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Garment Factory Strike in the Philippines

17 Jul 2001, Update IGMC strike Philippines 19 Jun 2001, Urgent Appeal: Garment Factory Strike in the Philippines

Dear Urgent Appeals Activists,

We got this appeal from Leo Rojano, the program director of the Institute for Developmental Education and Services (IDES) in Manila.

If you have more questions regarding the case, you may e-mail or call me or my college Renate in the office (+49 221 4301 317). I'm usually in from Monday until Thursday noon. Or at: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Jack Catarata
German CCC


Urgent Appeal: Garment Factory Strike in the Philippines

Following is an appeal for support from a garment factory union on strike in the Philippines. The company, International Garments Manufacturing Corp. (IGMC) produces for "Wrangler" and "The Gap", among others. Seventy percent of the total production is geared for the overseas market-90% of which goes to the USA and Asia, and the rest to Europe.

Participated in by about a third of the factory's 629 workforce, the strike broke out last May 1 when union negotiations with the management under government mediation failed. Claiming losses on one hand, and new ownership on the other , the management wanted to dismiss all its workers. The striking unions-one for supervisors called International Garments Supervisory Union (IGSU) and another for rank-and-file workers called United Workers of International Garments (MANAIG)-oppose the mass dismissal saying that the real purpose of the management is not to close the company but to bust the militant union existing in the factory.

Last February, management put the workers on job rotation ( workers have to work alternately with other workers ). As it affected the workers take home pay and welfare, the union opposed this measure and held negotiations with the management but to no avail. The management even extended job rotation for another month.

Worth noting is that during this period, the workers realized that raw materials, supplies, and other purchases intended for the factory were diverted to the company's sub-contractors.

In March the company suddenly announced that the company was sold to new owners and that all workers have to be terminated after paying a small separation fee. The union protested on the bases of the existing collective bargaining agreement. In a move seen to weaken the union position, management promised to rehire workers who are voluntarily resigning.

The unions dispute the claim of the company that it is losing money. Although the company's financial statement for the current year shows losses, the consecutive years before showed huge profit margins. Moreover, the unions express doubt over the veracity of this year's financial statement shown to them by the company as it doesn't jibe with the figures (which showed profit) of the financial statement of the company members of the supervisory union had access to prior to the strike.

Although many union members accepted the company's termination package hoping that management keeps its promise to rehire them, some union members are holding on to their strike demanding that the company honours the current collective bargaining agreement. Of the 200 or so strikers, 179 of them are female. On the average, the workers have worked in this factory from 17-20 years!

This protest/appeal is meant for Wrangler and The GAP to pressure their suppler -International Garments Mfg. Co.-to respect the rights of the workers to unionise and to respect the present bargaining agreement in line with the ILO covenants. Please find below a sample protest letter with the different VF Corporation addresses in Europe, the USA and the Philippines.

Vanity Fair (VF) Corporation (US)
628 Green Valley Road, Suite 500
Greensboro, NC 27408
Phone: 336-547-6000
Fax: 336-547-7634

VF EUROPE

INDUSTRIEPARK-NOOR, 29
9100 SINT-NIKLAAS
Sint Niklaas
Belgium
Phone: +32 3 760 06 11
Fax: + 32 3 778 04 34

VF GERMANY TEXTIL-HANDELS GMBH

Otto Hahn-Str. 36
63303 DREIEICH
Odenwaldkreis
Germany
Phone: +49 6103 5610
Fax: +49 61 03 531 346

VF (J) FRANCE

16 RUE GOUBET
76019 PARIS
Fax : +33 1 400 36020

VF ITALIA

VIA CELLINI 31
20020 SEGRATE
Milano, Italy
Phone: + 39 221 6671
Fax: + 39 0

VF.(J). NEDERLAND B.V.

Bunsenstraat 17
3316 CC Dordrecht
Netherlands
Phone: + 31 78 61 800 22

CEO Donald Fisher
The Gap, Incorporated
One Harrison Street
San Francisco CA 94105
U.S.A.


This is the letter we sent:

We, members of the Clean Clothes Campaign, view with concern the on-going strike in one of your supplier-factories -International Garments Manufacturing Corp. (IGMC)-in the Philippines.

Union members of the IGMC factory are on strike since May 1 demanding that IGMC management respect the current collective bargaining agreement in place in the factory and stop the dismissal of its workers. A short background information about the strike is in order.

Last February, management put the workers on job rotation ( workers have to work alternately with other workers ). As it affected the workers take home pay and welfare, the union opposed this measure and held negotiations with the management but to no avail. Instead, the management extended job rotation for another month.

During this period, the workers discovered that raw materials, supplies, and other purchases intended for the factory were diverted to the company's sub-contractors.

In March management suddenly announced that the company was sold to new owners. Claiming losses-which the unions disagree as proven by the company's financial statements from previous years-management decided to terminate all workers after paying a small separation fee. On the bases of the existing collective bargaining agreement, the union organized the strike to stop the management from carrying out its plan and to insist that they respect the present collective bargaining agreement. Of the 200 or so strikers, 179 of them are female. On the average, the workers have worked in this factory from 17-20 years!

As an international labour rights network composed of trade unions, consumer and human rights organizations, we at the Clean Clothes Campaign fully support the demand of the striking workers. We believe that to fire the workers en masse while a collective bargaining agreement is in effect is a violation of their right. If, indeed, there are new owners wanting to run the company they should do so fully aware that an existing collective bargaining agreement is in place binding them.

For your information, the Clean Clothes Campaign (CCC),now active in 10 European countries, is a coalition of consumer organizations, trade unions, researchers, human rights groups, world shops, and other organizations that aims to improve working conditions in the garment industry worldwide. The campaign informs consumers about the conditions in which their garments and sportswear are produced. Through a network of 250 organizations in Europe, Asia, North and South America, information about labour rights violations as in the recent IGMC case are shared. Increasingly, European and American consumers find that violations of basic workers rights, such as the right to organize, are unacceptable. When informed of such violations, they choose to purchase garments produced by companies that respect workers' rights.

We hope that you will take steps to investigate the EGMC case thoroughly and ensure that the right of workers to organize and bargain collectively is respected at this factory producing your goods. We strongly urge you to pressure ICMC management in Manila to respect the existing CBA and stop its efforts to dismiss poor workers.

We also hope that you can inform us as quickly as possible as to what action the VF Corporation takes on this matter as we gladly update our network on this case. Should you have any questions on this, please do not hesitate to contact us. We look forward to your favourable response.

Sincerely


17 Jul 2001, Update IGMC strike Philippines

Dear Friends,

Today we received a message from Leo Rojano, the program director of the Institute for Developmental Education and Services (IDES) about the lifting of the strike at the IGMC factory in Manila last week.

Leo Rojano wrote:
"The strike of the IGMC workers was lifted early July 2001, as result of the negotiations before the National Labor Relation Commissions (NLRC). Strikers accepted the offer of management of separation pay. The strike lasted for almost 2 months and the strikers faces financial difficulties, so they were forced to accept the separation pay from IGMC. But, whether or not the dismissal/closure was legal is still pending in the NLRC".


 
 

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