By: Carlos Sanchez, Regional Coordinator of COTRADO ALAC
Between August 31 and September 2, Carlos Sánchez, Regional Coordinator for Latin America and the Caribbean of Home-Based Workers Organizations (COTRADO ALAC), met with SITRADOMSA and CENTRACAP to share views on the political situation affecting Central American countries and its impact on the sustainability of trade unions and informal economy organizations.
According to our organizations, in some countries of the sub-region new regulations are being imposed to control and regulate the flow of transfers from donor agencies to the most vulnerable organizations. In the case of El Salvador, one regulation requires organizations to pay a 30% tax on transferred resources. This means that donations intended for strengthening and capacity-building activities of organizations will be seriously affected, discouraging donor agencies from sending resources to the most vulnerable groups of workers.
This measure fails to consider that these resources are intended for nonprofit organizations, such as trade unions, whose purpose is to fund strengthening and capacity-building activities. Apparently, the objective of this provision is to weaken social and workers’ organizations, which are now forced to request a special exemption from this tax—a process that remains uncertain.
During the meeting, developing triangular or coordinated initiatives among local organizations from different countries was also assessed to promote stronger ties and friendship, as well as debate, capacity-building, and advocacy activities, and to strengthen our networks. In the coming weeks a meeting will be held among women leaders of the organizations to move forward with this approach.
