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Latin American: new regional network to strengthen organisation of informal economy unions

Informal economy unions from Nicaragua, Honduras, Guatemala and Panama agreed to form the Network SEICAP (Sindicatos de la economia informal de centro america y panama) at the 2nd Regional Congress of the informal economy organisations of Central America and Panama on 1st and 2nd September 2006, in Managua, Nicaragua. The objective of SEICAP is to co-ordinate the regional Action Plan agreed to at the Congress to take up the struggle of the informal economy workers.

SEICAP was formed following a meeting of informal economy organisations held in Managua on June 9th 2006 where the problems of informal economy trade unions and informal economy organisation in Central American countries and Panama were discussed. A second meeting was called with the purpose of exchanging experience between organisations of the informal economy and to build solidarity between the different organisations.

The following informal economy trade unions were represented: Nicaragua - CTCP, Honduras - FOSSIEH, Guatemala - STTIGUA and SITRAINSA-FNL and Panama - SUNTRACS, STIVA-CONUSI.

Informal economy situation

The informal economy unions present at the 2nd Congress discussed the situation in their countries that highlighted the vulnerability and insecurities experienced by workers, as well as the need for strong trade union organisation to demand recognition and labour rights as ‘independent workers’. The following are some of the main points noted in the SEICAP report on the 2nd Congress in Managua.

Nicaragua - CTCP

The informal economy is mostly a family based activity, mainly of craftmakers, small traders and peasants. It generates almost 50% of the GDP. It also produces 80% of employment. The state has neglected the informal economy in terms of services and policies. One of the reasons the informal economy is so precarious is because of the neo-liberal economic model that has led to massive unemployment and deregulation and to an increasingly unprotected labour force. CTCP has 25 000 workers affiliated in 77 unions and 7 federations. 48% of the membership is women.

Honduras - FOSSIETH

The informal economy is the most marginalised and unprotected sector in relation to the state’s policies on development, ie public services, health, education, housing and work. Since the 90Õs, the informal economy has been increasing in size because of the failure of agrarian reform, and growing rural urban migration, poverty and corruption. In Honduras, 70 out of 100 workers survive through informal economic activity.

FOSSIETH is the principal informal economy union founded in 2001 in San Pedro Sula and is affiliated to CUTH. It has 32 organisations affiliated, 55 000 members, 60% of whom are women. In many regions of the country there is no organisation and no legislation for the sector. The laws that benefit the formal economy workers do not protect the informal economy workers.

Guatemala (STTIGUA, SINTRAINSA-FNL)

FNL (Frente Nacional de Lucha), is comprised of 90 unions, and four of them are informal workers’ unions. The unions STTIGUA (Trabajadores y Trabajodoras Independientes) and SINTRAINSA (Sindicato Nacional de Trabajadores Independientes de Sulud) are informal unions and a part of the FNL. Three quarters of the working population (5 million) work in the informal economy.

The problems that affect the sector most are the increase in crime, repression and militarisation. The market vendors have to pay bribes to gangs in order to avoid arrest and there are already many cases of murder of street vendors who refused to pay. There is a widely held opinion that street vending has no economic, social or cultural values and there is a negative perception that the street vendor is dangerous, and of low social value. There are no negotiations or interventions to influence public policy on informal economy regulation.

Panama (SUNTRACS, STIVA-CONUSI)

An estimated 45% (467, 303) of the workers in the country are informal workers. Unemployment is 30%, poverty 40% and 70% of the poor workers are in the informal economy. The organisational level of the informal economy is low, especially for the crafters and casual industrial workers. The biggest sector of the self-employed are the street vendors. There is a union for pedlars/hawkers and informal workers, Sindicato de Buhoneros y Trabajadores Informales. There is no legislation in the country that protects the informal economy workers. CONUSI is committed to work for the creation of communication and exchange of experiences between the informal organisations and to act as a formal co-ordination structure to take care of the programmes.

Co-ordinating Commission

The Congress elected a Coordinating Commission which will rotate amongst the participating countries, charged with implementing the Plan of Action approved at the meeting.

The Coordinating Commission will be based in Nicaragua for one year, and is made up as follows: Adrian Martinez Rodriguez, Coordinator, CTCP, Nicaragua; Arcadia Gomez, Vice Coordinator, FOSSIEH, Honduras; Carlos Obaldia, member, CONUSI, Panama; Mario Rodolfo Guzman, member, STTIGUA-FNL, Guatemala.

The commission will meet with the delegates from El Salvador and Costa Rica who did not attend the second congress.

Declaration of the Second Regional Congress of Informal Workers

We, the Informal Economy Workers of Central America and Panama, gathered in the city of Managua, Nicaragua, on the 1 and 2 of September 2006, resolve:
1. To carry on the struggle for solidarity and unity amongst the workers in the informal economies of Central America and Panama.
2. To promote alliances with other workers and civil society organisations at regional, national and international level.
3. To attain a greater level of organisation of informal economy workers so as to permit the attainment of involvement in public policies in Central America and Panama.
4. To demand the commitment of National Governments to the International Conventions of the ILO with respect to workers.
5. To fight to reach the point where the National Governments recognise that as workers in the informal economy, we generate wealth and economic and social development for our countries.
6. To demand that National Governments respect and guarantee universal human rights for the workers in the informal economy.
7. To fight to end permanently, the worst forms of child labour.
8. Fight to persuade governments to promote and comply with measures for the protection and restoration of the environment.
9. Fight to improve the level and quality of life for workers in the informal economy and their families.
10. Promote gender equality in all actions taken by workers in the informal economy.
11. Finally, we will carry on the struggle to change the neo-liberal approach imposed by governments and international organisations, that exclude workers in the informal economy .
(Source: Translation of Minutes of SEICAP 2nd Congress; Point of Encounter 37)

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