U.S., Guatemala Find Middle Ground In Deal To Settle CAFTA Labor Case

摘要

A labor enforcement plan to which the United States and Guatemala have agreed as a means of resolving a bilateral labor dispute that arose under the Central American Free Trade Agreement (CAFTA) does not go as far as the U.S. had initially demanded on two key issues, but represents a compromise with Guatemala and reflects the fact that both sides favored mutual resolution of the dispute as opposed to litigation under CAFTA, according to U.S. officials. The first area where the two sides reached a compromise was over the U.S. demand that Guatemala return to its labor ministry the authority to sanction employers for labor law violations, a power that currently rests with special labor courts. While Guatemala refused to accede to that demand, it ultimately agreed to pass new legislation that provides for expedited approval by the labor courts of fines recommended by the ministry, a U.S. official said in an interview.