In this season's review of maquila struggles in Central America, workers face more factory closings, continue to push for negotiations, and fight against economic hardship.

Chentex Among Many Maquila Factories Slated to Close
Nicaragua

As previously reported, Nicaragua is experiencing a raft of plant closings in the maquiladora sector. Nine Taiwanese-owned factories are in the process of closing, most of them part of the Nien Hsing group which is moving production to Asia, especially Vietnam. The Nien Hsing group includes the Chentex factory which once had the largest maquila union in Central America until it was busted by the company in 2001.

The nine closings come on top of one factory that has already closed this year and three last year. Investors announced earlier this year that they would be pulling back in Nicaragua, citing “labor competitiveness.” Unions believe that employers want to impose new work rules while also objecting to a 33% increase in the minimum wage

For years, maquila employers in the region moved, or threatened to move, production to Nicaragua, citing lower wage costs. Now, under President Daniel Ortega, the minimum wage has been increased and labor inspectors have become more vigilant, raising employer objections.

Hanes in Negotiations
Dominican Republic

Hanesbrands is reportedly in negotiations with the union at its TOS Dominicana plant, although it is questionable whether Hanes is negotiating in good faith. For months, the company has refused to reinstate fired workers or negotiate a contract. The Worker Rights Consortium has led the work on this case, with a push from the United Students Against Sweatshops (USAS). USLEAP has focused on Jennifer Love Hewitt, under contract to Hanesbrand to promote its brand, urging her to intervene with the company to urge a resolution.

No Resolution at Just Garments
El Salvador

Unpaid workers from the closed Just Garments factory continue to be stymied by the factory owner’s refusal to permit the union and management access to the factory to obtain documents needed to resolve the case. The documents are expected to help secure release of machinery that could be used to settle back-pay issues. Just Garments closed in April 2007 after its efforts to become a model factory producing for the “sweatfree” market in the U.S. failed for business reasons.