC INCREASES MINIMUM WAGE BY 6.29 PERCENT 
------------------------------------------ 
 
2.  On December 27, the GOC announced a 6.29 percent minimum 
wage increase, from 192 USD (408,000 pesos) to 205 USD 
(433,700 pesos).  The GOC also raised the transportation 
subsidy 6.5 percent from 22 USD (47,000 pesos) to 24 USD 
(50,800 pesos), for a total minimum wage package increase of 
6.32 percent.  The increase will affect approximately 4.5 
million Colombian workers.  The GOC, employer associations, 
and the presidents of the trade confederations normally 
negotiate the minimum wage annually through the tripartite 
Commission of Settlement for Labor Policy and Wages (CNC), 
but the GOC set the minimum wage by decree after talks broke 
down on December 18.  The Central Bank expects inflation to 
be around 4 percent in 2007.  In addition to wages, the 
minimum wage is important because it affects pensions and 
fines for workplace violations. 
 
--------------------------------------------- ------ 
GOC ISSUES DECREE TO REIGN IN WORKER'S COOPERATIVES 
--------------------------------------------- ------ 
 
3. In a move aimed at strengthening workers rights, the GOC 
issued a decree on December 27 to limit the use of workers' 
cooperatives as a form of labor contracting.  A 1998 law 
created workers' cooperatives with the goal of encouraging 
entrepreneurship by stimulating the association of people 
collectively offering goods or services through pooled 
resources.  However, many employers were accused of abusing 
the system to the point that even legitimate cooperatives 
were given a bad reputation.  The decree explicitly prohibits 
the use of cooperatives as labor subcontractors by stating 
that its members must act as their own managers, make 
economic contributions to the organization, and have 
ownership over the means of production.  The decree also 
raised the maximum fine for illegal cooperatives from 8,000 
USD (20 million pesos) to 47,000 USD (100 million pesos) and 
limits their legal operating status to that of nonprofit. 
 
--------------------------------------------- -------------- 
URIBE ANNOUNCES "WAR" AGAINST BAD FAITH TEMPORARY CONTRACTS 
--------------------------------------------- -------------- 
 
4. On December 27, President Uribe announced a "full-scale 
war" against "fictitious" temporary labor contracts, 
explaining that one of his priorities in 2007 will be to 
combat the use of temporary contracts to undermine permanent 
employment.  "We need to admit that there are circumstances 
when temporary contracts are necessary, such as seasonal work 
and extraordinary situations, but we need to eliminate 
temporary employment when it is used to substitute for 
permanent employment," he explained.  Uribe also ordered the 
Ministry of Social Protection (MSP) to assume responsibility 
for developing a policy against bad faith temporary 
contracts. Temporary workers receive fewer benefits and 
protections than permanent workers. 
 
--------------------------------------------- ------------ 
CONSTITUTIONAL COURT STRENGTHENS WORKPLACE HARASSMENT LAW 
--------------------------------------------- ------------ 
 
5. The Constitutional Court ruled that neither family 
relationships nor bonds of affection constituted extenuating 
circumstances with regard to workplace harassment, reversing 
a provision set forth in Law 1010, signed in January 2006. 
The Court also said violators of the law could be punished 
with incarceration.  The law originally identified various 
forms of workplace harassment and set sanctions for 
violations, but had established family relationships and/or 
bonds of affection between the harasser and the harassed as 
factors that could reduce punishment.  In eliminating family 
ties and bonds of affection as extenuating factors, the Court 
explained, "It is not possible to separate the right to work 
from the right to human dignity."  The Court, responding to 
an Inspector General-supported petition to modify Law 1010, 
went one step further and ruled that "aggravated" workplace 
harassment was subject to Colombian penal code, violations of 
which are punishable with up to two years in prison. 
 
------------------------------------- 
MORE TRADE UNIONIST HOMICIDES IN 2006 
------------------------------------- 
 
6. In spite of an increase in homicides in 2006, the GOC 
continues to demonstrate a commitment to combat violence 
against trade unionists and investigate crimes against them. 
The MSP reports 25 trade unionist homicides in 2006, up from 
14 in 2005, and 33 killings of unionized teachers, an 
increase from 26 in 2005.  Of these 58 total killings of 
unionized workers, the MSP reports that 11 involved 
individuals in leadership positions. 
 
7. The GOC's Protection Program provides protective measures 
to over 1,200 trade unionists.  In addition, in October 2006, 
the GOC implemented a 1.5 million USD program dedicating 
almost 100 investigative and prosecutory personnel to 
approximately 150 cases of violence against trade unionists. 
These personnel are divided into 13 specialized teams 
consisting of one prosecutor, three Investigative Body (CTI) 
investigators, and three national police officers. The cases 
to be investigated were selected by the three trade 
confederations. 
WOOD