Created: 2/8/1954

OCR scan of the original document, errors are possible




Chief of Station, Lincoln raOM Chief, UH date u


KUGOWN Support

specific Current Situation of Labor in Guatemala

1* Attached are two oopieatudy preparedupport office at the oral request of Terence E. GASSETT.

2. The report has been compiled froa most readily available sources, brought down to the latest information which has been received, and compressed in summary form. The glossary of abbreviations in Appendix II, compiled for KUJAZZ publication, may be useful for ready reference.

In compiling the biographic data in Appendix I, emphasis has been given to tracing experience, acts, end connections bearing on the penetration of Guatemalan labor by International Communism.

u. If station Lincoln requires further information on any aspects of this study, the originating office will endeavor to procure it.






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The Labor Force

Moref the population of Guatemala consists of Indians who cling tenaciously to their traditional ways of life, and arc even less familiar than their Ladtno* compatriots with modern industrial techniques. However, Guatemalan statistics in most cases do not distinguish between the two groups. The total manpower of Guatemala is estimated to be only slightly in excess of its labor force, which0 consisted of approximatelyndividuals outotal population of. **

. Some industrial and commercial advances have been made in recent decades, but the majority of the labors still engaged in agriculture, much of it primitive. Nearly three-quarters of these workers normally are employed on relatively small farms. Those who work on large plantations arc engaged chiefly in the production of coffee and bananas.

The non-agricultural segment of the economy, consisting chiefly of handicrafts and small-scale manufacturing, domestic service, and commerce, accounted forf these were concentrated in crafts andn domestic service, andn commerce.

Industrial workers are employed principally in processing foods, production of textiles and clothing, and construction and repairs. There were26 workers in establishments employing five or more workers, ajor portion of these arc employed in textile, food, clothing, and beverage industries.

* The name used in Guatemala to designate persons of mixed Spanish and Indianhe same as Mestizo in other Latin American countries,

Most recent data available.



The following table gives most recent available tabulation of the total labor force:

I. Total population - otal labor

U. Agricultural%

TH, Non-agricultural







Armed forces



Labor Income

Many Guatemalans work cither partly or wholly outside the money economyare paid in produce, housing, health and welfare services, and by usearden plot. Tentative calculations of incomein Guatemala for the fiscal, as revised on the basis of0 population census, indicate thatf all families had incomesuetaalesr% of Indianf Ladino families).


Minimum Wage

The first minimum wuge decree was approved by the Ministry of Economybor in It fixes the minimum daily wage5 quctzales* for textile workers. This figure corresponds to the minimum urban wage advocated by the CGTG (Confedrracion General de Traliajadorcs dend may be intendedrecedent for minimum rates in other non-agricultural industries. This minimum wage is considerably below the ILO consultant'sdaily requirement3 quetzales for food alone in Guatemala City for an average family of five. Therefore, more than one memberamily must work in order to maintain the level of living at an "adequate minimum." The CGTG alsoationwide minimum daily wage0 quetzales for agricultural workers, but so far thla bas apparently been established only on some government-owned farms. In the postwar years, wages have barely kept pace with the cost of living, having risenn commercial and industrial fields. While cash earnings of farm workers on privately-owned coffeein the departments of San Marcos and Quczaltenango almost doubled,0his increase was more or less commensurate with the increase in food prices.

Working Hours and Paid Vacations


The Guatemalan Labor Code7 cstabliahed working hours, and is fairly well enforced. The normal working dayours, and the -normal work weekours for day work. The large agriculturaland commercial and industrial eoterpriscs'withr more workers arc required to pay their employeesours' pay forf actual work. Except in emergencies, the working day, including

time, may not exceedours. Workers ge&eraUy'are entitled to

* The value of the quetzal is roughly equivalent to.

y are entitled to one paid day of rest after each ordinary work week, oronsecutive-days of work. The Labor Code also provides for minimum annualwith pay: ays in commercial enterprises;ays in industrial enterprises employingr more persons and in agricultural enterprises


r moreays in other enterprises. To qualify for vacations, employees must have worked atays during the year for the same,employer.

Employment of Women and Minors

Minors undernd women may not be employed in dangerous or unhealthful work, nor are they permitted to work at night, except for domestic servants and nurses. Paid maternity leaves are provided. Minors underay not be employed, except where specific exemptions are made by the Ministry of Economy and Labor for apprentices and for children whose family needs require that they work. The law fixes minimum compulsory educational requirements applicable in all cases.


Under the Labor Code, both employer and employee are restrained fromabor contract without cause. Just cause foremployee includes property damage, excessive absenteeism, electoral-political propaganda activitiy during work hours, falseent of qualifications, and insubordination. In addition, an employer may terminate bis labor contracts in case of accidents, insolvency, and bankruptcy. In such cases, an employee may be discharged immediately, without indemnification other than back wages. However, if the employee is discharged without "justhe employer Is required to pay him compensation to the extent of one month's wages for each year ofemployment, unless, in the case of an enterprise with twenty or more workers, the discharged employee elects reinstatement. In practice, the labor courts rarelyischarge justified.

"Just cause" for termination of contract by the employee may be failure to pay wages, requiring him to work under conditions dangerous o health and safety, or under certain other circumstances, suchbeing considered an "indirect discharge" entitling him to demand indemnity for an unjustified discharge.


Working conditions are set by custom, by shop rules issued by employers and approved by the Ministry of Economy and Labor, by collective contracts, and by the Labor Code. On some large farms andew of the larger industrial and commercial enterprises, well-organized programs of safety, health, and welfare exist, and working conditions are good.

Labor Legislation and Government Policy

The Guatemalan constitution. Labor Code, and Agrarian Reform Law are expressions of the revolutionary principle of "spiritual socialism" which came into prominence following the revolution The welfare of the worker became the object of paternalistic state policy. This is reflected in the sections of the Constitution setting forth "social guarantees" for workers. Both the Labor Code and-the Agrarian Law reflect Guatemalan desire to emergeemi-feudal order andodern system of labor relations. The Labor Code represents an attempt to change the traditional employer-employee relationshipormalized relationship with mutual rights and duties. The Agrarian Law envisages the freeing of thousands of agrarian workers from dependence upon the privileged landholding class,

Guatemala rejoined the UN-affiliated International Labor Organization5 and hasumber of conventions of that body relating lo labor's freedom of association and right to organize, the maintenance of labor-inspection service, restriction of night work for young people, and medical examination of young people as they are employed.

Specific Provisions of the Guatemalan Labor Code

1, Unions are free to organize withr more members.

are required to register with the Ministry ofLabor and to be recognized before they can legally function,

arc subject to dissolution by the labor courts forin political activity, serving foreign interests contrary toGuatemala, or encouraging religious or racial conflicts.

are forbidden to force employees eitheror withdrawnion.

closed shop is banned.

Employer unions arc authorized,inimum of fiverequired,

The right to strike is recognized, but may be abridged by law or government decision.

strike is considered legal only after conciliationprocedures have been exhausted.

must be supported by two-thirds of the total numberof an enterprise.

specific labor court declaration is theoreticallya strike can legally be commenced,

employees arc forbidden to strike, exceptChief Executive attempts to remain in office beyond theby the Constitution, orevolution isa legally constituted government.

work at time of harvest is classedublicstrikes at such times are illegal.

workers in essential enterprises may go onservices in such enterprises must be maintained.

Employers mayork stoppage "in defense of their economic interests against the workers. " toppage must be maintained by two or more employers in defense of economic interests "peculiar to them, "

Right of Labor to bargain collectively is recognized.

a. Employer is obliged toollective contractnion represents moref the employees and requestsontract.



a pact is negotiated, all employees of the firm

are subject to terms of the pact, even though they may not be

members of the union involved. *

contracts may cover wholeetermined area, upon agreement of the

no union is qualified toollectivea commercial or industrial establishment, the Code requiredemployer drawabor contract with each individual worker.

A verbal agreement is sufficient in agricultural and domestic service.

Code stipulates equal pay for equal work.

Wages of employees must be paid in legal tender, with the exception that agricultural and livestock workers may be paid in food-and other consumers' goods to the extentf their wages. of wages in kind must be made at cost or less.

The Code sets up machinery for determination of minimum wages, and stipulates that the wage base is to be reconsidered each year, orufficient number of persons affected requests reconsideration,

The Code fixes the working day, and provides for vacation with pay; regulates conditions of work for women and minors.

Agricultural and stock-farm enterprises ^employing moreorkers are required to adhere to provisions of the Code notto smaller agricultural enterprises, but identical with those applying to industrial enterprises.

All enterprises are required to employ atuatemalan personnel, who are to receive atf the wages paid. Under special conditions these percentages may be reduced, but enterprises which have permission to employ lessuatemalan personnel must institute training programs for the purpose of qualifying Guatemalans to replace foreign workers.



Administrative Agencies and. Ministry of economy and Labor

In charge of over-all direction and coordination of matters relating to labor and social welfare,

Department ofrocessesfor juridical recognition, reviews union financialandublic registry of unions and ofcollective pacts. Also gathers other types ofemployers and unions for statistical purposes.

General oforps ofand social investigators, secures compliance withCode, and advises employers and workers inCode provisions,

Courtower labor courts haveover labor cases, and may also serve as tribunalsor arbitration. Above these are two labor courts The labor courts usually lack impartiality, and haveby political parties.

2. Guatemalan Institute of Social Security

-This autonomous agency was established toay-as-you-go program with equal contributions by employers and employees. So far, social services covered by the Institute have been restricted largely to workmen's compensation and rehabilitation, with emphasis on rehabilitation rather than on relief.

Labor Organization

* Seeor principal personnel.

Labor organization in Guatemala is young and inexperienced.mall percentage of the members consistently support their unions and use them for collective bargaining. In this situation it has been easyroup of well-trainedajority of


them Communist ot pro-Communist, to gain control of organized labor throughout the country. Using this control to deliver mass popular support to the Axbenz administration, these leaders have been able to penetrate the Government and obtain political dominance over the executive.


Prior to4 revolution, the labor movement consisted largely of nautual aid societies which were generally ineffective. The workers were apathetic and inexperienced, and the Ubico administration was generally hostile to the organization of labor. The post-re,volutionary administration of Arevalo and Arbcnz encouraged the labor movement through their support of labor legislation, and by giving labor an important voice in the councils of government.

In addition to their efforts to improve the conditions of workers through traditional trade-union methods, the new labor organizations have played an important political role, espousing social, economic, and political causes with broad national and international implications. Organized labor has also been responsible for the dissemination of Communist-oriented propaganda, emphasizing the "economic liberation" of Guatemala from the foreign companies charged with the will to keep itsemi-feudal state."

Trade Union System *

* Seeor principal Appendix IE for checklist of labor organizations.

Two national confederations dominate organized labor in Guatemala: The General Confederation of Guatemalan Workers (Confederacion -General de Trabajadorcs de Guatemala, CGTG) and the Nationalof Rural Workers of Guatemala (Confederacion Nacional de Campcsinos cie Guatemala, *


The CGTG is the more important and influential of the two national confederations. It was established in1pecial congress, by unification of the moat active organizations in the labor movement. This unification was accomplished under Com mum st auspices, and represents one of the most outstanding Communlat successes in Guatemala to date. Among thelected to form the Executive Committee of the CGTG,reby the US Embassy to be Communists,umber of others are suspects. The Secretary General of the confederation, Victor Manuel GUTIERREZ, is one of the two most importantin the country.

Moat of CGTG's membership is located ln and around Guatemala City, and consists mainly of workers in induatry, in-port and railway facilities, and in the UFCO plantations. Some white-collar workers are included and thereew affiliated agricultural unions in rural areas.

CGTG Affiliates:

The Confederation of Workers of Guatemala (Confederacion de -Trabajadores de Guatemala, CGT) one of the two principalwhich joined to form CGTG, has been dissolved. The other principal charter group. Trade Union Federation of Guatemala (Federation Sindical de Guatemala, FSG)ational federation of unions in diverse industries and of amall regional federations which has remained organizationally intact and constitutes the moat important affiliate of CGTG, although many of its former functions presumably are now exercised by the confederation. The present leadership of

FSG appears to be pro-Communist; its Secretary General is Victor LEAL,

Two other important federations, the Guatemalan Autonomous Labor Federation (Federacion Laboral Autonoma de Guatemala, FLAG) and the Central Regional Federation of Workers (Federacion Regional

Central dc Trabajadores, FRCT) withdrew from CGTG shortly after its formation; FLAG has apparently rejoined, FRCT apparently has not. They have both opposed CGTG's attempts to dominate the labor movement. FLAG was at one time denounced by the Communists as divisionist, and the principal leader of FRCT, Carlos MARIN, has always been an outspoken anti-Communist.

The following federations of labor are believed to be affiliated with CGTG:


Trade Union Federation of Guatemala (Federacion Sindlcal de Guatemala, FSG)

Guatemalan Autonomous Labor Federation (Federacion Laboral Autonoma de Guatemala, FLAG)


National Federationof Leather Workers (Federacion Nacional de Trabajadores del Cuero)

National Federation of Construction Workers (Federacion Nacional de Trabajndores de la Construccion)

General Federation of Theatrical Workers (Federacion General dc Trabajadores del Teatro)

Federation of Art and Graphic Workers tFederacion de Trabajadores en artes Graficoa)


Fedcration of Workers of the Department of Guatemala (Federacion de Trabajadores del Departmento dc Guatemala)

Federation of Workers of Escuintla (Federacion de Trabajadores de Escuintla)

Federation of Worker* of-Isabal (Federacion dc Trabajadores de Izabal)

Federation of Workers of Retalhuleu (Federacion de Trabajadores de Retalhuleu)

Fcderation of Workers of Sacatepequez (Federacion dc Trabajadores de Sacatepequez)

D", Union Affiliates

The strongest of the industrial unions affiliated directly with CGTG -is the Railway Workers Union (Sindicato deejoramiento Ferro-carrilcro,embership of. It ia in the first rank of national unions, and forms the core of the trade-union movement in Guatemala. SAMF is the only unioneal trade-union tradition, and one of the few powerful enough to influence the actions of CGTG. The Union of Educational Workers of Guatemala (Sindicato de Trabajadores de la Educacion de Guatemala, STEG) outranks it in size withbut these are reportedly largely inactive. Other important unions affiliated with CGTG and their membership are:

Union of the Agricultural Company of (Sindicato de Empresa-de Trabajadores de la Compania Agricola de


Workers Union of the United Fruit Company (Sindicato dc EmpresaTrabajadores de la United Fruit Company,

Port Workers Union-of Puerto Barrios (Union Sindical de Trabajadores de Puerto Barrios,

Carpenters and Glaziers Union (Sindicato 'de Trabajadores en

Masons Union (Sindicato de AlbanUes

CGTG's attempt to dominate the labor scene in Guatemala hasby its political activities. Decisions of CGTG areby political considerations which may not be to the bestof the union involved. The most striking instance of thisa dispute2 between CGTG and one of its affiliatesix-month strike at the Tiquisate plantation of UFCO'. The

breach developedettlement was arranged that was satisfactory to the local union but not to CGTG, which apparently was more interested in provoking an incident with UFCO than in settling the labor dispute.

A further source of major dissension is the confederation'swith its important affiliate, SAMF, trong anti-Communist sentiment exists within the railway workers union, and although the leadership is largely pro-Communist, these leaders are required to exercise great agility in maintaining their precarious hold on the union. Some SAMF members appear to have feared that the immediate Interests of the union were being subordinated to Communist aims,ecent election in SAMF increased the strength of thefaction and promises further friction. However, the opposition to the pro-Communist leaders results as much from personal rivalry and internal dissension as from anti-communism; even the anti-Communists in the union are clearly leftists, and proclaim their loyalty to the present regime.

International Affiliations:

CGTG has within the last year joined the Latin Americanof Workers (Confederacion de Trabajad ores de America Latina,CTALj-and the World Federation of Trade Unionsoth Com-munist-dominated organizations. Efforts of the Argentine government to influence the Guatemalan labor movement have had little effect. The Communist labor leaders of Guatemala are understood to be only slightly less hostile to Argentina than to the United States.


Technically, CNCG isabor organizatidh, and docs not engage in collective bargaining. It does, however, represent the interests of many smallnd tenant farmers, and of some farm laborers. CNCG hasong-time advocate of agrarian reform, and itsinterest centers around the implementation of the Agrarian Reform Law and the consequent distribution of land. Specific location of CNCG affiliates is not known, but they are scattered widely through the rural areas. Originally controlled by Socialists, CNCG has come underinfluence, and the Secretary General, Leonardo CASTILLO Flores, is regarded as pro-Communist. CNCG is not.openly affiliated with any regional or international labor groups.




Inroup of unemployedational Union of Free Workers (Union Nacional de Trabajadores Libre s,ith the announced objectives to promote harmony between capital and labot, and to combat Communist domination of labor. Theis an outgrowth of public demonstrations by unemployed workers in Guatemala City during the summer However, the group isaper organization, without affiliates, funds, orrecognition, and its leader, Ruben VILLATORO 'Barrios is known to be unscrupulous and opportunistic. Several leaders of UNTL have been arrested in recent weeks, and VILLATORO himself is said to have fled to Mexico, asking political asylum, UNTL is-definitely

anti-Communist, but its potentiality for effective counter-action Is not known.

Labor, Politics, and Government

Organised labor has supported both the Arevalo and Arbenzand has been principally associated with the pro-administration party, the Party of Revolutionary Action (Partido dc Accion Revolucionarta, PAR), It has also given some support to the Party of the Guatemalan Revolution (Partido de la Revolucion Guatemalteca, PRC) and is closely associated through its leadership with the Guatemalan Laborartido Guatcmalteco del Trabajo,he party of Guatemalan Communists,

abor leaders formed the now defunct National Political Committee of Workers (Comite Politico Nacional dc Trabajadores, CPNT) direct labor's participation in the elections of that year. The committees which made up the organization were nominally independent of the unions, since Guatemalan law forbids political activity on the part of labor unions. However, this separate identity wasegal fiction, Tbe Committee played an active part in the campaign for the election of Arbenz, and this political activity met little open opposition from the rank-and-file members. The Committee disappeared1 with some speculation that this was due to the fact that Manuel PINTO Usaga, its Secretary General, was considered too ambitious to be trusted by other Communists,

Currently, labor's Influence in the government is exercised through labor leaders who hold positions in the pro-government political parties.



GUTIERREZ was formerly an officer in the leading pro-government party, PAR, and still apparentlytrong influence in its councils. He was elected0eputy in the National Congress, representing the PGT. Inhe PGT, with the help of the other pro-government parties, elected to Congress Carlos Manuelecretary of Disputes of CGTGember of its political committee.

Aside-from its direct political support, labor has described itself as an ever-ready militia willing to "defend the Revolution." InELLECER declared that he had directed the formation ofof self-defense within CGTG which would be able to fightoment's notice against enemies of the Revolution. CGTG is said toell-stocked arsenal in its headquarters.

Organized labor has evinced great interest in agrarian reform,it an opportunity to lead the rural workers into leftist political and labor organizations. Since labor representatives have beenhare in allotting land to individual workers and in determining whether the recipient should retain such land, organized labor is increasing its influence over the Indian agricultural workers.

Labor groups have supported legislation limiting use of alien workers, have protected their workers from disciplinary action resulting from slowdowns, and have agitated for minimum wages.

Official Attitude Toward Labor;


The willingness of the government to collaborate with Communist leadership of organized labor is clear. President Arbenz advocated the establishment of an all-inclusive centralized labor organization, undeterred by the foreseeable Communist character of such an The formation of CGTG possibly appeared useful as parteneral unification of leftist forces.

The government favors organized labor in many ways and provides-the Communists with the support necessary to dominate the-laborbut has retained fortrong legal positionis labor. The Communist labor leaders have been restive in their situation of , dependence, and in2 attempted to increase their popularand secure greater independence by passing throughof the Labor Code which would have given them greater freedom from government control, and credit for substantial benefits. President Arbenz, however, vetoed the revisions. Those government officials

is qyfrrr

Those government officials who are anti-Communist are not publicly so, subscribing to the view thai to be publicly anti-Communist is to be anti-government.

Public Attitudes Toward Labor:

Conservative and aristocratic elements in Guatemala see inlabor, with its close affiliation to politicalerious challenge to their own status in society. Employer organizations have carried on public relations^ campaigns against various tactics of the labor movement and can be expected to continue efforts to prevent labor from realizing what they term "unjust" demands. The small-business and commercial-class opposes the organized labor movementhreat to its ownstanding and political future. The large mass of agricultural workers are apathetic to the labor movement. However, the AgrarianReform Law and the probable consequent expansion of peasantsuch as CNCG may increase their interest. Some of the leadership for the labor movement is furnished by intellectuals of Guatemala.

Organized labor is an unstabilizing influence, in that itactor in forcing important changes in the traditional relations between empoyer and employee, exercises considerable influence in the establishment of new patterns of land ownership, and provides an entirely new bate for political power in Guatemala,

Labor Relations and Disputes

The traditional relationship between employer and employee in Guatemala has been, particularly among the agricultural workert, paternalistic. The plantation owner who is mast successful in handling labor relations problems does not necessarily pay maximum wages, butreat deal of personal attention to the problems of the individual workers. On some of the large commercial plantations, however, especially those owned by UFCO, and in the limited industrial sphere, labor relations have already takenew characteristic. The old personal ties have tended to disappear, and the relationship has become impersonal and formal, governed by law and contract. This requires adjustments of both employers and employees.



Labor disputes have been frequent since4 revolution. mall portion involved actual strikes. The great majority concerned individual complaints against employers, most frequent of which was probably that of unjustified discharge. Strikes have occurred fairly frequently, howevec, and in most of the important sectors of the economy. Foreign-owned enterprises have come in for the bulk of labor disputes. However, the government itself lias frequently been involved in disputes with its workers, ln spite of its revolutionary aims, the government has at time exploited employees as much as any private employer. Postal workers and municipal employees have been paid substandard wages; teachers have often failed to receive their salaries for long perlos of time. In one such instance, the teachers union, ST CO,trike which forced the government to pay back salaries. National labor organizations have usually given enthusiastic support to striking government workers.

The government has at times taken the role of an activelabor disputes. On one occasion, it suspended constitutionalfacilitate the imposition of compulsory arbitration; in another itColombinn managerSonth to Leave the countryunion threatened an illegal strike to force his discharge; on aoccasion President Arbcnx loaned funds to striking workersAmerican Airways until an agreement was reached. Because ofrelationship between organized labor and the government, itappeared expedient for the government to place itself in thedefender of Guatemala against "imperialist" foreign-ownedwhen the government has felttrike would beto it, it has not hesitated to put pressure on union officialsthe

Guatemalan employer organizations do not bargain with laborbut carry on public relations campaigns against the labor policies of the government, and have resisted the various campaigns waged by labor to secure amendments to the Labor Code, As pressure groups, however, they have insufficient influence to change markedly anyor Labor policies.

Current Developments

The Second National Congress of the CGTG4 in Guatemala City, at whicheorganization of the board of directors was announced. This board Is composed of the following members:

Executive Committee:

Victor Manuel GUTIERREZ



Vice Secretary General


Vice Secretary General


of Propaganda


of Organization


of Culture


Secretary of Culture


of Conflict




OVANDO Sanchez

of Records and Agreements


Secretary of Records


for Foreign Affairs

David RAMOS*

of Finance


for Farm Relations





These names arc takenadio broadcast and are subject to later correction,


Like many Communist-sponsored congresses this meeting was heldcries of postponements. First announcement regarding it appeared int which time it was scheduled for October. It was again announced in August for the next October; subsequently it was postponed until December; finally onecember the press announced that the congress would beanuary.

Prior to this date Jose Manuel Fortuny and Victor Gutierrez returned from the Vienna meeting of the WFTU and tours behind the Iron Curtain. They returned separately via Mexico City. Fortuny is known to havehort stopover there and is reported to have been in touch with Vicente Lorn bar do Toledano.

Also prior to the congress the Guatemalan Ambassador in Mexico-was reported to have returned to Mexico from Guatemala withfor Vladimir PAVLICEK, Czeck Minister in Mexico City, from President Arbenzroposed trip by Pavlicek to Guatemala. Onanuary Pavlicek reportedlywo hour meeting with Mikhail CHERKASOV, Counselor of the Soviet Embassy in Mexico City. Onanuary Pavlicek flew to Guatemala, where he spoke with delegates to the CGTG Congress. Following this, one of the recommendations made at the congress was that diplomatic and commercial relations between Guatemala and Czechoslovakia be established. ebruary the government announced that relations would be established, andebruary Pavlicek presented his credentials to President Arbenz.

Communist orientation of the CGTG Congress was unmistakably indicated by resolutions calling for the establishment of diplomaticwith the Soviet Union and the People's Democracies, and repudiation of the "treacherous and imperialist conspiracy against ourlso, during the Congress, Communist red flags flew beside theemblem over the EGT (sic) building which was presented to the confederation cost-free by the government two years ago. Large banners protesting "foreign intervention" were distributed by the CGTG following the government revelationNorth American" plot against the regime.



Administration Leaders Concerned With Labor


LL AD ARES Castillo


Daniel Alfonso MARTINEZ Estevcz

Amor VELASCO de Leon

Jaime DIAZ Roazotto

Ministry of Economy and Labor

Inspector General of Labor

Administrator, Institute of Social Security

Chief, National Agrarian Department

Deputy in National

Secretary General of the Presidency


1. Roberto FAN JUL

The present Minister of Economy and Labor, Roberto FANJUL,uccessful young businessman with extensive agricultural and commercial interests. He has held no political office before, and is not known to belong to any political party. He apparently owes his present position to his life-long friendship with President ARBENZ.

He is regarded as pro-US, and by business elements in Guatemala as "sound and progressive." He has stated that he is opposed tobut eschews the designation "antl-Communist" on the ground that in Guatemala "'anti-Communist1 means 'antl-government'. " He opposed the Agrarian Reform Law as being too drastic and impractical for Guatemala, and recommended to President ARBENZ the latter's veto of the Labor Code revisions passed by the National Congress.

Reports on his personal situation vary from those which remark that his private fortune is dwindling to rumors that he hasealthy man during his tenure in the Ministry of Economy and Labor. He appears to be opportunistic, and without strong political or ideological convictions.


The Inspector General of Labor is known as "pro-labor, but" and has been under attack by the CGTG. He is said to have tried to maintain objective standards in administering his position, but some of his labor inspectors have indulged in labor agitation. Despite public requests that he resign, he has continued in office.


SOLORZANO is administrator of the Guatemalan Institute of Social Security, Under the direction of this experienced labor organizer and agitator the Institute hasowerful and influential political agency of the government.

aw student in Mexico City, Solorzano came under the direct influence of Vicente LOMBARDO Toledano, and was his co-worker in the labor-organizing activities of the CTAL. He put these experiences and contacts to use upon returning to Guatemaland began quickly to organize labor groups into unions. There is strong evidence

that he was instrumental in obtaining financial aid from LOMBARDO Tolcdano to assist in the return of Juan Jose AREVALO from exile to the presidency*

e became one of the principal leaders of the extreme leftist political party, National Vanguard (Vanguardia Nacional), He was exiled5 and went to El Salvador and Mexico, where be allegedly received financial support from Soviet and Marxist Mexican sources.

A lawyer by profession, his special interest is in the field of labor and social laws, and he took an active part in drafting the Labor Code and Agrarian Reform Law. He was an organiser of the CTG and of the PAR. When the latter merged Into PRG, heember of that body's political committee. He has not openly joined the PGT, but clearly identifies himself with the Communist cause. He has given aid and support to numerous front organizations and the "peace" movement.

arxist intellectual, and excellently prepared byheormidable figure in Guatemalan political activities. He lacks experience and knowledge in the field of social security andoor administrator. He has used the Institute of Social Security to further his own political ends and has allowed continued Communist penetration of the social security agency.

4. Daniel Alfonso MARTINEZ Estever

Major MARTINEZ Estevez, Chief of the National Agrarianand ex-officio President of the National Agrarian Council, is an intelligent, unscrupulous, highly calculating person who owes his meteoric political ascent to his association with President Arbenz, Justnd regarded as shrewder and more ruthless than his chief, he has been, in effect, the President's trusted aide and"tough man." Formerly private secretary to the President, he is most noted for his part in9 assassination of Col. Francisco Arana, Arbenz* strongest political rival, for his liaison duties with the Caribbean Legion, and for his influence over the Chief Executive, Since his appointment to take charge of the agrarian reform program, he has become probably the most publicized man in Guatemala.

ARTINEZ wasest Point scholarship granted Guatemala through US State Department offices. However, he spent only one year here, and then left the Academy for undisclosed reasons. Returning to Guatemala, he was attacked as aide-de-camp to Defense Minister Arbenz. and given an aaaignment as military attache to Honduras and El Salvador. In the fall6 he was relieved of his duties,to run for National Deputy, although it haa been rumored that he left El Salvadorloud.

Elected Deputy to the National Congress for then the PAR ticket, he aligned himself with the dominant leftist bloc. Today, however, in efforts to disassociate himself from any party entanglement, he denies having ever been enrolledAR member,

MARTINEZ recently demonstrated his immaturityeader and inability to cope with the tacticseasoned agitator like Pellecer. Inhen the Communist-led campesino riots in Escuintla became embarrassing to the administration, the President ordered MARTINEZ to settle the disturbances. Despite his announcement that he would not return to the capital until affairs were under control, Martinez soon realized that he was incapable of taking command of the situation and fled to Europe.

MARTINEZ appears to have no interest in ideological questions, other than their usefulness in gaining power. While giving lip service-to the revolutionary line, he haa refrained from taking part incauses, His views about the United States are not known. His young son attends the American school in Guatemala City, which may indicate that he has no strong ideological bias againat the United States,

5. L. AS CO de Leon

A deputy in the NationalELASCO de Leon was formerly Secretary of Organization in CNCC, and the second most influential member of that organization. He was expelled from CNCG2 because he favored continued close political tics with the PRC* (Partido dc la Rcvolucionhich was considered too moderate by the CNCG. He has continued to be decidedly left-wing in his ideology, and has hewed closely to the Communist line. He wasember of the Guatemalan Communist Party suppressed by President Ubicond hasrominent part in the "peace" movement and other Communist activities.

VELASCO de Leon has held several executive positions in CTG, and was active in the CTG-sponsored labor school "Escuelaegardedenter of radical agitation. When Charnaud MacDonald organized CNCG inelasco was appointed its Secretary of Organization and Propaganda. He was elected to the National Congress on the PAR (Partido Accion Revolucionaria) ticketut followed Charnaud out of the party1 and was appointed to the Political Commission of the latter's Socialist Party. He became affiliated with PRG when it was formed2 by amalgamation of the Socialist Party with PAR'.

6. Jaime DIAZ Rozzotto

DIAZ, Secretary General of the Presidency sinces rumored toossible successor to Fanjul as Minister of Economy and Labor. Heroduct of Communist-line youth and intellectual organizations which have flourished in Guatemala He first became active in politics at the National University in Guatemala City, where he won the university prize for oratory He was active in the Alianza Juventud Pcmocratica de Guatemala, the national affiliate of the Soviet-controlled World Federation of Democratic Youth, and in theocal Communist-line organization of "younge has been active in the "peace" movement. It has not been proved that heember of the Communist party, but his behavior coincides with Communist convictions and there is no available evidence that he has ever been attacked by Communists.

His rabble-rousing leadership of the National Reform Party reflects his undisciplined character and dictatorial actions. He is energetic, belligerent, and unpredictable, and likes to carouse. Although he was selected by an American pharmaceutical corporationhort training course in the United States before attaining political prominence, he has expressed strong anti-American views throughout his recent cat


Leaders of LaborGTG

Victor Manuel GUTIERREZ

Carlos Manuel PELLECER Duran

Maximiliano SALAZAR Garcia

Victor Alberto LEAL Fernandez


Leonardo CASTILLO Flores UNTL

Ruben VILLATORO Barrios

Secretary General Secretary of Conflicts

Secretary of Organization Vice Secretary of Organization

Secretary of Agricultural Relations

Secretary General


See reported changes asebruarv, p.

1. Victor Manuel GUTIERREZ

Secretary General of CGTGommunist deputy in Congress, GUTIERREZ bas been one of those principally instrumental in welding Guatemalan laborightly organized political force in the short space of eight years,

A teacher by profession, he entered the labor field4 as an organizer of the teachers union, Sindicato de Trabajadores de Educacion de Guatemala (STEG). As STEG representative to the CTG, he became Secretary General of that bodynd upon its reorganization1 he was elected Secretary General of CGTG,

Concurrently with his rise in labor circles, GUTIERREZ took an active role in the4 revolution, andember of the executive committee of the PAR (Partido Accion6 he wasational Deputy on the PAR ticket, androminent role in drafting the labor code. He remained with the PARhen he resigned and later organized the Workers Revolutionary Party of Guatemala (Partido Revolucionario Obrero de Guatemala,n action designed to give political status to the labor movement. Upon his returnisit to the USSR and satellite countriesUTIERREZ dissolved the PROG and openly joined the Communist Party. Until that time he had opposed an open declarationommunist Party per se, and hadolicy of infiltrating leftist political parties and government circlesong-range program of training leaders for the indoctrination of the working classes.

His international Communist ties are well established. He hasnumerous major labor and cultural Communist-front meetings-outside and within Guatemala, Heember of the executiveof CTAL, and9 was elected to the exeuctive committee of the WFTU, His activities have extended into El Salvador.

GUTIERREZember of the Congressional Committees on Agrarian Reform and Labor Code Revision, and is credited within the drafting of the Agrarian Reform Law, He actively supported the candidacy of President Arbenz, and1 he was reelected to the National Congress.

A thorough Lenin-Stalin Marxist, he adheres undeviatingly to the Communist Party line androponent of bitterly anti-US agitation. Although onlyears of age, has displayed considerable executive

ability, andost effective public speaker.


2. Carlos Manuel PELLECER Duran

Author, intellectual, one-time diplomat and former editor-manager of El Libertador, the news organ of the PAR, PELLECER is one of the most fiery and least inhibited Communist leaders in Guatemala, He has long demonstrated enmity towards the US and other foreign business interests in Central America, Estimates of bis Communist orcntation as long agoave since been confirmedteadily growing body of evidence. He is vigorously active in the Communist party of Guatemala (Partido Guatemalteco del Trabajo,erving on the political committee. He is currently Secretary of Conflicts in the CGTG, and as such participates prominently in the progressivelydomination of that confederation.

PELLECEReader of the students' poUtlcal party known as the Popular Liberation Front which helped to elect President Juan Jose AREVALO PELLECER was elected to Congress at that time but resigned5 to accept appointment as secretary of Guatemala's diplomatic mission to the USSR and the Baltic states. This appointment was offered him partly in return for his support of Arevalo, and partly to rid the countryabor agitator who was becoming troublesome to the government. He later served in the embassy at Paris, and returned to Guatemala Recent attempts on his part to return to the diplomatic service were frustrated when both France and Great Britain refused agreement to proposed appointments.

Upon his return to GuatemalaELLECER praised the "democratic development" of the eastern European countries, deplored the situations existing in countries outside the "vitalizing influence of the Rednd denounced the Truman and Marshall Plans, He quickly assumed positions of leadership within the PAR and the CGTG, andew months9 headed the government's Traveling Culturalobile education unit designed to reach the outlying regions where formal school facilities are not available, until hisbecame so flagrant that the appointment was terminated. He has seized every opportunity provided by his positions constantly to expound pro-Soviet views and to further Communist causes.

3. Maxim iliano SALAZAK Garcia

SALAZAR, Secretary of Organization of CGTG,egistered member of PGT. While he holds no important office in the party, his whole career has been devoted to furthering Communist control of labor in Guatemala and nearby countries. He was one of two members of CTG who were sent toonvention called by the Salvadoran Communist



front, the Workers Reorganization Committee (Gomite de Reorganiza-cione Obrera, CRO) in San Salvador in His activities were so highly subversive in character that within two days he was deported to Guatemala by the Salvadoran authorities,

SALAZAR was an early member of CTG, and its Secretary offor some time. When that organization was incorporated into CGTG, he received the same office in the new confederation. He publicly proclaimed his membership in PGT when that party was He has participated in various Communist international meetings.

Alberto LEAL Fernandez

Vice Secretary for Organization of CGTG, LEAL was Secretary General of the FSG (Federacion Sindical de Guatemala) He has associated closely with Communist leaders in the Guatemalan labor field and has participated actively in the "peace" movement.

He reportedly belonged to PROG until it was dissolvedt which time heroup of PROG members announced their intention to join PAR.'


RAMOS is first andommunist, and has been the editor of the Communist newspaper Octubre since its founding He now holds positions as Secretary of Agricultural delations of CGTG and Secretary of Training of CNCG, andember of the Secretariat and Political Committee of PGT. His appointment as an official in the two main labor confederationslear Communist move toward control of organized labor in Guatemala.

RAMOS held various offices in the CTG, and was one of the early organizers of the CTG Political Action Committee. 2 he was named CGTG representative on the National Agrarian Council. He has also been active in the "peace" movement.

Politically, KAMOS belonged to the so-called "left-wing" of PAR, together with Jose Manuel FORTUNY, Mario SLLVA Jonama, Manuel PINTO Uaaga, and other Communists. He followed this group in resigning from PAR innd in forming first the Communist Party of Guatemala and then PGT. Heember of both the Political Committee and jhe secretariat of the PGT Central Committee,

6. Leonardo CASTILLO Flores

CASTILLO ia Secretary General of the powerful small landholders and tenants association, CNCG. Trained for the teaching profession, CASTILLO has become closely identified with the labor movement, and the scope of his influence has broadened with the growing emphasis of the government on agrarian reform. Through political maneuvering, he has wrested control of CNCG from Auguato CHARNAUD MacDonald, and brought it cloaer to the Communist fold.

CASTILLO entered the labor fieldember of the leftistnion STEG, and wasember of CTG, One of the four CTGincluded in the PAR list of candidatea for the legislature, he waa electedeputynd served on the Committee on Labor Code Revision.

7. LATORO Barrios

VILLATOROative of Quezaltenangoeputation for opportunism and dishonesty, and is knownlass agitator. 8 he and Ernesto MARROQUIN Wyssabble disturbance in Quezaltenango, stirring up the illiterate Indians, who makef the workers in that coffee-raising section, against the middle classes and landowners. Heember of the board of directors of the PAR in Quezaltenango, and0 his home was the site of meetings called to launch the candidacy of President ARBENZ. At the conclusion of the presidential campaign, VILLATORO was not rewardedood political job, whereupon,eans of revenge, he dedicated himself to attacking Communism in Guatemala, Under the pretext of conducting anti-Communist campaigns, VILLATORO has collected large sums of money which he actually used to defray personal expenses. Numerous complaints were lodged against him in Quezaltenango, Including charges of swindling.


VILLATORO is president of UNTL, founded inhe political orientation of this union is ostensibly anti-Communist. However, in view of the derogatory information reported regarding VILLATORO, it appears that UNTI may beehicle forpportunistic, selfish aims.

Anti-Communist Leaders

Jose Arcadio CHEVEZ

Arturo MORALES Cubas

Aristeo SOSA, Jr.

Secretary General of Frente Autentico Revoluclonario dc Orientaciop Socialista, FAROS

Influential member of Sindlcato de Accion y_ Mcjoraroicnto Fcrrocarrilero, SAMF

Secretary General ofcjoramicnto Fcrrocarrilero, SAMF

CHEVEZ is Secretary Generalmall, socialistic, anti-Communist party, the Authentic Revolutionary Front of Socialist Orientation (Frente Autentico Rcvolucionario de Orientacion Socialists, FAROSJ, and was that party's unaucceaaful candidate in the presidential election He is not known to have held any political office.

-He is one of the most prominent, although opportunistic, self-styled anti-Communist labor leaders in Guatemala. eftist lawyer, he haa-bei counselor of the banana workers unions in their more serious anddisputes with UFCO. At the same time, heong record of political and labor agitation. Although widely regardedlever and successful lawyer and an expert on Guatemalan labor law andhe is better known for shrewdness fhan for integrity. He haa been charged with stirring up labor disputes which he then settles, upon payment of fees by management. Nevertheless, his adjustments have secured real advantages for labor, thusontinued demand for his services.

CHEVEZ studied labor law in Mexico, and has followed an active career In Guatemalaabor counselor and organizer. He claims to have been the guiding spirit in organizing SAMF (Sindicato decjoramientohe railway workers union, and In the spring0 he announced the formation of FLAG (Federacion Regional Central de Trabajadores^ which was denounced by the Communists as divisionist.

He appears to be one of the principal opponents of Communistof labor in Guatemala. During the presidential campaigne described himselfman of theocialist, who had worked for many years at the side ofzaro Cardenas of Mexico." He has been describedeftist Guatemalan labor judge as "Intelligent, skillful inood organizer, ambitious for power and money, and unprincipled, capable of aligning himself with the Communists one moment and with the anti-Communists the next, whichever was more advantageous".



Arturo MORALES Cuba)

MORALESabor leader of pronounced leftist leanings who has become an outspoken opponent of Communist domination of labor in Guatemala. He was suspended aa general manager of the Consumers Cooperative of SAMF Although he holds no executive position In that union, he has long been regarded as SAMF'a most influential members and is personally well liked among the rank and file. cries of bitter struggles, he fought Communist domination of the union by Manuel PINTO Usaga, and finally succeeded in having PINTO Usaga expelled, but not in overcoming Communist control.

He rose to prominence with the growing labor movement after the

revolution. HeAR deputy in the National Congress from

nd reportedly resigned his membership on the committee which drafted the Labor Code when Congress voted down the closed-shop provisions in the draft. He was Secretary General of the SAMF Political Action Committee and Secretary of Organization of the National Political Committee of Workers (Comlte Politico Nacional de Trabajadores,hich supported ARBENZ. in0 presidential campaign.

Both Morales and SAMF have been storm centers-in Guatemalan labor circles. Without identifying himselfarty-line follower. Morales haa worked closely with Communist labor leaders; yet his reception of an American Federation of Labor representative who visited Guatemala7 was cordial. Moralesember of the faction of PAR which withdrew1 to form the Socialist Party, and became an officer in it. When the Socialist Party fused with PRGe was appointed to the Preliminary Political Committee and

later was confirmed as one of the secretaries of the enlarged Political


3. Aristeo SOSA. Jr.

as been Secretary General of SAMF, the important railway worker* union, His major problem has been that of preserving unity in his organization. He is credited with accomplishing its affiliation with-thc CGTG, but in ao doing he incurred the opposition of the strongfaction within SAMF. Although he has received some non-Communist support in the past, he is generally regardedaithfulof the Communist line. He was one of the collaborator in thepreparations for International Labor Day in Guatemala




- Confederacion General de Trabajadores de Guatemala

(General Confederation of Guatemalan Workers)

- Confederacion dc Trabajadores de Guatemala (Confedera-

tion of Workers of Guatemala)

- Federacion Sindical de Guatemala (Trade Union Federation

of Guatemala)

- Confederacion Nacional dc Compesinos de Guatemala

(National Confederation of Rural Workers of Guatemala)

1* ederacion Laboral Autonoina de Guatemala (Guatemalan Autonomous Labor Federation)

2. ederacion Regional Central de Trabajadores (Central Regional Federation of Workers)


- Sindicato dccjoramiento Fcrrocarrilero

(Railway Workers* Union)

- Sindicato de Empresa dc Trabajadores dc la Compania

Agricola de Guatemala (Workers' Union of the Agriculturalof Guatemala)

- Sindicato de Empresa de Trabajadores dc la United

Fruit Company (Workers; Union of tbe United Fruit Company)



- Sindicato deuerza (Trade Union of Light and

Power Workers)

indicato de Trabajadores dc la Educacion de Guatemala

(Union of Educational Workers of Guatemala)

- Union Naclonal-de Trabajadores Libres (National Union

of Free Workers) (anti-Communist trade union)

- Union Sindical dc Trabajadores de Puerto Barrios

(Port Workers' Union of Puerto Barrios)


- Agrupacion dc Trabajadores Latino Americanos

Sindicalistas (Association of Latin-American Trade Union Workers)

Confederacion dc Trabajadores de America Latina

(Latin-American Confederation of Workers)

nternational Labor Organization

orld Federation of Democratic Youth

orld Federation of Trade Unions

- Asociacion General de Agricultores (General Association

of Agriculture)

- Asociacion General de Industriales (General Association

of Industry)

- Camara deiiduatria de Guatemala (Chamber

of Commerce and Industry)'

F. Parties apd Political Organizations

- Comite Politico Nacional de Trabajadores (National

Political Committee of Workers)

- Comite de Reorganization Obrcra (Workers* Reorganiza-

tion Committee)

- Frentc Autentico Kevolucionario de Oricntaclon Socialista

(Authentic Revolutionary Front of Socialist Orientation)

- Partido de Accion Revolucionaria (Party of Revolutionary


artido Gualtemalteco del Trabajo (Guatemalan Labor Party)

artido Rcvolucionario de Guatemala (Revolutionary Party

of Guatemala)

- Partido Rcvolucionario Obrcro de Guatemala (Revolutionary

Workers' Party of Guatemala)

G. Guatemalan Government Organizations

- Instituto Gualtemalteco de Seguridad Social (Guatemalan

Institute of Social Security)

- Instituto Fomento de Production (Institute for Production

H. Business Concerns

nternational Railways of Central America

nited Fruit Company

Original document.

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