Archive for July, 2010

31
Jul

Nike to Pay $1.54 million to workers laid off in Honduras

Nayeli Luis, Intern, International Labor Rights Forum"

Once again labor activists show what can be accomplished when they unite. Last year, United Students Against Sweatshops activists successfully pressured Russell Athletic to rehire 1,200 workers in Honduras when the Jerzees de Honduras factory closed after they unionized.

This time however, students achieved a lot more.  Nike in a compromise with a Honduran labor federation, Central General de Trabajadores, representing the workers laid off, agreed to pay $1.54 million to a relief fund for workers who had lost their jobs when two Nike subcontractors closed their factories. Surprising isn’t it? It becomes even more shocking when one takes into consideration that on April 20th, Nike made a statement discouraging the two subcontractors Hugger and Vision Tex for their failure to pay any compensation to the workers, but did not accept its own responsibility by paying the workers.

The Workers Rights Consortium released a report indicating how the subcontractors owed around $2 million to workers in indemnification and sent it to different universities to make them aware of the situation. United Students Against Sweatshops held protests and created a strong public awareness campaign with the slogan “Just Pay It”. Students urged their universities to end contracts with Nike if it refused to compensate workers. The students’ calls were heard at the University of Wisconsin, Madison, where the licensing committee ended its licensing agreement with Nike.  Likewise, the licensing committee at Cornell University threatened not to renew its contract with Nike.

Nike, a producer of college-logo apparel would have been hurt if more universities would have followed the lead of University of Wisconsin. Instead, fearing more protests from students, Nike agreed to give money to a relief fund so that the 1,200 workers would receive benefits like health care for one year and preference for job openings in other factories. Nike’s response has clearly been a victory for workers around the world struggling in an industry dominated by fly by night employers that are consistently opening and closing factories in order to avoid their legal requirements. The agreement between Nike and CGT shows that when students and workers come together, there is an incredible opportunity to exert power and obtain justice from even the most powerful corporations in the world.

Students, though, are not the only ones who can create change with sweatshop workers. In addition to United Students Against Sweatshops, the Maquila Solidarity Network also played a key role in advocating for Nike to take responsibility for the unpaid wages of the Hugger and Vision Tex workers.  Click here to learn how you can add your voice in demanding dignity for factory workers.

31
Jul

Australia: Tough Times Video

LabourStart headline - Source: Fair Go for Billionaires
31
Jul

Greece: Military to step in as truckers vote to continue strike

LabourStart headline - Source: CNN
31
Jul

South Africa: Nearly 1m Workers Ready To Strike

LabourStart headline - Source: The Mail
30
Jul

Justice for Reynolds Tobacco Field Workers

FlocBy Justin Flores, Farm Labor Organizing Committee

On June 25, a bus full of FLOC members joined hundreds of FLOC supporters in Detroit to keep the pressure on the Reynolds American corporate machinery in an effort to end rampant human right abuses in the company’s supply chain. 

Many might wonder how a group of poor Mexican farmworkers expect to exert enough pressure on a company as wealthy and powerful as Reynolds to make them change their policies regarding their supply chain. The largest of the corporate giants, while potentially intimidating, also reveals a group of players that might be more willing to do the right thing (given the correct amount of pressure).

For example, the Campaign’s most recent win, involved (now ex) Reynolds board member Betsy Atkins, who also sits on the board of Chicos FAS, Inc., an upscale women’s clothing company. FLOC mobilized supporters nationwide to communicate with Betsy Atkins to use her position to change Reynolds policy of ignoring human rights abuses in its supply chain. After she refused to respond, the labor union began contacting Chico’s directly, to inform them about the company their board member was keeping. After a few months of fax-in days, phone calls, and store visits, asking Chico’s to use its influence with Ms. Atkins to influence her and Reynolds to do the right thing, the company gave Ms. Atkins an ultimatum: stick with Reynolds and its embarrassingly abusive supply chain, or remain on the Chico’s board. Ms. Atkins chose the latter and on June 17, she tendered her resignation from the Reynolds board (forgoing over $200K compensation from the tobacco giant).

Moving full steam ahead, FLOC began following the money trail and seeking help from Reynolds creditor JP Morgan Chase, which leads a consortium of lenders floating almost $500 million in credit to the tobacco giant. After being given the run around by JP Morgan Chase leaders, FLOC decided to give them a little push. At the US Social Forum in Detroit, FLOC organized a rally and march to the Chase building downtown and kicked off a campaign to collect pledges from people of conscience to take their money out of the bank and close credit cards the day after labor day (September 7, 2010) if the bank does not help arrange a meeting with Reynolds leadership.


FLOC is also seeking to involve the British American Tobacco Co. (BAT), which owns 42 percent of Reynolds shares, to find a solution to the abuses in the Reynolds supply chain. As an IUF affiliate, FLOC is working with the federation to put international pressure on BAT to be part of the solution. FLOC recently received a weak public relations response, denying any problems in the supply chain and questioning FLOC’s motives. For more information, stay tuned to www.floc.com.

Every time this exploitative system is revealed and denounced, the campaign for justice in the tobacco fields gets stronger. We hope you will stand with us as we continue to find ways to influence corporate policies that put profits over people. In the immortal words of Dr. Martin Luther King, Jr., “when you impede the rich man’s ability to make money, everything is negotiable.” Make your pledge to boycott JP Morgan Chase!
30
Jul

The Day FIFA Lost its Soul: A Shameful Bait and Switch

By Jeff Ballinger

The recent soccer ball report by ILRF made me angry – at myself.  Some of us have been very fortunate 800px-Pallo_valmiina to have had the opportunity to work with groups of workers resisting corporate-dominated globalization and challenging the neo-lib/free trade orthodoxy; sometimes, it must be admitted, we mess up and a promising opportunity goes off the rails.  In cases like the soccer ball controversy in Pakistan, the workers may actually have ended up worse off after a well-intentioned intervention; we were too trusting and the unique circumstances of the case made it appear winnable.

Most rich-country consumers have a myopic view of ethical consumption; part of this mindset is that goods produced with child labor are far and away the chief wrong to be avoided.  But this classic form of exploitation has only a few manifestations in the modern, globalized production-for-export field.  What consumers must tune in to, rather, is the fact that millions of children are working in poor countries because the adults who are making our shoes, toys, apparel and electronics do not earn enough to pay modest school fees or provide a decent standard of living without the kids’ meager earnings from the informal sector – from hawking newspapers, delivering tea, domestic work and the like.  The urgent challenge of our young century is to popularize campaigns such as the new effort led by pro-worker groups for an Asia Floor Wage. The most bitter and intense struggle today is in Bangladesh where a new minimum wage is long overdue and the greedy apparel buyers – big brands from the U.S. and Europe -  are refusing to support the workers, even rhetorically (what they were shamed into doing in 2006).  Cambodian apparel workers, likewise, are trying to get beyond half-way to a living wage while encountering fierce opposition from industry executives and repressive tactics deployed by the Hun Sen regime.

Those few industries where child labor continues are concentrated in agriculture (especially cotton and cocoa), mining and small-scale weaving/sewing operations.  This latter area is where the world’s football teams got the shock of their collective lives fifteen years ago.  At the moment of most intense anti-sweatshop activism in the West – 1996 - soccer ball production was exposed as a pre-teens-in-penury cesspool; expensive, hand-stitched balls for export and bearing the world federation of football clubs’ “certified for match play” stamp of approval.

FIFA officers and staff did what almost any European business federation would do when faced with a complex worker rights issue – they contacted the global union headquarters in Brussels.  So far so good.  The trade union group helped them to work out a code of practice for supplier firms that included freedom of association and collective bargaining for workers, while addressing the issue of children who would be displaced by adult workers. 

The global sportswear brands, however, formulated a much less onerous intervention which FIFA ultimately adopted, after adidas, Nike, et al, pointed out how lucrative the “replica jersey” market was for football club owners. Monitoring – such as it was - would be funded primarily through government grants yet it included no provision for labor law enforcement by authorities in Pakistan. Instead, there were "international" inspection teams set up under the now-common model of "social audit" self-regulation.

The monitoring scheme cost millions and produced no direct gains for workers. Realistically, only higher wages through collective bargaining would have had a serious impact on the region's child labor problem. This was what the international outcry demanded and it was the path that the FIFA had initially embarked upon. It must be said that thousands of children benefited from the Sialkot Project (SP) inasmuch as they gained access to education opportunities, many for the first time.

In mid-2006, Nike ended a sourcing agreement with Sialkot's leading producer, Saga Sports - a move that threatened the jobs of thousands of young Pakistanis. In the event, the work was shifted back in less than a year’s time. Nike's explanation for pulling the work included evidence that child labor was again a problem, despite 8 years of ILO, UNICEF, Save the Children (etc.) “monitoring.”  This is a stellar example of "re-defining success".  First, the demands of the international human rights community (for worker-empowerment) were turned aside in favor of a monitoring scheme; soon thereafter, educational outreach was (implicitly, at least) substituted for the difficult and assuredly more costly progress in workplace relations – collective bargaining.
 
The Corporate Self-Regulation Scam
 
“Compliance” has become a really big business now, but what an infernally vague and opaque system!  Between 1996 And 1999 sweat-reliant businesses bought time – while concocting standards and oversight processes.  Since 2001, armies of these companies’ consultants have been plaintively arguing at meetings around the globe that there were too many standards and processes to reasonably guide suppliers. Some business observers see the “compliance” house of cards about to tumble. A leading journal for purchasing and supply-management professionals put it this way:
 
“A recent report found ethical buying codes have done little to improve factory conditions overseas. For a decade now, companies have relied on these codes and on-site audits, safe in the belief they are doing the best they can to improve conditions for workers in their supply chains. But research published in October threatens to strip firms of this refuge, exposing the reality that more must be done if they are to make a genuine difference.” (Supply Management April 2007)

Stay tuned next week for more thoughts on the ILRF soccer ball report from Jeff Ballinger!

30
Jul

Mexico: Solidarity caravan marks 3 year anniversary of Cananea strike

LabourStart headline - Source: IMF
30
Jul

Mexico: Grupo México’s Infamous Safety Legacy Lives on at Cananea

LabourStart headline - Source: ICEM
29
Jul

Bangladesh: Workers’ organization stripped of legal status, staff detained and beaten

LabourStart headline - Source: Maquila Solidarity Network
29
Jul

Turkey: Workers protest union-busting sackings by UPS

LabourStart headline - Source: ITF



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