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(More on this case)
( !! Note that Kukdong changed it's name sept 2001 to Mex Mode )
January 25, 2001, update on Kukdong case
Fair Labor Association statement Source: U.S./LEAP
Statement from Sam Brown January 25, 2001
We continue to follow the situation at the Kukdong factory. There
is little, credible, objective information available. As reported
last week it Mexican attorney, Arturo Alcalde, working with the
International Labor Rights Fund has been to the factory. He has
made recommendations to insure that Mexican, international, and
FLA standards on freedom of association are observed. He is particularly
concerned about continuing allegations that severance pay is being
used to silence workers. The FLA Code of Conduct is clear on this
issue, and one of the Benchmarks for interpreting performance under
the Code says that, "Employers shall not offer or use severance
pay (or "indemnicization" in Latin Ameica) as a means
of restricting union formation or union operations."
Although, NIKE currently has no production in this factory they
have been responsive to suggestions for ways insure that the FLA
Code is upheld. Mr. Alcalde has encouraged NIKE to send an official
to the factory with instructions to strongly reiterate to factory
management Nike's support for worker freedom of association and
strict compliance with the workplace Code of' Conduct. Nike has
had a responsible official on the ground at the factory who has
made this point to factory management. Mr. Alcalde and the NIKE
representative have been in contact and have discussed next steps.
Reebok has also had production in this factory and has been engaged
in an effort to assemble the facts in a thoughtful way, to respond
to the situation as the facts become known, surd to make clear to
factory management Reebok's commitment to freedom of association
and to the FLA Code provisions on this and other subjects.
In light of the continuing allegations, an urgent and comprehensive
independent review of these allegations ?? and others -? by an accredited
independent monitor familiar with Mexican law and skilled ire factory
monitoring is highly desirable. Fortunately on Tuesday, ire the
culmination of a process that has been underway for marry months,
the FLA accredited Verite, a Massachusetts not for profit firm,
as its first monitor for work in Mexico. It is my understanding
that Nike and Reebok are proceeding to make arrangements with Verite
to undertake the required independent monitoring.
**********************************
Press release from Nike
NIKE REITERATES ITS SUPPORT FOR AN INDEPENDENT, ACCREDITED MONITOR
FOR KUKDONG MEXICO FACTORY
January 25, 2001
Nike has been actively engaged in bringing a resolution to the
ongoing labor dispute occurring at the Kukdong factory ire Puebla,
Mexico. Mike shams the concern of all interested parties that this
situation be resolved fairly arid expeditiously and that all Kukdong
tears be treated with dignity and respect For that reason, upon
hearing them was a dispute At the factory, Mike acted immediately
to effectively address this situation. Nike has been working with
a number of individuals and organizations inducting an Independent?14156f
expert, our compliance officer on the ground In Pueblo, Kukdong
factory management, third pony labor rights advocates currently
in Puebla, students and other interested parties. Politicizing this
issue is not in the toot interest of any of the parties.
Last Friday, Nike initiated a call to the Fair Labor Association
(FLA) and its university affiliate board member, the Kukdong factory
management, Reebok and the Workers' Rights Consortium (WRC) to jointly
agree upon an independent, trained external monitor so that the
facts of this situation may fully be assessed and remediation cars
begin as soon as possible. While the WRC has shown interest in this
issue, Nike does not consider their group to be an objective or
trained monitoring organization, as evidenced by their recent preliminary
findings,
Nike is committed to working with tie FLA and its university affiliate
board member, the Kukdong management, Reebok, and the WRC to agree
upon and commission an independent monitor to conduct a full investigation
of the alleged labor compliance violations at the facility. Nike,
the FLA, and its university affiliate board member. Reebok and the
factory have all agreed to use the FLA certified independent monitoring
organization Verite, a non?profit group based in Amherst, Massachusetts,
to achieve this goal. In addition, Nike is committed to working
with the Kukdong factory management to ensure they are compliant
with Nike's internal Code of conduct.
Nike supports they rights of alt Kukdong workers to return to the
factory without reprisal. Nike has maintained from the beginning
that workers have the right to organize and collectively seek fair
and independent resolutions to disputes such as these. It is Nike's
understanding that the factory management is working to facilitate
the return of workers, who choose to come back to the factory regardless
of which union they support. In addition, the factory has made arrangements
for workers who, for various reasons, have chosen not to return
to work yet, to return when the situation at the factory normalizes
or collect severance in accordance with Mexican labor law.
Nike will work with all parties committed to this process by coupling
monitoring with remediation to further strengthen our commitment
to long?term improvements for workers. Nike and FLA members are
working toward one of conduct that everyone can follow. Our mutual
challenge is to work toward the continuous improvement of factory
conditions through active and collaborative involvement by all stakeholders.
By recognizing each other's responsibilities, we can rapidly advance
our mutual goals of human rights and workplace dignity.
Nike once again calls upon all parties to use care and restraint
in making any charges or drawing any conclusions about these complex
issues until full and independent monitoring assessment can be completed.
We also encourage interested parties to visit our Web site www.nikebiz.com
for mare details and the most current information about company's
corporate responsibility programs.
*******************************************************
Following is a recent report issued by the International Labor
Rights Rund (ILRF) investigation of the Kukdong factory
INTERNATIONAL LABOR RIGHTS FUND 733 15th Street, NW, #920 Washington,
DC 20005
Report to Universities Affiliated with the Fair Labor Association
Regarding the Kukdong International Conflict in Axtlico, Peubla,
Mexico
January 25, 2001
On January 12, the International Labor Rights Fund contacted Nike
compliance officials regarding a conflict at a plant in Mexico which
had been producing Nike sweatshirts for the collegiate market. As
a consequence of that conversation, we accepted a request from Nike
to find a knowledgeable labor attorney in Mexico who could conduct
an independent investigation on our behalf about a situation in
which the company was receiving multiple and contradictory reports.
The same day, ILRF contacted Mr. Arturo Alcalde Justiniani, a
key independent labor lawyer who has been president of the National
Democratic Lawyers Association of Mexico, and who serves as the
attorney for a number of independent non-officialista unions in
Mexico. Mr. Alcalde has also been a member of the ILRF board of
directors for a number of years.
On Monday January 15, Mr. Alcalde visited the factory in Axtlico
and interviewed company officials, local labor department officials,
company lawyers, workers both in the factory and on strike outside,
and representatives of the CROC and UNT, two competitive union federations.
He reported his findings to us, which in summary form, concluded
that the major issue was the failure of the company to reinstate
workers who had been on strike over a variety of issues and the
negative impact this would have on any subsequent union representation
election. An agreement had been reached by management with local
labor authorities to reinstate all the striking or fired workers,
but when workers attempted to regain their jobs they were being
rejected unless they signed statements in support of the CROC union,
which Arturo reported had been given a sweetheart contract by management
without the knowledge of the workers. Company lawyers were reported
to be giving severance payments to any workers rejected by CROC,
thus effectively removing from the factory any workers who had been
brave enough to complain about workplace conditions. We also consulted
with the AFL-CIO representative in Mexico, Jeff Hermanson, whose
interpretation of the situation matched that of Arturo Alcalde's.
Alcalde strongly recommended that Nike send someone to the factory
with the authority to insist that all workers be reinstated, not
just those loyal to the CROC union.
Nike has acted on these recommendations in good faith, insofar
as we are currently able to determine. The Nike compliance office
supervisor for Latin America, Gabriel Llaguno, has visited the factory
again, and today has confirmed that the CROC representative was,
as Alcalde had reported, refusing to allow workers who had sought
a new union to regain their jobs. A meeting at the factory is scheduled
for later today to correct this, at which the ILRF will be represented
by Arturo Alcalde.
Reebok officials, we understand, have also met with Kukdong's
parent company, urging a firm statement of support for a free and
fair union representation election and reinstatement of all workers
who were on strike.
We understand that the Worker Rights Consortium also sent an investigation
team from the United States early this week to examine the situation.
Their preliminary report, issued today, confirms in most particulars
the findings of Arturo Alcalde from his visits beginning last week.
We believe that the crisis at the Kukdong factory can be resolved,
if action is taken swiftly to re-employ all the workers who were
on strike and to allow a free and fair election to take place in
the factory. When it comes to union representation, justice delayed
is justice denied. Following such reinstatements, the allegations
of labor rights violations that caused the January 9 - 12 walkout
can be fairly investigated and, where confirmed, corrected.
We understand that the Fair Labor Association has accredited an
independent monitor, Verite, who has been contracted to carry out
a full investigation and independent audit of the factory. ILRF
will continue to monitor these developments and cooperate with all
who are seeking a fair resolution for the workers of Kukdong.
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