Alianza Fashion - Institute for Global Labour and Human Rights

Transcription

A Test Case for the
Guatemalan Government &
the Office of the United States
Trade Representative
Alianza Fashion
Death threats, fired for organizing,
blacklisting, forced overtime,
workers robbed of social security,
health care and pension
Major labels complicit:
Briggs New York, Sag Harbor,
Fashion Bug, J.M. Collection,
Alfani
Center for Studies and Support
for Local Development
CEADEL
Institute for
Global Labour and Human Rights
(Formerly National Labor Committee)
September 17, 2010
A Test Case for the Guatemalan Government &
the Office of the United States Trade Representative
Alianza Fashion
A Joint Report of
Center for Studies and Support for Local Development, CEADEL
Institute for Global Labour and Human Rights (formerly NLC)
September 2010
CEADEL
Center for Studies and Support for Local Development
Centro de Estudios y Apoyo al Desarrollo Local
Colonia El Esfuerzo, Parcela 182, zona 1
Chimaltenango, Guatemala
Tel: (502) 41476985 and (502) 55676439
[email protected]
Author
Charles Kernaghan
Research
Charles Kernaghan, Barbara Briggs, Sergio Chavez,
Cassie Rusnak, Elana Szymkowiak,
Ellen Weber, and Gwyneth Williams
Institute for
Global Labour and Human Rights
(Formerly National Labor Committee)
5 Gateway Center, 6th Floor
60 Boulevard of the Allies
Pittsburgh, PA 15222
Tel: 412-562-2406
Fax: 412-562-2411
[email protected]
www.nlcnet.org
Alianza Garment Factory CAFTA Guatemala
Contents
Executive Summary
About CEADEL
Preface
Profile of Alianza Fashion and its U.S. Customers....................................................................................... 1
Factory Conditions at Alianza Fashion ........................................................................................................ 5
Long Hours and Forced Overtime ............................................................................................................ 5
Verbal Abuse and Pressure ....................................................................................................................... 5
Wages........................................................................................................................................................ 6
Illegal Firings, Denial of Right to Organize, Blacklisting ............................................................................ 7
Death threats against CEADEL’s leaders end, but Alianza management’s hatred of CEADEL persists ... 10
Illegal Firings at Alianza Fashion Expose Social Security Fraud ............................................................... 11
The Workers’ Demands .............................................................................................................................. 14
Addenda
Three examples of workers letters of dismissal and IGSS records, translated into English
Letters of dismissal and IGSS records of 20 fired workers, original documents
Alianza’s U.S. Buyers
NLC, CEADEL—September 2010
0
Executive Summary

On July 30, 2010, the United States Trade Representative filed a case against Guatemala for
the systematic violation of workers’ legal rights—the first such case brought under a U.S.
free trade agreement.

Alianza Fashion in Guatemala, with 1,350 workers, sews garments for Briggs New York,
Sag Harbor, Fashion Bug, Alfani and JM Collection.

Forced overtime, 10 2/3 to 12 1/5 hour shifts—7:30 a.m. to 6:10 or 7:40 p.m., six days a
week are the norm. Workers are at the factory up to 71 ½ hours a week. Workers who can’t
stay for overtime are told they “have the opportunity to resign immediately.”

Workers are allowed 20 minutes to sew each pair of pants. Supervisors yell and curse at the
women, “Hurry up, you shit!”

Workers are paid 95 cents an hour--$1.21 an hour counting bonuses—which does not come
even close to meeting basic subsistence needs.

Workers exercising their legal right to organize are immediately fired and blacklisted. The
Guatemalan Government has done nothing to protect worker rights.

Leaders of the Center for Studies and Support for Local Development, CEADEL—a local
human rights NGO—have received death threats for assisting Alianza workers.

Alianza Fashion management appears to be systematically robbing workers of their Social
Security deductions, leaving them and their children without health care, or their pensions.

The Alianza workers must be made whole again and an independent investigation of the
Social Security Institute must be undertaken.

The Alianza Fashion case provides one more example of the continued failure of corporate
factory monitoring.

The U.S. labels should not cut and run from the Alianza factory. That would only punish the
workers further. The U.S. companies should work with management to finally bring the
Alianza factory into compliance with Guatemalan labor law and U.S. CAFTA labor
provisions.

Despite the systematic and gross violation of worker rights at the Alianza Fashion and
other factories across Guatemala, apparel makers were able to export--duty free--$10.5
billion worth of garments to the U.S. since January 2004. Under CAFTA, it is likely that
Guatemala's 155 garment factories have saved nearly $3 billion in tariff breaks. In return, the
workers in Guatemala and the American people received nothing. This is not the way free
trade agreements are supposed to work.

The USTR's case against Guatemala has the potential to guarantee that respect for worker
rights will become reality under the US-CAFTA free trade agreement.
About CEADEL
Center of Studies and Support to Local Development
CEADEL
The Center for Studies and Support for Local Development, based in Chimaltenango, is a nonprofit organization dedicated to assisting and accompanying garment ¨maquila¨ and agro-export
workers, eradicating child labor and supporting workers´ right to organize.
CEADEL offers worker training in human and labor rights and labor law as well as courses to
allow workers to complete their primary education and build vocational skills (including
computers, baking, electrical work).
CEADEL also offers legal assistance and support for worker efforts to organize.
CEADEL and the National Labor Committee have collaborated in a number of successful joint
campaigns to improve conditions and end violations in factories. These include campaigns on
the Legumex frozen fruit and vegetable processing plant and Fribo apparel factory in 2007, and
the Sam Bridge and Nicotex apparel maquila factories in 2008 and 2009, respectively.
CEADEL / Centro de Estudios y Apoyo al Desarrollo Local
Colonia El Esfuerzo, Parcela 182, zona 1
Phones:
E-mails:
Website:
(502) 41476985 and (502) 55676439
[email protected], [email protected]
www.ceadel.org.gt
Gabriel Zelada : Director
Gladis Marroquín: Project Coordinator
Preface
What is at Stake?
By
Charles Kernaghan
It is almost impossible to overstate the potential impact that the United States Trade
Representative’s case against Guatemala—for the systematic violation of legal workers’ rights
standards—can have across Central America.
What we know is that from January 1, 2004 through July 2010, Guatemala exported $10.5 billion
worth of garments to the U.S., which entered duty free. If we take the general tariff on trousers,
which is 28.2 percent, we can estimate that garment factories in Guatemala have been the
beneficiaries of nearly $3 billion in tariff breaks. What have the American people or the workers
in Guatemala gained? Absolutely nothing. For the last six and a half years, despite billions in
tariff breaks, there have been zero improvements in respect for fundamental worker rights.
We also know that “Sag Harbor Stretch Woman” pants with “The Slimming Solution” design
made in Guatemala enter the U.S. with a landed Customs value of $10.54. This $10.54 accounts
for the total cost of production of the pants including fabric, thread, assembly and shipping costs.
Retailers sell the pants for $36.00, which represents a hefty mark-up of $25.46. Surely there is
enough money here to make at least modest improvements in respect for worker rights. But
nothing changes.
There are also other players involved. Sag Harbor pants are sold at Kohl’s, Sears, Meijers, even
U.S. military exchanges. One would think that such an impressive group could get it right and
insist on worker rights improvements. No such thing is happening.
We also know that Sag Harbor and Briggs New York have been monitoring the Alianza factory
for years now. In fact, at the end of August auditors from Briggs New York paid another visit to
Alianza. The monitors could speak with any worker they chose to. But it’s all a game and the
workers know what they must do. Management advises the workers: “Remember, if things go
well with the monitors we will have plenty of work until at least December.” Some supervisors
are more direct, instructing the workers not to talk about what goes on in the factory… “You
have to say everything is okay.” The same game is played over and over again, with no gain for
the workers.
It is an open secret that corporate monitoring does not work. Mr. John Ruggie, the special
representative to the United Nations Secretary General for human rights and transnational
corporations told Women’s Wear Daily (June 4, 2009) that, “Just about everybody, at least off
the record, will tell you that monitoring doesn’t work and auditing of supplier factories doesn’t
work, because people cheat.” (http://www.wwd.com/business-news/un-expert-raises-doubts-onfactory-monitoring-2156916)
These are the reasons the USTR’s case against Guatemala could represent such a major turning
point, where—for the first time—government, local factories and global brands would be held
legally accountable to respect labor laws and our free trade agreements.
This is exactly what the workers have been hoping for. The joyride for sweatshop companies
may be over.
Workers meeting at CEADEL
Alianza Fashion, S.A
Alianza Fashion, S.A
smaller number of women’s skirts and jackets. As of
September, the Fashion Bug label appears to account
for the majority of production.
Kilometer 52 ½ Carretera Interamericana
Owner/Legal
Representative:
General Manager:
Ownership:
Phone:
Fax:
Email:
Mr. Bong Choon Park Seo
Mr. Rubén Enrique Rosales
Ovalle
South Korean
502-772-02100
502-772-02121
[email protected]
Number of workers: Approximately 1,350, of whom
80 percent are women.
Production/Labels: Briggs New York (Kellwood,
sold at J.C. Penney and Sears), Sag Harbor
(Kellwood, sold at Kohl’s, Sears, U.S. Military
Exchanges, Meijer and others), Fashion Bug
(Charming Shoppes), Alfani (sold at Macy’s and
Bloomingdales) and JM Collection (a private label
sold exclusively at Macy’s).
Alianza also regularly subcontracts to another
Korean-owned factory, Avandia, which is located in
El Zapote, Guatemala. It is possible that Alianza
Fashion owns the Avandia plant, as their listed email
address is [email protected].
In the month of August 2010, Alianza Fashion
shipped 665,992 garments to the United States, the
overwhelming majority of which were ―ladies woven
pants.‖ The Briggs New York and Sag Harbor
labels accounted for over 40 percent of total imports.
Along with the pants, Alianza shipped a much
Label being produced at Alianza Fashion
factory in September 2010
In the last year to date, September 1, 2009 to August
31, 2010, Alianza Fashions exported well over 6
million garments to the U.S.
South Korean factories like Alianza Fashion and
Avandia dominate Guatemalan garment exports to
the U.S. Of a total of 155 garment export factories,
88—or 57 percent—are South Korean-owned.
In 2009, Guatemala exported $1.1 billion worth of
garments to the U.S. Since being awarded duty-free
access under the Central American Free Trade
Agreement (CAFTA) in 2004, Guatemala has
shipped $10.53 billion worth of garments to the U.S.
(January 1, 2004 through July 31, 2010).
Guatemala is the 13th largest apparel exporter to the
U.S. in the world. However, taken together, the
CAFTA countries exported $6.14 billion of garments
1
to the U.S. in 2009, making them the world’s second
largest supplier of apparel to the U.S. after China.
On July 1, 2006, Guatemala ratified the Dominican
Republic-Central America Free Trade Agreement
(CAFTA-DR), which allowed the region’s apparel
exports to enter the U.S. duty free as long as the
yarns and fabrics used in sewing the garments were
made in the U.S. The United States then back-dated
CAFTA to January 1, 2004, meaning that Guatemala
and other beneficiary countries were granted tariff
credits equal to the duties being paid from January 1,
2004 on. In the case of Guatemala, the garment
factories received tariff credits from January 1, 2004
to June 30, 2006.
Duty-free access to the U.S. market under the
CAFTA-DR Free Trade Agreement was supposed to
be conditioned upon beneficiary countries
guaranteeing respect for national and internationally
recognized worker rights standards.
“A party shall not fail to effectively enforce
its labor laws, through a sustained or
recurring course of action or inaction, in a
manner affecting trade between the parties,
after the date of entry into force of this
agreement.” (CAFTA-DR Article 16.2 /
Enforcement of Labor Laws)
As the Alianza Fashion case will clearly demonstrate,
the Guatemalan Government has failed miserably in
its commitment to protect the legal rights of
Guatemala’s
workers.
Over the past five years,
the
Guatemalan
Government and garment
factories have blatantly
violated every labor law
in Guatemala.
Label smuggled out of the
Alianza Fashion factory in
February 2010
2
Sag Harbor has been produced for years in Alianza.
This “Sag Harbor Stretch Woman” label was
smuggled from the factory in February 2010.
Briggs New York label smuggled from Alianza Fashion.
Workers recognized this style of “Sag Harbor Stretch
Woman” pants, purchased in Kohl’s.
Briggs New York women’s pants purchased at a Sears
Store in Massachusetts, which the workers recognized in
photos as one they had worked on.
3
This Alfani label, smuggled out of the Alianza factory
in August 2010 was sewn into women’s black pants.
This Fashion Bug label (above) smuggled from the
Alianza factory perfectly matches the label on pants
purchased recently in a Fashion Bug store in
Pittsburgh (below).
“Alfani” “curvy fit” “ebony black” pants purchased
in a Macy’s store in Massachusetts.
4
Factory Conditions
at Alianza Fashion
Long Hours and Forced Overtime
The regular legal work week in Guatemala is 44
hours. At Alianza the official shift is from 7:30 a.m.
to 4:10 p.m. –8 2/3rds hours—Monday through
Friday, with a 40-minute break for lunch. On
Saturday, the regular shift is four hours, from 7:30
a.m. to 11:30 a.m., bringing the work week to 44
hours.
However, at Alianza, actual working hours Monday
through Friday are from 7:30 a.m. to 6:10 or 7:40
p.m. –10 2/3rds to 12 1/5th hours a day—with a 10 ½
hour shift on Saturday from 7:30 a.m. to 6:10 p.m.
All overtime is mandatory and the workers cannot
leave the factory until their daily production goals are
complete.
One woman sewing operator recently explained:
“Our working time is from 7:30 a.m. to 4:10
p.m., but that is a lie, because we get out at
6:10 p.m. or 7:40 p.m., as it’s impossible to
reach the goal by 4:10 p.m. We can’t do it.
So we have to stay working until we reach
the target of 1,200 pants [per module or line].
At the low end, Alianza workers are at the factory 64
hours a week, putting in 10 2/3 hour shifts, six days a
week. Not counting the 40 minute lunch break, the
workers are actually working 60 hours a week
including 16 hours of mandatory overtime. At the
high end, workers are at the factory 71 ½ hours a
week, putting in 12 hour and 10 minute shifts
Monday through Friday, from 7:30 a.m. to 7:40 p.m.,
while working a 10 2/3rds hour shift on Saturday,
from 7:30 a.m. to 6:10 p.m. Not counting their lunch
breaks, the workers are actually toiling 67 ½ hours a
week, including 23 ½ hours of overtime, all of it
obligatory.
There are also shifts from 7:30 a.m. to 9:10 p.m. –13
2/3rds hours—once or twice a month before
shipments must leave.
Workers report that the factory is ―full of work‖ and
that ―workers in the cutting and packing departments
are working to 11:00 p.m. almost every night,‖
putting in 15 ½ hour shifts. Even if the cutting and
packing departments worked just three 15 ½ hour
shifts each week, this would put the workers at the
factory for a grueling 81 ½ hours a week.
Without warning on July 12 and 13, almost half the
workers—600 or so out of the 1,350 total—were
forced to stay until 11:00 p.m., putting in back-toback 15 ½ hour shifts. The chief of personnel told
the workers: ―Those of you who do not want to
work overtime have the opportunity to resign
immediately.” Such last minute overtime is a very
serious problem for many workers, who either live
far from the factory or live in neighborhoods too
dangerous to be returning home at such a late hour.
“Hurry Up, You Shit!”
Women in Guatemala abused sewing clothing for
women in the United States
There are 17 assembly lines (also called modules) at
the Alianza factory, with 50 workers on each line.
Women’s pants make up 88 percent of total
production—15 out of 17 lines—with just two lines
making jackets for Sag Harbor and Fashion Bug.
Management arbitrarily sets the production goal at
1,200 pants per eight-hour shift, or 150 per hour.
This means the sewing operators have just 20
minutes to complete each pair of pants. For pants
5
without pockets—which require less sewing—the
goal is raised to 1,500 pants per shift.
which of course we can’t pay it, because we haven’t
any money, so the factory deducts it from our wages.”
It is impossible for the workers to reach this goal.
“They demand high quality and that we reach the
target,” one sewer told us, “but the synthetic cloth is
difficult to handle.” “It also takes more time,”
another worker explained, “when the cloth has
squares or stripes which have to be perfectly aligned
at the waist and at the front and back.”
There are several very abusive supervisors, the
workers tell us, especially one called Victor. He
shouts, “You old whore, why don’t you work faster!”
It is not uncommon for the women sewers to cry.
“Supervisors shout at us and scold us…and we, as
women, are humiliated.”
Ninety-five Cent-an-Hour Minimum Wage
Pin stripes on these Sag Harbor pants make sewing
difficult
As we have seen, workers are routinely kept for two
or more hours of mandatory overtime each day,
unable to leave until they reach their goals.
Supervisors and the Chief of Production are
constantly walking the shop floor shouting “Hurry
up. Hurry up or we are going to have to get rid of
you!” and “Hurry up! Make those fucking 100
pieces you shit!”… “Go to hell. You’re good for
nothing. Hurry up!”
Moreover, the workers explain, “The supervisors and
the inspection department are very strict. They want
100 percent quality. If we make a mistake in the
sewing, they take us to the office. They started a new
policy in August. If we get a written warning for
poor quality, we have to pay 100 Quetzales [$2.40],
The base wage for garment workers in Guatemala is
95 cents an hour and $7.60 for an eight-hour shift.
However, in Central America, they pay what is called
the ―Seventh Day’s Pay,‖ which acts as a sort of
attendance bonus. If workers do not miss any days,
they will be paid for all seven days, not just the six
days they work. So garment workers can earn $1.21
an hour. (95¢ x 8 hours x 7 days = $53.20; $53.20 ÷
44 hours work/week = $1.21 per hour.)
Workers appear to be paid more or less correctly at
the Alianza Fashion factory.
Wage with 7th Day Attendance Bonus
$1.21 per hour
$9.67 a day (8 hours)
$53.20 a week
$230.53 a month
$2,766.40 a year
The $1.21 an hour wage does not come even close to
providing basic subsistence level needs. Alianza
workers live from hand to mouth, trapped in poverty.
6
does nothing to protect the workers’ legal right to
organize. The Ministry of Labor is dysfunctional.
Illegal Firings, Denial of
Right to Organize,
Blacklisting
There is not a single functioning union with a
collective contract in any of the 155 garment export
factories across Guatemala. The companies refuse
to recognize unions and routinely resort to threats of
reprisals and firings to block organizing drives. The
Guatemalan Government is completely passive and

On February 2, 2010, a group of 20 workers at
Alianza Fashion with the help of CEADEL,
organized an “Ad Hoc Committee,” which is the
first step toward organizing a union. They were
immediately fired. Under Guatemalan labor law,
the founding members of an ad hoc
committee/union are legally protected and cannot
be demoted, transferred, fired or retaliated
against in any way. As the country’s labor laws
are not enforced by the Guatemalan Government,
Alianza factory management did not hesitate,
even for a second, before illegally firing the
founding Ad Hoc Committee members.
List of Alianza Workers Illegally Fired on February 2, 2010
For Daring to Exercise Their Legal Right to Organize
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
First Name
Pedro
Lucia
Juan José
Pedro
Malaquias
Norma Judith
Maria Eufemia
Diana Lily
Rumualdo
Ledy Marilú
Roxana Elizabeth
Aida María
Carmen Angelica
Isaias Ajquill
Last Name
Buch Iboy
Riquiac Mendez
Marroquin Vasquez
Sen Mejia
Yol Cheroque
Buch Thic
Pichiya Cana
Chacal Subuyuc
Ambrocio Agustín
Lémus Ris
Gónzalez Salazar
Gónzalez Salazar
Salazar
Velásquez
Note: Six of the 20 fired workers fled the factory in fear and have not maintained contact with CEADEL.
7

In early March 2010, another group of 32
Alianza workers tried again to exercise their
legal right to organize an ad hoc committee. All
32 workers were illegally fired by Alianza
factory management on March 25 and 26, 2010.
Once again, the Ministry of Labor did not lift a
finger to protect or enforce these workers’ legal
right to organize. Some of the illegally fired
workers are now blacklisted.
List of 32 Alianza Workers Fired on March 25 and 26, 2010
For Exercising their Legal Right to Organize
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
Name of the worker
CESAR AUSTO REYES COTZAJAY
MARVIN ADOLFO ZAMORA MORALES
ERICK FERNANDO ACETÚN ESTRADA
ERICK AMILCAR ACETÚN ESTRADA
CARLOS ARTURO LOPEZ PABLO
ANTONIO VELASQUEZ TZAMPOP
MAYRA LORENA CALLEJAS SALAZAR
EDGAR BENAJAMIN BORRAYO CAMEY
JOSE MARVIN GOMEZ FARFAN
VILMA MARINA SOCOP TOMA
SELVIN AMILCAR SITÁN NIMAJUAN
ELVA SUNUC RUIZ
JOSE HAROLDO SOCOY CHUP
JOAQUIN LASTOR VELASQUEZ
ELMER RONALDO GALINDO ITZAY
EDGAR ALVA ACUTA
SARA ABIGAIL ATZ CALAN
MANUEL DE JESUS RUMPICHI LARA
HERMEJILDO CALAN CASTRO
JOSE DOMINGO RAMOS FIGUEROA
LUIS PATZAN LARIOS
PEDRO ACEYTUNO LUX
HECTOR OSWALDO SAQUIL CHOC
ISABEL CHOPOX CURRUCHICHE
CESAR OBDULIO MORALES TAGUAL
MARTALIZOLIVIA AMBROSIO TZIRIN
EDWIN BERNARDO CHIROY TATAGUIN
PEDRO PICHOL AZURDIA
VICTOR MACZUL XEP
EDWIN GIOVANNI XOYON SUY
JAIME OVIDIO XICON SIRIN
JORGE MARIO MENDEZ VALLE
Workers Seeking
Reinstatement
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Years working at
Alianza
9 years
6 ½ years
8 years
7 ½ year
1 ½ year
2 years
2 ½ years
2 years
6 ½ years
9 years
9 years
7 ½ years
7 years
4 ½ years
6 ½ years
2 years
3 years
4 ½ years
6 years
9 years
9 years
5 ½ years
4 years
8
As can be seen from the list above, the majority of
these illegally fired workers were senior employees,
with six to nine years experience working at Alianza.
It is obvious there was no problem with their work.
Their ―crime‖ was to organize a union.
Twenty-three of the fired workers have refused to
accept severance pay—which would make their
firing legal—and continue to struggle for
reinstatement and their right to organize. With
CEADEL’s assistance these 23 workers have also
filed a legal suit against Alianza Fashion
management demanding reinstatement, but this could
take months, if not years, to resolve. Nine other
founding members of the second ad hoc committee,
feeling their legal rights would never be protected,
have taken their severance and left.

Illegally Fired Workers Are Targeted with
Blacklisting
The illegally fired union leaders—who have refused
to take their severance pay and continue to struggle
for reinstatement—still have to find work in order to
feed and house themselves and their families.
It is now feared that Alianza Fashion’s general
manager, Mr. Ruben Enrique Rosales, is circulating a
list of the fired union leaders among other South
Korean-owned factories in the Chimaltenango area.
Joaquin Lastón Vásquez, who was illegally fired in
March for organizing a union at Alianza was able to
find work at another South Korean-owned garment
factory, Sewon, S.A., but was fired within a matter of
days, on June 8, 2010. No explanation was given for
his sudden firing.
Erick Fernando Acetun Estrada was also illegally
fired from Alianza in March for being a member of
the ad hoc committee. He had worked for just a few
days at the same factory as Joaquin Lastón Vásquez
and was fired on the same day, June 8.
Manuel de Jesus Rompich Lara—also illegally
fired in March—worked for just two weeks at a
South Korean garment factory called Sam Sol S.A.,
but was suddenly fired without any explanation.
Maria Eufemia Pichiya Cana—who was illegally
fired by Alianza management on February 2, 2010
for union organizing—found employment at another
South Korean factory called Beltlan, S.A., but was
fired without any reason given after just four days.
After Maria Eufemia was fired, a supervisor at the
Beltlan S.A. factory told the workers that she was let
go because “she was a problem” and “was involved
in organizing with CEADEL and these people are
troublemakers.”
Twenty Alianza workers were fired on January 4,
2010 for having missed one day of work, on January
2, the day after New Year’s Day. All those fired
worked in the ironing department. These firings were
also illegal, as missing one day’s work is not just
cause for termination.
(It was only through
CEADEL’s intervention that the fired workers
received
their
severance
pay.)
9
Alianza Fashion—Run Like
a Minimum Security Prison
Death threats against CEADEL’s leaders end, but
Alianza management’s hatred of CEADEL persists
Serious death threats against CEADEL’s leaders
began in February 2010 and lasted about three
months.
Early February
February 10:
March 30:
April:
CEADEL’s lawyer, Mr. Walter
Felipe Pocop, received a phone
call from a man who threatened
him, “We’re going to kill you.”
Alianza’s general manager, Mr.
Enrique
Rosales,
enters
CEADEL’s office at night,
armed with a pistol, saying he is
looking for Mr. Pocop.
CEADEL director, Jose Gabriel
Zelada, receives a call on his cell
phone. The male caller tells him,
“You are going to die, you son
of a bitch.”
Mr. Zelada receives a second
death threat.
(See the National Labor Committee’s March 10,
2010 report, “Illegal Firings and Death Threats at
Alianza Fashion Garment Factory in Guatemala” for
more details.)
Death Threats End, But Workers Are Told They
Will Be Immediately Fired If They Have Any
Connection to CEADEL
Alianza’s general manager, Mr. Enrique Rosales,
tells workers point blank:
“If you go to CEADEL, you will be kicked
out of Alianza.”
“If you go to CEADEL, stay there and ask
them to feed you. You better not have any
contact with CEADEL, because we are the
ones who feed you.”
“If we find any more traitors among us,
they will be immediately fired without any
severance pay.”
“You should think twice before going to
CEADEL because after you’re fired you
will come crying to me begging for your
reinstatement.”
“CEADEL and their friends only want to
cheat you. They don’t do anything good for
you. All they want to do is shut the factory
down.”
“If you try to organize, you will hurt the
factory and you will be without work.”
Alianza management also uses the factory’s
loudspeaker system to threaten the workers not to
cooperate or go to CEADEL’s office.
A group of workers explains, “Supervisors and
managers tell us that CEADEL is only out to help
themselves. They warn us not to go to CEADEL
because it could be very dangerous for us if we want
to keep our jobs.
Alianza workers are also threatened not to go to the
Guatemalan Ministry of Labor: “If you go to the
Ministry [of Labor], we will throw you out without a
cent.”
10
Illegal Firings at Alianza
Fashion Expose Social
Security Fraud
Alianza management, in broad daylight and over the
course of years, has systematically robbed the
workers of their Social Security payments, leaving
the workers, and their children, without health care,
and the workers without their pensions—despite the
fact they are paying for it.
It is hard to imagine that Alianza Fashion is a unique
case or that the Guatemalan Social Security Institute
(IGSS) could be so lax that it would miss the fact that
a large factory like Alianza, with 1,350 workers, may
have been inscribing less than 100 workers into
Social Security. A full and independent investigation
is necessary. While criminally robbing its workers,
Alianza management continues to be awarded duty
free access to the U.S. market.
The Guatemalan Social Security Institute (IGSS)
was founded in 1946 to provide health care and
pensions to all Guatemalan workers. IGSS is the
only functioning pension plan in Guatemala,
operating on deductions from workers pay and a
portion paid by employers.
Workers must pay 4.83 percent of their monthly
wages into IGSS. The workers’ deduction is based on
the minimum wage, the 7th Day attendance bonus, all
overtime and production bonuses. For example, a
worker earning the minimum wage of 1552.50
quetzales ($192.51) a month would pay $9.30 into
Social Security. With overtime and other incentives,
the workers’ mandatory deductions for Social
Security would be higher.
Companies must pay an additional 10.67 percent of
the workers’ monthly wages. If a worker earns just
the minimum wage of $192.51 per month,
management must pay $20.54 into the Social
Security Institute. The combined worker deduction
and management portion would total $29.84 a month
if the worker is earning just the minimum wage.
In return for the worker and management payments
to Social Security, the workers—and their young
children up to five years old—receive free health care.
Social Security health care covers occupational
accidents, maternity care and maternity leave, general
illnesses, disability, hospitalization, sick leave,
widow support and more. The Social Security wage
deduction also allows workers to retire, after they
have reached 60 years of age and have worked a
minimum of 15 years, with a pension equivalent to
60 percent of the worker’s average wage including
overtime and production bonuses.
It appears that Alianza factory management has
systematically deducted workers Social Security
payments each month and then pocketed the money
rather than passing it to the Guatemalan Social
Security Institute as required by law. Moreover,
Alianza management has also failed to pay the
company’s portion of mandatory Social Security
fees—and in some cases, this has been going on nine
years. (Alianza Fashion only began operations in
2000.)
The Social Security scandal at Alianza’s only came
to light after management illegally fired workers
attempting to exercise their right to organize a union.
It was CEADEL that advised the fired workers to ask
for a certified copy of their personal files at the
Guatemalan Social Security Institute.
At first, IGSS staff flat-out refused to provide copies
of the workers’ files. It took the fired workers seven
weeks and four trips back and forth from
Chimaltenango to Guatemala City, but in the end
they won--at least partially. Of the 20 fired workers
11
who sought their Social Security files, just two
workers received their records for the full period of
their employment at Alianza. The other 18 received
only partial records, from 2007 on.
Still, the documents are incredibly disturbing.
Alianza Fashion management made only partial
Social Security payments on behalf of two workers,
while management made no Social Security
payments whatsoever for the other 18 workers—
some of whom had been working with Alianza for
the last nine years, since 2001!
In the best case scenario, Alianza management paid
just 46 percent of the mandatory Social Security
deductions, for Ms. Sara Abigail Atz Calan. In the
second case, management paid just 24 percent of the
Social Security deducations legally due for Ms.
Vilma Marina Socop Toma. Vilma began working at
Alianza on January 2, 2001 and was illegally fired on
March 26, 2010 for attempting to organize a union.
12
Alianza Workers Robbed of Social Security Health and Pension Benefits
Name of Worker
Period of employment at Alianza
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Carlos Arturo López Pablo
August 18, 2008 - 26 March, 2010
Cesar Austo Reyes Cutzajay
March 16, 2001 – March 25, 2010
Edy Amilcar Acetun Chonay
July 22, 2002 - 26 Mar - 2010
Elva Sunuc Ruiz
September 30, 2002 – March 26,2010
Edwin Giovany Xoyon Suy
April 23, 2007 – March 26, 2010
Erik Fernando Acetun Estrada
April 1, 2002 – March 25, 2010
Hector Oswaldo Saquil Choc
March 13, 2006 – March 26, 2010
Hermenejildo Calan Castro
May 7, 2004 – March 26, 2010
Jorge Mario Mendez Valle
April 19, 2001 – March 26, 2010
José Domingo Ramos Figueroa
June 16, 2003 – March 25, 2010
José Haroldo Socoy Crup
May 13, 2002 – March 26, 2010
Joaquin Lastor Velazquez
July 11, 2005 – March 26, 2010
Kelly Evelyn Alonzo Gonzalez
September 6, 2005 – March 26, 2010
Luis Patan Larios
May 28, 2001 – March 26, 2010
Marcos Pata Cipriano
January 28, 2004 – March 26, 2010
Marvin Adolfo Zamora Morales
July, 30, 2003 – March 25, 2010
Pedro Aceytuno Lux
Sara Abigail Atz Calan
March 5, 2007 – March 26, 2010
Selvin Amilcar Sitan Nimajuan
April 2, 2001 – March 26, 2010
Vilma Marina Socop Toma
January 2, 2001 – March 26, 2010
Months for which IGSS
Provided requested records*
# Monthly Payments by
Alianza to IGSS during
the period
19
0
35
0
35
0
35
0
23
0
35
0
35
0
70
0
99
0
35
0
78
0
23
0
35
0
35
0
35
0
35
0
35
0
35
16
35
0
95
23
13
The Workers’ Demands
 Alianza management must immediately reinstate the workers illegally fired in March for
exercising their legal right to organize.
 Alianza management must respect and guarantee the workers’ right to organize a union.
 Every worker must be registered in Social Security and guaranteed the legal right to health
care and a pension. Alianza must make the workers whole again by paying all outstanding
Social Security deductions and payments owed.
 All overtime at Alianza must be voluntary and in compliance with the law.
 Good faith negotiations must take place between Alianza workers and CEADEL, Alianza
factory management, the Ministry of Labor and the Guatemalan Social Security Institute.
(One serious suggestion to stop factory management from robbing workers of their Social
Security payments is to make this a crime punishable by imprisonment. In El Salvador, such a
law has been very effective in ending Social Security violations.)
 The labels must not pull their work from the Alianza factory, which is the worst thing they
could do. The workers need these jobs. The companies must keep their production in the
factory as they work together with management to finally bring Alianza into compliance with
Guatemalan labor laws and U.S.-CAFTA labor rights provisions.
14
Addenda

(The IGSS records of the 20 fired workers can be downloaded online.)

Three examples of workers letters of dismissal and IGSS records, translated into English

Documentation of Alianza’s Underpayment or Non-Payment
of IGSS Social Security Dues
--3 Examples—
Of 20 workers fired from the Alianza factory in March 2010 for forming an Ad Hoc worker
committee, the records of 18 show no payments at all by the company into Guatemala’s pension
and healthcare system on the workers behalf. The two remaining workers were ―lucky‖—the
company made some of the legally required payments for the months they worked.
Each fired worker received: 1.) a letter of dismissal from the company documenting their time
of employment 2.) a Guatemalan Social Security Institute report of the payments received (or not
received) from Alianza on their behalf. Below are translated examples of the records received by
three workers—the two for whom some payments were made and a third more typical worker for
whom no payments were made. Links to copies of the original documentation for all 20
workers can be found in Addenda.
(Worked for Alianza for 9 years. IGSS records indicate that—during 95 months for which Social
Security payment data was made available, only 23 monthly payments made by Alianza on Ms.
Socop’s behalf.)
[Letter of Dismissal from Alianza]
Chimaltenango, March 26, 2010
Sirs
Labor Inspectorate
In the facilities of the Alianza Fashion SA Company, Km 52.5 InterAmerican Highway
to Chimaltenango on the 26th day of March of this year, where the labor relationship is
concluded, [with the] FIRING FOR JUST CAUSE of Mrs. VILMA MARINA SOCOP
TOMA. Her [employment] relationship began on January 2, 2001 in the cutting area
[and] ends on March 26, 2010.
The employment relationship is concluded.
Sincerely
[Signed]
Ruben E. Rosales
Human Resources Manager
Employee agrees
Viviana Lara
Secretary of Human Resources
[Translation: Vilma Marina Socop Toma’s IGSS Payment Record]
IGSS
REPORT OF WAGES EARNED
CA-29
CORRESPONDANCE & RECORDS DEPARTMENT
2/25/2010
TO DATE: 2/182010
PERIOD REQUESTED: JAN/2002 – DEC/2009
Affiliate #: 2-83-24138 Name: Socop Toma Vilma Marina
Report 2934
Business #: 79147 Name: ALIANZA FASHION SOCIEDAD ANONIMA
Relationship: The interested party [the worker herself]
Input: 384
Date of Request: January 1, 2010
Date of Response: February 17, 2010
Year CMonth
Month
Wage Code Description of Code
2002 1
January
0.00
2 Not reported
2002 2
February
0.00
2 Not reported
2002 3
March
0.00
2 Not reported
[Same through October 2004]…..
2004 11
November 0.00
5 Pay given but no Rolls [planillas]
2004 12
December 0.00
5 Pay given but no Rolls [planillas]
2005 1
January
0.00
2 Not reported
[Same through June 2006]
2006 7
July
1,309.20 1 Reported
[Same through September 2007
2007 10
October
0.00
5 Pay given but no Rolls
2007 11
November 1,374.66 1 Reported
2007 12
December 1,374.66 1 Reported
2008 1
January
1,432.50 1 Reported
[Same – IGSS payments made through July 2008
2008 8
August
0.00
5 Pay given but no Rolls
[Same—pay was given but no rolls—through December 2008]
2009 1
January
0.00
2 Not reported
[Same through June 2009 – not reported]
2009 7
July
0.00
8 Social Security Rolls in Process
[Same through December 2009—last monthly record detail made available.]
Wages:
Q 31,571.46
Payments Made: 23
The herein signed Microfilm operator attests and lets it be known that s/he viewed the
microfilm archives where s/he verified through the Social Security rolls that the
information rendered in this report is true.
[Signed]
Rubi Mazin
Operator
Dignitizer: Maby
[Signed & stamped]
Signature of Immediate supervisor
[Signed]
Reviewed
[Signed & stamped]
Marvin Gutierrez
Supervisor
Worked in Alianza for three years, from March 5, 2007 – March 26, 2010. IGSS records
indicate that—during 35 months for which Social Security payment data was made available,
only 16 monthly payments made on Ms. Atz Calan’s behalf.)
Sirs
Labor Inspectorate
concluded, [with the] FIRING FOR JUST CAUSE of Mrs. SARA ABIGAIL ATZ
CALAN. Her [employment] relationship began on March 5, 2007 as a [sewing] operator
in module 02-B [and] ends on March 26, 2010.
Sincerely
[Signed]
Ruben E. Rosales
Employee agrees
Viviana Lara
[Translation: Sara Abigail Atz Calan’s IGSS Payment Record]
IGSS
CA-29
7/12/2010
TO DATE: 7/92010
PERIOD REQUESTED: MY/2007 – JN/2010
Affiliate #: 2-80-23518 Name: ATZ CALAN SARA ABIGAIL
Report 12920
Relationship: The interested party [the worker herself]
Input: 16680
Date of Request: July 9, 2010
Date of Response: July 9, 2010
Year CMonth
2008 1
2008 2
2008 3
2008 4
2008 5
2008 6
2008 7
2009 1
2009 2
2009 3
2009 4
2009 5
2009 6
2009 7
2009 8
2009 9
Wages:
Month
January
February
March
April
May
June
July
January
February
March
April
May
June
July
August
September
1,432.50 1 REPORTED
1,432.50 1 REPORTED
1,432.50 1 REPORTED
1,432.50 1 REPORTED
1,432.50 1 REPORTED
1,432.50 1 REPORTED
1,432.50 1 REPORTED
1,432.50 1 REPORTED
1,432.50 1 REPORTED
1,432.50 1 REPORTED
1,432.50 1 REPORTED
1,432.50 1 REPORTED
1,432.50 1 REPORTED
1,432.50 1 REPORTED
1,432.50 1 REPORTED
1,432.50 1 REPORTED
Q 22.920.00
Payments Made: 16
OBSERVATIONS:
1.-MAY TO SEPTEMBER, NOVEMBER, DECEMBER/07 IS NOT REPORTED.
2.-AUGUST TO DECEMBER/08, JANUARY TO JUNE/10 NO REGISTERED PAY
3.-OCTOBER/07, OCTOBER TO DECEMBER/09 PAYMENT WAS MADE, ROLLS
HAVE NOT BEEN ENTERED TO THIS AGENCY
microfilm archives where s/he verified through the Social Security rolls that the information
rendered in this report is true.
[Signed]
Rubi Mazin
Operator
Dignitizer: Lucrecia
[Signed & stamped]
[Signed]
Reviewed
[Signed & stamped]
Marvin Gutierrez
Supervisor
Luis Patan Larios
Worked in Alianza for nearly nine years (105 months), from May 28, 2001 to March 26, 2010.
For the 35 months for which Social Security payment data was made available to him, IGSS
records indicate that 0 payments made by Alianza to IGSS on his behalf.)
Sirs
Labor Inspectorate
concluded, [with the] FIRING FOR JUST CAUSE of Mr. JORGE MARIO MENDEZ
VALLE. His [employment] relationship began on April 19, 2001 as a [sewing] operator
in module 01-B [and] ends on March 26, 2010.
Sincerely
[Signed]
Ruben E. Rosales
Viviana Lara
Employee agrees
LABOR MINISTRY
STAMP & DATE
[Translation: Jorge Mario Mendez Valle’s IGSS Payment Record]
IGSS
CA-29
7/12/2010
TO DATE: 4/2010
PERIOD REQUESTED: SP/2001 – JN/2010
Affiliate #: 1-81-32194 Name: MENDEZ VALLE JORGE MARIO
Report 12941
Relationship: The interested party [the worker himself]
Input: 16688
Date of Request: July 9, 2010
Date of Response: July 9, 2010
Year
CMonth
Month
Wages:
Payments Made: 0
OBSERVATIONS:
1.-SEPTEMBER/01 TO JULY, SEPTEMBER, OCTOBER/04, JANUARY/05 TO
SEPTEMBER, NOVEMBER/06 TO SEPTEMBER, NOVEMBER/07 TO JULY/08,
JANUARY TO SEPTEMBER/09 IS NOT REPORTED.
2.-AUGUST, NOVEMBER, DECEMBER/04, OCTOBER/06, OCTOBER/07,
OCTOBER TO DECEMBER/09 PAY WAS GIVEN BUT NO [SS] ROLLS HAVE BEEN
ENTERED WITH THIS AGENCY.
3.-AUGUST TO DECEMBER/08, JANUARY TO JUNE/09 THERE IS NO PAY
REGISTERED.
microfilm archives where s/he verified through the Social Security rolls that the information
rendered in this report is true.
[Signed]
Angel Perez
Operator
Dignitizer: Lucrecia
[Signed & stamped]
[Signed]
Reviewed
[Signed & stamped]
Marvin Gutierrez
Supervisor
1
Name of Worker
Period of employment at Alianza
Carlos Arturo López Pablo
August 18, 2008 – March 26, 2010
2
Cesar Austo Reyes Cutzajay
March 16, 2001 – March 25, 2010
3
Edy Amilcar Acetun Chonay
July 22, 2002 – March 26, 2010
4
Elva Sunuc Ruiz
5
Edwin Giovany Xoyon Suy
April 23, 2007 – March 26, 2010
6
Erik Fernando Acetun Estrada
April 1, 2002 – March 25, 2010
7
Hector Oswaldo Saquil Choc
March 13, 2006 – March 26, 2010
10
Hermenejildo Calan Castro
May 7, 2004 – March 26, 2010
Jorge Mario Mendez Valle
April 19, 2001 – March 26, 2010
José Domingo Ramos Figueroa
June 16, 2003 – March 25, 2010
11
José Haroldo Socoy Crup
May 13, 2002 – March 26, 2010
12
Joaquin Lastor Velazquez
July 11, 2005 – March 26, 2010
13
Kelly Evelyn Alonzo Gonzalez
8
9
16
Luis Patan Larios
May 28, 2001 – March 26, 2010
Marcos Pata Cipriano
January 28, 2004 – March 26, 2010
Marvin Adolfo Zamora Morales
July, 30, 2003 – March 25, 2010
17
Pedro Aceytuno Lux
18
March 5, 2007 – March 26, 2010
19
Selvin Amilcar Sitan Nimajuan
April 2, 2001 – March 26, 2010
20
January 2, 2001 – March 26, 2010
14
15
Link to Original Documents
http://www.globallabourrights.org/documents/Case1-Lopez-Pablo.pdf
http://www.globallabourrights.org/documents/Case2-Reyes-Cutzajay.pdf
http://www.globallabourrights.org/documents/Case3-Acetun-Chonay.pdf
http://www.globallabourrights.org/documents/Case4-Sunuc-Ruiz.pdf
http://www.globallabourrights.org/documents/Case5-Xoyon-Suy.pdf
http://www.globallabourrights.org/documents/Case6-Acetun-Estrada.pdf
http://www.globallabourrights.org/documents/Case7-Saquil-Choc.pdf
http://www.globallabourrights.org/documents/Case8-Calan-Castro.pdf
http://www.globallabourrights.org/documents/Case9-Mendez-Valle.pdf
http://www.globallabourrights.org/documents/Case10-Ramos-Figueroa.pdf
http://www.globallabourrights.org/documents/Case11-Socoy-Crup.pdf
http://www.globallabourrights.org/documents/Case12-Lastor-Velazquez.pdf
http://www.globallabourrights.org/documents/Case13-Alonzo-Gonzalez.pdf
http://www.globallabourrights.org/documents/Case14-Patan-Larios.pdf
http://www.globallabourrights.org/documents/Case15-Pata-Cipriano.pdf
http://www.globallabourrights.org/documents/Case16-Zamora-Morales.pdf
http://www.globallabourrights.org/documents/Case17-Aceytuno-Lux.pdf
http://www.globallabourrights.org/documents/Case18-Atz-Calan.pdf
http://www.globallabourrights.org/documents/Case19-Sitan-Nimajuan.pdf
http://www.globallabourrights.org/documents/Case20-Socop-Toma.pdf
Macy's, Inc.
7 West Seventh Street, Cincinnati, OH 45202
Phone: 513-579-7000; Fax: 513-579-7555
Website: http://www.macysinc.com
Stores: 810 Macy’s and 40 Bloomingdale’s in the U.S.
Operating Income: $1.063 billion (2009)
CEO: Terry J. Lundgren (Average Compensation: $7.29 million)
Sears Holdings Corporation
3333 Beverly Road , Hoffman Estates, IL 60179
Phone: 847-286-2500; Fax: 847-645-4003
Website: www.searsholdings.com
Stores: 3900 in the U.S. and Canada
Annual Revenue: $46.770 billion (2009)
CEO: W. Bruce Johnson (Total Compensation: $1.49 million)
Kohl’s Corporation
Kohl's Department Stores, N56 W17000 Ridgewood Drive, Menomonee Falls, WI 53051
Phone: 262-703-7000; Fax: 262-703-6353
Website: www.kohlscorporation.com
Stores: 1067 in the U.S.
Annual Net Sales: $17.178 billion (2009)
CEO: Kevin Mansell (Annual Compensation: $4.46 million)
Charming Shoppes, Inc. (Owner of Fashion Bug)
450 Winks Lane, Bensalem, PA 19020
Phone: 215-245-9100; Fax: 215-633-4640
Website: www.charmingshoppes.com
Stores: 2100 stores in the U.S.
Annual Revenue: $2.474 billion (2009)
CEO: James P. Fogarty (Annual Compensation: $5.21 million)
Kellwood Company (Owner of Sag Harbor and Briggs New York)
600 Kellwood Pkwy., Chesterfield, MO 63017
Phone: 314-576-3100; Fax: 314-576-3460
Website: www.kellwood.com
Where to buy: Dillard’s, Macy’s, Kohl’s, Sears, Boscov’s, Barneys, Bergdorf Goodman,
Nordstrom, Neiman Marcus, Lord & Taylor, Bon-Ton, Saks Fifth Avenue,
Bloomingdales
Annual Revenue: Approximately $2 billion
CEO: Michael W. Kramer
Belk Inc. (Owner of Kim Rogers)
2801 West Tyvola Road
Charlotte, NC 28217-4500
Phone: 704-357-1000
Website: www.belk.com
Store: 306 stores in 16 states in the U.S., primarily in the southern U.S.
Revenues of FY2010 (ended Jan. 30 2010): $3.35 billion
CEO: Thomas M. Belk, Jr.

Alianza Fashion - Institute for Global Labour and Human Rights

Transcription

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