VZCZCXYZ0030
PP RUEHWEB

DE RUEHSJ #0971 1291914
ZNR UUUUU ZZH
P 091914Z MAY 06
FM AMEMBASSY SAN JOSE
TO RUEHC/SECSTATE WASHDC PRIORITY 4924
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE PRIORITY

UNCLAS SAN JOSE 000971 
 
SIPDIS 
 
SIPDIS 
 
DEPARTMENT FOR WHA/CEN JASON MACK 
 
E.O. 12958: N/A 
TAGS: PINR PINS PGOV CS
SUBJECT: LABOR MINISTER FRANCISCO MORALES 
 
 
¶1.  Summary: President Oscar Arias has named 65-year-old 
Francisco Morales to be Minister of Labor in his 
administration.  Morales has a long history of government 
service, having previously served as Minister of Labor from 
1972 to 1977, and as Minister of Agriculture from 1982 to 
¶1986.  With his strong ties to organized labor, Morales 
appears to be a concession pick by Arias, aimed at drawing 
labor unions into a social dialog, and to soften their 
resistance to the U.S.-Central America-Dominican Republic 
Free Trade Agreement (CAFTA-DR).  Morales has stated his 
intention to strengthen and modernize the country's workforce 
through education, and has already reached out to labor 
leaders who have previously refused to meet with Arias.  End 
summary. 
 
¶2.  President Oscar Arias recently announced his choice of 
Francisco Morales Hernandez as Minister of Labor in the new 
administration, which took office May 8.  A long-time leader 
within the National Liberation Party (PLN), Morales has 
served as minister in three previous administrations.  After 
being elected as a deputy to the Legislative Assembly in 
1970, Morales cut short his legislative tenure to serve as 
Minister of Labor for President Jose Figueres from 1972 to 
¶1974.  He continued his tenure as Labor Minister into the 
next administration, that of President Daniel Oduber, where 
he stayed until 1977.  After his departure from the Oduber 
administration, Morales began teaching labor law at National 
University, but returned to government service from 1982 to 
1986, as Minister of Agriculture for President Luis Alberto 
Monge. 
 
¶3.  With a long history of government service and strong ties 
to organized labor, Morales appears to be a concession pick 
by Arias, calculated to draw labor leaders into a dialog with 
the new administration and to ease implementation of the 
U.S-Central America-Dominican Republic Free Trade Agreement 
(CAFTA-DR).  Despite their long-standing relationship with 
Morales, however, labor leaders are approaching his 
nomination cautiously.  Gilbert Brown, Secretary General of 
the Rerum Novarum union, told Poloff that Morales will only 
be as effective as Arias allows him to be.  Albino Vargas, 
Secretary of the National Public and Private Employees 
 
SIPDIS 
Association (ANEP) and one of CAFTA-DR's most vocal critics, 
in calling for a meeting with Morales, stated his belief that 
Morales is "humble" enough to meet in a "neutral" location. 
(This is a reference to the refusal of President Arias to 
accede to Vargas's earlier demand to meet at a venue other 
than the President's house.)  In fact, Morales subsequently 
met with Vargas to discuss the various concerns of labor 
organizations. 
 
¶4.  In a recent interview, Morales stated that, while working 
with labor leaders opposed to CAFTA-DR will be important, 
these leaders must understand that in order to increase 
salaries, grow the economy and improve education, health care 
and quality of life, Costa Rica will need the foreign 
investment that can only come with CAFTA-DR approval.  When 
asked about his specific plans to improve the work 
environment in Costa Rica and to modernize the workforce, 
Morales emphasized education.  He stated that the country's 
network of technical schools must change its admission 
standards to allow students without a high school diploma to 
receive occupational training.  In addition, he hopes to 
introduce a system wherein workers can get educational credit 
for on-the-job training.  In response to concerns that public 
sector salary increases have failed to keep pace with 
inflation, Morales said that workers will have to be patient 
while the Arias administration attempts to right the economy. 
 He cited Arias's warning that his first year in office will 
be one of governmental austerity, and indicated that workers 
will necessarily be affected by the belt-tightening. 
 
¶5.  Born in 1940, Morales is married, with 3 children.  He 
received a bachelor's degree in political science from the 
University of Chile, and a law degree from the University of 
Costa Rica. 
LANGDALE