Factory closings and worker rights violations have continued in Central America in recent months. The following summaries highlight a few of the key recent struggles.

Guatemala

One Union Factory Closed; One Remains

As workers had feared, one of only two unionized factories in Guatemala’s maquiladora sector permanently shut its doors at the beginning of September, failing to reopen after announcing a “temporary” shutdown in May. Workers at the Cimatextiles won a union contract in 2003, simultaneously with workers at a sister plant, Choishin. Both unions are affiliated to the Guatemalan union federation FESTRAS.

The Korean-based parent company, Choi & Shin, recently opened a new plant in Nicaragua to take advantage of lower labor costs and began moving Liz Claiborne and other production to Nicaragua. In September, Liz Claiborne told USLEAP that it had agreed with Choi & Shin to split the extra labor costs in an effort to maintain production at the Choishin plant in Guatemala.

At presstime, FESTRAS and the company were in negotiations to resolve a number of outstanding issues, including the rehiring of Cimatextiles union workers and renewal of the collective bargaining agreement at Choishin.

Earlier, an independent investigation conducted by the Commission for the Verification of Codes of Conduct (COVERCO) at the request of the Fair Labor Association confirmed violations of freedom of association and other problems that are also to be addressed, through a mediation plan.

Dominican Republic
Hanes Factory Workers May Get a Voice

The Dominican Republic Ministry of Labor has agreed to conduct an investigation to determine the union’s majority status at the TOS Dominicana factory owned by Hanes Brand, Inc. The union is demanding an impartial investigation. The union, affiliated to Fedotrazonas, filed a petition for negotiations in April 2007, sparking a round of reprisals from management that have been extensively documented by the Worker Rights Consortium and available on its website. A USLEAP letter to Hanes prompted a response from the company denying any wrong-doing while a USLEAP communication to Hanes client Wal-Mart has so far produced no response.

Mexico
Big Brands Fail to Deliver Top Jean Producer

An important test for worker rights in Mexico’s jean-manufacturing sector is underway in Tehuacan, Puebla, at the largest and oldest jean factory owned by one of the most powerful garment consortiums in the region. Workers who have formed an independent union and are challenging a protection contract union in collusion with local labor authorities have faced reprisals, violent intimidation, firings, and threats to close the factory.

Brands that source from the consortium, the Navarra Group, include Gap, Levi Strauss, American Eagle, Warncaco, Abercrombie & Fitch, The Limited, and Tommy Hilfiger. International support has been led by the Maquila Solidarity Network, which reported in early September that only Gap had responded publicly to requests for intervention.

Many of the issues involved were also raised in the Rubie’s case in Mexico, whose workers filed a complaint with the U.S. Department of Labor under NAFTA procedures. The DOL issued its report on the complaint in August 2007.

El Salvador
Just Garments Workers Still Need Support

Nearly 50 workers formerly employed by Just Garments in El Salvador are still owed back pay and severance. Just Garments was forced to close in April 2007, ending a long struggle to survive as a unionized producer for the “sweatfree” market in the U.S.

Generous contributions from a handful of individuals and organizations have raised over $15,000 for the Just Garment workers, who are owed over $40,000. The union, STIT, is placing its hopes for restitution on a planned sale of machinery at the plant, pending resolution of embargoes placed by other debtors.

USLEAP continues to accept donations designated for the Just Garments workers. A full story of the founding of Just Garments and its valiant experiment is available upon request or on the USLEAP website.

The demise of Just Garments as a unionized producer has been extensively and maliciously reported on in the local press, not normally given to coverage of worker rights issues. Fueled by a group of dissident workers angry at the failure of the Just Garment experiment, observers say that the public struggle has been welcomed by the anti-union business sector and used against the Salvadoran trade union movement.