FYI: 1st Nica FTZ contract stuck on "union" (fwd)

[Chris <red@xxxxxxx>]

---------- Forwarded message ----------
/* Written  8:56 AM  Feb 21, 1997 by witness in igc:reg.nicaragua */
/* ---------- "FORTEX UNION NEEDS SUPPORT ASAP!" ---------- */
Witness for Peace URGENT ACTION ***Fledgling Union Needs International
Support***
Nicaraguan Labor Ministry Failing to Enforce Labor Laws

The expected signing in Nicaragua of the first union contract in the Free
Trade Zone, where over 10,000 workers make clothing and other products for
the export market,  was derailed at the last minute.  The historic event
was to have taken place February 17, 1997.

The owners of "Fortex Industrial" clothing maquila, which has about 250
workers, balked at the union being officially called a union, instead of
merely a "technical commission".  The recently formed union, for its part,
is insisting on being called a union since without that designation the
company could claim in the country's labor courts that it is not obliged to
abide by the collective bargaining agreement (since companies are required
to reach agreements only with unions, not technical commissions).

The Nicaraguan Labor Ministry, under the new administration of President
Arnoldo Aleman, is saying that the workers and the company must come to a
mutually agreed upon solution.  Since the workers' organization at Fortex
was recognized as a union by the labor ministry on January 2, 1997, this
reasonable-sounding is, in fact, simply a way to get out of enforcing
Nicaraguan law.  Nicaraguan law recognizes the right of workers to form
unions and requires companies to negotiate with unions that receive legal
recognition.  The Ministry should insist that the workers' organization be
called a union in the contract since the Ministry itself has already
recognized it as such, but the Ministry is arguing that if the workers'
organization is called a union it will scare away foreign investment.

Recommended Action:

Sign and fax the following letter [below the "Background"] to the
Nicaraguan Minister of Labor

Background:

The Fortex plant, a Taiwanese owned factory, is located in Managua's "Las
Mercedes" Free Trade Zone, where over 10,000 Nicaraguans sew garments for
export to the United States, under such labels as Kathie Lee and Bugle Boy.
Over 80% of workers are women, and the majority are between 15 and 25 years
old.  Workers labor up to 15 hours a day, with few breaks.  The wages the
maquila owners pay their employees are sometimes barely enough to live on;
some workers earn as little as $40 a month.  Workers have complained of
verbal and physical abuse, sexual harassment, inadequate health care at the
Zone's clinic, forced overtime, as well as a lack of respect for the
freedom to organize.

The Nicaraguan government established the Free Trade Zone in 1991 in an
effort to attract foreign investment to the country.  The government offers
investors 100% exemptions on local taxes and import and export duties and
free repatriation of profits. According to government data, the Zone has
become the fastest growing source of foreign investment and a booming
sector in Nicaragua's  otherwise devastated economy.  Gilberto Wong, the
General Secretary of Free Trade Zones who was recently  appointed by
President Arnoldo Aleman, has indicated that in 1997 three thousand new
maquiladora jobs will be created in Nicaragua.  These jobs will be in the
existing government-owned Las Mercedes Free Trade Zone and in new private
zones.  Notably, he promised that the companies will be expected to comply
with local labor laws and that he will request that the Ministry of Labor
have a permanent inspector to watch for labor rights abuses.


Sign and fax the following letter to the Nicaraguan Minister of Labor (fax
#: 011-505-228-2103):

Estimado Ministro Navarro,

Por medio de la presente le quisiera informar sobre una situacisn sumamente
preocupante que ha llegado a mi atencisn por los medios de comunicacisn
internacionales. Segzn estas fuentes, existen problemas en las
negociaciones que se estan realizando entre los dueqos de la Fabrica Fortex
y el sindicato que se forms en esta fabrica.  El sindicato quiere ser
oficialmente reconocido como sindicato y no como Comisisn Ticnica Laboral
como los empresarios exigen.  Los miembros del sindicato dicen que si
acceptan y cambian su nombre no tendran todos los derechos que les
guarantiza el codigo laboral a los sindicatos.

Aparentemente el Ministerio de Trabajo igual que los dueqos de Fortex,
estan exigiendo que el sindicato cambie su nombre antes de firmar el
convenio colectivo.  Tal exigencia implica que el Ministerio de Trabajo
esta favoreciendo a los empresarios de Fortex, y esto es una injusticia
contra de los trabajadores nicaraguenses.

Segzn estas fuentes de informacion, Mitrab y los dueqos de Fortex dicen que
la presencia de sindicatos en la Zona Franca harma que empresarios y
inversionistas de los EEUU no inviertan en Nicaragua.  Dicen que hay
contratos que estan saliendo de El Salvador y llegando a Nicaragua porque
los sindicatos salvadoreqos estan asustando a los inversionistas.  Eso no
es cierto.  La inversisn no se huye por la simple presencia de un
sindicato.  Si se asustan cuando hay conflictos entre los dueqos y los
trabajadores.  Pero un sindicato bien organizado ayuda a diminuir y a
resolver conflictos, y no los fomenta.

Es sumamente importante que el Ministerio del Trabajo reconozca los
derechos de los trabajadores de Fortex.  Nicaragua tiene la gran
oportunidad de ser un lmder en el campo de derechos laborales en este caso.
Por favor, haga lo correcto y conduzca las negociaciones de buena fe.  Un
sindicato en la Zona Franca le conviene no solo a los trabajadores de
Fortex, sino a todo el pams de Nicaragua.

Atentamente,  (Your name)

TRANSLATION:

An alarming situation that has been brought to my attention through various
international information sources.  According to these sources, there are
serious problems in the negotiations taking place between the owners of
Fortex and the union recently formed in this factory.  The union wants to
be officially recognized as a "union" and not as a "Labor Advice Commision"
as the owners are demanding.  By accepting and changing their name the
union members say that they will loose the rights guaranteed to them as a
union under the labor law.

Apparently, the Ministry of Labor as well as the owners of Fortex, are
demanding the change of name before signing the contract.  Such a demand
implies that the Ministry of Labor is favoring the factory owners which is
clearly an injustice against Nicaraguan workers.

According to these sources of information, Mitrab and the owners of Fortex
say that the pressence of unions in the Free Trade Zone would scare away US
investment in Nicaragua. They claim that contracts have left El Salvador
and come to Nicaragua because the unions in El Salvador have scared away
investors. This is not true.  Investment does not flee because of the mere
presence of a union.  It does flee when there are conflicts between owners
and workers.  But a well organized union can help resolve these conflicts.

It is crucial that the Ministry of Labor recognize the rights of the
workers in Fortex.  Nicaragua is in a position to be a leader in the field
of workers rights.  Please do the right thing and conduct these
negotiations in good faith.  A union in the Free Trade Zones would not just
benefit the workers in Fortex alone but it would be beneficial to Nicaragua
as a whole.

Sincerely,  [your name or that of your organization]




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