Oct 2004, Re-opening the North Sails Campaign!

We are re-opening the North Sails Campaign!

Dear all,

In December 2003 we asked you to suspend the campaign for the rights of the Sri Lankan workers producing “North Sails” surf-sails. Global action had led to a 6 point Memorandum of Understanding, between Boards & More (the Austrian owner of North Sails Lanka), the General Services Employees Union (FTZ&GSEU) and the Austrian CCC.

Nearly a year later we unfortunately have to conclude that the company has failed to implement the MoU in good faith, and therefore, conform point 5 of the MoU, we are re-opening the campaign and have informed management of this earlier this week.

What can you do:

Check the updates on this case and find an action request and sample letter.

Changes in Ownership

In September 2004 the production of surfsails (and boards) under the brandname North Sails was transferred from Boards and More to Global Sport Technologies (GST) holding AG in Switzerland. Mr. S is the chief of production. North Sails Lanka got a new name: it is now called Global Sport Lanka (GSL).

Violations of the MoU

The dismissed workers, whose faith is at the heart of the case, first filed against their dismissal in 2002. The cases came before the labour tribunal in February 2003, but management refused to attend. The MoU included a provision that both management and the FTZ&GSEU would accept the decision of the labour court regarding the cases filed by the workers against their dismissal as final. The second provision calls for direct and substantial negotiations between the company and the FTZ&GSEU (who would be permitted to establish a branch union). Since then, the court has divided the workers into several categories, all of whose cases are still pending. This clearly works to the advantage of management, who despite having vacancies and hiring new workers, refuses to give preference to the 38 workers whose cases are pending. Additionally, management has reportedly advised other employers not to hired these workers.

Meetings between North Sails Lanka and the FTZ&GSEU have taken place at the local level in January and again in April, however the substance of these meetings has done little to move the parties involved closer to a settlement. The union believes that by refusing the rehiring these workers, management is violating the spirit of the MoU, whose key element is the agreement to negotiate directly and substantially, which should include a settlement regarding the dismissed workers.

The FTZ&GSEU agreed in the MoU to stand by the labour courts final decision, and will stick to that agreement, but this can be a process that takes years more. Management should not use this as an excuse to refuse to negotiate a settlement! Meanwhile, the workers, most of whom migrated from the countryside can find no other jobs in the zone, among others because GSL has warned other employers against them. Some of them have produced North Sails surf sails for over 10 years but instead of this working to their advantage they now are negatively affected by the age discrimination common in the zone (anyone over 25 years has trouble finding work). To make matters worse, management also filed a complaint to the Board of Investment without raising the issue with the union first. Clearly, management is creating obstacles in to resolving this dispute, not moving closer to a resolution.

CCC Austria and International have repeatedly taken up these issues with the parent company GST. A meeting between management and the union was held at the Ministry of Labour on monday October 18, but unfortunately again with no results. Discussions were postponed without a fixed date. Management refused to consider a proposal from the side of the union that, to break the deadlock, Global Sports Lanka would take back at least some of the workers (ex. one employee from each of the 4 categories of status pending in the labour court), without waiting for the court decision and without prejudice to either party’s positions on matters at the court. This would show the company's genuineness to negotiate and arrive at amicable settlement, which they claim to CCC to wish the achieve.

Alltogether this leaves us with no alternative but to re-open the campaign.

The FTZ&GSEU calls upon Global Sports Lanka to:

reinstates the unfairly dismissed workers
constructively negotiate with the union representing the workers
respects union rights, now and in the future.

What can you do:

Check the updates on this case and find an action request, sample letters and contact details.