Meeting of December 14, 1999

I. Attendance

A. Attendance of Committee Members: The following committee members were present for all or part of the meeting: Linda Chavez-Thompson, Thomas R. Donahue, Frank Doyle, Anthony Freeman, John T. Joyce,William Lucy, Ray Marshall and John J. Sweeney.

B. Attendance of State Department Employees: The following State Department employees were present for all or part of the meeting: Harold Hongju Koh, Assistant Secretary, Bureau of Democracy, Human Rights and Labor; Sandra Polaski, Special Representative for International Labor Affairs; Edmund McWilliams, Director, International Labor Affairs Office; Alden Irons, Deputy Director, International Labor Affairs Office; Jake Aller, Labor Officer, International Labor Affairs Office; Mark Simonoff, Labor Officer, International Labor Affairs Office, Executive Secretary of the Advisory Committee on Labor Diplomacy; Christine Camillo, Labor Officer, International Labor Affairs Office; Nicholas Stigliani, International Labor Affairs Office; William Craft, Bureau of Economic and Business Affairs; Patricia Alsup, Bureau of Economic and Business Affairs; Stephen Ledford, Director General's Office; Chet Phillips, Director General's Office; Cheryl Hodge, Personnel Office; William Meagher, Foreign Service Institute, consultant; Thomas Stillitano, Bureau of Democracy, Human Rights and Labor; Philip Kurata, Public Diplomacy; James Yorke, American Foreign Service Association.

C. Attendance of Department of Labor Employees: The following Department of Labor Employees were present for all or part of the meeting: James Perlmutter, Director of the Office of Foreign Relations; J. William Brumfield, Foreign Service Coordinator, International Labor Affairs Bureau; Robert Wholey, International Labor Affairs Bureau; Vivian Twisdale, International Labor Affairs Bureau.

D. Attendance of Members of the Public: The following members of the public were present for all or part of the meeting: Barbara Shailor, Director, International Affairs Department, AFL-CIO; Philip Fishman, International Affairs Department, AFL-CIO; Harry Kamberis, Director, American Center for International Labor Solidarity, AFL-CIO; Alice Clark, Powell, Goldstein; Jennifer Mayer, Warnaco, Inc.; Monique Roske, Coalition for Employment Through Exports; Andrew Zebrak, Hewitt Associate; and Mark Cutler, Bureau of National Affairs; Herbert Weiner, Retired Labor Officer; Harold Davey, retired, Department of Labor.

II. Public Access: The meeting was open to the public.

III. Public Participation: No members of the public submitted oral or written statements to the Committee.

IV. Reports Received by the Committee: The Committee members received submissions by Labor Officers.

V. Matters Discussed at the Meeting:

A. Morning Session

Chairman Donahue called the meeting to order at 10:45 a.m.

Chairman Donahue noted that he had certified the minutes of the September 17 meeting.

Chairman Donahue thanked Special Representative for International Labor Affairs Sandra Polaski and the staff of the International Labor Affairs Office for the work they have done in support of the Committee.

Mr. Sweeney said that the events of the last few months have reinforced the importance of bringing fairness to the global economy. He thanked the members of the Committee for getting off to a good start.

Mr. Doyle reported on the work of the operational subcommittee. He said that labor issues are on an ascendant curve of importance. The global economy has become much more inter-related in recent years. Meanwhile, the resources devoted to labor issues until recently appeared to be on the decline, both in absolute and relative terms. The subcommittee has examined and will continue to examine issues of recruitment, development, training, selection, and career path. It will explore other sources of recruitment in labor, academia and government. The subcommittee will consider placing the control of Labor Officer positions within the Bureau of Democracy, Human Rights and Labor. It will consider the prioritization of countries for placement of Labor Officers. The subcommittee has examined communications between the field and Washington. It has looked at planning: if labor is not in the Strategic Plan, it will not likely be a priority item for individual Ambassadors. With respect to training, the subcommittee is examining the labor component of training at the Foreign Service Institute, as well as the process of familiarizing ambassadorial appointments with labor issues. The subcommittee is considering the development of a corps of labor specialists, while still ensuring that there are Foreign Service generalists who work as Labor Officers.

Chairman Donahue noted that the Committee needs to take a serious look at resources. He asked whether it was possible to estimate what are the dollars and human resources applied to labor issues, broadly defined, historically, and compared to resources devoted to other issues. He said that he was seeking not a major statistical study, but some information which is more detailed than what we now have.

Mr. Doyle said that his subcommittee assumed that not only was the budget declining, but a proportional share of the resources was declining. Mr. Doyle continued that there is a need to assign people on an ad hoc or short term basis, to re-shape or re-assign resources where necessary.

Chairman Donahue noted that the Overseas Presence Advisory Panel has made recommendations regarding "rightsizing" America's overseas staffing.

Former Labor Secretary Ray Marshall reported on the work of the policy subcommittee. Secretary Marshall said that the policy subcommittee will determine what should be done, and the operational subcommittee will determine how it should be done. With respect to all issues it is addressing, the policy subcommittee will ask: What are the problems? What are the policy options? What are the recommendations of what should be done? The first task of the subcommittee is the articulation of the political and economic rationale for core labor standards, for the Committee's guidance and for the guidance of the State Department. The second item for the subcommittee's consideration is the State Department's strategic and mission planning process, with an emphasis on U.S. international labor priorities. The subcommittee will receive briefings on this process. The subcommittee is also examining the coordination of policy among various U.S. government agencies with international labor responsibilities. The subcommittee is also looking at the resources for labor-related programs overseas. The subcommittee will examine the functions of Labor Officers and other officers, including the role as advocate for workers' rights. The subcommittee has seen evidence that some people who do become advocates may be disadvantaged.

Secretary Marshall said that the subcommittee looks forward to continuing briefings from State Department officials and others, and in developing a flow of information from the field. He said that no one is in a better position than Labor Officers themselves to provide the Committee with insights.

Secretary Marshall said that if we believe that a system of rules is required for an open and expanding global economy, the rules should be transparent, fair and enforceable. What is the logical relationship between the ILO, the IMF, the World Bank and the WTO. What is the role of core labor standards?

Mr. Sweeney said that one of the lessons from Seattle is that we have to do a better job of relating to developing countries.

Mr. Lucy asked if there is a way to get a handle on financial incentives, on existing incentives regarding existing debt. Is there a way to factor debt relief, debt deferral and debt forgiveness into core labor standards? He said that he would like to talk to the World Bank about what is out there and what to do about it; and would like to know more about new projects of the World Bank and regional development banks.

Secretary Marshall said that our representatives to these institutions have been instructed that core labor standards have to be taken into account, not just in trade agreements, but in all international transactions, including investments.

A discussion ensued about whether businesses prefer stability, and about the role of international financial institutions in the new economy.

Frank Doyle noted that business is pragmatic. It would prefer a flexible, adaptive, real set of labor standards. Business understands rules and can figure out how to work with rules. Business is not well-served by the collapse of the talks in Seattle.

Anthony Freeman said that at Seattle, the developing countries set forth three arguments: (1) that core labor standards would undercut these countries' comparative advantage of low wages; (2) Core labor standards would affect the power structure in developing countries, and would interfere with sovereignty; and (3) developing countries think they have not benefited yet from the WTO. Freeman said that this Committee should study the five most resistant countries: India, Pakistan, Egypt, Mexico, for example, and ask why they are really resistant. What are the factors involved in their resistance to universal labor standards.

Presentation by Ambassador Langehorne Motley

Ambassador Langehorne Motley reported to the Advisory Committee about the findings and recommendations of the Overseas Presence Advisory Panel. He noted that few posts overseas were wired so that they could interact with each other electronically. He reported that U.S. personnel overseas often work in over-crowded, antiquated, insecure buildings. He noted that while the budget was a factor in these problems, there was a problem in procedure and process. A dynamic foreign policy was operating from a static and antiquated platform overseas. The Panel concluded that the government should maintain its core competencies and out-source the rest. The Panel recommended the establishment of an interagency committee, chaired by the Secretary of State, to review the location, size and composition of each post. All agencies which have a presence overseas would be on the committee, including State, the Department of Defense, the CIA, Labor, Commerce and Agriculture. The Panel also recommended the creation of an overseas facility authority, which would replace the foreign building office.

Ambassador Motley noted that he helps to run the 2-week course for non-career ambassadors. The ambassadors are urged to see every department, including Labor, Commerce, Agriculture and the Environmental Protection Agency. In response to a suggestion from James Perlmutter of the Department of Labor, Ambassador Motley said that he would share with his colleagues the idea of requiring Ambassadors to meet with the Department of Labor to be briefed on the labor situation in each country.

In response to query from Chairman Donahue, Ambassador Motley said that he had originally contemplated trying to write on a clean slate, perhaps to consider doing away with the conal system, but there were too many reasons raised as to why this could not be done, including the Foreign Service Act of 1980.

Ambassador Motley said that the interagency process works well overseas. The problem with the interagency process is in Washington.

In response to Mr. Donahue's comment that "right-sizing" sounded like "down-sizing," Ambassador Motley said that in certain areas there might even be an increase, and that "right-sizing" referred to the entire U.S. Government presence, not just the State Department.

In response to a question about the efficacy of regional officers, Ambassador Motley said that there has to be care given not to overload the requirements put on people. Also, there needs to be sensitivity to issues of multiple languages in more than one country. Labor Officers in particular need excellent language skills because many people in the labor movement do not speak English.

Mr. Donahue said that there is a perception that people with assignments out of the generalist mode may be disadvantaged. Ambassador Motley said that perhaps there needed to be a secondary specialty permitted. He described the case of a political officer who successfully provided a computerized version of a project for both the State Department and other Departments, and the work for other agencies did not count in her evaluation. Mr. Donahue said that there may need to be changes in the evaluation process. Ambassador Motley said that it is difficult to reward the most talented. If you get promoted quickly, then the clock starts ticking and you may be penalized down the road.

The Advisory Committee discussed the draft of its Statement, made some revisions in the Statement and approved the Statement. The Statement appears at the end of these minutes.

Mr. Donahue said that it may be in the interest of the Committee and the State Department to establish some relationship with Congress. He said that arrangements should be made to establish a relationship with the Committees of Foreign Relations.

The Advisory Committee took a lunch break at approximately 12:45 p.m.

B. Afternoon Session.

The Committee reconvened at approximately 2:30 p.m.

Report by Assistant Secretary Harold Hongju Koh

Thomas Donahue introduced Harold Hongju Koh, Assistant Secretary, Bureau of Democracy, Human Rights and Labor. He addressed the training of human rights officers and the lessons that can carry over from the human rights side to other functions.

Regarding how Foreign Service Officers are "tasked," Mr. Koh said that there are annual and ad hoc taskings. With respect to annual taskings, at the end of every calendar year, the Bureau publishes required annual reports on human rights conditions in every country in the world, including worker rights. The human rights reporting officers in the field do the initial drafts, which are then heavily edited by DRL, and cleared by the regional bureaus. The reports are viewed as accurate; the Lawyers Committee has stopped doing its annual critique. With respect to ad hoc taskings, cables are sent to posts, which send them on to human rights reporting officers.

Mr. Koh said that there are various ways human rights issues get appropriate post priority. For some posts, such as Burma and Iraq, human rights issues are the central priority. DRL monitors activity to make sure human rights issues are pursued.

Mr. Koh said that people who come to work for DRL are largely self-selected. They care about the issues. Part of our task is to convince the junior officers doing human rights work that they have the best job in the office. When Mr. Koh visit posts, he meets with junior officers and point out that in DRL, they have more input into policy and more access to Deputy Assistant Secretaries. DRL is a small bureau with a less formal structure, where your voice can be heard. The value added from having human rights officers on the ground is their engagement with civil society.

Mr. Koh said that regarding the relationship between DRL and officers overseas, we feel that human rights issues will be more entrenched in the Foreign Service if we have a strong say as to who gets sent to posts. DRL would like to guarantee human rights officers an onward assignment. As it now stands, functional bureaus do not have "ownership" of people overseas.

Mr. Koh noted that there are several lessons for labor. There can be strengthening of links, for example, with respect to the ILO, the Labor Officer in Geneva and the ILO issues in particular countries; links between Labor Officers and unions; Labor Officer knowledge about human rights laws generally; democracy issues and labor promotion of civil society; labor and globalization.

Mr. Donahue asked about the feasibility of putting ownership of Labor Officer positions in DRL. Mr. Koh responded that regional bureaus have a great degree of influence, and control a large percentage of the budget. EUR controls 35% of the budget, for example. The question is: who has a meaningful say? The Advisory Committee can influence the process by making it clear that experience is relevant. The orientation in the Foreign Service is that you ought to be able to pick up and go and do things from scratch.

Mr. Koh noted certain structural advantages of the ILO among UN institutions, given its tri-partite arrangement. He noted the question of Burma sanctions; the valuable role played by the commission of inquiry; and the educational role with respect to core labor standards.

Secretary Marshall asked how to strengthen the ILO with respect to other organizations, including the World Bank and the IMF. Those organizations use the ILO as an excuse not to do anything. There need to be rules for the international economy which are transparent, fair and enforceable.

Mr. Koh said that the best way to strengthen the ILO is to strengthen compliance with the standards. Most human rights enforcement is voluntary compliance, a set of social norms and pressures. We want to promote internalization of ILO standards and private partnerships and monitoring.

Secretary Marshall said that voluntary compliance works best when there is a threat in the background. We need to think about what the ultimate sanction is for non-compliance.

Mr. Koh said that with respect to religious freedom, naming is now a sanction. With automatically triggered sanctions, there is no way to bargain your way out of them. Various kinds of sanctions can be part of a compliance enforcement picture, but they have to be used in a textured way or they won't achieve their desired result.

In response to a question, Mr. Koh said that human rights officers are usually political or economic officers, and sometimes a Labor Officer. The human rights officer is a de facto position. The human rights officers have deep sources, because they are connected with the community, more than most political or economic officers. Many human rights officers have said that their work is the most meaningful they have done in the Foreign Service. We want people to get recognized, not penalized, for being human rights officers. We try to bolster the work through commendation, correspondence and recognition.

Mr. Donahue mentioned the case of a Labor Officer who was given a low grade for promotion because he was considered too tenacious, too insistent on the primacy of labor. Does this happen in the human rights field?

Mr. Koh said that this does happen. The human rights officers sometimes have to invoke the "dissent channel." It requires courage to do this. Some posts want a tight reign on the human rights officer.

Report by Special Representative Sandra Polaski

Sandra Polaski, Special Representative for International Labor Affairs, reported on the WTO Ministerial in Seattle. She described the central role that DRL/IL played in coordinating U.S. Government work at posts in support of the U.S. Government proposal for a trade and labor working group. Labor Officers (or economic or political officers in posts with no Labor Officers) were asked to gather information. After the proposal was tabled in Geneva, a demarche went out setting forth the rationale for supporting the proposal. Finally, a letter signed by Secretary Albright, Secretary of Labor Herman and Ambassador Barshefsky was delivered to the appropriate ministers by Ambassadors and DCMs. Special Representative Polaski said that support from officers overseas was excellent. She noted that this experience argued in favor of greater breadth of labor understanding throughout the Foreign Service, so that Officers at all posts will be capable of effectuating U.S. Government labor policy.

Special Representative Polaski observed that, contrary to certain media reports, the Seattle talks did not break down over labor issues, but rather over commercial and process issues. In fact, she reported significant progress on the labor-trade linkage in Seattle, with a number of countries which previously had been firmly opposed to any discussion of labor at the WTO engaging in negotiations over compromise positions.

Special Representative Polaski also discussed the implementation of the President's June Executive Order on Forced or Indentured Child Labor. This Executive Order requires the Department of Labor, in consultation with the State Department and the Department of Treasury, to compile a list of products, by countries, that there is a reasonable basis to believe were produced by forced or indentured child labor. U.S. Government procurement officers would be required to certify, when purchasing a product that appears on the list, that the product was not made with forced or indentured child labor. In compiling the list, there has been a high level of sensitivity that it be accurate and consistent across countries and products with respect to the reliability of supporting data. The process has highlighted the relationship between regional bureaus and DRL and between State and Labor. It has illustrated the need for well-trained Labor Officers capable of gathering reliable data for operational purposes. She noted in conclusion that the WTO and Executive Order taskings illustrated a range of capabilities needed in the Foreign Service corps to carry out U.S. Government labor initiatives.

There followed a panel of Foreign Service Officers who engaged in labor work.

Harry O'Hara reported on his experience in the field. Usually, the Labor Officer is a political officer. The Labor Officer needs to be on the country team. You don't want to get submerged in the political section. You have to make contacts with the security officer, to read the signs of potential labor unrest, for example, with the PER officer, to explain the host country's labor laws, and with USAID, USIA and ICFTU representatives, among others. The Labor Officer has the best contacts in civil society. It's a sociological portfolio, plugged into NGOs. There is a natural fit between the Labor Officer and the human rights officer. The Labor Officer must be willing to help out with the over-extended political section. He or she has to help out with note-taking, visits, etc. It is mostly administrative support for other agencies.

Jack Muth, who is the Regional Labor Advisor for the Western Hemisphere Affairs Bureau, explained the labor advisor's role. Mr. Muth said that he follows what the DOL and AFL-CIO are up to, and keepstrack of labor issues in Latin America, keeps track of what international financial institutions are doing with respect to labor, keeps track of labor-oriented funding, GSP issues, USAID. Mr. Muth gives Labor Officers in the region feedback. He said that it is important to give feedback to Labor Officers on their reporting, so that they realize that their work is being read and used. Labor Officers should be tasked more often with relevant assignments.

Nick Stigliani, recently retired Foreign Service Officer, and most recently, the director of the International Labor Affairs Office, reported on his labor work. Of 25 years in the Foreign Service, he spent 18½ on labor work. Mr. Stigliani discussed his work as a Labor Officer in Rome, South Africa, Turkey and Geneva. He said that the labor function has been diminished. Mr. Stigliani said that he was retired involuntarily because he didn't make the cut from FS-01 to FEC. The reason he didn't make the cut, he said, was that he was seen as too specialized in labor. His evaluations said that he was one of the best Labor Officers in the Foreign Service. Mr. Stigliani said that with regard to the debate over generalization v. specialization: there is a need for generalists, someone who does one or two labor tours, then goes on to try to become an ambassador. But there is a need for specialists, people like Jack Muth who have a good chance of spending most of the time on labor issues. There are seven senior Foreign Service labor positions in the Department and we don't have enough senior Labor Officers to fill them. Mr. Stigliani said that he wasn't promoted because he didn't have his ticket punched regarding management experience. The Committee should think about the hiring of people who are specialists. Regarding training, Harry O'Hara went to ½-year program at Harvard, and Mr. Stigliani went to a ½-year program in Georgetown. Now, there's a 3-week program. It is good, but it is short. The Committee may want to recommend advanced labor training.

Mr. Joyce asked: if you can't have a full-fledged Labor Officer in every Embassy, how do you fill in the experience gap? Do you use regional Labor Officers?

Mr. Muth said that a full-time Labor Officer is not needed in every Embassy. Some posts can cover the issue part-time. Guidance can be given by Regional Advisors, although, Mr. Muth said his is the only regional bureau which has a regional labor advisor.

Ms. Polaski noted the value of having a labor advisor in the regional bureau. The labor advisor is an interface between DRL/IL and the regional bureau. The position serves a very useful purpose.

Mr. Irons said that there had been discussions of whether all Regional Labor Advisors should be pulled into what was formerly "S/IL", but it was felt that it was better to have them in the bureau, where they can interpret the issues to the bureaus. We have a less systematic relationship with the other bureaus because we don't have a Jack Muth there.

Mr. O'Hara discussed his experience doing regional labor work. (He noted that he was promoted from FS-3 to FS-2 during a labor assignment.) He travelled 1 week every 6 weeks. He visited a number of countries, including Sudan, Mauritius, Tanzania, Uganda, etc., on a demand-driven basis. He would "parachute in" and take readings, like a doctor, talking to unions, government, doing briefings with the ambassador, bringing DOL videos on workers rights. The regional labor officer position requires an enormous infrastructure and a lot of support. A Foreign Service Officer can't just go in and do it himself. He or she needs ambassadorial support. There is a continuous negotiation. You have to have focused priorities on what countries you will cover and priorities within each country.

Mr. Irons said that a great deal depends on the persistence, gifts and enthusiasm of the Labor Officer.

Ms. Polaski said, of the Regional Labor Officer model, that while it might not be easy to make it work, it can be made to work well. It deserves further examination.

Mr. Muth said that the Department of Labor can play a role with respect to what the end-users are looking for. The DOL could task Labor Officers more. The Committee may want to look at the end-users. There may be people who could use labor reporting that we are not thinking about. The Brookings Institute, the GAO, the Urban Institute, the Congressional Research Service.

Mr. Donahue noted receiving a memorandum from a Labor Officer which raised questions about the promotion panel and the appropriate reward or punishment of labor advocacy.

The next meeting was tentatively scheduled for March 14.

The meeting was adjourned at 5:00 p.m.

Advisory Committee on Labor Diplomacy
Statement

In this era of globalization, all people, whether in the United States or elsewhere, should share the benefits of the global economy. Broadly shared prosperity provides the foundation for stable societies, allowing democracy to flourish. Broadly shared prosperity also creates purchasing power and expanded markets for American products.

While global economic growth is a necessary condition to create wealth that can be shared, it is not sufficient to achieve broadly shared prosperity. The rules of the global economy must also be shaped to allow the fundamental rights of all people to flourish.

The International Labor Organization's 1998 Declaration on Fundamental Principles and Rights at Work sets forth a global consensus regarding the basic rules and rights which all nations and all employers must respect and, promote. They are: (a) freedom of association and the effective recognition of the right to collective bargaining; (b) the elimination of all forms of forced or compulsory labor; (c) the effective abolition of child labor; and (d) the elimination of discrimination in respect of employment and occupation.

These rights and standards should be at the centerpiece of U.S. international labor policy. As President Clinton stated, in his June, 1999 address to the ILO, the 1998 Declaration

is a blueprint for the global economy that honors our values - the dignity of work, an end to discrimination, an end to forced labor, freedom of association, the right of people to organize and bargain in a civil and peaceful way. These are not just labor rights, they're human rights. They are a charter for a truly modern economy. We must make them an everyday reality across the world.

Secretary Albright, when she spoke to us at our inaugural meeting on September 17, told us that "basic worker rights reflect common standards of decency, and they should be observed in every nation, regardless of its level of economic development."

A central task of the Advisory Committee on Labor Diplomacy is to determine how the State Department can best fulfill these commitments. The Advisory Committee is examining how the Department can respond more efficiently and effectively to the international labor challenges of the 21st Century.

The centerpiece of the Department's labor function is the deployment of Labor Officers around the world, supported by the International Labor Affairs Office in the Bureau of Democracy, Human Rights and Labor. The new Special Representative for International Labor Affairs advises the Secretary of State on international labor issues and coordinates U.S. international labor policy.

The Advisory Committee has established an operational subcommittee and a policy subcommittee. To date, each subcommittee has met twice. They are examining these issues in particular:

A. Operational Aspects of the Labor Diplomacy Program

1. Recruitment of Foreign Service Officers, and possible recruitment of labor specialists from outside the Foreign Service for fixed-term assignments to labor positions.

2. Training and orientation of Labor Officers, Labor-Reporting Officers, Ambassadors, Deputy Chiefs of Mission, Political Officers and Economic Officers.

3. Promotion issues, including encouraging appropriate recognition of Labor Officers and seeking ways to provide incentives to encourage appropriate development of labor expertise within the Foreign Service.

4. Ensuring adequate Department support for the Labor Officer function, to include elevating the relative importance of labor issues within the Department.

5. The relative benefits of placing control of Labor Officer positions in regional bureaus compared to placement in the Bureau of Democracy, Human Rights and Labor. 6. Prioritization of countries for placement of Labor Officers.

B. Policy Aspects of Labor Diplomacy

1. Articulation of the political and economic rationale for core labor standards and other aspects of international labor policy.

2. The State Department's strategic and mission planning process, with an emphasis on advancing U.S. international labor priorities.

3. Coordination of policy among the various US Government agencies with international labor responsibilities, including the U.S. Department of Labor, the State Department, the United States Trade Representative, the Department of Commerce, the Department of Treasury, USAID, the National Security Council and the National Economic Council, among others, and the transmission of those policies to international organizations.

4. Resources for labor-related programs overseas, including the distribution of resources through USAID, the State Department, the Department of Labor, NED and others.

5. The functions and responsibilities of Labor Officers and other officers, including the role as advocate for workers' rights.

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