00-04-03, HONDURAS: YOO YANG SIGNS AGREEMENT, WILL PHILLIPS-VAN HEUSEN STAY AT YOO YANG?

Dear friends,

Although a bit late, here finally is some good news: the Yoo Yang factoryin Honduras signed an agreement with the union. Still we should not be toosatisfied, because Philips van Heusen might withdwar from the factory,because of poor labour conditions. Several organisations suspect that thisis not the real reason, since they have been at this factory for over fiveyears, but rather the fact that they are afraid of a strong union is thereason t break contacts. We urge you therefore to write letters to the CEOof PVH.

Another problem is that the union is still not recognised by the Hondurangovernement. You can also sent letters to the embassador of Hunduras in theUnited States, or in your own country.

Greetings,

Anne van Schaik

HONDURAS: YOO YANG SIGNS AGREEMENT posted March 26, 2000

<><><><><> YOO YANG SIGNS AGREEMENT WITH UNION

[Information provided by the U.S./Labor Education in the Americas Project: (773) 262-6502, < This e-mail address is being protected from spambots. You need JavaScript enabled to view it >]

In a major breakthrough for maquila organizing in Honduras, the management of Yoo Yang and the SITRAIMASH union signed an agreement on March 10. The company:

(1) recognizes the union;(2) agrees to discuss grievances with the union leaders; and(3) agrees to negotiate contract demands, to adhere to this contract and to accept this contract as a collective bargaining agreement once the Labor Ministry legally recognizes the union.

The workers have expressed great satisfaction in the agreement and hope it will help their campaign to win a legally binding collective bargaining agreement and legal recognition by the Labor Ministry.

WILL PHILLIPS-VAN HEUSEN STAY AT YOO YANG?

On March 13, the union sent a letter to Phillips Van-Heusen informing it of the agreement and improved conditions, and urging PVH to maintain its contract with Yoo Yang. On March 20, PVH CEO Bruce Klatsky sent the executive committee of the union a letter reporting that PVH had already exited the factory, effective the end of March, but that because of the union's request and its own policy, PVH would move shortly "to attempt to reestablish a business relationship."

The communication to PVH was prompted by rumors that Phillips Van-Heusen had threatened to cancel its contract with Yoo Yang, citing poor treatment of workers and non-compliance with its code of conduct. Given that PVH has been at Yoo Yang for five years and has long had contacts with other suppliers in the region with similar (or worse) working conditions, PVH's stated rationale has been questioned by US/LEAP as an excuse to cancel its contract with a factory with a strong union.

US/LEAP welcomes PVH's apparent decision to return soon to Yoo Yang - although the pledge to do so is not unequivocal. Assuming PVH returns quickly to Yoo Yang in response to the union's request, to the improved conditions and to the new agreement between Yoo Yang and the union, PVH's actions with respect to Yoo Yang can legitimately be characterized as having had a very positive impact on the behavior of this particular PVH supplier in Honduras. The first order of business with PVH now, however, should be to resume contracting operations as quickly as possible to prevent the possibility of layoffs should Yoo Yang not have sufficient business during PVH's absence.

BACKGROUND

SITRAIMASH is located in Continental Park, the same industrial park as the Kimi union, SITRAKIMIH. Kimi and SITRAKIMIH were both thrown out of the park after the collective bargaining agreement was signed because the owner, Jaime Rosenthal, who is blatant in his discrimination against unions, would not renew the lease. SITRAIMASH has over 450 members (and growing) out of the approximately 625 workers at Yoo Yang. Because of its strength, the union has survived illegal firings of the union leadership, harassments, illegal suspensions for affiliating with the union and the pro-industry bias of the Labor Ministry.

Shortly after the union elections for SITRAIMASH, Yoo Yang illegally fired the executive committee in August, 1999. To protest, the entire workforce refused to work until the union leaders were re-hired. Work resumed a few days later when the leaders were reinstated. Yoo Yang again fired union leaders illegally after the SITRAKIMIH strike that shut down the whole park. During this strike, riot police were present and used tear gas and violence without provocation. After 49 days of protest from the union and a letter to PVH asking for help (signed by 400 Yoo Yang workers), the fired workers received over 100% of their severance pay.

Though it was asked for, SITRAIMASH received no protection from the Honduran Labor Ministry in any of these cases. Furthermore, after delaying three months past the legally mandated due date to respond to the application for legal recognition, at the beginning of March the Labor Ministry denied SITRAIMASH's application as an industrial union. The Labor Ministry's action came after the start of an international campaign to pressure the Labor Ministry to respond to SITRAIMASH's application. The campaign was planning protests at Honduran consulates. The international campaign was covered in the local Honduran press as soon as it was launched (and even before the consulate actions took place).

As an industrial union, SITRAIMASH must have a request for legal recognition from two union locals from two different work sites. For SITRAIMASH, the two union locals were from Yoo Yang and a small union local from Kimi (which is separate from SITRAKIMIH, the factory union local). The Honduran Labor Ministry claimed that Kimi cannot have both the SITRAKIMIH union and the SITRAIMASH union local.

The union lawyers are confident in their analysis of Honduran labor law and assert that it is in fact legal and correct that one factory can have two union locals but are reexamining their legal strategy. Organizers believe that the Honduran Labor Ministry denied the application on false grounds to keep the union from getting legal recognition.

ACTION REQUEST

Please complete the following information and send these few lines (not the entire alert!) to Campaign for Labor Rights via email < This e-mail address is being protected from spambots. You need JavaScript enabled to view it > or fax (541) 431-0523:

I have sent the letter to Phillips-Van Heusen and I would like my name added to the sign-on letter to the Honduran Embassy.NAME:CITY/STATE (or COUNTRY if outside U.S.):ORGANIZATION (if applicable):

1) LETTER TO SEND TO PHILLIPS-VAN HEUSENPlease copy, sign and send this letter by mail or fax.

Bruce Klatsky, CEOThe Phillips-Van Heusen Corporation200 Madison AvenueNew York, NY 10016Fax: (212) 381-3970

Dear Mr. Klatsky:

I was happy to learn that management of the Yoo Yang clothing factory (a Phillips-Van Heusen supplier in Honduras) and the SITRAIMASH union have come to an agreement which respects the basic rights of the Yoo Yang workers - and that conditions have improved at the factory. Observers close to the situation report that your company appears to have played a positive role in encouraging management to act responsibly.

Another welcome piece of news is that Phillips-Van Heusen appears to have committed to resume using Yoo Yang as a supplier. I hope very much that this is the case. I urge you to return to the factory swiftly so that no workers will be laid off due to a break in production. Also, please be sure that your company's contract with Yoo Yang enables the factory to pay its workers a decent wage.

Thanks for the positive steps you have taken so far. I look forward to hearing more good news soon from human rights organizations which are monitoring developments at Yoo Yang.

Sincerely,

NAME:CITY/STATE (or COUNTRY if outside U.S.):ORGANIZATION (if applicable):

2) SIGN-ON LETTER TO THE HONDURAN EMBASSYPlease let us know if we may add your name to this letter.

Ambassador Hugo Noe PinoEmbassy of HondurasWashington, DC

Dear Ambassador Noe Pino:

I was happy to learn that management of the Yoo Yang clothing factory (located in Continental Park near Lima, Honduras) and the SITRAIMASH union have come to an agreement which respects the basic rights of the Yoo Yang workers. Another welcome piece of news is that Phillips-Van Heusen appears to have committed to resume using Yoo Yang as a supplier.

In contrast, it is unacceptable that the Honduran Labor Ministry has failed to grant legal recognition to the SITRAIMASH union. According to observers close to the situation, the reason given for the refusal is entirely without basis in the labor law of Honduras.

Such anti-union behavior on the part of the Labor Ministry is exceptionally short-sighted. When the other parties to this situation are acting responsibly, why is the Labor Ministry taking actions which could prolong labor conflict? Surely, the government of Honduras would not want to continue on a course which might cause potential investors to consider placing their production elsewhere.

As you may know (from accounts in the Honduran press), human rights activists were recently set to engage in leafleting actions at the Honduran Embassy and Consulates in the U.S. in support of legal recognition for the union. The leafleting was postponed at the request of SITRAIMASH in light of new developments.

I hope that the Labor Ministry will soon grant recognition to SITRAIMASH and that there will be no need for an international campaign which might tarnish the reputation of Honduras.

Sincerely,