The first Free Trade Zone (FTZ) was formed in Sri Lanka in 1978 as the government of the day following World Bank structural adjustment principles opened up Sri Lanka's economy. There are now three major FTZs in the country employing over 100,000 workers, 75% women, single, aged between 20-29 years and many smaller industrial parks, estates, and zones.

Legally, unions have never been prohibited from forming in the FTZs, however the reality is very different. In reality no unions existed openly in the FTZs until 23rd January 2000 when the Free Trade Zone Workers Union (FTZWU) was formed after many years of organising zone workers. Since then other unions have also been formed inside the zones. Sri Lanka is also a signatory to ILO Conventions No's 87 & 98 on freedom of association and the right to organize and collectively bargain. But through the non-implementation of labour laws and fundamental rights, emergency regulations, and violence and intimidation workers rights are routinely repressed.

Repression of the FTZWU

A 1999 amendment to the Industrial Disputes Act, which required that unions be recognized as a bargaining agent in a workplace if 40% or more workers in the workplace belonged to a union, has not led to recognition of unions by employers in the workplace. The FTZWU has been registered as a union, however employers are still refusing to recognize both the FTZWU and its factory branches.

Since its inception the FTZWU has formed eleven branches, six in the garment industry, of these only one has been legally recognized. Of the ten FTZWU branches awaiting recognition, four have been smashed. Recognition for the remaining FTZWU branches is being pursued through the courts and through campaigns. The FTZWU and TIE-Asia have requested international support in a campaign pressing for recognition of the union. The CCC, through its urgent appeal network, is supporting this initiative.

Cases included in the FTZWU campaign are :

· Cosmos Macky Branch
Cosmos Macky, located in the Katunayake FTZ, is a Korean/Sri Lanka joint venture company, producing sports and ski wear for export, under the Cosmack trade mark. Following a strike over a disputed annual bonus 18 workers, including the strike leaders were transferred to another factory. Workers struck again, protesting the transfers. At the same time they formed a branch union and informed management. Management refused to acknowledge the unions' existence and hired two people to start a campaign of harassment against union members and officials. Two key union leaders were transferred and 62 workers dismissed in an effort to weaken the union. As of January 2002, repression of workers inside the factory was reportedly getting worse, most of the longer term workers had resigned. As a result the branch union is now defunct.

· Fine Lanka Branch
This is one of the branches that has been crushed. It has also been the subject of previous appeals for international solidarity action. The first President of the FTZWU also came from this factory where 90% of workers were union members. Eight hundred and fifty eight workers lost their jobs for forming a union and the factory closed in March of 2000. The factory reopened in May 2001, with the assistance of local politicians, employing a smaller number of non unionized staff and 60 of the original and unionized employees under stringent conditions. These conditions were that they withdraw their names from a court case against the factory, agree to a probation period, and make no claim back pay for the period that they were locked out of the factory. Fine Lanka produced labels for: Federated Department Stores (Charter Club & Metopolis labels); Sears Roebuck (Forecast Mendocino); J.C. Penny and Co (Protocol and Support Tech); R.H. Macy & Co Inc; High Sierra Sports Co (High Sierra), additional labels included Travel Gear, Atlantic, Jeep and Sports Plus. As of January 2002, this case was still in arbitration.

The campaign is also taking up other cases. For more complete information on the FTZWU campaign and more extensive action ideas, see the CCC website: http://www.cleanclothes.org/appeals.htm

Source: TIE-Asia

What you can do to support the FTZWU Send Letters to the Sri Lankan President Chandrika Bandaranaike Kumaranatunga Presidents House Colombo 1 SRI LANKA Fax: +94 1 333 703 Urge the president to · intervene and ensure that foreign investors and employers recognize these unions immediately; · ensure that the ILO Conventions that Sri Lanka is a signatory to (particularly no's 87 & 98) and the laws of Sri Lanka are upheld; · direct the Ministry of Labour to resolve these outstanding cases, in accordance with the provisions of the Industrial Disputes (amendment) Act by recognizing the unions legally formed in the factory; · point out that violations of laws by investors are a threat to law and order in the entire country; Write to the Minister of Labor Athauda Seneviratne Esq. Minister of Labor Ministry of Labor Colombo 05 Fax: +94 1 588 950 Urge the Minister of Labor to · intervene to ensure that officers in his department, under his direction uphold the labour laws, specifically freedom of association and the right to organize and to recognize legally formed factory unions; · intervene to settle these urgent outstanding matters as soon as possible. Write to parent companies and management at their Sri Lankan facilities Urge them to ensure that local management of their factories uphold the law to which they are bound and workers human rights. Cosmos Macky Samdo Trading Company Ltd 14-11 Yo Do Dong Young-Deung -Ku Seoul Korea Cosmos Macky Industries Ltd Ringroad 1 IPZ Katunayake Sri Lanka Tel: +94 1 252 843 or 844 Fax: +94 1 252 857 Fine Lanka Fine Corporation 1120-1 Hwaquk-Dong Kangseo-Ku Seoul Korea Fine Lanka Luggage (Private) Limited Export Processing Zone Katunayake Sri Lanka Tel: +94 1 252 681 or 682 Fax: +94 1 252 680 Send copies of any activities or correspondence to: FTZWU 141 Ananda Rajakaruna Mw Colombo 10 Fax: + 94 74 617 711 E-mail: ftzunion@diamond.lanka.net