North Sails continues to ignore workers' plight

3 August 2005

Dear Friends,
At this time the Clean Clothes Campaign would like to thank everyone who sent letters or contacted North Sails dealers and retailers to voice their support for the 207 unjustly dismissed workers at the Global Sports Lanka factory. Your support is still needed to bring about a fair resolution to this case. The CCC asks you to write to North Sails to let this company know they can't ignore workers rights.

In 2002, 207 workers were dismissed because they had gone on strike to protest management's refusal to pay their annual quality bonus. Since their wages are extremely low, the workers needed these "bonuses" to survive. Twelve workers were charged with 'inciting workers to strike'. Following an internal investigation conducted by management workers were reinstated and the 12 workers were told they too would be rehired. Management later broke its word and decided that seven of 12 workers would not be rehired. The factory Employees' Council tried to intervene but was unsuccessful. North Sails workers again went on strike in protest. This time management closed down the entire factory and when the factory reopened, new staff were hired. Workers were promised reinstatement if they signed a letter admitting they participated in an illegal strike - something the workers unanimously refused to do.

Now, three years later, 38 of these workers who initiated a court case against management contesting their dismissal are still unemployed. On December 13 2002 they brought their case before the court.

In December 2003, a Memorandum of Understanding (MoU) regarding the dismissed workers was signed by GSL management, requiring the company to negotiate substantially and directly with the FTZ&GSEU and allow for the establishment of unions. GSL ultimately did not act in good faith or engage in constructive negotiation with the FTZ&GSEU union as they had promised. In April 2004 management and the FTZ&GSEU reached an agreement the dismissed workers would be given priority if any new vacancies at needed to be filled. Management broke this promise however, when 90 new vacancies were filled without even interviewing the dismissed workers as candidates.

Global Sports Lanka stated that they will wait for the decision of the Sri Lankan Labor Court before reinstating the unjustly dismissed workers, making the agreements set down in the MoU pointless. Because Global Sports Lanka's actions, the CCC then re-launched an international campaign in 2004 to urge Global Sports Technologies to pressure local management to resolve the dispute, calling upon Global Sports Lanka to either reinstate the dismissed workers, or as a minimum, agree to 3rd party neutral mediation to settle this dispute. Global Sports Lanka ignored these calls and has not shown any initiative to forward proposals that could lead to a fair resolution in this dispute. For more background on the North Sails case, please visit the Clean Clothes website at http://www.cleanclothes.org/companies/northsails04-12-24.htm.

Anton Marcus of the FTZ&GSE Union recently informed the Clean Clothes Campaign that while the unjustly dismissed North Sails workers are involved in lengthy legal proceedings, their positions are being treated as vacancies that will be filled by new workers, rather than by the former workers who are still unemployed. Anton Marcus also stated that the Sri Lankan Ministry of Labor and the Labor Department have not intervened on behalf of the dismissed workers.

In early 2005, Global Sports Lanka workers and the FTZ&GSEU called for an international day of action to support their demand for reinstatement at the factory where they were unjustly dismissed. On March 29th , exactly three years after the GSL workers were dismissed, the Dutch CCC organized a protest action in solidarity with the dismissed GSL workers who also staged a rally in front of the factory gates in Sri Lanka on the same day. Activists from the Dutch CCC launched their 'Message in a Bottle' campaign where 207 bottles (one for each of the dismissed employees) containing a protest letter to North Sails were cast into the North Sea. Earlier in 2005, German activists together with activists from the Dutch Clean Clothes Campaign distributed protest cards to visitors at Europe's largest aquatic sports exhibition in Dusseldorf, Germany. A similar protest was staged by activists at the London Boat show held from January 14th - 16th. Activists handed protest cards to the Boat Show visitors until they were escorted off the grounds by security. In both cases the activists spoke with North Sails dealers, retailers and the public about the labor dispute at Global Sports Lanka.

Due to the lack of progress with GSL management, the Clean Clothes Campaign contacted North Sails management and the CEO of the North Sails holding company in the United States, Mr. Tom Whidden, on March 29th, informing him of the situation in Sri Lanka.

In his reaction Mr. Whidden stated he was "shocked, because we thought the situation was resolved a while ago". When asked about measures North Sails would take to resolve this situation, he replied that North Sails would withhold funds raised for Tsunami victims in Sri Lanka and that they would stop sourcing there as well if the CCC continued its campaign. In its reply, the CCC underlined the attempts made by the union to resolve this dispute and their willingness to find a constructive solution, and managements failure to honor their side of the Memorandum of Understanding. It was made clear to Mr. Whidden that for the CCC, a decision to cut and run was unacceptable since we support the workers in resolving this dispute constructively. It was also communicated to Mr. Whidden that withholding aid for the Asian Tsunami victims in Sri Lanka was wholly inappropriate and in no way related to this case. We also gave Mr. Whidden some time to investigate the situation, as he requested. However, since April 2005, the Clean Clothes Campaign has not been contacted by Mr. Whidden.

The Clean Clothes Campaign has made it clear to North Sails and Global Sports Lanka, and the North Sails License holders that we support the dismissed workers and the union in their demand for management to address the following demands:

• reinstate the illegally dismissed workers;

• agree to mediation as proposed by the union or forward a suitable alternative;

• recognize workers' rights to organize and to collective bargaining.

Action requests

Write to North Sails
The Clean Clothes Campaign asks you to write to North Sails and demand that the company pressure Global Sports Lanka to accept neutral third-party mediation and to negotiate directly with the FTZ&GSEU (Free Trade Zone & General Services Employees Union) representing the workers to reinstate the dismissed workers without any further delay. Make clear to them that their conduct in this dispute is unacceptable.
Send the letter now! >>

Organise protests at surf sail events
Another action request is to organise protests at surf sail events where North Sails is present or events that are sponsored by North Sails. The following websites provide addresses and dates for such events, or you can also check on internet for events in your area. Here are some sites containing information about windsurfing events:
http://www.windsurfing.org
http://ukwindsurfing.com/
http://www.uswindsurfing.org/
http://www.north-windsurf.nl/rt2005main.htm

President North Sails: Tom Whidden: tom@nmg.northsails.com
CEO North Sails Group: Terry Kohler: terry.kohler@windway.com
North Sails Europe: info@euro.northsails.com
North Sails Australia: office@au.northsails.com

Please send copies send to:

• Boards & More Austria GmbH (license holder North Sails brand)
  Attn.: Gregor König office@boards-and-more.com
• Boards & More Switzerland (license holder North Sails brand)
  Attn.: Mr. Schwab info@boards-and-more.ch
• Global Sports Lanka, Ltd. (owners of the Global Sports Lanka factory.)
  Meinhard Schwendtke info@nslanka.lk
• Clean Clothes Campaign

Please remember to send any responses to your letter to the Clean Clothes Campaign and to the union in Sri Lanka ftzunion@ diamond.lanka.net

Windway Capital Corp. (North Sails Parent Company)
630 Riverfront Dr. Ste. 200
Sheboygan, Wisconsin
United States of America
Tel.: + + 920 457 8600

Dear Mr. Whidden and Mr. Kohler,

I have been informed by the Clean Clothes Campaign about the ongoing labor dispute at Global Sports Lanka (North Sails Lanka) located in the Katunayake Free Trade Zone in Sri Lanka. In this factory, where North Sails surf sails are made, 207 workers were dismissed in 2002 because they had gone on strike to protest management's refusal to pay their annual quality bonus. Since their wages are extremely low, the workers needed these "bonuses" to survive. These workers were unjustly dismissed and North Sails has a role to play in correcting this injustice.

March 29th of this year marked the third anniversary of this dispute. I understand that despite repeated attempts by the FTZ&GSEU (Free Trade Zone & General Services Employees Union) in Sri Lanka to resolve this situation and an international campaign to urge Global Sports Technologies (GST Holding in Switzerland) to pressure local management to resolve the dispute, either by reinstating the dismissed workers, or as a minimum, agreeing to 3rd party neutral mediation, Global Sports Lanka dismissed these attempts and has not shown any initiative to come to a fair resolution. I am contacting you at this time to request that North Sails take action to end this deadlock.

North Sails has been informed about the labor conflict in Sri Lanka and has to date not contacted the union to discuss how the conflict can be resolved. This leads me to conclude that not only GSL, but also North Sails does not support workers' rights.

I join the Clean Clothes Campaign and labour rights advocates around the world in urging North Sails to pressure local management in Sri Lanka to meet the following demands of the union:

· reinstate the illegally dismissed workers;
· agree to mediation by a third neutral party as proposed by the union or forward a suitable alternative;
· recognize workers' rights to organize and to collective bargaining.

I understand that a proposal for a well-respected mediator used by global giants such as Nike was made. Why has this not been accepted?

While GSL and North Sails continue their delaying tactics, the situation of the dismissed workers has steadily deteriorated, causing them great hardship. That is why immediate action on your part is needed to resolve this situation. It is still not too late to do the right thing for the workers who have contributed to the well-being of your company. I am sure that you would agree that North Sails workers should be treated with respect and fairness. I strongly urge you to take immediate action on this very serious case today.

I look forward to hearing what action you will be taking in this matter.

Sincerely,

[name]