Texas Papers on Latin America
Teresa Lozano Long Institute of Latin American Studies
Texas Papers on Latin America
Paper No. 95-01
The Experience of the Guatemalan United Fruit Company Workers,
1944-1954: Why Did They Fail?
by
Alejandra Batres
1995 ILAS Distinguished Paper Award
University of Texas at Austin
Introduction
Why do worker movements fail even when backed by the government and
its policies? In the case of many Latin American countries, the government
itself has commonly served to frustrate worker uprisings and taken positions
that implicitly or explicitly favo r the business sector. Yet even when
the government agenda matches that of the workers, some labor movements
have still been unsuccessful. The experience of the United Fruit Company
workers in Guatemala in the period 1944-1954 presents one example of
such a movement that, despite government support, essentially failed. Before
this period of "revolution," the Guatemalan governments had often ensured
the failure of worker movements through either repressive means or simply
refusing to take labor's s ide. The previous president, Ubico, had disbanded
all unions and banned the word sindicato, claiming it had communist
implications. In 1944, the "October Revolution," led by students and
supported
by workers, deposed Ubico and granted Guatemala a ten-year respite from
this type of dictatorial leadership. With the democratic election of a
self-proclaimed workers' government under Juan José Arevalo, a new
relationship ensued, and the organization of workers flourished more than
at any other time in Guatemalan history. Under Arevalo state policies began
to shift the government's role from the side of capital to that of an
advocate
of labor. This included the adoption of a new labor code in 1947 that
granted
workers rights they never had be fore. During the second presidency of
the revolutionary period, Jacobo Arbenz continued this close relationship
with workers and took an even more radical step with the implementation
of an agrarian reform program.
Not counting the workers themselves, the United Fruit Company
(UFCO)
felt the biggest effects from the changes in Guatemala. As the largest
single employer and landholder in the country, UFCO had to abide by the
new labor code and had a large portion of its uncultivated lands
expropriated
under the agrarian reform. It had begun its operations in Guatemala in
the early 1900s and had expanded to the extent that Guatemala became the
company's fourth largest cultivator of bananas. Through these contracts
w ith past governments, it set up its first plantation, Bananera, in the
northern department of Izabal near the Atlantic Ocean, and a later
plantation,
Tiquisate, near the Pacific Ocean in the department of Escuintla. In
addition,
a previous Guatemalan gov ernment basically gave UFCO the rights to the
only real port in the country, Puerto Barrios. Through the port concession,
UFCO could control almost all the trade the country conducted. Even though
there were some independent banana exporters, in 1946 UF CO exported 61.92
percent of the bananas from Guatemala, and that grew to 84.34 percent by
1954. To add to its power, UFCO was the major shareholder in International
Railways of Central America (IRCA), which owned almost all of the rail
in the country.
Much of the literature during this period has looked at the
political
implications of the revolution. Some authors have focused on the policies
of Arbenz and Arevalo, while others look at the U.S. intervention in a
coup that ended the revolutionary perio d. The issue of the extent of actual
communist influences in the government has also been approached from all
sides. In terms of the literature about the labor movement, most of the
works specifically address the general urban worker movement in the cap
ital. While the UFCO unions are mentioned as well organized and active,
there is very little analysis of their experience and why they failed.
Through the use of the Communist Party's newspaper, the newspaper of a
labor federation, Guatemalan government publications and miscellaneous
flyers, manifestos, and pamphlets from the time period, this paper examines
why the UFCO workers did not succeed in winning their demands. Many of
these sources, especially those published by political parties and unions,
have not been utilized in previous studies and therefore will help shed
new light on this period of worker organization in Guatemala. However,
their contribution to the research must be considered carefully given that
such resources have inherent biases in line with the ideologies of the
time.
Because of UFCO's virtual monopoly on transportation and
bananas, it
became a target not only of the government but of other leaders looking
to reassert Guatemala's sovereignty. Given this environment, UFCO workers
viewed this political opening as their chance to improve their working
conditions and led at least three major strikes against the U.S.-owned
conglomerate. Despite this window of opportunity, the movements gained
few concessions to the demands and many workers even lost their jobs. By
the ti me a U.S.-backed coup deposed the revolutionary government in 1954,
UFCO workers had little more control over their working conditions than
before 1944. This failure resulted because both the internal weaknesses
and mistakes of the unions and the externa l strength of the United Fruit
Company and its supporters combined to diminish the workers' and
government's
leveraging positions.
The UFCO Workers and Their Unions
To better understand the experience and eventual failure of the
UFCO
worker movements, there needs to be some understanding of who they were
and what they wanted. The UFCO workforce consisted of primarily Guatemalan
men who came from areas outside the dep artments where the UFCO had
operations.
The Guatemalan census of 1950 provides figures that break down the workforce
and population in Izabal and Escuintla. In terms of gender, the majority
of both agricultural workers and dock workers, or muelleros, were
men. In Izabal, of 5,350 agricultural workers, only 80 were only female,
and of 2,358 muelleros, only 14 were female. Similarly in Escuintla,
only 586 women participated in an agricultural workforce of 25,656. In
terms of background, the Guatemalan census depicted race only in terms
of Ladinos and Indians, with a very small Indian population in both
departments.
Despite these figures, the UFCO worker population was far from homogeneous.
Traditionally, the areas chosen by the United Fru it Company did not have
the necessary labor force to undertake all of the necessary work; therefore,
UFCO would bring in Black labor from the West Indies as was the case with
their Costa Rican and Panamanian plantations. Despite a lack of figures,
the fa ct that some of the early complaints of Guatemalan workers dealt
with the hiring of West Indian labor and that some of the eventual union
leaders were of Jamaican background suggests the presence of a racially
mixed workforce in Guatemala also. The numbe r of foreigners was larger
on the Atlantic Coast, which had more workers from other Central American
countries and the Caribbean than did the Tiquisate plantation. While there
was definitely a foreign presence in the UFCO operations, it probably was
less pronounced in Guatemala than in other UFCO plantations. Partly this
was due to Guatemalan law, which stipulated that 90 percent of the company's
workforce had to be Guatemalan. Also, by the 1940s and 1950s the use of
foreign labor decreased, and it cea sed being a worker complaint. In 1946,
only about 4.5 percent of tUFCO employees were foreigners, and by 1954
that percentage had dropped to 2.2 percent. Most of the heterogeneity
resulted
from workers' coming from different parts of the country. In Iz abal, only
25,637 of 55, 032 residents were born in the department, and in Escuintla,
only 65, 971 of 123,759 were actually born in that department.
Many of the workers who migrated to Izabal and Escuintla were drawn
by the prospects of employment with UFCO, which had relatively better
working
conditions. UFCO paid a higher daily wage than most other agricultural
employers in Guatemala. In 1950, th e average starting daily wage for UFCO
workers was Q1.36 (quetzales), while most of the Guatemalan workers earned
only Q.80 in daily wages. UFCO workers were paid 3 percent more than other
plantation workers in Izabal and 138 percent more than workers in the
department
of Escuintla. Supporters of UFCO pointed out that, while the wages may
have been less than the U.S. minimum wage, the company also provided many
indirect wages. For example, UFCO's efforts at maintaining sanitary
conditions
and providing clean water to the workers contributed to their health and
decreased the potential of malaria, which was common in the banana zones.
In return for paying a small percentage of their salaries, workers and
their families could use the company's hospital a nd medical facilities.
UFCO also provided barrackslike housing for all of its workers and their
families, and under pressure from the government set up at least primary
schools for workers' children. On some of the plantations, UFCO would even
provide r ecreational halls. Finally, the company operated commissaries
at a loss where the workers could buy basic foods such as corn, beans,
and other staples at below cost.
While there were advantages of working for UFCO, working conditions
were not always as ideal as the company claimed. First, not all workers
received the same quality of indirect benefits. Because the Bananera
plantation
was older, it had fewer amenitie s than Tiquisate. While some housing
facilities
had drinking water, many did not. Also, in comparison to the dwellings
given to higher level employees from the United States, the Guatemalan
workers' facilities were clearly inferior. At times, the utili ty service
to the workers' homes was limited and sporadic. For example, electricity
came on only during certain times of the day. According to a muellero
from Puerto Barrios, Manuel J. Reyes, water was also turned on only for
a couple of hours a day for the general working population and sometimes
not turned on at all during the weekends. Instead, the workers claimed
all the water went for the homes of the chiefs of UFCO. Electrical power
in the worker areas was also limited. While UFCO did no t directly own
the electric and water utilities, IRCA did, and therefore the workers
believed
that UFCO had influence over the service delivery.
As mentioned above, salaries were definitely higher than in
other parts
of Guatemala, yet increased wages became the focal point of worker demands.
This did not occur simply because the workers greedily wanted more money
but rather because other circumst ances lessened the value of the seemingly
high wages. First of all, the cost of living on the plantations and Puerto
Barrios was much higher than in other parts of the country. The port area
was especially susceptible to insufficient goods, and the popu lation often
did not have the ability to buy even basic goods. This is evidenced by
the fact that when the Arevalo government set up a new social services
department under the revolutionary government, Puerto Barrios was deemed
one of the areas needing t he most immediate attention. UFCO often compared
the salaries of the banana workers with those of coffee workers. But the
latter, despite much lower salaries, had more opportunity to plant their
own food for subsistence and could spend more of their inc ome on other
goods such as clothes. Even though UFCO provided its banana workers with
some plots for personal use, the land was less well suited for the growth
of needed foods therefore forcing the workers to spend a larger part of
their income on foods bought at the commissary. And even the commissaries
could not be depended on consistently; in 1951, workers claimed that UFCO
was no longer selling goods at the commissary below cost and was withholding
some of the goods it had at a time when many worker s were out of jobs.
The lack of security of work on both the banana plantations and the
dock also diminished the effect of high wages. One problem was that daily
work was not always assured or scheduled. The nature of banana work is
such that timing is everything, with cutt ing having to take place in a
short period of time. As a result, banana workers could cut stems for only
one day of the week, and work on the other days would depend on the need
for other manual labor such as clearing of land. Daily work for muellero
s also depended on the factors they could not control such as the
arrival
of bananas and ships. Dockworkers did not have a set schedule but rather
would have to listen for a siren announcing that work was available. And
even for those who did hear t he siren, work was not guaranteed if they
arrived at the dock too late. The announcement of work never included an
estimate of the number of workers needed, and jobs were handed out on a
first comefirst served basis. On average, muelleros m ight
work and get paid for only 1,050 hours, or about 150 or fewer days in a
year. One muellero, Lopez Bermudez, emphasized this problem by
pointing
out that even though he had worked for UFCO for thirty-seven years and
was one of the highest paid muelleros, he had not had any work the
week before being interviewed. The week of his interview, he had earned
only Q10.80, and he estimated that his daily expenditure on food was Q2.50.
Another muellero who had worked with UFCO for twent y-six years
complained of still receiving only Q.75 some weeks.
The fact that UFCO was the main employer in the two banana areas
and
produced most of the business for the dockworkers aggravated the problem
of sporadic work. While waiting for UFCO to call them to work,
muelleros
had a hard time finding other wa ys to earn wages. Even worse, if for some
reason UFCO decided to fire any of its workers, to lower their salaries,
or in any other way to downgrade their working conditions, there was little
other opportunity for workers to find another source of income. In addition,
during this period the company cut back on employees as more technology
was introduced. From 1946 to 1954, the total number of UFCO employees went
down from more than 15,000 to just over 9,000. In other Central American
countries, UFCO ha d pulled out of areas where the land was no longer in
good condition and left behind massive unemployment. In Guatemala, UFCO
had been pulling out of Bananera in Tiquisate since 1936. For the workers,
the knowledge of the tenuous status of their daily a nd future work and
the general freedom of the company to hire and fire at will led to efforts
to gain firmer control over their working conditions.
When the new government came into power, the workers tried to
counter
their vulnerability through the formation of unions. Some worker
organization
on the UFCO plantations had existed prior to the revolutionary period.
In the 1920s and 1930s strikes had broken out over issues such as salaries,
cutbacks, and hiring of foreigners. Most of these movements were not well
organized, and were broken either by the company playing upon racial
differences
or through military intervention on the part of the gover nment. Unions
themselves did not actually form until 1944, but at that time the UFCO
workers were quick to organize. There were three primary syndicates that
UFCO workers could join. The banana workers organized into the Sindicato
de Empresa de Trabajad ores de la Compañia Agricola de Guatemala
(SETCAG) in Tiquisate or the Sindicato de Empresa de Trabajadores de la
United Fruit Company (SETUFCO) in Bananera; and the muelleros of
Puerto Barrios joined the Union Sindical de Trabajadores de Pu erto Barrios
(USTPB). As a sign of the unions' organization, in 1947 when the new Labor
Code required unions to register officially, SETUFCO and SETCAG were the
first two to do so. While the unions showed different degrees of strength
with workers and ov er time, all three played active roles in the labor
movement and were among the most important unions in the central worker
federations.
Even though the unions started up quickly and began challenging
UFCO,
some problems arose in gathering worker support. The banana unions in
particular
had trouble getting unified support within their worker base. When the
unions first begun, the majori ty of the workers regarded the organizations
suspiciously. They wanted simply to feed their families and worried that
joining a union might jeopardize their jobs. Many also lacked awareness
of the general worker movement in the country and had no intere st in the
calls for a unified proletariat. Because of the heterogeneity in the
workforce,
unity among workers had not come naturally; so the union leaders had to
forge it. This task proved additionally difficult since the many
fincas,
or farms, w ere spread out, and groups of workers in the same division
had little contact with each other . To rally support, union leaders had
to travel to each individual finca. Even though union leaders often
exaggerated the size of membership, probably on ly half of the banana
workers
belonged to their respective unions. In 1950, SETUFCO and SETCAG had about
4,500 and 5,720 members, respectively. Even most of these were only
nominally
involved by paying dues and left most of the decisions up to a small e
xecutive group. In contrast, partly because of a smaller workforce and
a history of organization, the USTPB received more support from its workers
with an estimated 90 percent of the 1,500 permanent muelleros
identifying
themselves as members. De spite some of the initial setbacks, the unions
soon became active in issuing complaints against UFCO and organizing labor
movements.
During the revolutionary period, many conflicts arose between
the workers
and the company, but those of 1946, 194849, and 195052 stand
out because of the national attention they garnered. Throughout the three
conflicts some of the demands var ied, but the call for higher salaries
and better working conditions remained constant. The strike of 1946 served
as the first serious attempt on the part of the unions to challenge UFCO's
power over the workers' salaries and jobs. This conflict, which l asted
only six weeks, began with SETUFCO objecting to the firing of three workers
at Bananera and then spread to the other divisions. The unions presented
only a few demands of which an increase in salaries took precedence. Some
examples of the addition al demands placed forward by SETUFCO included
the improvement of housing facilities by adding drinking water and screens,
the removal of two high-level American employees, the rehiring of the
laid-off
workers, and a promise of no reprisals against other w orkers. When UFCO
ignored the demands, workers in Bananera and Puerto Barrios went on strike,
followed two days later by the workers in Tiquisate. With no real mechanism
in place to conduct negotiations, this strike ended with President Arevalo
interven ing and declaring the strike over. He ordered the resumption of
work under the same conditions present before the movement, with the
stipulation
that UFCO could not fire any workers involved and workers could not demand
the removal of UFCO employees. E ven though the workers made no progress
in terms of their demands, the 1946 movement served as an example of labor's
willingness to assert itself against UFCO.
More proof of the workers' boldness became apparent during the more
antagonistic conflict of 194849. It actually began in 1947 when
Tiquisate
workers put forth demands for better working conditions and higher salaries.
When conciliation talks betw een the two groups ended in stalemate, the
government came in and ruled that various actions on the part of both
parties
were illegal. The situation returned to normal without any changes until
the workers on the Atlantic Coast began their conflict with UFCO in late
1948. One complaint specific to the muelleros was that the company
wanted to go back to paying them by the amount loaded instead of by the
hour as had been the practice since 1930. In addition, when the
muelleros
arrived at th e dock for work they usually had to wait around for long
periods of time before starting to load, but UFCO paid them only for the
amount of time they actually loaded. At this point, the Tiquisate union
also joined in their fight. This time the unions no t only asked for an
increase in wages, but they also wanted UFCO to contract with labor through
a collective pact in which the same wages would apply to all workers in
the same category. Up until that time, UFCO's relationship with the workers
had been co nducted through individual contracts.
Both the workers and UFCO employed a variety of tactics to hurt
their
opponent. The workers on the banana plantations struck, and the UFCO
basically
closed the port down at one point. The muelleros employed one of
the more interesting tactics dur ing this conflict by working more slowly
in loading the bananas. At one point, one ship had to leave behind 19,000
bananas because of the slowdown. While UFCO contended that the
muelleros
had been instructed by the unions to slow down their work, the workers
argued that new machinery had caused the slowdown and that they were not
involved in any type of planned sabotage. In conjunction with this claim,
the workers called for the removal of these machines on the grounds that
they presented a dang er to the workers. Despite the cries of innocence,
once at the bargaining table the union leaders used promises to instruct
the workers to speed up the loading as a bargaining chip and therefore
proving the deliberate nature of the slowdown. Unions als o tried to win
concessions from UFCO by working through the labor tribunals set up by
a new Labor Code in 1947, but when the two sides could not reach an
agreement
through this system, the government once again had to intervene with
official
decrees. By 1949, UFCO agreed to form collective pacts but signed separate
contracts with each union of workers. Banana workers who earned below Q.90
received a 10 percent salary increase. The company agreed to increase the
muelleros' hourly pay by an averag e of 5 to 10 cents depending
on classification of worker and to pay them for waiting time on the dock
in return for the muelleros' promise to load at least 2,900 stems
an hour. In reality, the minimal concessions did little to change the
workers'
conditions; in fact, the pay raises from the pact soon lost their value
as the cost of living rose rapidly.
The inadequacy of the 1949 contracts spurred on the development of
the next big conflict during 195052. The previous contracts proved
extremely insufficient as the cost of living increased and economic
conditions
worsened. According to the Direcc ion General de Estadisticas of Guatemala,
between just 1949 and 1950 the cost of living had increased by 9 percent
without any compensation through increased wages. Despite the unfavorable
economic conditions of the time, the UFCO unions decided to ask f or a
new collective pact giving them.once again.better salaries and working
conditions. Feeling more experienced and enjoying more government support,
the unions presented more demands than ever before: 197 by 1950 and even
more were added in 1 951. At one point, some of the demands included a
100 percent increase in salaries, establishment of a pension plan paid
entirely by the company, restrictions on the relocation of workers, and
establishment of a minimum employment level that would be no lower than
the current levels. Other demands included access to railroad facilities
for use by union leaders. As time went on and negotiations became difficult,
some of the unions adjusted their demands to more realistic levels than
initially. The lar ge number of demands on the part of the workers and
the intransigence of the UFCO made this conflict even more difficult to
negotiate in the labor tribunals. While the actual strike took place in
August 1951, no agreement could be reached until 1952. To complicate matters
even more, a hurricane hit the Tiquisate area in 1951 and destroyed many
of the banana plants. While the workers and the government disputed UFCO's
claims that it could not accede to worker demands because of the losses
at Tiquisate, t he individual unions eventually renewed the existing
contracts
for three years with only moderate wage increases but with a promise to
pay back wages.
During this conflict the workers also raised many other complaints
against the company that were not part of their original demands but
highlighted
their cause. In regard to UFCO's claim that it could not afford any type
of wage increase, the unions used a study that Marco Antonio Ramirez, an
ex-subsecretary of economy and labor, conducted on the ability of UFCO
to pay raises. By looking at stock earnings and profits, Ramirez claimed
to prove that UFCO indeed had the ability to pay higher salaries to it
s workers. Using this study, the muelleros argued that the increases
they sought would make up only 5 percent of UFCO's total profits. Because
the company had kept the same wages, workers also claimed that they could
no longer afford the goods at the commissary, and to make matters worse,
UFCO would hoard goods or raise prices as the conflicts proceeded. At
Bananera,
workers reported that there were shortages of such goods as rice, beans,
sugar, maize, and butter. For a while, UFCO stocked the commissaries only
with coffee and oil. The tools that workers had to buy for their jobs such
as machetes also had recently jumped in price. Union leaders claimed that
while UFCO had received its sugar quota from the government, the company
maintained th at it did not have any to sell to the common workers; however,
the preferred employees seemed to have all the goods they needed. Finally,
unions also accused UFCO of trying to get around Labor Code laws and the
conditions it had settled on in the last c ollective pact. For example,
when UFCO would have to pay for overtime for a certain type of task, it
would do everything possible to get the job done in less time, and overtime
worked in a day would not show up in the record books. One worker at Tiquis
ate complained that the company would pay three days of work out of the
week by contract and the other three days by daily wage in order to get
work done at a lower cost.
Despite all the petitions and complaints, all three strikes
ended with
few real concessions for the workers. In both the 194849 and
195051
movements, the unions ended a long conflict by signing pacts that would
inevitably provide little progr ess for the workers. There are many reasons
for the ineffective bargaining positions of the unions, but some of them
have to do with internal weaknesses within and among the UFCO unions. Early
on, the three sets of UFCO workers and other labor leaders c ame to realize
that the only way to get any demands met was through a unified effort.
First of all, this meant that leaders needed to foster unity within their
respective worker bases. The insufficient strength of the union among the
workers came to lig ht when labor officials polled the banana workers in
1948 to see if the necessary two-thirds supported a strike and found that
only 47 percent in Tiquisate and 50 percent in Bananera did. The lack of
unity might be partially explained by the lack of homo geneity among
workers,
but a more central cause was found in the way the unions functioned.
Decision
making took place only at the high levels, and workers usually had little
direct input into final decisions or resolutions reached by the union.
The cen tralization of the union decision making was blamed for exaggerated
demands put forth by SETCAG and USTPB in the 1951 conflict. When UFCO
refused
to negotiate, calling the demands impossible and outrageous, the central
federations declared that only one or two executives had drawn up the
demands
without the consultation of others in the union. This led to the expulsion
of some of the leaders in SETCAG and USTPB and the reworking of both sets
of petitions. While the accusation may not have been complete ly accurate,
such incidents demonstrated some of the divisiveness that existed at even
the highest levels of the unions.
In addition to trouble with internal unity, the unions also had
a hard
time collaborating fully with each other. In general, when one union struck
the other two would also place complaints before the company, but the reason
seemed not so much support as opportunity. Even though the unions may have
begun a conflict together, they eventually signed their contracts with
the company separately as happened in 1949 and 1951. This created a problem
in that when one union signed a contract on its own, that we akened the
leveraging position of the other unions. In 1951, supporters of SETUFCO
alleged that the union had to sign an inferior agreement with the company
because "traitors" in SETCAG had given in to UFCO and signed a separate
agreement. These separa te contract signings in 1951 came after serious
attempts at unity between the three UFCO unions. In April 1951, SETUFCO
and SETCAG with the help of the labor federations decided to unite in asking
for the new collective pact. USTPB resisted joining the banana unions
because
it claimed that the drive for unity was a communist attempt to influences
the unions. By May the two banana unions had created the Comité
Coordinadora de la Acción de los Trabajadores Bananeros y Portuarios
even though the name was a little misleading in that the muelleros
were not yet involved. Finally, in July USTPB joined with the two other
unions to form a committee consisting of representatives from each union
and from the central labor federation. The p urpose was to coordinate and
lead the fight against UFCO in a stronger manner by uniting. In August
1951, all three unions put out a joint manifesto denouncing UFCO and the
tactics it used to weaken the worker movement.
After the 1949 contracts, both union and federation leaders made
greater
efforts to strengthen cross-union cooperation by increasing feelings of
unity among the workers. Those proposing unity emphasized that all the
workers shared the complaints of low s alaries and high cost of goods at
the commissaries. They downplayed differences in race, religion, or
politics,
and stressed that all workers should unite because of their shared concerns
for a more dignified life, success of the government, fighting aga inst
imperialism and feudalism, and the political and economic progress of the
country. Another way of encouraging support and unity that seemed partly
effective was meetings and rallies. A rally held in Tiquisate reportedly
drew more than 1,500 workers, which was considered a lot since the only
transportation was the UFCO train to bring the workers from their
fincas.
Representatives from the two other unions spoke to the attendees about
the need for unity. SETCAG organized another rally that mo nth to show
support for the demands being put forth in 1951 and to counter those who
had sold out to the company. The attendance of more than five thousand
workers was seen as a triumph because the night before the rally propaganda
had been circulated by anticommunist groups threatening those who attended.
The march was attended by workers on foot, bicycles, and horses, and behind
the workers more than two hundred wives marched to show their support.
Once again, representatives of the other unions show ed up to encourage
unity. Since most of the reports of the rallies came from either the
Communist
Party or the unions themselves, the number of attendees may have been
exaggerated,
but the fact that attention was drawn to these meetings showed an effort
to promote unity.
In conclusion, from the start of the October Revolution, UFCO
workers
sought ways to gain some kind of control over their salaries and working
conditions. Despite earning higher daily wages than many of the country's
agricultural workers, UFCO labor had to deal with a high cost of living
and insecurity about getting paid. Even though the UFCO unions were some
of the better and more active syndicates, problems such as lack of unity
and centralized decision making weakened their support among the workers.
Despite these setbacks, the unions still believed that they had a chance
against the UFCO because of public government support.
The Government and the Workers
The workers and their leaders had good reason to believe that
the government
would be an advocate in their struggle against UFCO. When the revolutionary
government came into power, it was partly due to support from the workers.
During his election, Arev alo himself had received support from the newly
organizing UFCO workers. Upon taking office, he began to show his concern
for the labor issues facing Guatemala. Because he did not yet have a set
economic policy, in 1945 Arevalo called a conference with both labor and
capital in order to discuss the problem of production in Guatemala. This
Triangulo de Escuintla, named for the department in which it took place,
had as its goal the forging of a new relationship based on
cooperationbetween
state, labor, a nd capital. At this conference the government asserted
its dedication to listening to the workers themselves and to supporting
them in their efforts to achieve better working conditions. For workers
accustomed to a repressive government, these promises seemed radical. Yet
in many ways Arevalo tempered the rhetoric by emphasizing that the
government
would deal with labor issues in the spirit of cooperation and fairness.
While advocating workers' rights, Arevalo had the whole nation's welfare
in mind an d did not want to alienate capital unnecessarily. As the meeting
ended, the spirit of cooperation seemed to prevail as the expected
hostilities
between UFCO and its Bananera workers, who both attended, never
materialized.
The conclusion of the talks fou nd all three sectors agreeing on the need
for a new labor code to replace the existing 1926 code in order to deal
with labor conflicts.
The 1946 strike by the UFCO unions further emphasized the need for
a new labor code if the government wanted to help the workers. The 1926
labor code had proved extremely weak and unenforceable. In dealing with
worker movements, the government departmen t in charge of labor issues
did not have the power to make companies, mainly multinational ones, come
to the table for the legislated arbitration. Workers had criticized the
older labor code since its inception, and by 1944 they knew the futility
of tryi ng to use legal means under this code to get concessions. As a
result, in 1946 when UFCO refused to hear worker demands they did not turn
to the labor code, and instead called a strike without giving the mandatory
eight-day notice. Their reservations ab out the code also made them reticent
to engage in the conciliation process. For a government trying to establish
itself as a legitimate democratic administration, it became difficult to
take the side of the workers when UFCO correctly claimed that workers had
not followed the law. In addition, in their demands the workers claimed
rights that had not yet been codified, and therefore the government could
not legally defend them. Arevalo realized that without some type of legal
guidelines, labor conflicts could arise and endanger the productivity of
the whole country. Faced with the weakness of it position, the government
finally decreed that the strike would end and in addition declared that
no strikes or work stoppages would be legal until the new labor code was
passed. The justifications given included concern for the world political
situation, agricultural interests, and the prestige of the October
Revolution.
It also warned that any attempt to defy this decree would be dealt with
seriously and blam e would be placed especially on leaders. While
acknowledging
difficult working conditions, the government called on patriots to keep
the peace until Congress developed the new labor code. Workers accepted
the government ruling in anticipation of the new labor code that promised
to help them.
From that point on, both executive government officials and
labor leaders
exhorted Congress to make the labor code a priority in its session. At
one point, representatives from labor groups attended congressional sessions
to make sure that the deputies d id not recess without finishing the code.
Finally on February 8, 1947, the Labor Code of 1947 became law through
Decree 330. The government touted this labor code as its attempt to address
not only social needs and economic conditions but also psycholog ical and
political needs. In terms of working conditions, the code dealt with the
length of the workday, health and safety precautions, vacation benefits,
and salaries. It set guidelines for individual and collective contracts
and pacts between the emp loyer and workers, and provided the circumstances
under which companies or workers could break these contracts. Finally,
it also dealt with the administrative and judicial institutions and
guidelines
for handling labor conflicts. Compared to past Guatem alan codes, this
labor code seemed radically in favor of the worker. However, despite later
UFCO allegations about the radical leanings of the government's labor
policy,
even a U.S. State Department report conceded that this code was really
no more liber al than the U.S. code, and that in some ways it even limited
workers in their ability to strike.
Most of the workers' familiarity with the labor code came
through their
interaction with the judicial and administrative organs that it set up.
Under the Ministry of Economy and Labor, the Inspección General
de Trabajo (IGT) became the department in charge of conducting inspections
to ensure that both workers and employers followed the code. In addition,
the code set up a three-tiered judicial system to deal with labor issues.
The first level consisted of the Juzgados de Trabajo y Previsió
;n Social,which were located in predetermined economic zones and handled
conflicts dealing with legal aspects of the code. Social and economic
conflicts
went to the Tribunales de Conciliación y Arbitraje, which formed
on a case by case basis. In trying to keep a fair balance between worker
and capital, representatives from both the employer and the workers sat
on these tribunals. Finally, the Sala de Apelaciones de Trabajo y
Previsión
Social heard appeals of the rulings of the other two j udicial bodies.
Through the tribunals, workers found support for their cause that they
had not had before. The labor code was useful for the workers in that they
now had a legal means to challenge UFCO. They could bring the government's
attention to t heir situation by claiming that UFCO was not following the
law. Because of the government's professed interest in executing the law
and supporting workers, it would have to become involved whether through
executive order or, more usually, the labor court s. The labor code also
served to justify rulings in favor of the workers. When UFCO wanted to
lay off 3,746 workers at Tiquisate, claiming destruction from the hurricane
as justification, the IGT ruled that UFCO could not suspend the workers
and owed th em salaries from the time at which the issue began to be
discussed.
In explaining its reasoning, the IGT referred to articles of the labor
code that dealt with the breaking of contracts in light of acts beyond
the company's control. The IGT found that U FCO did not follow the
procedures
or the timeline for reporting the destruction of its plantations for this
purpose. Instead, it found that the company's choice to fire the workers
was deliberate and was linked to the ongoing conflict. In addition, it
n oted that UFCO should calculate the risk of natural disasters into its
budget since hurricanes were common in the area.
However, the labor code was not always used effectively in favor of
the UFCO workers. Even though the government and workers claimed that the
company violated many of the labor code regulations between 1947 and 1949,
in that two-year period UFCO was fine d only a minimal Q690 for just a
few of the alleged infractions. In other cases, the labor code actually
worked against labor, as in 194849. The rules for legal strikes
required
initial conciliation efforts, and that IGT must determine that at lea st
two-thirds of all workers supported the strike. So, when the two banana
plantations called strikes in 1948, the labor tribunals ruled them illegal
because they lacked both support and a "peaceful" quality required by law.
Another way in which the lab or courts worked against laborers was that
specific procedures had to be followed, and this took time. This favored
UFCO because the workers without jobs needed resolution as soon as possible,
but UFCO could stall. UFCO took advantage of the bureaucracy of the labor
courts to postpone implementation of rulings against it. For example, when
a labor tribunal in Escuintla ruled that UFCO had unjustifiably fired
sixty-four
workers and owed them damages, the company simply went to the appeals court
in order to gain time. The workers realized that UFCO could circumvent
the tribunals in this way, yet they usually accepted the tribunal rulings
peacefully.partly in order to give the appearance of cooperation in contrast
to UFCO's intransigent positions. However, this did not mean that workers
would give up when the labor code did not function as they wished. In 1948,
after a meeting before the Inspector General in which UFCO refused to accept
IGT's suggestions for resolving the conflict, the general sec retary of
SETUFCO informed both the media and the president that the workers were
just waiting for the failure of the tribunal talks so that, having exhausted
all legal means, the unions could call a general strike of all the Atlantic
Coast workers. When ever the conciliation talks undertaken through the
judicial labor courts reached an impasse such as this, the executive branch
usually had to get involved.
The administrations of both Arevalo and Arbenz became personally
involved
in the labor conflicts. While both seemed interested in worker success,
they differed in their attitude toward the conflicts. As evidenced in the
Triangulo de Escuintla, Arevalo w as very concerned with fostering
cooperation
and keeping the country stable. In the 194849 movement, his minister
of Economy and Labor, Alfonso Bauer Paiz, reflected this concern when he
became personally involved in the negotiation of a settlemen t. He initially
drew both the muelleros and UFCO to the negotiating table by having
the USTPB sign an agreement to speed up the banana loading, which was UFCO's
main complaint at the time. However, rather than defining his position
as prolabor, h e cited the government's role as one of simply bringing
harmony into the conflict. This concern with the national good was
reiterated
when the talks before the IGT were at an impasse and the USTPB threatened
to strike. At this point, high-level governm ent officials including Bauer
Paiz, the Secretary of the Treasury, the IGT, and party leaders met to
discuss the situation because of the potential negative effects on the
economy. The group concluded that the conflict had to be fixed through
arbitration and that the government would rule in favor of whoever was
right, whether the workers or the company. In response, UFCO refused to
submit to arbitration, and the government enacted a decree that named the
UFCO port activities a public utility because of their importance to the
national economy. According to Guatemalan law, there could not be strikes
or lockouts in public utilities, and any conflicts had to be resolved
through
mandatory arbitration. In the view of UFCO and the United States, this
was a hostile act on the part of the government that demonstrated its
attempts
to use its influence against the company. Indeed, the government was trying
to get the company to accept arbitration, but at the same time the decree
suspended some of the workers' rights to organize and strike as well. In
any case, UFCO avoided arbitration by working through the labor courts.
Because it was important for Arevalo to let the workers know
that he
still supported them despite the fact that the government had little success
in having UFCO meet worker demands, he undertook other ways to show support.
For example, when Tiquisate wor kers had complaints in 1946, the president
sent a representative to examine the situation, then publicly noted that
the government was aware of what was going on. After he decreed the end
of the 1946 conflict, Arevalo made trips up to Puerto Barrios and Bananera
and promised that when other parts of the country started to produce staple
goods, the port city would be the first area to receive them. During this
trip, Arevalo also brought a labor inspector to help mediate the conflict
between workers and U FCO because the federation leaders had personally
requested that the president intervene. Almost as if to calm the fears
of any Guatemalan about the consequences of the labor conflict, Arevalo
pointed out that despite it he saw many boats loaded with ban anas leave
the dock, thereby proving that the strike had not seriously affected the
economy. The government also tried to show support and possibly defuse
tense situations by sending down food in times of need. In 1949, the
Ministry
of Economy arranged for beans, rice, salt, sugar, and corn to be sent to
Puerto Barrios to ameliorate the lack of basic foods there. At this time,
the government tried to address the fact that many people had inadequate
sources of income by creating temporary jobs, such as cleaning the city,
so people could earn money for necessities.
Arbenz also used this tactic to show solidarity with the workers in
1951 when his government sent basic food and necessities to over three
thousand laid-off workers in Tiquisate. But his administration took an
even harder line with UFCO in terms of labo r. In speaking to workers on
the International Day of Labor, Arbenz made sure to mention the
bananeros
and muelleros who could not be in the capital city but were holding
rallies in their own areas. He made references to how the relationsh ip
between the government and the workers had moved toward more government
support since 1944. In his view, government would have no reason for
existence
without the labor force; therefore, he exhorted the workers to maintain
their unity and thanked them for supporting the government. He also
addressed
the issue of agrarian reform and credited the workers for pushing for it,
making not-so-veiled references to UFCO as a privileged company whose
intentions
were to keep Guatemala antidemocratic. This rhe toric departed from the
firm but conciliatory words of Arevalo. The workers seemed assured by the
president who so blatantly decried UFCO's tactics.
The Arbenz administration reiterated this effort to identify
with the
workers when it publicized correspondence between it and UFCO. In 1951,
UFCO had written the government presenting the case that because of the
recent hurricane and the labor conflicts , it was thinking about closing
down one of its plantations. It asked the government to have the workers
accept renewal of the contracts on the same terms they had previously and
asked the government for various concessions. Manuel Noriega Morales, mini
ster of labor and economy under Arbenz, responded in a cordial but firm
manner that the government was willing to work with UFCO but that it had
to keep the national sovereignty in mind. He also stated that unions were
not an organ of the state so the go vernment could not and would not force
them to accept the terms set by UFCO. The role of the government was through
the labor tribunals charged with making sure that the laws were followed,
but government would be willing to mediate when all other channe ls
specified
by law were exhausted. The government also won points with labor in refusing
to accept UFCO's demands that the government sign new contracts with the
company that were similar to other Central American countries and gave
concessions regardin g taxes and exchange rates to UFCO. Instead, the
government
said Guatemala was a different country with different conditions and the
state would form a committee of its political leaders to study its relations
with UFCO. This committee would make recomm endations for a new contract,
and only after the proposal was approved by the government would UFCO be
allowed to discuss it. The government also stated its demands for new
contracts
including renegotiations of tax exemptions, increasing control of the g
overnment over the UFCO's contracts with banana workers, and compensation
for exhaustion of the land.
Actions such as these maintained the positive perception workers
had
of the government and its role in the labor conflicts. There were some
complaints, such as that early on the government did not respond to worker
demands, and that it hurt the workers t hrough its decrees to stop strikes.
However, most workers felt the government was doing all it could. Even
in 1948 when the government reported that it was decreeing a suspension
of some constitutional rights and making the port activities a public serv
ice, the workers received the news well, and on both the docks and the
banana plantations workers promised to work without causing problems. The
muelleros supposedly even began loading one thousand more bananas
an hour upon hearing the decree. O ne worker at Tiquisate, when asked how
the government had acted, responded with gratitude that it had supported
the rights of workers. Another worker, in a more militant gesture, asserted
that he would give his last drop of blood for the government and t he
nation.
Though these types of comments must be considered in light of the fact
that they were printed in a communist paper and were said in the middle
of the 1951 conflict, the feeling of trust of and support for the government
was often voiced, espec ially by union leaders.who were probably the ones
informing the opinions of the workers.
For the workers, it was important to have the connection with
the government
because it was one of the only powers that could provide balance with UFCO.
The Ministry of Economy and Labor's statement that it had a duty to
encourage
and support unity among the working class gave hope to the workers and
encouraged them to organize and seek their rights. Both administrations
were sincere in their goal to help workers and at the same time decrease
the stronghold of the UFCO, but the audacity of their actions and words
differed. Yet, despite these pro-worker sentiments, the government was
limited in the extent to which it could assist the workers. The labor code
created to help the workers sometimes limited them, and the judicial system
had little power ove r the stubborn UFCO. Because the government was
committed
to following a constitutional procedure, it could not simply rule in favor
of workers had it wanted to. Therefore, the government was also partly
to blame for the workers' failure because, though they had counted on it,
the government could not match the intransigence of UFCO.
External Actors and the Workers
In addition to the government, there were other external actors
complicating
the UFCO workers' attempts for control over the workplace. The most obvious
of these was UFCO itself, and its role will be discussed below. However,
the conflicts of the UFCO w orkers also held great importance for labor
leaders of the central federations in Guatemala City, leading to their
involvement with the UFCO workers. With the political opening, labor leaders
tried to strengthen the general Guatemalan labor movement and increase
their influence with the political parties and with the president. In
reaching
this goal, the general Guatemalan movement encountered difficulties when
trying to unite the various unions into one federation. Conflict over the
role that politic al ideology, and especially communism, should play in
the leadership and goals of the unions became the primary divisive factor.
Disagreements over this issue led to the existence of two competing
federations,
the Federación Sindical de Guatemala (FSG) and the
Confederación
de Trabajadores de Guatemala (CTG), until 1952 when the two agreed to join
as the Confederación General de Trabajadores de Guatemala (CGTG).
The labor leaders who sought a more political and unified effort on the
part of the federations began to view the UFCO labor movements as an
opportunity
to raise national sentiment for the worker cause. Even though the
federations
supported the basic bread and butter demands of the workers, they also
viewed the conflicts as having meaning for the larger worker movement.
This became even more true as leaders with communist sympathies gained
firmer control of the federation and the Communist Party or the Partido
Guatemalteco de Trabajadores (PGT) became more influential in t he 1950s.
The federation and Communist Party interest in the UFCO
movements manifested
itself in various manners, the most obvious being the direct participation
in labor conflicts. While SETUFCO and USTPB belonged to the CTG, SETCAG
joined the FSG and all three later participated in the CGTG. As early as
the 1946 strike, representatives from the CTG went to Izabal to help in
the conciliation process. In 1949, the FSG intervened on behalf of Tiquisate
workers who had been fired and was successful in reaching a n agreement
with UFCO. During 1951, the CGTG would send representatives to the workers
to discuss the progress of the negotiations and to gather opinions from
the workers on possible settlements. The federations often brought
complaints
from the workers to the president or to the IGT. For example, the CGTG,
on behalf of the Bananera workers, requested that the IGT look into
suspicions
that UFCO had destroyed its own plantations under the pretext of saying
they were diseased but with the real motive to weaken the workers' position
in asking for a new contract. During the times of unemployment in the banana
zones in 1951, representatives of the CGTG also went to the plantations
to help distribute equally the goods that the government had sent for the
wo rkers.
The federations and the Communist Party also tried to influence the
UFCO labor movements by playing the advisory role. Both groups were very
instrumental in pushing for unity between the UFCO unions. Both the PGT
newspaper and statements from the federa tion warned the UFCO workers that
nothing would be won from the company unless they presented a unified front.
The PGT urged the workers in 1951 not to sign separate contracts again
and stated that they needed to show revolutionary action in this movemen
t. The interest in a united effort between the muelleros and banana
workers went beyond simply wanting the workers to win. The CTG knew that
it would need support from the masses in order to make the working class
a powerful sector. The uniting of the three UFCO unions could help realize
this goal by acting as an example of how unity was possible and how all
the Guatemalan unions should unite. Once the unions formed the joint
committee
to fight UFCO, the CGTG constantly reminded all of its wor kers of this
"success" and urged them to support the UFCO unions' efforts by following
suit.
The rhetoric used by the outside interests when talking about UFCO
and its unions also provides proof that they held ulterior agendas for
the UFCO conflicts. In addition to concern with the lack of unity, the
PGT chided the UFCO labor leaders in 1948 3;49 for not having a better
understanding of the problems and how they transcended their own needs,
and for lacking audacity in their actions. While it is not clear that the
PGT necessarily wanted to oust UFCO from the country, it strongly advocated
dim inishing its power. The party talked about the imperialist power of
UFCO and encouraged workers to take actions in order to rip away the profits
that UFCO sent abroad. Some even enumerated supposed benefits of a UFCO
withdrawal, such as the end of the t ransportation monopoly, more profits
for national banana producers, and fewer attempts to depose the government.
In PGT propaganda, the fight against UFCO took on patriotic values and
therefore required desperate action. One local Communist Party sent o ut
a flyer criticizing anticommunists because they insulted the dignity of
Guatemala by supporting UFCO. It characterized UFCO's imperialism as the
main national concern and stressed the urgency of confronting the company.
The Communist Party claimed t hat UFCO was trying to stem anticommunist,
and therefore antipatriotic, sentiment and was behind violent acts toward
communist sympathizers. The CGTG also joined in this anti-UFCO rhetoric
by characterizing the company's refusal to accept worker petitions as an
attempt to keep them in miserable conditions and eating only tortillas
and beans. By 1953 one of the goals set by the Communist Party included
intensifying the fight against the imperialist monopolies like UFCO.
Rallies and meetings also became a way for the federations and the
Communist Party to engage workers (UFCO or not) in these more militant
and ideological battles against UFCO. In one rally in Izabal, some of the
banana workers carried posters showing the hand of UFCO wringing out blood
and dollars from Guatemala. At this rally, a speaker on behalf of the
muelleros
denounced anticommunist groups in the area as antidemocratic and antiworker.
The Communist Party often characterized any rallies in the 1950s as slaps
in the faces of those who had joined the anticommunist campaigns. Sometimes
the federations organized their own independent anti-UFCO rallies in
Guatemala
City, but they would invite representatives of the UFCO unions. In
advertising
a general meeting of the FSG to condemn forces that were trying to weaken
the worker movement, the flyer specifically noted that representatives
from the Tiquisate workers would speak.. The CGTG also organized a large
anti-UFCO rally in the capital city in which participants marched to the
U.S. Embassy and UFCO headquarters, where they removed the Guatemalan flag
flown by the company. At the same time smaller rallies were being held
in the banana zones. The federation and the parties usually mastermind
ed or at least sponsored most of the public events designated to advocate
anti-UFCO sentiment.
The participation of outside influences was not always welcomed by
the UFCO unions. In the early days of the union in Tiquisate, labor leaders
wrote about the importance of keeping unions as professional organizations
not used for political purposes by p arties. Using this reasoning, the
USTPB became the most opposed to outside intervention, especially in the
1950s. In 1951, one of the reasons that the USTPB hesitated in joining
a united front with the banana companies was that Eduardo Alfaro, general
s ecretary of the USTPB, claimed that the call for unity was a way for
the PGT to infiltrate the unions. While the PGT denied the alleged
interference,
as communists gained influence in the general labor movement, Alfaro was
ousted from the USTPB on the pr etext that he had been an agent of UFCO.
In 1950, even though the CTG insisted it wanted to be associated with its
affiliates only to help and not undercut local leaders, SETUFCO almost
withdrew because it felt that the federation sacrificed the workers for
its own agenda. Despite all of these forces trying to intervene, the UFCO
unions, while they may have had some communist members, maintained the
increase of salaries as their main concern. The farther reaching
implications
of their movement did not concern them except insofar as they brought more
attention to their cause and garnered more support.
The unions needed all the support they could get since their
opponent
had so much more leverage in the conflicts. Despite the backing of the
government and ideological leaders, the workers' movement was seriously
challenged by UFCO's various tactics to counter the pressures from within
and outside the unions to strike. One way it tried to diminish the conflict
was by striking at the workers themselves by either firing them or
decreasing
the amount of work. One muellero, Pio R. Carranza, alleged that
once the conflict started in the 1950s UFCO had cut back on the work
artificially
to weaken the movement. After the hurricane, a visit to one of the fincas
showed that out of 143 workers only 4 had jobs despite the fact that many
of the trees were still up. UFCO would also use the excuse that bananas
had been destroyed by Panama disease to fire 366 workers in Bananera in
1949 before the conflict was settled. A few weeks earlier, 70 workers had
been fired in the same area. Even when the labor tr ibunals and the
government
said that UFCO could not suspend workers because of the hurricane, the
company stalled in giving workers back their jobs. Sometimes it also stalled
by simply refusing to accept any tribunal ruling that supported the workers'
so cial or economic complaints, including salaries. Once, it refused to
discuss economically related issues altogether and instead offered a
recreation
club and dining room to the workers. The inability of the government and
unions to really control UFCO's tactics against the workers would play
a part in the workers' willingness to sign contracts with only minimal
salary increases.
The other way UFCO struck at the workers was by playing up the
weaknesses
and conflicts within the unions. First it tried to hurt the unity of the
unions by encouraging them to sign separate contracts. It also played the
unions off each other, as was t he case when the muelleros slowed
down their work on the port. As a result, UFCO suspended many of its banana
activities and left banana workers without a job. When there were
complaints,
the company countered that the muelleros had caused the layoffs.
Another way it tried to divide the workers within the unions was by creating
its own mutual for workers in Tiquisate to belong to instead of a union.
This comité de conciliación received money and
transportation
from t he company to carry out its meetings and work. To entice workers
to join, a promise was made to try to give suspended workers a job again.
The jobs never materialized and the company committee had little worker
support. Union leaders also claimed that UFCO would try to divide the
workers
from one another and the government by turning off electricity at night
so that no news broadcasts could be heard and therefore workers would not
know what was being done on their behalf by the government.
UFCO also consistently used the interference of federation and
ideological
forces in the unions to try to divide workers. In flyers handed out by
managers on the plantation of Jocoten in Tiquisate, the UFCO questioned
whether the union leaders really had the "true" worker's needs in mind
or whether the outside influences of those with a political agenda were
dictating the petitions. UFCO contended that outrageous demands proved
that the union agenda was to kick the company out of the country. In other
words, the UFCO flyers implied that the true worker would not support the
demands because they would only hurt themselves. In addition, according
to UFCO any real worker would not support the new contract petitions because
the real worker had not lacked work. In another flyer in the Bananera area,
UFCO alleged that the unions had not followed the labor code rules in
petitioning
for a new pact and therefore also refused to read demands. The company
once again warned the workers that they would be the on es to suffer if
UFCO left. While a group of "real" workers in Jocoten and SETUFCO rebutted
these allegations, the intimidation tactics in the flyers served to weaken
the resolve of workers already worried about their jobs.
Another tactic was to strike at the concerns of the government and
the nation as a whole. With the entrance of Arbenz, the UFCO stated that
it wanted to cooperate with the new government and make the leadership
transition as smooth as possible. Labor le aders denounced these intentions
as having a hidden agenda because, as part of its plan for cooperation,
UFCO suggested that the current negotiations over renewal of contracts
be postponed until Arbenz was more firmly in place. This would have weakened
t he momentum of the labor movement and would have forced the workers to
continue with the same contracts for another six months. In a less
cooperative
manner, UFCO also tried to pressure the government by consistently
threatening
to leave the country when ever conflicts arose. UFCO would state that the
labor conflicts, the labor code, or salary increases would cut into profits
too much and make it less cost-effective to be in Guatemala. Even though
labor leaders and those holding anti-UFCO sentiments con stantly refuted
this threat by pointing out that UFCO had too many good things going for
it in Guatemala to leave, this threat seemed to have some sway and
contributed
to at least SETUFCO's decision to sign an agreement with the company. The
worst threat s to leave came in 1951 when the company cited that the
hurricane,
the labor code, and worker conflicts would cause UFCO to invest millions
of dollars in the Tiquisate area if it wanted to continue its operations.
In return for all the good that UFCO had done for Guatemala in terms of
health, development, and economy, it asked the government to intervene
and ask workers to sign a contract that would not allow them to request
salary increases for another three years. Even though the government
refused,
w orkers scaled back demands and eventually did sign a similar contract
partly as a result of this threat.
The reason that the threat, whether true or not, caused such
effects
was that since UFCO had other profitable plantations in Costa Rica,
Honduras,
and Panama, the company could conceivably pull out of Guatemala. If that
were to happen, the effects on the Guatemalan economy could be devastating.
Even though UFCO directly employed only 15,000 workers, Arevalo's minister
of economy and labor, Alfonso Bauer Paiz, reported to Congress that up
to 75,000 people were indirectly dependent on the company's activi ties
for their survival. UFCO proved this critical role in the nation's economy
in the 194849 conflict when it basically suspended all the port
activities.
The repercussions went far beyond the loss of jobs for UFCO employees.
The whole nation su ffered because no raw materials could be imported,
and no one could export anything. The decrease in boat traffic created
serious consequences for agriculture, industry, and commerce, and the
government
feared that the export of coffee and future receipt s of foreign currency
would be hurt. By threatening to leave, UFCO garnered if not support for
itself then at least opposition to the workers' demands. In 1948 and again
in 1949, the public through the press called for a quick end to the
conflicts
throu gh presidential intervention to avoid any subsequent harm to the
economy of the country. The middle and upper classes in Guatemala became
concerned about how a UFCO withdrawal would affect their livelihoods, and
government actions that seemed to hurt UFC O raised support for the company
among the business community. Editorials in the more conservative and
moderate
newspapers often asked the workers to lower their demands or completely
give up their fight. Another former minister of economy and labor und er
Arevalo, Clemente Marroquin Rojas surprised the unions by writing that
salary raises would hurt UFCO because it would have to raise the prices
of its fruit, and therefore should not be pursued. This change of heart
of a former critic of UFCO may have well characterized the sentiment of
more and more Guatemalans who saw UFCO gaining support both in Guatemala
and abroad.
To add to the pressure on the government and the workers, UFCO
enlisted
the aid of the U.S. government. Starting with the implementation of the
Labor Code of 1947, UFCO complained to the U.S .government that the
Guatemalan
government had an anti-American ax to grind. The company claimed that in
labor conflicts UFCO was purposely discriminated against, and it went to
great lengths to launch a public relations campaign in the United States
touting its contributions to the "ungrateful" Guatemala. State De partment
memos showed that the United States believed that the Guatemalan government
wanted to perpetuate a sense of nationalism among the people by picking
the company as a target. The U.S. government let it be known that it
considered
the labor code di scriminatory against UFCO and expressed displeasure in
the government attempts to force the company to accept arbitration in labor
disputes. The U.S. Congress also became involved, with senators like Henry
Cabot Lodge making official statements against t he treatment of UFCO.
The concern with Guatemala stemmed from more than the alleged prejudice
against UFCO; since the beginning of the revolution the United States had
kept a cautious eye on the Guatemalan government and monitored communist
influence in the country. Already concerned about the ties between some
Guatemalan activists and the Soviet Union, the United States was receptive
to UFCO complaints about what they claimed was a radical Guatemalan
government.
By June 1954, the Senate passed a resol ution stating that the United States
was aware of strong influence by the communists on the government of
Guatemala.
This set up the justification for the overthrow that month of the Arbenz
regime by Castillo Armas with the help of the CIA. Secretary of State Dulles
characterized the situation in Guatemala as one where communism had
infiltrated
the government, but where the people had also supported the overthrow of
Arbenz. While there were many other reasons than just "discrimination"
against UFCO tha t led to U.S. intervention in this case, the company played
a vital role in calling attention to policies in Guatemala it did not like.
In the case of the UFCO unions, the fact that more radical influences had
tried to integrate the labor conflicts into ideological struggles did not
help the workers' case in the view of UFCO and, indirectly, the United
States. In the end, UFCO helped implement the final blow to the workers'
movements by eliminating the political opening that had allowed them to
organize in the first place.
Conclusion
The coup of June 1954 ended the "ten years of spring" in Guatemala.
For the UFCO workers this signified a defeat in that the new government
disbanded their unions on the basis that they were communist. Yet, even
before the end of the revolution, the wor kers would have had a hard time
claiming success in many areas. In terms of union organization, there were
some successes because the UFCO unions made UFCO take them seriously. UFCO
worker unions became some of the most organized of the period and led s
ignificant movements against the company; however, at least the banana
unions never had full support from the workers, and internal conflicts
did not allow for complete unity among the unions. The fact that the unions
could maintain a united front in the face of UFCO weakened their ability
to advance more demands. Even though the government tried to improve worker
conditions through a progressive labor code and public support, it could
do very little in light of UFCO's refusal to negotiate with the work ers.
Also, the threats of UFCO withdrawal put the government on the defensive
because Guatemala still depended too much on the company's investments.
In some ways, the central worker federations and the Communist Party tried
to help the unions (and thei r own agendas) by characterizing the movements
as national issues. The UFCO unions may have appreciated the attention
in so much as it could have provided more popular support. However, even
this backfired because UFCO could use claims of communist infi ltration
both to refuse to negotiate and to gather support from the United States.
The three major worker movements were not a total failure
because they
did obtain some concessions such as collective contracts and higher
salaries.
But even though salaries increased, the value of the raises soon disappeared
through the increased cost o f living and UFCO money-saving tactics. In
the end, the most pervasive reason behind the workers' failures to gain
more control rested in the power of UFCO. Because of its prominent position
in the country, it not only played on the weaknesses of the un ions but
also used their strengths (government and ideological support) against
them. The company gained additional leverage through its operations in
the rest of Central America and its backing in the U.S. government. For
the Guatemalan UFCO workers, t he October Revolution provided a unique
opening in time and opportunity for them to make headway toward control
of their working conditions. Unfortunately, due to a combination of their
own internal weaknesses and the limitations of a government influenc ed
by a powerful multinational, the UFCO workers could not reap the full fruits
of their ten years of spring.
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